A surety bond guaranteeing a subcontractor will complete work per contract terms. If you default, the bond compensates the prime contractor or owner. Bonding capacity directly affects your ability to bid larger contracts.
Performance Bond
Related Terms
FCI (Federal Contract Information)
ComplianceInformation provided by or generated for a federal government contract, but not intended for public release. Subcontractors handling FCI must meet specific cybersecurity and data protection requirements. Non-compliance can result in contract termination or disqualification from future federal work.
Surety
ComplianceA third party, usually an insurance or bonding company, that guarantees a subcontractor will fulfil their contractual obligations. If the subcontractor defaults, the surety compensates the project owner. Many upstream and construction clients require surety bonds before awarding work.
Fixed Ladder Safety System
ComplianceA fall-arrest assembly attached to a fixed ladder, typically including a rail or cable that a climber's harness connects to. Required on ladders exceeding specified heights at most oil and gas and construction sites. Subcontractors must verify worker training and compatible harness equipment before mobilising to sites with these systems.
Reactive Hazards
ComplianceMaterials or conditions that can cause fires, explosions, or toxic releases through chemical reactions when exposed to heat, water, or other substances. Subcontractors must identify these hazards before work begins and follow site-specific handling protocols. Common examples in oilfield and construction work include peroxides, unstable gases, and certain drilling chemicals.
Medium-Voltage
ComplianceElectrical systems operating between 1 kV and 35 kV, commonly found on industrial sites and oil and gas facilities. Subcontractors working near MV equipment typically require specialised certifications and strict site safety compliance. Always confirm voltage classifications before mobilising electrical crews.
Hazardous Energy Isolation
ComplianceThe 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.
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