Phase 2 Flashcards
Contractor
Entity responsible for actually putting construction work in place - determine the means, methods, techniques, sequence, and procedures and direct the actual construction activities
Co-termination
Multiple agreements or contracts set to expire at the same time.
Counteroffer
An offer of acceptance if significant changes are made. Often part of negotiation
Customer (in language-action theory)
Prepares and makes requests. Negotiates with a performer, who promises to deliver on agreed Conditions-of-Satisfaction, does the work, and declares it complete. The customer then either declares satisfaction or works with the performer to resolve and learn from the breakdown
Declaration of completion (in language-action theory)
“I’m done” : Declaration from the performer of a task that their commitment has been carried out
Declaration of satisfaction (in language-action theory)
Declaration from the customer that they deem the work satisfactory - often takes the form of a “thank you”
Depletion (of a resource)
The exhaustion of the abundance of a supply.
Design (conceptual design, design development, detailed design and development of construction documents)
Process of conceptualizing a project. Includes the specifications & drawings of a project
Discount rate
percentage deduction in the value of money over a period of time. Allows us to calculate the future value by translating it to an equivalent amount today. Usually expressed as an annual (nominal) percentage
Discounted cash flow
The present value of a future flow of cash.
Discounting
A valuation method which reduces the face value attractiveness of an investment opportunity by recalculating future cash flows using a discount rate in terms of present value estimates.
Economic life
Period of ownership that maximizes the asset’s equivalent annual income or that minimizes the asset’s total equivalent annual cost. At the end of this period, the asset would be displaced by a more profitable replacement if service were still required
Effective interest rate
annual interest rate taking into account the effects of compounding during the year/ratio of the interest charge for 1 year of the principal amount
Equivalent annual worth (EAW) or Equivalent annual value (EAV)
convert all relevant cash flows into equivalent (present, annual, or future) amounts using the MARR
Future worth (FW) or Future Value (FV)
Converting a value occurring at any time to an equivalent amount at a later date
