Court-ordered payments that go beyond compensating actual losses, intended to punish serious misconduct. Subcontractors can face these for gross negligence or wilful safety violations. Many prime contracts include clauses limiting or waiving punitive damage liability.
Punitive Damages
Related Terms
Surface Use Plan
ComplianceA document outlining how land above a wellsite or pipeline corridor can be accessed and used during operations. Subcontractors must follow it to avoid disturbing restricted areas or triggering landowner disputes. Non-compliance can result in work stoppages or liability on your crew.
Sanctions Compliance
ComplianceThe process of ensuring your company does not do business with individuals, entities, or countries under government-imposed trade restrictions. Subcontractors must screen clients, vendors, and partners against sanctions lists before signing contracts. Non-compliance can result in heavy fines, contract termination, or criminal liability.
FAR (Federal Acquisition Regulation)
ComplianceThe FAR governs purchasing rules for U.S. federal contracts, including subcontractor requirements on government-funded projects. If your prime contractor holds a federal contract, FAR clauses flow down and bind your work. These rules cover pricing, record-keeping, audits, and labour standards you must follow.
DBE (Disadvantaged Business Enterprise)
ComplianceA certification recognising businesses owned by minorities, women, or economically disadvantaged individuals. Prime contractors on federally funded projects often must subcontract a percentage of work to certified DBEs. Holding DBE status can open doors to set-aside contracts and preferred bidder programmes.
NRC (Nuclear Regulatory Commission)
ComplianceA U.S. federal agency that regulates civilian nuclear facilities and materials. Subcontractors working near nuclear sites must meet strict NRC access and safety requirements. Non-compliance can result in immediate removal from site.
OFAC (Office of Foreign Assets Control)
ComplianceA U.S. Treasury agency that enforces sanctions against designated countries, companies, and individuals. Subcontractors must screen clients and vendors against OFAC lists before accepting contracts or payments. Working with a sanctioned party can result in severe fines and contract termination.
Latest Compliance News
H&P Retrofits 50 Engines With Dual-Fuel System, Cutting Diesel Use by Up to 85%
Helmerich & Payne has deployed Caterpillar's DGB Gen 2 Kit across 12 FlexRig rigs, displacing up to 85% of diesel with natural gas at a fraction of the cost of new engine replacement. Here's what it means for drilling subcontractors.
20 hours ago ComplianceNew Excavator System Automatically Stops Bucket Before Hitting Buried Utilities
Xwatch Safety Solutions and RodRadar have partnered to create what they call the industry's first safety-grade system that physically halts excavator bucket movement the moment underground utilities are detected.
20 hours ago ComplianceThe Execution Gap: What Field Service Contractors Can Learn From Plant Reliability Frameworks
Most maintenance operations don't have a knowledge problem, they have an execution problem. Here's how subcontractors can apply plant reliability principles to win repeat contracts and cut costly callbacks.
20 hours ago ComplianceA 12-Step FEMI Incident Investigation Framework Every Pressure Equipment Operator Should Know
Inspectioneering Journal outlines a structured 12-step process for investigating fixed equipment mechanical integrity incidents, from near-misses to major releases, giving field operators a repeatable framework for learning and liability protection.
2 days agoRelated Guides
OSHA 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.
Stay sharp on field operations
Industry news and insights, delivered to your inbox.
Subscribe to FieldNews