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.
PSM (Process Safety Management)
Related Terms
Protective System
ComplianceA method used to protect workers from cave-ins during excavation work, including sloping, shoring, or trench boxes. Subcontractors are legally required to implement an adequate protective system before workers enter any trench deeper than 1.2 metres. Failure to comply can result in stop-work orders, fines, or loss of contract.
Indemnity Provision
ComplianceA contract clause that transfers liability for losses, injuries, or damages between parties. Subcontractors are often required to indemnify the prime contractor or operator against third-party claims. Review these clauses carefully, as they can expose your company to costs beyond your scope of work.
Willful Violation
ComplianceA deliberate breach of a safety regulation or worksite rule, where the subcontractor knew the requirement and chose to ignore it. Regulators treat these far more severely than accidental non-compliance. Fines, stop-work orders, or contract termination can follow.
Environmental Impact Statement (eis)
ComplianceA formal document assessing a project's environmental effects before work begins. Subcontractors must align their operations with EIS commitments or risk work stoppages. Scope changes that violate EIS conditions can trigger costly regulatory reviews.
Heat Illness Prevention Standard
ComplianceA 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.
Vendor Qualification
ComplianceThe process by which operators and prime contractors vet subcontractors before awarding work. It typically involves reviewing insurance, safety records, certifications, and financial stability. Failing to qualify can bar a company from bidding on projects entirely.
Latest Compliance News
Asset Integrity Silos Are a Process Safety Problem, and Subcontractors Are Exposed
When asset integrity operates separately from process safety management, everyone in the field pays the price. A MISTRAS Group executive explains why integration matters and what it means for subcontractors working in PSM-covered facilities.
5 months agoComplianceTwo Traffic Plans, One Work Zone: Closing the Safety Gap Subcontractors Miss
Construction Executive breaks down why work zone fatalities persist even when signage and cones follow the rules, pointing to a disconnect between public traffic control plans and internal crew/equipment protocols.
2 days agoComplianceNYC Voids 2,000 Safety Cards After Training Provider Fraud Indictment
New York City is invalidating roughly 2,000 construction safety credentials tied to RedCode Inc. after prosecutors indicted the company and two of its principals for allegedly selling training cards without conducting the required courses.
4 days agoComplianceMSHA Alert Pushes Mine Operators to Step Up Impoundment Inspections
MSHA has issued a safety alert calling on mine operators to increase engineering assessments and inspections of impoundments, citing aging infrastructure and heavier precipitation events.
5 days agoRelated Guides
When a Jobsite Incident Happens: What Field Workers Need to Know Before Signing Anything
What to do after a jobsite injury or incident, what your rights are before signing incident reports, how workers' compensation works, and how to protect yourself on multi-employer worksites.
Compliance GuideOSHA Citations on Multi-Employer Worksites: What Subcontractors Need to Know
Learn how OSHA's multi-employer citation policy works, why subcontractors get cited for hazards they didn't create, and how to protect your company on operator-controlled job sites.
Compliance GuideHow to Read and Negotiate an Oilfield Master Service Agreement (MSA): A Subcontractor's Guide
Learn which MSA clauses actually matter for oilfield subcontractors: indemnity, insurance, payment terms, and change orders. Know what you're signing.
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