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ComplianceGlossary Term

Stand Down

A directive to halt all work on-site, issued by the prime contractor or owner — most often to address an immediate safety concern or incident. Crews stop billable activities until the issue is resolved and a formal all-clear is issued; depending on contract terms, standby rates may or may not apply. Stand downs can be site-wide or scoped to a specific trade or work area.

Related Terms

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.

Reactive Hazards

Compliance

Materials or conditions that can cause fires, explosions, or toxic releases through chemical reactions when exposed to heat, water, or other substances. Subcontractors must identify these hazards before work begins and follow site-specific handling protocols. Common examples in oilfield and construction work include peroxides, unstable gases, and certain drilling chemicals.

FLCA (Faster Labour Contracts Act)

Compliance

A regulatory framework requiring prime contractors to execute subcontractor agreements within defined timelines. It reduces delays in mobilisation by limiting how long contract finalisation can be withheld. Field service companies use it to protect against late-start losses on awarded work.

Hazcom (hazard Communication Standard)

Compliance

A regulatory requirement mandating that workers are informed about hazardous chemicals on site through labels, Safety Data Sheets, and training. Subcontractors must maintain compliant SDS binders and ensure crews are trained before handling any hazardous materials. Non-compliance can result in site removal or fines from regulators like WorkSafeBC or the OHS.

Api 579

Compliance

API 579 (Fitness-For-Service) is an industry standard used to assess whether ageing or damaged equipment is safe to keep operating. Subcontractors may be required to support or comply with these assessments during inspection and maintenance scopes. Understanding it helps when working alongside integrity engineers on pressure vessels, piping, and tanks.

ASME (American Society of Mechanical Engineers)

Compliance

A global standards organisation that sets codes for pressure vessels, piping, and mechanical equipment used on job sites. Subcontractors working on boilers, pressure systems, or lifting equipment often must meet ASME standards to qualify for contracts. Non-compliance can trigger failed inspections, work stoppages, or liability exposure.

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