Key Definitions Flashcards
All Risks Insurance
Insurance for physical loss or damage to work executed, site materials and reasonable cost of removal and disposal of debris which results from such loss (with exceptions)
Annual Turnover
Revenue that a company receives from its normal business activities
Assignment
Transfer of rights under a contract to another party i.e Developer to Tenant
Balance Sheet
A snapshot of a company’s financial condition used to determine its net worth (assets - debts)
BCIS
Building cost information service
Providing cost data
Based on tender analyses submitted by members
Benchmarking
The use of historical data from projects of a similar nature as a comparison or cost check of the cost of project
Bond
Arrangement whereby obligations of one party are financially guaranteed by a third party
BREEAM
Method of assessing environment performance of a building
Building Research Establishment Environmental Assessment Method
Brown Roof
Planted with sedum, soil, and stones to replace habitat lost during construction bringing with its wildlife friendly space and benefits to biodiversity
Building Cost Index
Measures movement of basic labour and materials costs to the Builder. Used to forecast inflation during the construction phase
Building Regulations
Legislation ensuring compliance of reasonable, adequate, appropriate, and function requirements regarding the built environment
Capital Allowances
Tax relief on capital expenditure for acquiring, constructing, refurbishing, or fitting out a property
Cash Flow Forecast
Graphical representation of anticipated expenditure during project. Used to assist client in assessing timing and amount of future payments
CDM Regulations
Statutory duties on clients, principal designer, designers, and contractors to plan, manage, and co-ordinate health and safety throughout project
Clerk of Works
Appointed by the Employer to act Solely as quality inspector on his behalf under the directions of the Contract Administrator
Collateral Warranty
Side agreement which establishes a contractual link that would otherwise not exist
Contract at Large
The fixed completion date ceases to apply due to interference, prevention or continuation after breach of contract
Contingency
A sum of money used to fund unknowns, risks etc. May be construction, design reserve, risk, or client contingency
Dayworks
If works cannot be properly valued by measurements, the dayworks are used as a fair and reasonable measure of works
Defects
Defects, shrinkages, or other faults in the works due to materials or workmanship not in accordance with the contract
Dispute Resolution
Methods of dealing with conflict between parties
Employers Agent
Employer’s representatives who may perform the functions of the Employer
Employers Requirements
Brief which outlines what the employer requires in the form of an outline specification and drawings
E-Tendering
Electronic, paper-free form of tendering process
Excepted Risks
Insurance clauses, Contractor not required to indemnify Employer under All Risks insurance for injury, death or damage resulting from Expected Risks
Excepted Risks included radiation, contamination by radioactivity etc.
Expert Witness
A professional that can be called into dispute by a party to give expert evidence of their opinion to support dispute
Extension of Time
Adjustment to Completion Date due to delay caused by a Relevant Event
Facilities Management
Management of the operation and maintenance of a property
Force Majeure
A Relevant Event. Acts of God or man-made events beyond the control of the parties i.e. War, Strike, Riot, Crime, Flood, Earthquake
Green Roof
As brown roof but planted
Health & Safety File
Record of information for client or end users which focuses on H&S. Alerts readers to key health and safety risks that need to be dealt with during maintenance, repair and construction work
Insurance
Method of providing indemnity. Equitable transfer of risk in exchange for a premium
KPI
Used to benchmark projects against set of standards
Latent Defect
Any defect which becomes apparent after the end of the Rectification Period / issue of Making Good Defects
Life Cycle Costing
Consideration of costs over the whole life of a building - not just the capital costs i.e. understanding both capital and running costs. The 3 R’s: running, repairs, replacement
Liquidated Damages
Genuine, pre-estimate of loss to be suffered in the event of non-completion
Loss and Expense
Any loss suffered or expense incurred by the contractor due to a Relevant Matter for which he would not be reimbursed by payment under any other provision in the contract
Partial Possession
Employer may take possession of part of site in advance of PC. By mutual consent, not previously agreed in the contract.
Performance Bond
Guarantee of performance. Guarantor pays for loss to value of bond
Practical Completion
When, in the opinion of the Contract Administrator, practical completion of the works is achieved
Provisional Sum
Sum for work that the Employer may or may not decide to have carried out or which cannot be accurately measured at tender stage
Profit & Loss Statement
A financial statement that indicates how revenue is transformed into net income. Indicates whether the company has made or lost money in the period
PII
Insurance to indemnify client in event of financial loss due to professional negligence
Relevant Event
Occurrences which entitle the contractor to an extension of time
Relevant Matter
Occurrences which entitle the contractor to Loss and Expense
Retention
Monies retained to fund rectification of any defective works which the contractor fails to make good
RIBA Plan of Work
Breakdown of the processes for a project from inception to completion. Clearly describes key activities and deliverables
RICS Rules of Conduct
Set of professional parameters and expectation for member’s behaviour
Risk
An uncertain event which, if it were to occur, would have a negative effect on the project
Risk Management
Identification, assessment, and ongoing management of risks
Run Off Cover
Continuation of PII cover for a further 6/12 year following ceasing practice. RICS recommends 15 years
Specifications
Produced by the design team to detail scope, materials and workmanship required
Sustainability
Constructing with consideration for the environment and not at the detriment of future generations. Considering the long term social and economic implications of a development
SWMP
Site Waste Management Plan. Records amount and type of waste produced on site and how it will be reused, recycles or disposed of
Tender Price Index
Analysis of accepted tenders to predict future movement in the market. Used to forecast inflation
Value Engineering
Value engineering is a process to consider alternatives to the existing solution, eliminate unwanted costs, while improving function and quality
Letter of Intent
Letter outlining intention to enter into contract
