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Compliance Glossary Term

OFAC (Office of Foreign Assets Control)

A U.S. Treasury agency that enforces sanctions against designated countries, companies, and individuals. Subcontractors must screen clients and vendors against OFAC lists before accepting contracts or payments. Working with a sanctioned party can result in severe fines and contract termination.

Related Terms

Hazardous Energy Isolation

Compliance

The process of controlling dangerous energy sources—electrical, hydraulic, pneumatic, or mechanical—before maintenance or repair work begins. Subcontractors must follow the site owner's lockout/tagout (LOTO) procedures or risk losing site access. Non-compliance can void your contract and trigger serious liability.

Heat Illness Prevention

Compliance

Protocols subcontractors must follow to protect field crews from heat-related conditions during outdoor or hot-environment work. Includes hydration schedules, shade access, acclimatisation plans, and buddy checks. Non-compliance can result in stop-work orders, liability exposure, or lost contracts.

Energy Control Procedure

Compliance

A documented, step-by-step plan for isolating hazardous energy before subcontractors perform maintenance or service work. It outlines lockout/tagout steps specific to each piece of equipment on site. Subcontractors are typically required to follow or develop their own procedure that meets the site owner's standards.

Heat Illness Prevention Standard

Compliance

A regulatory requirement mandating that subcontractors implement heat safety protocols for outdoor and high-temperature worksites. It typically covers acclimatisation procedures, water access, rest breaks, and emergency response plans. Non-compliance can result in stop-work orders, fines, or disqualification from site.

Written Work Plan

Compliance

A document submitted by a subcontractor outlining how a specific scope of work will be executed safely and efficiently. It typically covers methods, equipment, personnel, and hazard controls. Clients often require it before mobilisation or permit approval.

ASME (American Society of Mechanical Engineers)

Compliance

A global standards organisation that sets codes for pressure vessels, piping, and mechanical equipment used on job sites. Subcontractors working on boilers, pressure systems, or lifting equipment often must meet ASME standards to qualify for contracts. Non-compliance can trigger failed inspections, work stoppages, or liability exposure.

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