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Compliance Glossary Term

Surety

A third party, usually an insurance or bonding company, that guarantees a subcontractor will fulfil their contractual obligations. If the subcontractor defaults, the surety compensates the project owner. Many upstream and construction clients require surety bonds before awarding work.

Related Terms

Stormwater Drainage

Compliance

Systems that redirect rainwater and runoff away from worksites to prevent flooding and erosion. Subcontractors are often responsible for installing and maintaining these systems to meet environmental permit conditions. Failing to manage stormwater properly can result in stop-work orders and project fines.

811 (call Before You Dig)

Compliance

A free national service requiring subcontractors to notify utility companies before any ground disturbance. Utilities mark underground lines within 48–72 hours, reducing strike risk. Non-compliance can result in serious liability, fines, and project shutdowns.

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.

State Plan Program

Compliance

A U.S. state-run workplace safety programme approved by OSHA to enforce its own regulations instead of federal standards. Standards may differ from federal OSHA rules, so subcontractors must verify local requirements before mobilising. Operating across multiple states means tracking each plan separately.

Caught-In Hazard

Compliance

A workplace danger where a worker's body or clothing becomes trapped, pinched, or pulled into moving machinery, equipment, or materials — common on oilfield and construction sites where subcontractor crews work near rotating equipment, conveyor systems, or heavy moving loads. Subcontractors are responsible for identifying and controlling these hazards through proper guarding, lockout/tagout procedures, and site-specific hazard assessments before work begins.

Methane Emissions Inventory

Compliance

A documented record of all methane releases from equipment and operations on a worksite. Subcontractors may be required to contribute data or maintain their own inventory to meet operator or regulatory reporting obligations. Accurate records help avoid penalties and support contract compliance.

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