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Compliance Glossary 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

Corrective Action Plan

Compliance

A formal document a subcontractor submits after a safety incident, audit failure, or contract non-compliance. It outlines specific steps, responsible parties, and deadlines to fix the identified problem. Clients or prime contractors often require approval before field work can resume.

Powered Industrial Truck

Compliance

Any motorised vehicle used to move materials on a worksite, including forklifts, telehandlers, and order pickers. Subcontractors must ensure operators hold valid PIT certifications before deployment. Site clients often audit compliance records, so keep training documentation current and accessible.

Contempt Proceedings

Compliance

A court process used to enforce compliance with a court order, such as a payment judgment or injunction. Subcontractors can initiate contempt proceedings against clients who ignore court-ordered payments. Penalties may include fines or other sanctions against the non-complying party.

Energy Control Program

Compliance

A documented system requiring subcontractors to isolate and de-energise equipment before maintenance or service work begins. It defines lockout/tagout procedures, worker responsibilities, and verification steps. Prime contractors often audit subcontractor programs before awarding site access.

Api 653

Compliance

API 653 (American Petroleum Institute Standard 653) governs the inspection, repair, alteration, and reconstruction of above-ground storage tanks. Subcontractors performing tank work must comply with this standard or risk failed inspections and contract penalties. Many operators require certified API 653 inspectors on-site before authorising any tank maintenance scope.

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.

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