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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

Local Content Requirement

Compliance

A contractual or regulatory rule requiring subcontractors to hire local workers, source materials locally, or partner with regional firms. Non-compliance can disqualify you from bidding or trigger contract penalties. Common on projects funded by governments or national oil companies.

Federal Lease

Compliance

A government-issued agreement granting a company the right to explore or extract resources on federally managed land. Subcontractors working on these sites must meet stricter regulatory and documentation requirements. Expect additional compliance checks, environmental controls, and reporting obligations on federally leased projects.

Order-In-Council

Compliance

A federal or provincial regulation passed by cabinet without a full legislative vote. For subcontractors, these can quickly change environmental rules, project approvals, or labour requirements on active job sites. Monitor them closely, as non-compliance can halt work or void contracts.

High-Energy Hazard

Compliance

Any source of stored or released energy that can cause serious injury or death, such as pressurised systems, suspended loads, or live electrical equipment. Subcontractors must identify these hazards before starting work and follow site-specific isolation procedures. Failure to control high-energy hazards is a leading cause of fatalities in oil and gas and construction environments.

Tailgate Meeting

Compliance

A brief, informal safety huddle held at the job site before work begins or when conditions change. Subcontractors use it to review hazards, assign tasks, and confirm crew readiness. It is often required by prime contractors and must be documented for compliance.

Walking-Working Surfaces Standard

Compliance

A regulatory standard governing slip, trip, and fall hazards on job sites. Subcontractors must ensure floors, platforms, ladders, and elevated surfaces meet inspection and guarding requirements. Non-compliance can result in stop-work orders or liability exposure on client sites.

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