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ComplianceGlossary Term

MRO (Medical Review Officer)

A licensed physician who reviews and verifies workplace drug test results before they are reported to an employer. Subcontractors must use an MRO-approved process to meet site access and compliance requirements. Failed or unverified MRO results can pull workers from the field immediately.

Related Terms

Public Work

Compliance

A government-funded construction or infrastructure project, such as roads, bridges, or utilities. Subcontractors on public work must meet strict licensing, bonding, and prevailing wage requirements. These projects often involve longer payment cycles due to public procurement rules.

BOEM (Bureau of Ocean Energy Management)

Compliance

The U.S. federal agency overseeing offshore energy leasing on the Outer Continental Shelf. Subcontractors working U.S. offshore projects must meet BOEM-driven compliance requirements set by their prime contractors. Permits and operational approvals from BOEM directly affect project timelines and mobilisation schedules.

FEMI (Fixed Equipment Mechanical Integrity)

Compliance

A systematic programme ensuring stationary assets like pressure vessels, piping, and heat exchangers remain safe and fit for service. Subcontractors often deliver FEMI work through inspection, NDT, and repair scopes under an owner's integrity management plan. Expect strict documentation requirements and third-party sign-off before returning equipment to service.

NDT (Non-destructive Testing)

Compliance

Inspection methods used to evaluate welds, pipelines, and structures without damaging them. Common NDT techniques include ultrasonic, radiographic, and magnetic particle testing. Subcontractors often need certified NDT technicians on crew to meet client and regulatory requirements.

Worker Misclassification

Compliance

Occurs when a subcontractor or field worker is incorrectly classified as an independent contractor instead of an employee. This exposes hiring companies to back-taxes, penalties, and liability for unpaid benefits. CRA audits in oil and gas and construction regularly target this issue.

Jones Act

Compliance

A U.S. federal law requiring vessels operating between American ports to be U.S.-built, owned, and crewed. Subcontractors providing marine labour or vessel services must verify crew eligibility and vessel compliance before mobilising. Non-compliance can result in contract termination and significant fines.

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