Phase 1 Flashcards
Acceptance
oral or written agreement that includes a meeting of the minds and must be communicated directly
Annual worth (AW) or Annual Value (AV)
an annualized measure for assessing the financial desirability of a proposed undertaking. It is a uniform series of money over a certain period of time that is equivalent in amount to a particular schedule of receipts and/or disbursements under consideration. Any time period can be used - doesn’t have to be yearly/annually
Annuity (A in engineering economy)
A fixed amount of money that is paid at stated periods for a given time duration.
Architect (engineer, designer)
Entity that enters into a contract with the owner to carry out the design aspects of a project - responsible for creating construction/design documents that strictly adhere to the owner’s stated project objectives, which will serve as a guidance document for the contractor
Bid
Complete proposal to execute specified job(s) within prescribed times, for a proposed amount
Building construction
The constructing of structures for the purpose of providing habitational, institutional, educational, light industrial, commercial, social, and recreational purposes. Contrasts with the construction of facilities that have a different purpose than providing shelter such as roads, pipelines, bridges, dams, communication towers, industrial plants, etc.
Capital gain
Profit from the sale of a capital good (investment or property)
Capital loss
Loss incurred when a capital asset, such as an investment or real estate, decreases in value; this loss is not realized until the asset is sold for a price that is lower than the original purchase price.
Capital project
A project that adds to the durable physical assets of a person or organization (capital is durable wealth). Capital projects are normally projects for the construction of buildings and fixed infrastructure, but they can also be projects for the construction or purchase of moving equipment and machines that are expected to last for a considerable amount of time.
Cash flow
the total amount of money that goes in and out of a business.
Chain rule (in engineering economy)
combining compound interest formulas
P = F × (A/F, i, n) × (P/A, i, n)
Collectively exhaustive (-alternatives)
Alternatives that allow for the entire range of possible outcomes. Essentially, one of them is guaranteed to happen. Alternatives may or may not be also mutually exclusive.
Commitment (in language-action theory)
Statement (promise) to provide something specific by a specific time (from Provider). ex. I will finish assignment in accordance with specific requirements on Friday”
Common law
“judge made” law. Serves as authority or precedent governing future decisions. Reflects customs and practices of the industry
Competitively bid contract
Transparent’ procurement method in which bids from competing contractors, suppliers, or vendors are invited by openly advertising the scope, specifications, and terms and conditions of the proposed contract as well as the criteria by which the bids will be evaluated. After collecting competitive bids from several underwriters, the issuer awards the contract to the underwriter with the lowest, responsible price and contract terms. Competitive bidding aims at obtaining goods and services at the lowest prices by stimulating competition, and by preventing favoritism.
