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ComplianceGlossary Term

Punitive Damages

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.

Related Terms

Wage and Hour Division

Compliance

The U.S. Department of Labour branch that enforces federal wage laws, including overtime and minimum wage rules. Subcontractors must ensure field crew pay practices meet WHD standards to avoid audits and penalties. Misclassifying workers as independent contractors is a common trigger for WHD investigations.

Multi-Employer Citation Policy

Compliance

A regulatory policy allowing safety authorities to issue violations to multiple employers on a shared worksite, not just the site owner. As a subcontractor, you can be cited for hazards you created, controlled, or exposed your workers to. Understanding this policy is critical when operating under a prime contractor on oil and gas or construction sites.

STEP (Safety Training Evaluation Process)

Compliance

A benchmarking programme that evaluates a subcontractor's safety training systems against industry standards. Operators often require a valid STEP rating before awarding field contracts. Higher ratings signal lower risk and can improve your bid competitiveness.

Installation Quality Documentation

Compliance

Records that prove work was completed to spec, including inspection reports, redlines, and sign-offs. Subcontractors use these to protect themselves during client audits or warranty disputes. Missing documentation can delay invoicing or trigger costly rework claims.

Underground Utility Strike

Compliance

An accidental hit to a buried line — gas, electric, telecom, or water — during excavation or drilling. Subcontractors are typically liable for damages, work stoppages, and injuries if proper locates weren't completed. Always confirm valid BC One Call or Alberta One-Call tickets before breaking ground.

Roof Control Plan

Compliance

A site-specific document outlining how ground or overhead hazards will be managed in underground or enclosed work areas. Subcontractors must review and follow it before starting work on a mine or tunnel site. It defines approved support methods, inspection requirements, and who holds authority to halt unsafe work.

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