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ComplianceGlossary Term

Prequalification

A vetting process where operators assess a subcontractor's safety record, insurance, and certifications before awarding work. Companies must pass prequalification to be added to an approved vendor list. Failing or lapsing can disqualify a subcontractor from bidding on projects entirely.

Related Terms

SDS (Safety Data Sheet)

Compliance

A standardised document detailing the hazards, handling requirements, and emergency procedures for a chemical or hazardous material. Subcontractors must keep current SDSs on-site for every controlled product their crew uses or transports. Inspectors and site safety officers can shut down work if SDSs are missing or outdated.

Leading Indicators

Compliance

Proactive metrics that signal future safety or performance issues before incidents occur. For subcontractors, these include near-miss reports, toolbox talk attendance, and equipment inspection rates. Tracking them helps crews stay ahead of problems rather than reacting after the fact.

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.

Bid Bond

Compliance

A guarantee issued by a surety that your company will honour its bid price if awarded a contract. It protects the owner if you back out after winning. Typically required on larger public or industrial projects before your tender is accepted.

Injunction

Compliance

A court order that can halt work on a project, stopping subcontractors from continuing operations immediately. This can freeze your revenue and trigger contract disputes. Understanding injunction risks helps you plan for sudden work stoppages.

Osha (occupational Safety and Health Administration) Recordables

Compliance

Work-related injuries or illnesses that must be logged on an OSHA 300 form. For subcontractors, these incidents can affect prequalification scores and client contract eligibility. High recordable rates often disqualify field crews from worksites entirely.

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