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ComplianceGlossary Term

Sanctions Compliance

The 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.

Related Terms

Pre-Task Plan

Compliance

A written safety review completed by crew members before starting a job task on site. It identifies hazards, required controls, and who is responsible for each step. Subcontractors are often required to submit these to the prime contractor before work begins.

EMR (Experience Modification Rate)

Compliance

A numerical score calculated by insurers that compares your company's workplace injury claims to industry averages. A score below 1.0 indicates a safer-than-average record; above 1.0 signals higher risk. Many prime contractors and operators require subcontractors to maintain a low EMR to qualify for bid lists.

Third-Party Representative

Compliance

An independent inspector or agent hired by an operator or owner to verify that field work meets contract specifications. They are not your direct client but hold authority to approve, reject, or halt work on site. As a subcontractor, their sign-off is often required before progress billing is accepted.

Pre-Filing Waiver

Compliance

A written agreement where a subcontractor gives up the right to file a builders' or mechanics' lien before work begins. General contractors or owners often require it as a condition of awarding a contract. Review carefully — signing one limits your legal options if payment disputes arise.

Surface Access Rights

Compliance

Legal authorisation allowing crews and equipment to enter privately or publicly owned land to perform field work. Subcontractors must confirm these rights are secured before mobilising to site. Working without confirmed access can halt operations and expose your company to liability.

Alternative Risk Transfer

Compliance

ART (Alternative Risk Transfer) covers non-traditional risk financing options outside standard insurance, such as captives or self-insurance pools. Subcontractors use ART programmes to manage liability exposure when conventional coverage is unavailable or too costly. Common in high-hazard field operations where standard insurers may decline coverage.

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