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ComplianceGlossary Term

Tier 2 Diesel Engine

A diesel engine meeting EPA (Environmental Protection Agency) Tier 2 emissions standards, regulating nitrogen oxide and particulate output. Many job sites and municipalities restrict or ban Tier 2 equipment in favour of cleaner Tier 4 units. Subcontractors should verify equipment tier requirements before mobilising to avoid costly compliance issues or equipment swaps.

Related Terms

Hot Work Permit

Compliance

A formal written authorisation required before performing any work that produces heat, sparks, or open flame on a job site. Subcontractors must obtain this permit before welding, cutting, or grinding near flammable materials. Site supervisors issue and sign off on these permits, and work must stop if conditions change.

Workers' Compensation Premium

Compliance

The periodic fee subcontractors pay to provincial workers' compensation boards to fund injury coverage for their workers. Premium rates vary by industry classification and your company's claims history. High premiums directly impact your labour costs and project bid pricing.

NDE (Non-destructive Examination)

Compliance

Testing method used to inspect welds, pipes, and structures for defects without damaging the material. Subcontractors performing NDE must hold recognised certifications such as CGSB or ASNT. Clients often require NDE sign-off before authorising progress payments or work acceptance.

RRC (Railroad Commission of Texas)

Compliance

Texas state agency that regulates oil, gas, and pipeline operations. Subcontractors working in Texas must comply with RRC permits, well plugging rules, and environmental requirements. Non-compliance can result in fines or loss of operating authority.

CIH (Certified Industrial Hygienist)

Compliance

A credentialed professional who assesses and controls workplace health hazards such as chemical exposure, noise, and air quality. Subcontractors may be required to retain or consult a CIH to meet site entry or regulatory requirements. Their sign-off can be mandatory before work begins in confined spaces or hazardous environments.

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.

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