Glossary

A

Addendum

A supplement to documents, issued prior to taking receipt of bids, for the purpose of clarifying, correcting, or otherwise changing bid documents previously issued.

Additional Services

Services provided in addition to those specifically designated as basic services in the agreement between the owner and consultant. Also known as Supplemental Services.

Agency

A legal relationship by which one party is empowered and obligated to act on behalf of another party.

Agency CM

A form of Construction Management performed in a defined relationship between the CM and owner. The agency form of Construction Management establishes a specific role of the CM acting as the Owner's principal agent in connection with the Project.

Agreement

A document setting forth the relationships and obligations between two parties, as the CM and owner or contractor and owner. It may incorporate other documents by reference.

Apparent Low Bidder

The bidder who has submitted the lowest bid for a division of work described in bid documents, a proposal form, or proposed contract.

Approved Bidders List

The list of contractors that have been pre-qualified for the purpose of submitting responsible, competitive bids.

Approved Changes

Changes in the contract documents that have been subjected to an agreed upon change approval process and have been approved by the party empowered to approve such changes.
See Also: Change Order

As-Built Drawings

Drawings (plans) that show the work, as actually installed. Also known as Record Drawings.

At-Risk CM

A delivery method which entails a commitment by the construction manager to deliver the project within a Guaranteed Maximum Price (GMP). The construction manager acts as consultant to the owner in the development and design phases, but as the equivalent of a general contractor during the construction phase. When a construction manager is bound to a GMP, the most fundamental character of the relationship is changed. In addition to acting in the owner's interest, the construction manager also protects him/herself.

B

Basic Services

Scope of service as defined in the original agreement between owner and CM as basic services.

Beneficial Occupancy

The use of the constructed facility by the owner prior to final completion of the construction.

Bid

An offer to perform the work described in contract documents at a specified cost.

Bid Bond

A pledge from a surety to pay the bond amount to the owner in the event the Bidder defaults on its commitment to enter into a contract to perform the Work described in the Bid Documents for the bid price

Bid Documents

The documents issued to the contractor(s) by the owner which describe the proposed Work and contract terms. Bid documents typically include: drawings, specifications, contract forms, general and supplementary general conditions, proposal or bid forms, and other information.

Biddability

The degree to which a set of Bid Documents could be reasonably expected to permit a bidder to establish a competitive price to perform the Work as defined in the Bid Documents.

Biddability Review

A formal review of the contract documents, addendum, and reference documents to eliminate ambiguities, errors, omissions, and contradictions, to be accomplished with respect to the local construction marketplace and the bid packaging strategy; for the purpose of minimizing bid prices in the procurement phase and disputes during construction.

Bond

A pledge from a surety to pay the bond amount to the Obligee (owner or contractor) in the event of a default, or non-payment by a principal (contractor or subcontractor), as with Bid, Performance and Labor and Material Bonds.

Bonus

Additional compensation paid or to be paid to a contractor by the owner as a reward for accomplishing predetermined objectives that are over and above the basic requirements of the contract between the owner and contractor.

Budget

The dollar and time amount allocated by the owner for a project.

Budget Estimate

An estimate of the cost of work based on preliminary information, with a qualified degree of accuracy.

C

Change Order

A written agreement or directive between contracted parties which represents an addition, deletion, or revision to the contract documents, identifies the change in price and time and describes the nature (scope) of the work involved. Also known as Contract Modifications.
See Also: Contract Modifications

Changed Conditions

Conditions or circumstances, physical or otherwise, which alter the conditions or circumstances on which the contract documents were based.

Claim

A formal demand for compensation, filed by a contractor or the owner with the other party, in accordance with provisions of the contract documents.

CM Fee

A form of contractual payment for services, where the CM is paid a fee for services performed.

Code of Accounts

The owner's written description of the cost elements of the project, used for the owner's accounting purposes.

Commissioning

Start up, calibration, and certification of a facility.

Constructibility

The ease, with which a project can be built, based upon the clarity, consistency, and completeness of the contract documents for bidding, administration, and interpretation to achieve overall project objectives.

Constructibility Reviews

The process of evaluating the construction documents for clarity, consistency, completeness, and ease of construction to achieve overall project objectives.

Construction Budget

The sum established, normally during the planning or design phase, as available for construction of the project.

Construction Cost

All costs attributed to the construction of the project, including the cost of contracts with the contractor(s), construction support items, general condition items; all purchased labor, material and fixed equipment.
See Also: Cost of Construction

Construction Management

A professional service that applies effective management techniques to the planning, design, and construction of a project from inception to completion for the purpose of controlling time, cost and quality.

Contingency

An amount of money reserved by the owner to pay for unforeseen changes in the work.

Contract Modifications

A written agreement or directive between contracted parties which represents an addition, deletion, or revision to the contract documents, identifies the change in price and time and describes the nature (scope) of the work involved.

Critical Date Schedule

A schedule representing important events along the path to project completion. All milestones may not be equally significant. The most significant are termed "major milestones" and usually represent the completion of a group of activities.
See Also: Milestone Schedule

Critical Path Method (CPM)

A management technique used to plan and control a project which combines all relevant information into a single plan defining the sequence and duration of operations, and depicting the interrelationship of the Work elements required to complete the project. The critical path is defined as the longest sequence of activities in a network which establishes the minimum length of time for accomplishment of the end event of the project. Arrow Diagramming Method (ADM) and Precedence Diagramming Method (PDM) are both common techniques used in CPM scheduling.

D

Deficient Work

Work conforming to the plans, specifications, and applicable standards yet is incomplete, insufficient, or lacking in workmanship. See "Non-conforming Work."

Design Development

The term used on projects to describe the transition from the schematic phase to the completion of the design development phase. During this phase ancillary space is developed and dimensions are finalized. Outline specifications are developed into technical specifications; sections are delineated and elevations are defined.
See Also: Design Phase - Preliminary

Design Phase - Final

The phase of the design process on a project when drawings and specifications are completed for construction bid purposes. The phase is preceded by the preliminary design phase, and followed by the bid and award phase. The designation used by design professionals for the last part of the design process prior to bidding. Also known as Construction or Working Drawings.

Design Phase - Preliminary

The term used on projects to describe the transition from the schematic phase to the completion of the design development phase. During this phase ancillary space is developed and dimensions are finalized. Outline specifications are developed into technical specifications; sections are delineated and elevations are defined. Also known as Design Development.
See Also: Design Development

Design Phase - Schematic

Traditionally this is the first phase of a design professional's basic services. In the schematic phase, the design professional ascertains the requirements of the project and prepares schematic design studies consisting of drawings and other documents illustrating the scale and relationships of the project.

Design Professional

The professional individual or organization that performs the design and prepares plans and specifications for the work to be performed. The professional can be an architect, an engineer, or an organization which combines professional services.

Design-Build

Design-Build is a project delivery method which combines architectural and engineering design services with construction performance under one contract agreement.

Direct Costs

The field costs directly attributed to the construction of a project, including labor, material, equipment, subcontracts and their associated costs.

Drawings

Graphic representations showing the relationships, geometry and dimensions of the elements of the work.

E

Estimated Cost to Complete

The current estimate of the remaining costs to be incurred on a project at a specific point in time.

Estimated Final Cost

The anticipated cost of a project or project element when it is complete. The sum of the cost to date and the estimated cost to complete.

F

Fast Track

The process of dividing the design of a project into phases in such a manner as to permit construction to start before the entire design phase is complete. The overlapping of the construction phase with the design phase.

Fiduciary

An individual or organization having duty, created by contract, to act primarily for the owner's benefit in respect to the trust and confidence involved in the duty and the scrupulous good faith and candor which it requires.

Field Order

An order issued at the site by the owner or CM to clarify and/or require the contractor(s) to perform work not included in the contract documents. A field order normally represents a minor change not involving a change in contract price or time and may or may not be the basis of a change order.

Final Completion

The date on which the terms of all construction contracts have been satisfied.

Float

Contingency time that exists on a schedule of activities. It is measured by comparing the early and late dates on a start and finish basis.

Force Account

Directed work accomplished by the contractor outside of the contract agreement.

G

General Conditions

A section of general clauses in the Contract Specifications that establish how the project is to be administered. Included are obligations such as providing temporary work, insurance, field offices, etc.

Guarantee

A legally enforceable assurance by a third party of satisfactory performance, quality or quantity of products or work during a specific period of time stated and included in the contract in the event the product or work fails to perform properly

Guaranteed Maximum Price Construction Management

A contractual form of the Construction Management system wherein the CM establishes a maximum price for the cost of the Work based on an agreed-to scope.

H

I

J

K

L

Lien

A claim, encumbrance, or charge against or an interest in property to secure payment of a debt or performance of an obligation.

Life Cycle Cost

Life cycle costs include all costs incident to the planning, design, construction, operation, maintenance and demolition of a facility, or system, for a given life expectancy, all in terms of present value.

Liquidated Damages

An amount of money usually set on a per-day basis, which the contractor agrees to pay the owner for delay in completing the Work in accordance with the contract documents

Long-Lead Items

The identification given to material and equipment having an extended delivery time and which may be considered for early procurement and purchase. Items which would be delivered too late for timely installation if their procurement or purchase were included as part of the procurement for the entire contract or project.

Long-Lead Time

The time interval between purchase and delivery of long‑lead items.

Low Bidder

The bidder who has submitted the lowest bid, which is determined to be responsive and responsible for a division of work described in a bid document, proposal form or contract.

Lump Sum Fee

A fixed amount that includes the cost of overhead and profit paid, in addition to all other direct and indirect costs of performing work.

M

Master Schedule

An executive level summary schedule identifying the major components of a project, their sequence and durations. The schedule can be in the form of a network, Milestone Schedule, or bar chart.

Milestone Schedule

A schedule representing important events along the path to project completion. All milestones may not be equally significant. The most significant are termed "major milestones" and usually represent the completion of a group of activities.

Multiple Prime Contracts

Separate contractors contracting directly with the owner for specific and designated elements of the work.

N

Non-Conforming Work

Work that does not meet the requirements of the contract documents.

Notice of Award

A formal document informing an individual or organization of successfully securing a contract.

Notice to Proceed

A formal document and/or point in the project's life cycle authorizing an individual or organization to commence work under its contract. The issuance of the notice to proceed typically marks the end of a procurement phase.

O

Owner Construction Management

A form of Construction Management that does not use an independent construction management organization as a team member. The owner performs all required Construction Management services with in‑house staff.

Owner's Representative

The individual representing the owner on the project team.

P

Penalty

A punitive measure usually associated with failure to fulfill a contractual obligation.

Performance Bond

A pledge from a surety to pay the bond amount to the Obligee (owner or contractor) in the event of a default in performance of contractual obligations.

Phased Construction

An incremental approach to construction or design and construction. Each overlapping or sequential phase or element to have a defined work scope and to be considered as a separate project.

Plans

Also known as "Drawings".
See Also: Drawings

Post-Construction Phase

The period following substantial completion.

Pre-Design Phase

The period before schematic design commences, during which the project is initiated and the program is developed; the planning and conceptual phase.

Prime Contract

A direct contract with an owner. It can be a single contract and/or include the work specified for several contracts depending upon division of work.

Prime Contractor

A contractor who has a contract with an owner.

Professional Services

Services provided by a professional or by an organization that has specific competence in a field of endeavor that requires professional (and technical) knowledge and capabilities and that meets recognized standards of performance.

Program Management

The practice of professional construction management applied to a capital improvement program of one or more projects from inception to completion. Comprehensive construction management services are used to integrate the different facets of the construction process - planning, design, procurement, construction and activation - for the purpose of providing standardized technical and management expertise on each project.
See Also: Construction Management

Progress Meeting

A meeting dedicated to the subject of progress during any phase of project delivery.

Progress Payment

Partial payment of the contract amount periodically paid by the owner, upon approval by the CM, verifying that portions of the Work have been accomplished.

Project

The total effort required in all phases from conception through design and construction completion to accomplish the owner's objectives.

Project Budget

The sum or target figure established to cover all the owner's costs of the project. It includes the cost of construction and all other costs such as land, legal and professional fees, interest, and other project‑related costs.

Project Cost

The actual cost of the entire project.

Project Management

The use of integrated systems and procedures by a team of professionals during project design and construction. As applied to a construction project, Project Management can be used synonymously with Construction Management.

Project Procedures Manual

A detailed definition of the project team responsibilities and authority, project systems, and procedures.

Project Team

Initially consists of the owner, design professional, and CM. Thereafter, as prime construction contractors are engaged they are added to the Team.

Project Team Meeting

A meeting dedicated to all aspects of the project, involving the project team members (owner, design professional, CM, contractor(s)).

Punch List

A list made near the completion of the construction work indicating items of work that remain unfinished, do not meet quality or quantity requirements as specified or are yet to be performed by the contractor prior to completing the terms of the contract.

Q

Quality

The degree to which the project and its components meet the owner's expectations, objectives, standards, and intended purpose; determined by measuring conformity of the project to the plans, specifications, and applicable standards.

Quality Assurance (QA)

The application of planned and systematic methods to verify that quality control procedures are being effectively implemented.

Quality Control (QC)

The continuous review, certification, inspection, and testing of project components, including persons, systems, materials, documents, techniques, and workmanship to determine whether or not such components conform to the plans, specifications, and applicable standards.

Quality Management

The process of planning, organization, implementation, monitoring and documenting of a system of policies and procedures that coordinate and direct relevant project resources and activities in a manner that will achieve quality.
See Also: Quality

R

Record Drawings

Drawings (plans), prepared after construction is complete that represent the work, accomplished under the contract.

Recovery Schedule

The schedule that depicts action(s) and special effort(s) required to recover lost time in the original Master Schedule. It can depict activities of any member of the project Team.

Request for Change Proposal

A delineation and/or narrative issued by the CM to the contractor that describes a proposed change to the contract documents for purposes of establishing cost and time impacts. May also be known as Bulletin, Request for Information, and Request for Quote.

S

Schedule of Values

A list of basic contract segments in both labor and material, where each line item consists of a description of a portion of work and a related cost and the sum of the lines of the contract equals the total contract price. Generally used to determine progress payments to contractor(s).

Scope

Identification of all requirements of a project or contract.

Scope Changes

Changes that expand or reduce the requirements of the project during design or construction.

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