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ComplianceGlossary Term

Scope 1 and Scope 2 Emissions

Scope 1 covers direct emissions from equipment and vehicles your company owns or operates, such as diesel generators and fleet trucks. Scope 2 covers indirect emissions from purchased electricity used at your facilities or job sites. Prime contractors increasingly require subcontractors to track and report both when bidding on ESG-conscious projects.

Related Terms

Moratorium

Compliance

A government or operator-imposed halt on specific activities, such as drilling or fracking, in a region. For subcontractors, this means work orders stop and contracts may be suspended without pay. Always review force majeure clauses before mobilising to areas under active moratorium discussions.

Rules of Origin

Compliance

Criteria that determine where goods or materials are considered to have been produced or manufactured. Subcontractors sourcing equipment or supplies across borders must verify origin to qualify for trade agreement pricing. Non-compliance can trigger tariffs that erode project margins.

Burn Ban

Compliance

A government-issued restriction prohibiting open burning, including burn barrels and brush fires, within a designated area. Subcontractors must halt any permitted burning activities immediately and may face project delays. Check with your site supervisor and local authority before resuming work involving open flame or debris disposal.

Barrier Envelope

Compliance

The defined set of active safety barriers protecting against a specific hazard at any given time. Subcontractors must verify the envelope is intact before starting work. A degraded envelope requires stop-work action and notification to the prime contractor.

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.

CLA (Combined Licence Application)

Compliance

A single regulatory submission that covers both construction permit and operating licence for a facility, such as a nuclear plant. Subcontractors may face extended pre-qualification and compliance requirements tied to the CLA approval timeline. Work scopes and mobilisation dates are often contingent on CLA milestones.

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