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ComplianceGlossary Term

Prevailing Wage

The minimum hourly rate subcontractors must pay workers on government-funded projects, set by regional labour surveys. Rates vary by trade and location, directly affecting your bid pricing and labour costs. Underpaying prevailing wage on public contracts can result in fines, back pay obligations, and disqualification from future bids.

Related Terms

S&S (Significant and Substantial)

Compliance

A regulatory classification used by MSHA to flag violations that could reasonably cause serious injury or illness. S&S citations carry higher fines and greater scrutiny for subcontractors working on mine sites. Accumulating S&S violations can jeopardise a subcontractor's site access and future contract eligibility.

OFCCP (Office of Federal Contract Compliance Programs)

Compliance

A U.S. federal agency enforcing equal employment rules for companies working on federal contracts. Subcontractors on U.S. federal projects must meet hiring and anti-discrimination requirements. Non-compliance can result in contract termination or debarment from future federal work.

Metering Calibration

Compliance

The process of verifying and adjusting flow meters, pressure gauges, and other measurement instruments to ensure accurate readings that meet regulatory and client standards — subcontractors providing metering services must maintain current calibration records as proof of compliance and to avoid liability for measurement disputes or billing discrepancies.

Api 579-1/asme Ffs-1 (fitness-for-Service Standard)

Compliance

A joint API/ASME standard used to assess whether ageing or damaged equipment is still safe to operate. Subcontractors may be required to conduct or support FFS assessments on pressure vessels, piping, and tanks. Results determine if equipment can stay in service, requires repair, or must be decommissioned.

Acclimatization

Compliance

The process of allowing workers to safely adjust to extreme heat, cold, or altitude before full-duty deployment. Most worksites and safety regulations require a structured acclimatization period for new or returning crew. Subcontractors must factor this non-productive time into scheduling and labour costs.

Trench Cave-in Protection

Compliance

Mandatory safety systems used to prevent trench walls from collapsing on workers during excavation. Common methods include shoring, sloping, and trench boxes. Subcontractors are legally responsible for implementing compliant cave-in protection before workers enter any trench deeper than 1.2 metres.

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