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Compliance Glossary Term

MI (Mechanical Integrity)

A regulatory and operational standard confirming that pressure-containing equipment is fit for service and free from defects. Subcontractors working on vessels, pipelines, or wellheads must often meet MI requirements before commencing work. Non-compliance can halt operations and trigger liability for field service crews.

Related Terms

Api 653

Compliance

API 653 (American Petroleum Institute Standard 653) governs the inspection, repair, alteration, and reconstruction of above-ground storage tanks. Subcontractors performing tank work must comply with this standard or risk failed inspections and contract penalties. Many operators require certified API 653 inspectors on-site before authorising any tank maintenance scope.

Foreign-Flagged Vessel

Compliance

A marine vessel registered under another country's flag rather than the nation where it operates. Subcontractors must verify compliance with cabotage laws, as restrictions may limit which vessels can legally perform local work. This affects equipment mobilisation planning and contract eligibility on offshore projects.

Industrial Carbon Tax

Compliance

A federal levy charged to large industrial facilities based on their greenhouse gas emissions. As a subcontractor, your clients may pass these costs down through contract terms or fuel surcharges. Review your agreements closely to understand who bears this liability.

Suspension Trauma

Compliance

A medical emergency caused by hanging motionless in a harness, restricting blood flow and leading to unconsciousness or death. Subcontractors working at height must plan for rapid rescue — OSHA and provincial regulations require it. Train crews to recognise symptoms and never leave a suspended worker unattended.

Serious Citation

Compliance

A regulatory violation notice issued when an inspector finds a condition likely to cause serious injury or death. For subcontractors, it typically triggers fines, mandatory corrective action, and potential work stoppage. These citations can affect prequalification standing and future contract eligibility.

Davis-Bacon Prevailing Wage

Compliance

A U.S. federal law requiring subcontractors on government-funded construction projects to pay workers the locally established minimum wage and benefits. Rates vary by trade, location, and job classification. Subcontractors must track and document compliance carefully or risk contract penalties.

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