A -
Activity -
(1) A scheduling term (2) The smallest work unit within a project; the basic building
block of a project. (See Project)
ADA -
The Americans with Disabilities Act which gives civil rights protection to individuals with disabilities
similar to those provided to individuals on the basis of race, color, sex, national origin, age, and religion. It guarantees
equal opportunity for individuals with disabilities in public accommodations, employment, transportation, State and local
government services, and telecommunications.
Addendum -
(Addenda) written information adding to, clarifying or modifying the bidding documents. An addendum
is generally issued by the owner to the contractor during the bidding process and as such, addenda are intended to become
part of the contract documents when the construction contract is executed.
Additional Services
-
Services provided over and above those
designated as basic services in owner agreements with A/Es and CMs.
A/E -
Architect/Engineer; the design professional hired by the owner
to provide design and design-related services.
Agency CM (ACM) -
(CM without Risk). A contractual form of the CM system exclusively performed in an agency relationship
between the construction manager and owner. ACM is the form from which other CM forms and variations are derived.
Agent -
One authorized by
a client (principal) to act in his/her stead or behalf and owes the client a "fiduciary duty" (Trust). Example:
Construction Manager for fee but classified as an independent contractor for tax purposes. A construction manager for fee
does not have any financial responsibility whereas a construction manager at-risk does have financial risk similar to a general
contractor.
Agreement -
A
legal document that binds two or more parties to specific and implied obligations, for example, a Contract.
Alterations -
(1) A term
used to describe partial construction work performed within an existing structure (2) Remodeling without a building addition.
Alternate Bid -
Amount stated
in the bid to be added or deducted from the base bid amount proposed for alternate materials and/or methods of construction.
Ancillary Benefits -
Subordinate
secondary benefits that automatically accrue from the performance of an unassociated prime responsibility.
Approved Changes -
Changes
of any nature in contract requirements which have been agreed upon through a change approval process and approved by the owner.
Architect -
An individual
who designs and supervises the professional design for the construction of buildings or other structures.
Architects Basic Services -
A
recognized series of phases performed by an architect as follows: 1st Schematic Design Phase, 2nd Design Development Phase,
3rd Construction Document Phase, 4th Bidding or Negotiated Phase, 5th Construction Phase.
Architect-Engineer
(A/E) -
An individual or firm offering professional
service as both architect and engineer.
Architectural Drawing -
A line drawing showing plan and/or elevation views of the proposed building
for the purpose of showing the overall appearance of the building.
Arrow Diagram -
Also known as the I-J method or Activity-on
Arrow method. This method uses arrows, pointing in the direction of schedule flow, to represent activities with duration and
circles (nodes) at each end of the arrow designating the start and finish events (dates) of each activity.
As-Built Drawings -
Drawings
marked up to reflect changes made during the construction process or after construction that amend the Contract Drawings to
show the exact location, geometry, and dimensions of the constructed project. It is good practice to make As-Built Drawings
by marking the changes on reproducible drawings such a Mylar, vellum or sepias for the duplication purposes later. As-Built
Drawings are not the same as Record Drawings.
-
B -
Basic Services -
The services specially listed in the services agreement as basic services.
Beneficial
Occupancy -
The point of project completion
when the owner can use the constructed facility in whole or in part for its intended purpose even though final completion
may not be achieved.
Bid -
A
binding offer, usually expressed in dollars to provide specific services within clearly stated requirements.
Bid Bond -
A written form
of security executed by the bidder as principal and by a surety for the purpose of guaranteeing that the bidder will sign
the contract, if awarded the contract, for the stated bid amount. The Surety is a third-party that makes a pledge to pay liquidated
damages to the owner to the extent of the difference between the bonded contractor bid and the next highest bidder but not
to exceed the face value of the bond; if the bonded contractor declines an award offered by the owner.
Bond
-
(see Bid Bond, Contract Bond, Contract
Payment Bond, Contract Performance Bond, Labor and Material Payment Bond, Performance Bond or Subcontractor Bond).
Bonding Company -
A properly
licensed firm or corporation willing to execute a surety bond, or bonds, payable to the owner, securing the performance on
a contract either in whole or in part; or securing payment for labor and materials.
Bonus-Penalty
Clause -
A positive/negative incentive to
comply with a schedule. A bonus is paid for timely performance; a penalty is assessed for untimely performance. The dollar
amount of the bonus and penalty must be equal, e.g., Penalty-Bonus clause in a contract.
Budget
(Construction Budget) -
(1) An itemized summary
of estimated or intended expenditures for a given period of time (2) The total sum of money allocated for a specific project.
Budget Estimate -
An estimate
of cost based on rough or incomplete information, with a stated degree of accuracy. The more information available, the more
accurate the estimate. Loosely called a "ballpark" estimate.
Building -
(1) To form by combining materials or parts (2) A structure
enclosed within a roof and within exterior walls housing, shelter, enclosure and support of individuals, animals, or real
property of any kind.
Building Code -
The legal requirements set up by the prevailing various governing agencies covering the minimum acceptable
requirements for all types of construction.
- C -
Changed
Conditions -
Conditions or circumstances,
physical or otherwise, which surface after a contract has been signed and which alter the circumstances or conditions on which
the contract is based, i.e.,
Concealed Conditions
or Latent Conditions.
Change Order -
A written document between the owner and the contractor signed by the owner and the contractor authorizing
a change in the work or an adjustment in the contract sum or the contract time. A change order may be signed by the architect
or engineer, provided they have written authority from the owner for such procedure and that a copy of such written authority
is furnished to the contractor upon request. The contract sum and the contract time may be changed only by change order. A
change order may be in the form of additional compensation or time; or less compensation or time known as a Deduction (from
the contract) the amount deducted from the contract sum by change order.
Change Order Proposal
-
A change order proposal is the written
document before it has been approved and affected by the Contractor and Owner. A change order proposal can be issued by either
the contractor or the owner. The change order proposal becomes a change order only after it has been approved and affected
by the Contractor and Owner.
Change Order Request -
A written document issued by the owner requesting an adjustment to the contract
sum or an extension of the contract time; generally issued by the architect or owners representative.
Chart
of Accounts -
An alpha/numeric identification
system for budget line items that ensures that project expenditures are properly debited/credited in the project budget as
payments are made in behalf of the project.
Construction Inspector -
A qualified individual authorized by the owner to assist in the inspection
of the construction project to ensure compliance with the contract documents and/or a specific construction contract.
Construction Management (CM) -
A
project delivery system that uses a construction manager to facilitate the design and construction of a project by organizing
and directing men, materials, and equipment to accomplish the purpose of the designer. 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, as defined by the Construction Management Association of America (CMAA).
Construction Management Contract -
A
written agreement wherein responsibilities for coordination and accomplishment of overall project planning, design and construction
are given to a construction management firm. The building team generally consists of the owner, contractor and designer or
architect.
Construction Manager -
A firm or business organization with the expertise and resources to manage the design, contracting, and construction
aspects of project delivery. Individuals who work for a CM Firm are also referred to as Construction Managers.
Critical Date Schedule -
A
schedule of milestones spanning from the start of construction to occupancy, used as the main measure of progress to keep
the project on schedule.
Critical Path -
The continuous chain of activities from project-start to project-finish, whose durations cannot be
exceeded if the project is to be completed on the project-finish date. A sequence of activities that collectively require
the longest duration to complete (the duration of the sequence is the shortest possible time from the start event to the finish
event). Activities on the critical path have no slack time.
Critical Path Method (CPM)
-
A planning scheduling and control line
and symbol diagram drawn to show the respective tasks and activities involved in constructing a specific project.
Critical Path Schedule -
A
schedule that utilizes the Critical Path scheduling technique using either the arrow or precedence diagramming method.
- D -
Daily Construction Report -
A written document and record that has two main purposes: (1) they furnish information
to off-site persons who need and have a right to know important details of events as they occur daily and hourly, and (2)
they furnish historical documentation that might later have a legal bearing in cases of disputes. Daily reports should be
as factual and impersonal as possible, free from the expression of personal opinions and feelings. Each report should be numbered
to correspond with the working days established on the progress schedule. In the event of no-work days, a daily report should
still be made, stating "no work today" (due to rain, strike, or other causes). The report includes a description
of the weather; a record of the total number of employees, subcontractors by name, work started and completed today, equipment
on the job site, job progress today, names and titles of visitors, accidents and/or safety meetings, and a remarks column
for other job related information.
Date of Agreement -
(1) Usually on the front page of the agreement (2) If not on front page it may be
the date opposite the signatures when the agreement was actually signed (3) or when it was recorded (4) or the date the agreement
was actually awarded to the contractor.
Date of Commencement of the Work -
The date established in a written notice to proceed from the owner to the contractor.
Date of Substantial Completion -
The
date certified by the architect when the work or a designated portion thereof is sufficiently complete, in accordance with
the contract documents, so the owner may occupy the work or designated portion thereof for the use for which it is intended.
- E -
Estimated Cost to Complete -
An estimate of the cost still to be expended on a work-scope in order to complete
it. The difference between the Cost to Date and the Estimated Final Cost.
Estimated Final
Cost -
An estimate of the final cost
of a work item based on its Cost to Date and the estimated cost to complete it. The sum of the Cost to Date and the Estimated
Cost to Complete.
Estimate of Construction
Cost -
A calculation of costs prepared on
the basis of a detailed analysis of materials and labor for all items of work, as contrasted with an estimate based on current
area, volume or similar unit costs.
- F -
Fast Track Construction
-
A method of construction management which
involves a continuous design-construction operation. When a prime or main contractor starts the construction work before the
plans and specifications are complete.
Feasibility Phase -
The conceptual phase of a project preceding the Design Phase used to determine from
various perspectives whether a project should be constructed or not.
Fee Enhancement
-
The awarding of an additional fee, over
and above the basic fee for services, based on the performance quality of the party providing the basic service.
Fiduciary -
One who stands
in a special relationship of trust, confidence, and responsibility regarding contracted obligations.
-
G -
Gantt Chart -
The schedule of activities for a project. A Gantt Chart shows start and finish dates, critical and
non-critical activities, slack time, and predecessor relationships.
General Conditions
-
A written portion of the contract documents
set forth by the owner stipulating the contractor?s minimum acceptable performance requirements including the rights, responsibilities
and relationships of the parties involved in the performance of the contract. General conditions are usually included in the
book of specifications but are sometimes found in the architectural drawings.
General Condition
Items -
Purchases, services, or materials
required to facilitate construction at the site. As part of the construction budget, these are financial obligations of the
owner and the logistic responsibility of the CM.
General Conditions (of the Contract for Construction) -
The part of the contract that prescribes the rights, responsibilities,
and relationships of the parties signing the agreement and outlines the administration of the contract for construction, e.g.,
American Institute of Architects (AIA) Document A201.
General Contracting System -
The traditional project-delivery system that utilizes the services of a general
contractor; the GC assembles and submits a proposal for the work on a project and then contracts directly with the owner to
construct the project as an independent contractor.
General Contractor (GC) -
A properly licensed individual or company having "primary" responsibility
for the work. A GC can perform work with its own contractors or can perform the project work as an independent contractor,
providing services to owners through the use of subcontractors when using the general contracting system. In the latter case,
the GC is referred to as "Paper Contractor".
General Contracting -
(The traditional contracting method) When a prime or main contractor bids the entire
work after the final design, plans and specifications are complete and have been approved by the owner.
Guarantee -
An agreement
by which a party accepts responsibility for fulfilling an obligation.
- I -
Inspection -
(1) The act
of inspecting. (2) An official examination or review of the work completed or in progress to determine its compliance with
contract requirements.
Inspection List -
A list prepared by the owner or his/her authorized representative of items of work requiring immediate corrective
or completion action by the contractor.
Inspection Report -
Sometimes used to describe an Inspection List.
Inspector
-
An individual who is appointed or employed
to inspect something.
- L -
Lien, Mechanic's or Material - The right to take and hold
or sell an owner?s property to satisfy unpaid debts to a qualified contractor for labor, materials, equipment or services
to improve the property.
Lien Release -
A written document from the contractor to the owner that releases the Lien, Mechanic?s or Material
following it?s satisfaction.
Lien Waiver -
(1) A written document from a contractor, subcontractor, material supplier or other construction
professional, having lien rights against an owner?s property, relinquishes all or part of those rights. (2) Lien waivers are
generally used for processing progress payments to prime or main or subcontractors as follows: Conditional Lien Waiver, Unconditional
Lien Waiver, and Final Lien Waiver.
- M -
Management
Information and Control System - A manual or computerized system used by the project team to guide the course of a project
and record its status and progress.
Management Plan -
A micro-scheme to produce project requirements in terms of policies, procedures and timing developed
from the management strategy.
Management Strategy -
A micro-and micro-approach to structuring contracts and managing a project; based
on owner policies, project demands, and contracting practices in the project area.
Master Schedule
-
A schedule that spans from the start of
design to occupancy; includes the signal activities which control the progress of the project from start to finish. (Level-1
Schedule).
Mechanics Lien -
A legal claim against an owner?s property by a project participant to the value of monies earned by not paid
for by the owner or an employing contractor.
- O -
Occupancy
Phase - A stipulated length of time following the construction phase, during which contractors are bonded to ensure that materials,
equipment, and workmanship meet the requirements of their contracts, and that supplier- and manufacturer-provided warranties
and guarantees remain in force.
Occupancy Schedule -
A schedule of the activities and events required to effect occupancy or the use
of a facility for its intended purpose. It is used to determine if construction progress will meet the occupancy date.
On-Site Supervision -
Site-based
personnel with supervisory responsibilities.
Open Bid -
A specific term used where any qualified bidder or estimator is given access to the prescribed project
information. Open bid project information is not private.
Owner -
(1) An individual or corporation that owns a real property.
- P -
Performance Bond - (1) A written form of security from a surety
(bonding) company to the owner, on behalf of an acceptable prime or main contractor or subcontractor, guaranteeing payment
to the owner in the event the contractor fails to perform all labor, materials, equipment, or services in accordance with
the contract the face value of the performance bond. (2) The surety companies generally reserve the right to have the original
prime or main or subcontractor remedy any claims before paying on the bond or hiring other contractors.
Performance
Specifications -
The written material containing
the minimum acceptable standards and actions, as may be necessary to complete a project. Including the minimum acceptable
quality standards and aesthetic values expected upon completion of the project.
PERT -
An abbreviation for Program Evaluating and Review Technique.
PERT Schedule -
A diagram
that illustrates charts and reports a projects estimated start and completion times; and work in progress.
Phased or Stage Bidding -
The
process of receiving proposals from contractors on projects that are constructed as more than one total work-scope.
Phased Construction -
A unitized
approach to constructing a facility by designing and constructing separate project elements. Each element is a complete project
in itself.
Plan -
(1)
A line drawing (by floor) representing the horizontal geometrical section of the walls of a building. The section (a horizontal
plane) is taken at an elevation to include the relative positions of the walls, partitions, windows, doors, chimneys, columns,
pilasters, etc. (2) A plan can be thought of as cutting a horizontal section through a building at an eye level elevation.
- R -
Record Drawings - A set of contract document drawings, marked
up as construction proceeds to reflect changes made during the construction process, which show the exact location, geometry,
and dimensions of all elements of the constructed project as installed. It is good practice to make As-Built Drawings by marking
the changes on reproducible drawings such a Mylar, vellum or sepias for the duplication purposes later.
R.F.I.
-
(1) An abbreviation for Request for Information.
(2) A written request from a contractor to the owner or architect for clarification or information about the contract documents
following contract award.
RFP -
The abbreviation for "Request for Proposal; The second request for uniform detailed information
from prospective CM practitioners being screened for a project.
- S -
Safety Report - The Occupational Safety and Health Act (OSHA) of 1970 clearly states the common goal of safe
and healthful working conditions. A Safety Report is prepared following a regularly scheduled project safety inspection of
the specific project.
Samples -
Detailed
information provided by material and equipment suppliers demonstrating that the item provided meets the requirements of the
contract documents.
Schedule -
A
plan for performing work or achieving an objective.
Schematic -
A preliminary sketch or diagram representing the proposed intent of the designer.
Schematic Design Phase -
The
initial Design Phase on an architectural project when the A/E
Schematic Design
Phase -
The first phase of the A/E design
professional's basic services in which he/she consults with the owner to ascertain the requirements of the project and
prepares schematic design studies consisting of drawings and other documents showing the scale, project components, and delineates
the owner?s needs in a general way for the owner?s approval.
Shop Drawings -
Detailed information provided by material and equipment suppliers
demonstrating that the item provided meets the requirements of the contract documents.
Site
-
The place where a structure or group of
structures was, or is to be located, i.e., a construction site.
Start Date -
The date that an activity or project begins.
Start-Up -
The period prior
to owner occupancy when mechanical, electrical, and other systems are activated and the owner?s operating and maintenance
staff are instructed in their use.
Statement -
A copy or summary of any account covering a stated period.
Sub
-
An abbreviation for Subcontractor.
Subcontract -
A written form
of agreement between the prime or main contractor and another contractor or supplier for the satisfactory performance of services
or delivery or material as set forth in the plans and specifications for a specific project.
Subcontractor
-
A qualified subordinate contractor who
has a contract with the prime or main contractor.
Subcontractor Bond -
A written document from a subcontractor given to the prime or main contractor by
the subcontractor guaranteeing performance of his/her contract and payment of all labor, materials, equipment and service
bills associated with the subcontract agreement.
Surety Company or Surety -
A properly licensed firm or corporation willing to execute a surety bond, or bonds,
payable to the owner, securing the performance on a contract either in whole or in part; or securing payment for labor and
materials.
Synergism -
Actions
by two or more persons to achieve an end result that could not be achieved as well by one of the persons.
- T -
Team - The designated responsible project management of each
trade contractor plus the Level 2 and Level 3 Managers of the owner, A/E, and CM, i.e., Project Team.
Technical
Inspection -
Matching technical specification
criteria with visual or mechanical tests on the project site, or in a remote location or laboratory, to ascertain conformance.
Technical Review -
The critique
of design solutions, or criteria used for design solutions, by a party other than the one providing the solutions or criteria,
to determine adequacy and suitability of purpose.
Technical Specifications -
Written criteria that augment the drawings pertaining to the technical construction
of the project that cannot be conveniently included on the plans.
T&M -
(1) An abbreviation for a contracting method called Time and
Materials (2) A written agreement between the owner and the contractor wherein payment is based on the contractor's actual
cost for labor, equipment, materials, and services plus a fixed add-on amount to cover the contractor?s overhead and profit.
Tenure -
The duration, term,
or length of time required by agreement or precedent for performance of services.
Testing -
Applying standard procedures to determine if prescribed technical
criteria have been met in performance.
Time line -
A synonym for scheduling of activities in the context of time.
Timely
Performance -
Compliance with a time requirement.
TI'S (Tenant Improvements) -
TI'S is a term used to define the interior improvements of the project after the Building Envelope is
complete. TI'S usually include finish floor coverings; ceilings; partitions; doors, frames, hardware; fire protection;
HVAC consisting of branch distribution duct work, control boxes, and registers; electrical consisting of lighting, switches,
power outlets, phone/data outlets, exit and energy lighting; window coverings; general conditions; and the general contractor?s
fee. The cost of tenant improvements are generally born by the tenant and the costs of tenant improvements will vary with
every building, and with tenant requirements.
- U -
Underwriter's
Laboratories (UL) Label - A label on a product or manufactured item showing the material is regularly tested by, and complies
with the minimum standards of the Underwriter's Laboratories specification for safety and quality.
Uniform
Building Code (UBC) -
The Uniform Building
Code is one of the families of codes and related publications published by the International Conference of Building Officials
(ICBO) and other organizations, such as the International Association of Plumbing and Mechanical Officials (IAPMO) and the
National Fire Protection Association (NFPA), which have similar goals as far as code publications are concerned. The Uniform
Building Code is designed to be compatible with these other codes, as together they make up the enforcement tools of a jurisdiction.
- V -
Verbal Quotation - A written document used by the contractor to receive a subcontract
or material cost proposal over the telephone prior to the subcontractor or supplier sending their written proposal via mail
or facsimile.
Vendor -
One
that sells materials or equipment not fabricated to a special design.
- W -
Warranty - Assurance by a providing party that the work, material, and equipment
under warranty will perform as promised or as required by contract.
Warranty Phase -
The phase of a project where the agreement
by which a party accepts responsibility for fulfilling an obligation and warrant that the work under warranty meets its intended
use for a specifically established time frame.
Work -
The successful performance of the entire scope of the project being performed for a specific construction
project including labor, materials, equipment, and other associated items necessary to fulfill all obligations under the contract.
Work-Scope -
A portion of
the total project work that is delineated in the contract documents for a specific trade contractor or discipline for bidding
and performance purposes.
Working Drawing -
A drawing sufficiently complete with plan and section views, dimensions, details, and notes so that
whatever is shown can be constructed and/or replicated without instructions but subject to clarifications.
Work Order (WO) -
A written
order, signed by the owner or his representative, of a contractual status requiring performance by the contractor without
negotiation of any sort.
- X -
XCM
-
An abbreviation for "Extended Services
-CM"; A form of Construction Management (CM) where other services such as design, construction, and contracting are included
with Additional Construction Management (ACM) services provided by the Construction Manager
-
Z -
Zoning - Restrictions of areas or regions of land within specific geographical areas
based on permitted building size, character, and uses as established by governing urban authorities.
Zoning
Permit - A document issued by a governing urban authority permitting land to be used for a specific purpose.
