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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

Leading Indicators

Compliance

Proactive metrics that signal future safety or performance issues before incidents occur. For subcontractors, these include near-miss reports, toolbox talk attendance, and equipment inspection rates. Tracking them helps crews stay ahead of problems rather than reacting after the fact.

Local Content

Compliance

A requirement that a set percentage of workers, materials, or services come from the local region or country. Subcontractors must often prove local hiring and sourcing to help clients meet these obligations. Non-compliance can disqualify your bid or void a contract.

STCKY (Stuff That Can Kill You)

Compliance

Informal field term for high-consequence hazards requiring mandatory controls before work begins. For subcontractors, STCKY items typically appear on permit-to-work forms and site safety plans. Failing to identify and mitigate STCKY hazards can void your contract and expose your company to liability.

Section 232

Compliance

A U.S. trade law allowing tariffs on imported steel and aluminium deemed a national security threat. For subcontractors, it drives up material and equipment costs on cross-border projects. Budget accordingly when pricing jobs involving U.S.-sourced pipe, structural steel, or fabricated components.

CBP (Customs and Border Protection)

Compliance

The U.S. federal agency that regulates the entry of workers, equipment, and materials across the Canadian-American border, which subcontractors must navigate when mobilising crews or hauling specialised equipment into U.S. job sites. Non-compliance with CBP requirements can result in delays at the border, seized equipment, or crews being turned away, making proper documentation and advance planning critical for cross-border field work.

Nuclear Verdict

Compliance

A jury award so large it far exceeds actual damages, often driven by juror emotion rather than evidence. For subcontractors, even one such ruling can bankrupt a company or trigger uninsurable liability exposure. These verdicts are increasingly common in oilfield and construction injury cases.

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