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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

Hazard Orientation

Compliance

A mandatory site-specific safety briefing required before subcontractor crews begin work on a new location. It covers site-specific risks, emergency procedures, and restricted zones. Primes or operators typically deliver it, and subcontractors must document attendance for compliance.

Carbon Intensity

Compliance

A measure of greenhouse gas emissions produced per unit of work or energy output. Operators increasingly require subcontractors to report and reduce carbon intensity on job sites. Lower scores can be a competitive advantage when bidding on contracts.

MOC (Management of Change)

Compliance

A formal approval process required before altering scope, personnel, equipment, or procedures on a worksite. Subcontractors must submit MOC requests to the operator before making any unplanned changes. Skipping this step can result in work stoppages, liability exposure, or contract penalties.

Agreed Order

Compliance

A court-approved settlement between parties that resolves a dispute without a full trial. For subcontractors, it often governs payment terms, lien releases, or compliance obligations. Both sides must follow its terms or face legal consequences.

Indigenous Consultation

Compliance

A legal process where project proponents engage with Indigenous communities before work begins on or near their traditional lands. Subcontractors may need to pause or delay fieldwork if consultation requirements have not been met. Failing to respect this process can result in project shutdowns or permit rejections.

CUI (Controlled Unclassified Information)

Compliance

Sensitive government or client data that requires protection but is not classified as secret. Subcontractors handling site plans, personnel records, or project specs may be legally required to safeguard CUI. Mishandling it can result in contract termination or regulatory penalties.

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