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ComplianceGlossary Term

PSM (Process Safety Management)

A regulatory framework governing hazardous process facilities like refineries and gas plants. Subcontractors working on-site must comply with the operator's PSM programme, including hazard reviews and safe work permits. Non-compliance can result in immediate removal from site.

Related Terms

ARO (Asset Retirement Obligations)

Compliance

Legally required costs to decommission and remediate a site at end of life, such as plugging wells or removing infrastructure. Operators budget ARO years in advance, which can create late-project work opportunities for subcontractors. Understand how ARO timelines affect contract scope, since decommissioning work often has strict regulatory deadlines.

Dig-In

Compliance

An accidental strike on a buried utility, pipeline, or cable during excavation work. For subcontractors, a dig-in can trigger work stoppages, liability claims, and regulatory investigations. Always confirm locate tickets are current before any ground disturbance.

Walkaround Inspection

Compliance

A pre-shift visual check of equipment, vehicles, or a worksite to identify hazards, damage, or defects before work begins. Subcontractors are typically required to document findings using a checklist. Incomplete or skipped inspections can create liability exposure and violate site safety requirements.

Leading Indicator

Compliance

A measurable signal that predicts future performance before problems occur. For subcontractors, examples include near-miss reports, toolbox talk attendance, and equipment inspection completion rates. Tracking these helps crews catch safety or productivity issues early.

Re-Qualify

Compliance

The process of renewing or repeating required safety, technical, or vendor approvals after they have lapsed or been revoked. Operators and prime contractors may require subcontractors to re-qualify before awarding new work. Failing to re-qualify on time can result in removal from approved vendor lists.

Indigenous Consultation

Compliance

A legal process where project proponents engage with Indigenous communities before work begins on or near their traditional lands. Subcontractors may need to pause or delay fieldwork if consultation requirements have not been met. Failing to respect this process can result in project shutdowns or permit rejections.

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