What Auditors Look for in Common regulatory issues in the building supply chain Checks

When regulatory auditors show up to inspect operations in the building materials supply chain, they’re not just looking for neat paperwork—they’re assessing whether your facility operates in full compliance with environmental, safety, transportation, and labor regulations. Whether you’re a manufacturer, distributor, or third-party logistics partner, being prepared for an audit means knowing exactly what inspectors are targeting.

Here’s a breakdown of the most common regulatory issues auditors look for—and how to prepare for a smooth, penalty-free inspection.

• Documentation and Recordkeeping

What They Look For:

Safety Data Sheets (SDS) for all hazardous materials

Employee training records for safety, handling, and compliance procedures

Bills of lading and shipping manifests (especially for HAZMAT and imported goods)

Waste disposal logs and emission reports

Inspection reports and maintenance records for equipment and vehicles

How to Prepare:

Maintain digital and physical copies of all required records in a centralized location. Assign a compliance manager to routinely audit documentation and keep it up to date. Disorganized or missing files are a red flag for regulators.

• Proper Labeling and Hazard Communication

What They Look For:

Correct and legible product labels (especially for treated wood, adhesives, sealants, or HAZMAT items)

OSHA-compliant warning signage and labeling in work zones

Consistent use of pictograms, hazard statements, and precautionary wording under the GHS system

How to Prepare:

Train staff on labeling requirements and conduct regular label audits. Make sure all products leaving your facility meet both federal and state labeling standards.

• Environmental Compliance

What They Look For:

Evidence of compliance with EPA regulations for runoff, chemical storage, and air emissions

Spill containment systems for hazardous liquids

Proper documentation for hazardous waste generation, storage, and removal

Violations of state-specific environmental regulations

How to Prepare:

Ensure all containment, drainage, and waste management systems are in working order. Maintain contracts and receipts for hazardous waste disposal partners and keep environmental permits current.

• Transportation and DOT Compliance

What They Look For:

Fleet maintenance records and driver qualifications

Hours-of-service logs and DOT registration numbers

Load securement practices and HAZMAT handling protocols

Safety inspections for vehicles and trailers used in distribution

How to Prepare:

Audit your fleet records regularly. Make sure drivers are properly trained and certified, and that your vehicles are inspected on schedule. Any inconsistencies here can trigger follow-up enforcement.

• Workplace Safety and OSHA Standards

What They Look For:

Use of proper personal protective equipment (PPE)

Emergency exit signage, lighting, and evacuation plans

Fall protection systems in elevated storage or loading areas

Equipment guards, machine lockout/tagout systems, and forklift safety practices

How to Prepare:

Hold routine safety inspections and refresh employee training frequently. Keep all training logs and incident reports accessible in case an auditor requests proof of compliance.

• Import/Export Compliance (If Applicable)

What They Look For:

Country-of-origin documentation for imported building materials

Customs declarations, tariffs, and proper classification codes

Import permits and testing records for materials subject to environmental or health regulations

How to Prepare:

Work with experienced customs brokers and stay informed about trade regulations. Double-check supplier documentation before importing new products into your supply chain.

• Training Programs and Employee Awareness

What They Look For:

Evidence that employees are trained on relevant safety, environmental, and operational regulations

Accessibility of training materials (especially in multilingual environments)

Regular updates or refresher training for evolving compliance topics

How to Prepare:

Implement a training calendar and track employee participation using a learning management system (LMS). Post visual reminders around the facility to reinforce training messages between formal sessions.

Final Thoughts

Audits can be stressful—but they don’t have to be. When you understand what inspectors are looking for and stay proactive with compliance, audits become a chance to confirm the strength of your safety and operational systems.

In the building materials supply chain, regulatory requirements are woven into every step of the process—from raw material handling to delivery. Staying ahead of these requirements not only reduces risk but also builds a reputation for reliability, professionalism, and accountability.