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ComplianceGlossary Term

Reauthorization

Formal renewal of a previously approved work permit, purchase order, or scope of work that has expired or exceeded its original limits. Subcontractors must secure reauthorization before continuing work to avoid unpaid labour exposure. Delays in reauthorization can stall field crews and disrupt project schedules.

Related Terms

API (American Petroleum Institute)

Compliance

The leading industry organisation that develops technical standards, safety protocols, and equipment specifications that subcontractors must follow when working on oil and gas projects. API certifications and compliance with API standards are often mandatory requirements in service contracts and can affect your ability to bid on projects.

29 Cfr 1926 Subpart U

Compliance

The U.S. federal OSHA standard governing blasting and use of explosives on construction sites. Subcontractors performing demolition, excavation, or site prep must comply when explosives are involved. Non-compliance risks stop-work orders, fines, and contract termination.

IADC (International Association of Drilling Contractors)

Compliance

A global industry body that sets drilling standards, safety training programmes, and well control certifications. Subcontractors working on drilling sites often need IADC-recognised credentials to qualify for contracts. Holding valid IADC certifications can directly affect your crew's eligibility and your bid competitiveness.

Indemnification

Compliance

A contractual obligation where one party agrees to cover another's losses, claims, or legal costs. For subcontractors, indemnification clauses often require you to absorb liability even for an operator's own negligence. Always have legal counsel review these clauses before signing.

Bonded Operator License

Compliance

A licence that requires the holder to carry a surety bond as financial assurance that they will meet regulatory obligations, meaning subcontractors and field service companies must maintain this bond coverage to legally operate certain equipment or perform specific scopes of work on a client's site. For subcontractors, holding a bonded operator licence is often a prerequisite for bidding on contracts, as it signals to operators and general contractors that financial accountability is in place if work standards or regulatory requirements are not met.

Classification (aggregate)

Compliance

A method of grouping all subcontractor invoices or costs together to assess total contract value or spending thresholds. Owners and primes use aggregate classification to trigger compliance requirements, audit rights, or tiered pricing terms. Subcontractors should track cumulative billing carefully, as crossing thresholds can change contract obligations.

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