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ComplianceGlossary 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

Powered Industrial Truck

Compliance

Any motorised vehicle used to move materials on a worksite, including forklifts, telehandlers, and order pickers. Subcontractors must ensure operators hold valid PIT certifications before deployment. Site clients often audit compliance records, so keep training documentation current and accessible.

Environmental Baseline

Compliance

A documented record of environmental conditions at a site before work begins. Subcontractors may be required to contribute data or sign off on baseline surveys prior to mobilisation. It protects your company if environmental damage claims arise later.

Stop-Before-Strike

Compliance

A mandatory work pause requiring crews to verify no buried utilities or underground hazards exist before digging or drilling begins. Subcontractors are typically contractually responsible for completing all locates and documented checks before breaking ground. Failure to comply can void insurance coverage and expose your company to full liability for strikes.

Lockout/tagout

Compliance

A mandatory safety procedure requiring workers to isolate and de-energise equipment before servicing or maintenance begins. Subcontractors must follow the site owner's LOTO programme and hold current training documentation. Non-compliance can result in removal from site and contract termination.

Cal/osha (california Division of Occupational Safety and Health)

Compliance

California's state workplace safety regulator, enforcing standards that often exceed federal OSHA requirements. Subcontractors working on California job sites must comply with Cal/OSHA rules, not just federal ones. Non-compliance can result in fines, stop-work orders, and disqualification from future contracts.

Fixed Ladder

Compliance

A permanently mounted ladder attached to a structure, vessel, or facility used to access elevated work areas. Subcontractors must ensure fixed ladders on their worksites meet provincial and federal safety standards before crews use them. Inspect for damage, proper cage guards, and fall arrest anchor points before starting elevated work.

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