Section 1 Flashcards
Critical path method (CPM)
The method of project scheduling that graphically shows dependent, interconnected, and related activities or tasks, including the critical sequence of tasks, called the critical path, that must take place on schedule if the overall project is to stay on schedule.
Budgeted cost of work scheduled (BCWS)
The estimated or planned cost to complete a particular task. Can be expressed as dollars or hours.
Budgeted cost of work performed (BCWP)
The amount of the estimated budget earned based on comparing the task work actually completed to the estimated budget for the task.
Actual cost of work performed (ACWP)
The amount of money or hours spent performing the task.
Design to Cost (DTC)
A method of design in which the initial task sets an appropriate cost target. All subsequent planning, preliminary design, and final design activities and solutions are monitored and tested for conformance with the initial cost target.
Finish-to-Finish (FF)
Two (or more) tasks are interrelated and scheduled to finish at the same time.
Finish-to-Start (FS)
Two (or more) tasks are interrelated and one must finish before the other is scheduled to start.
Guaranteed Maximum Price (GMP)
A type of contract with which the design firm invoices on a cost basis up to a stipulated maximum dollar amount that cannot be exceeded.
Lump sum (LS)
A type of contract with which the design fee is a specific fixed amount that the design firm receives for its services regardless of how much money it actually spends to provide the services.
Management by Objective (MbO)
Method by which projects are managed by objectives rather than by activities or tasks. A set of manageable project objectives are defined. Project progress is then measured by performance toward achieving these objectives rather than by the performance of activities or tasks. Completed work is analyzed and necessary adjustments to future work are made to achieve the stated objectives. The MbO method was first outlined by Peter Drucker in his 1954 book % Practice of Management.
Other Direct Costs (ODCs)
A term used in project accounting that refers to miscellaneous costs other than those related to direct labor. In general, ODCs include postage costs, messenger services, printing, photo development, etc.
Program Evaluation & Review Technique (PERT)
A work diagramming system that uses statistics to determine the probabilities of task durations.
Project Manager (PM)
The person who leads the project team. The PM has six main activities: 1. defining the project scope of work, 2. planning the design work, 3. directing the design work, 4. coordinating the work with the client and the design team, 5. monitoring the work progress, 6. and learning from project outcomes to improve performance on the next project.
Project Management Body of Knowledge (PMBOK)
The Project Management Institute’s guidebook. PMBOK is a recognized ANSI standard.
Project Management Institute (PMI)
An international organization devoted to the standardization and dissemination of project management knowledge and techniques worldwide and across industry lines.
Quality Assurance / Quality Control (QA/QC)
Quality assurance involves developing a quality-control plan by which all the “right things” are done throughout the project to achieve a project management process that produces a design and deliverables of high quality. Quality control is the use of a standardized system of checking procedures to ensure that deliverables are as accurate as practically possible.
Start-to-Finish (SF)
Two (or more) tasks are interrelated so that one task finishes when the other is scheduled to start.
Salary-related expenses (SREs)
The additional labor costs associated with the employees’ salaries such as Social Security, vacation, sick leave, employee benefits such as health insurance, etc.
Start-to-Start (SS)
Two (or more) tasks are interrelated so that the tasks are scheduled to start at the same time.
Time + Materials (T + M)
A type of contract with which the design firm is paid for its labor (time) costs and its other direct costs (materials). T&M contracts do not have maximum dollar amounts.
Total Quality Management (TQM)
Involves managing the quality of all aspects of a project including the design, the design process, and the management of the design process. With TQM, a firm’s upper management leads by example and assumes that employees will naturally do a good job if properly trained, given the correct tools, and provided with the right overall work environment.
Work Breakdown Structure (WBS)
A review and analysis of the design of an architectural, engineering, or planning project by a third-party team of experts with the mission of improving the design’s performance, reliability, quality, safety, and lifecycle costs.
Will include the following characteristics: developed iteratively and is hierarchical; no more or less detail than is needed; tasks are defined by object, duration, and level of effort
6 Project Management Goals (Ramroth)
Goal 1 - Reach the end;
Goal 2 - Reach the end on budget
Goal 3 - Reach the end on time
Goal 4 - Reach the end safely
Goal 5 - Reach the end (as close to) error-free (as possible)
Goal 6 - Reach the end meeting everyone’s expectations
6 Fundamental Activities of Project Management (Ramroth)
DEFINING the design project’s scope of work, budget, and schedule / determine project objectives
PLANNING work effort so that project objectives, budget, and schedule will be met
DIRECTION the design team so that objectives will be met while staying within budget and schedule
COORDINATING the efforts of the design team so that interdisciplinary information flows smoothly and at the right time
MONITORING the design team’s work production and profess against project objectives, budget, and schedule
LEARNING from the project - what went right and what went wrong
6 Objectives of the Project Work Plan (Ramroth)
Definition of the project objectives
Identification of the project team
Breakdown of the project into task budgets
Development of the project schedule
Establishment of the project quality control program
Identification of other project-specific procedures and standards
A Task’s 3 Subdivisions
An objective
A duration
A level of effort
Acts of God
Events causing a project delay that are not caused by the owner or the contractor. Such delays often result in adjustments to the contract duration but not to the contract amount.
Actual Acceleration
An increase in the pace of construction as a result of a specific directive from the owner
Addenda
Formal changes or clarifications issued to all identified bidders by the owner or the owner’s representative during the bidding period.
Additional Work
Construction work that was not recognized at the contract award but that must be performed in order to deliver a project as planned.
Adverse Weather
Weather conditions not anticipated in a particular location for a particular time of the year that impede construction progress.
Advertisement
A public announcement to solicit bids for a construction project.
Agency Agreement
An arrangement between a principal and an agent by which the agent agrees to perform certain tasks for the principal. The principal is bound by the actions of the agent.
Agent
A party who acts for another party and binds that party by those acts.
Alternates
An itemization of selected items of work for which bidders are asked to provide prices that will add to or subtract from the base bid. These prices items will give the owner greater flexibility in choosing items to add to or delete from the contract.
Alternative Dispute Resolution Technique (ADR)
A means used for settling conflicts by means of an alternative procedure to formal litigation.
Arbitration
A well-established alternative to litigation in which the conflict is resolved by an impartial third party or an impartial panel of selected individuals.
As-Built Drawings (aka As-Builts)
Project drawings that show all data concerning the actual in-place locations of all construction items, including any items that differ from what was shown in the original drawings.
Balanced bid
A unit price bid that accurately reflects the actual anticipated price of each item of work to be performed.
Bid Bond
A surety instrument that guarantees to the owner that the bearer, if awarded the contract, will enter into a binding contract and provide all required bonds.
Bid Peddling
The effort by a bidder, usually a subcontractor, on a project to determine the relative standing of a quoted bid. If the bid is not the lowest bid, the bidder may reassess the amount originally quoted and submit a lower bid before the deadline for bid submittal.
Bilateral Contract
An agreement made through the mutual promises of the contracting parties.
Board of Directors
An elected group of individuals who are assigned the responsibility of managing a corporation. They act as agents for the stockholders and are accountable to them.
Boilerplate
The general conditions that outline the roles of the parties to a construction agreement and provide guidance concerning procedures to follow under varying circumstances.
Bonding Capacity
The maximum amount of uncompleted construction work that a contractor can have under contract, above which no bonds will be provided
Brokerage
A situation in which the general contractor subcontracts all the work on a project.
Builder’s Risk Insurance
Construction insurance that provides coverage specifically for a project that is under construction. Although this is normally considered to be fire insurance other types of losses are also generally covered.
Calendar Days
The time unit that may be used to define the duration of construction.
Cardinal Change
A change order that is of such magnitude that the original scope of the project is altered to an extent that constitutes a new contract.
Caveat Emptor (let the buyer beware)
A defense, no longer valid, in which it is assumed that a product must be accepted with whatever flaws exist at the time of purchase.
Certificate of Insurance
A written document that serves as evidence that a particular insurance policy is in force
Change Order
A directive, usually authorized in writing by the owner, to alter or modify some aspect of a project. Such a directive is generally accompanied by an adjustment to the contract amount and / or the contract duration.
Closed Specification
A specification that is expressly restrictive in stating that only one or two products will satisfy the quality requirements, or is implied when performance is so narrowly prescribed that only one or two products will satisfy the requirement.
Code of Ethics
The written standards of behavior adopted by a profession
Completion date
The time of construction; stated not in terms of a specified duration, but as a specified date by which construction must be complete.
Compliance Officer
The title of OSHA employees who are responsible for enforcing OSHA regulations through site inspections
Complimentary Bid
A bid that is not prepared in earnest, but is presented to appear to be a serious bid. Such bids are usually generated through collaborative efforts with another bidder who does submit a serious bid.
Condemnation
The exercise of eminent domain to seize private property.
Consideration
An essential ingredient of a contract that implies something of value, commonly a stated sum of money.
Construction Schedule
A detailed network analysis or bar chart of a construction project showing the sequence and duration of activities required to construct a project
Constructive Acceleration
An increase in the pace of construction that is not a result of a directive but is done by inference. Denial of a legitimate request for a time extension, such as for an excusable delay or a change order, would be an example.
Constructor
The party, also called the prime or general contractor, who has primary responsibility for the construction of a project.
Contractor-Caused Delays
Construction delays caused by or under the control of the contractor. No contract adjustments are associated with such delays
Contributory Negligence
Careless acts of an injured person that accompany the careless acts or physical conditions under the control of a second party
Cost-Plus Contract
A contract in which the contractor is reimbursed for specified incurred costs, with an additional allowance provided for overhead and profit
Counteroffer
The rejection of an offer followed by another proposal. This proposal forms a new offer. A counteroffer by a party changes the roles of the negotiating parties
Critical Activity
An activity in a construction schedule that must be completed in the time allotted for its completion or the project duration will be increased
Dedication
Public permission granted by the owner of property for the public to use a given parcel of land for a specified use. This use cannot be denied as long as consistent use is made as specified
Design-build method
An arrangement by which the owner lets a single contract for both the design and the construction of a project; also known as design-construct or turnkey construction
Designer
The party responsible for translation the concept of a project to a document that can be used as a guide for its construction
Design Specifications
‘How to’ specifications that state exactly what the contractor is to do in order to satisfy a quality requirement
Differing Site Conditions
Physical conditions on a site that differ from what was shown in the bidding documents or from what would reasonably be expected
Disputes Review Board
A panel of experts selected on a project to render decisions on disputes brought to it for consideration
Dividends
Monetary return made by insurance companies to clients who have kept losses to an acceptably low level. Also, profits of corporations shared with stockholders.
Dual Gates
Two entrances established on a construction project where both union and nonunion workers will be employed. One entrance will be established as the ‘union workers only’ entrance and the other entrance can be used by any worker. A nonunion worker passing through a union gate will result in ‘contamination’ of the gate and can result in a labor dispute
Easement
A restricted use of private land granted to another party. The restricted use may be in the form of the right cross to a parcel of land to gain access to another; the right to install, maintain, and monitor a gas line and so forth
Eichleay Formula
A means by which delayed reimbursement can be made to the contractor to compensate for home office overhead. This is a controversial approach that is not accepted universally
Eminent Domain
The right of the federal government, state government, or another public agency to take possession of private property and appropriate it for public use
Estoppel
The legitimate, though implied, formation of a contract as evident through the actions of the parties involved. When one party places a reliance on the other party based on that party’s actions, the second party cannot subsequently deny that an agreement exists
Exclusions
Specific items stated in an insurance policy for which no coverage is provided.
Exculpatory Provisions
Contract clauses that shift liability from one of the contracting parties to the other. In the absence of such a clause, the shift in risk will not occur.
Excusable Delays
Delays for which time extensions are granted. Such delays typically include acts of God and owner-caused delays.
Executed Contract
An agreement in which both parties have fully performed in accordance with the contract terms
Executory Contract
An agreement in which one or both parties to the agreement have not yet performed
Experience Modification Rating
A factor, unique to a company, that reflects the past claims history of that company. The factor is used to increase or decrease the basic insurance premium charges.
Express Contract
An agreement in which the terms of the agreement, whether verbal or written, are clear, concise, explicit, and definite
Express Warranty
The specific statement in a contract that a warranty is to be effective on a project
Extra Work
AKA change order; A directive, usually authorized in writing by the owner, to alter or modify some aspect of a project. Such a directive is generally accompanied by an adjustment to the contract amount and / or the contract duration.
Field Change
An authorized directive, usually by the owner’s representative on a project, to alter or modify some aspect of the project. Normally such a directive is not accompanied by any change in the contract amount or duration.
Final Completion
The status of a project when all punch list items have been satisfactorily addressed and the owner officially accepts the project. At this point, the retainage can be released to the contractor.
Fixed-Price Contract
AKA lump sum contract: A contract in which the contractor agrees to construct a project for a specified sum of money.
Force Account
Arrangement in which the services of a contractor are reimbursed on a cost-plus basis (also known as a Time & Materials contract)
Front-Loading
A plan initiated by a contractor in which a disproportionate share of the payments to be made to the contractor is made early in the life of a project. This is a means of getting the owner to finance a greater share of the project.
General Conditions
AKA Boilerplate: outlines the roles of the parties to a construction agreement and provide guidance concerning procedures to follow under varying circumstances.
General Contract Method
A common procedure in which the owner of a project contracts with a single firm, often called a prime contractor, for its construction. This firm may contract with speciality contractors for portions of the work
Holding Company
A firm that has a dominant interest in one of more other companies so as to be able, through its voting power, to prescribe the management policies of those companies
Holidays
Days on which working days are not assessed against the contract duration; specific dates must be clearly noted in the contract documents
Housing Starts
The number of new homes placed under construction in a stipulated period of time, generally one month. This figure is used as an indication of the strength of the US economy.
Implied Contract
An agreement in which the terms of the agreement are not clearly stated but are established through inference and deduction.
Implied Warranty
The general interpretation in the court that a warranty exists despite the fact that there is no express warranty.
Inclusions
Specific items, as stated in an insurance policy, for which coverage is specifically provided.
Indemnification
An exculpatory provision in which one party to an agreement agrees to hold the other party harmless. That is, one party assumes the liability that would normally fall on another party.
Independent Contractor
A contractor hired to produce a product without being specifically supervised or constrained by specific methods and means of performance
Instructions to Bidders
Guidelines or rules enumerated for bidders on a project concerning proper procedures for bid submittal and relevant project information
Joint Venture
A company formed by two or more companies in which the sole objective is typically to construct a single project
Letter of Credit
A demand instrument issued by a bank that guarantees the availability of a specified amount of funds to be paid to the owner in the event of contractor default
Lien
A claim placed on real property / real estate
Limited Partner
A partner who contributes to a partnership and shares in the profits and losses, but provides no services and has no vote in matters of management
Limits of Liability
The maximum coverage for which a specific liability policy is written
Liquidated damages
A specific sum of money that is charged against a contractor for each day that project completion is delayed. This amount is assumed to accurately reflect the anticipated costs of late completion.
Litigation
A means of resolving disputes in the judicial system in which a formal claim is filed and the disputing parties typically obtain the services of lawyers
Loss Ratio
A quotient that reflects the amount of funds expended by an insurance company for claims of a client, divided by the amount of premiums paid by the client
Lump Sum Contract
A contract in which the contractor agrees to construct a project for a specified sum of money
Mechanic’s Lien
A right created by law that permits a worker to place a claim on land on which improvements have been made.
Mediation
An alternative to litigation in which knowledgeable individuals’ talents are used to get the disputing parties to agree on a compromise resolution to the conflict.
Meeting of the minds
A basic ingredient in contracts in which the contracting parties agree on the basic meaning and legal implications of a contract.
Minitrial
An alternative to litigation in which one or more individuals are asked to hear a case and render a decision. The rules for hearing such cases may be established on an individual bases
Morals
Generally accepted standards of social behavior for a community of society.
No-damage-for-delay clause
A contract provision that is exculpatory in nature and is intended to bar the contractor from receiving monetary compensation of any kind for any delays that may occur on a project, regardless of the course of the delay.
Notice to proceed
A means of notifying the contractor about the decision to award the contract and of specifying when the contract time will start.
Obligee
A party to whom a duty is promised by the surety.
Offer
Occurs when one person signifies to another a willingness to enter into a binding contract on certain specified terms.
Offer and acceptance
One of the basic ingredients of a contract. After an offer is made, a contract can become binding only if the other party agrees to be bound by the contract terms and accepts the offer.
Open specification
An open or nonrestrictive specification in which a wide variety (three or more) of products are considered suitable.
Owner
The party with the overall responsibility for a project beginning from inception and ending with the project sale or occupancy
Owner-caused delays
Construction delays directly attributable to the action or lack of action of the owner. Generally the contract duration will be extended for such delays, and the contract amount may be adjusted.
Owner-controlled insurance program (OCIP)
(aka wrap up insurance) Insurance for a project that is obtained entirely by the owner
Partnering
Voluntary arrangement whereby the parties on a construction project agree to work together as a team with a common objective and to resolve disputes at the lowest managerial level.
Partnership
An association of two or more persons to carry on a business. Each person acts as an agent for the other partners.
Payment bond
A surety instrument guaranteeing the bearer’s payments to suppliers, laborers, and subcontractors.
Penalty provision
A specified sum of money that is charged against a contractor for each day that project completed is delayed. The amount is greater than the amount of the liquidated damages because a portion of it is considered a punitive assessment. To be valid, such a provision must also compensate or reward the contractor for early completion.
Performance bond
A surety instrument in which the faithful performance of a contractor is guaranteed up to the face value of the bond.
Performance specification
A descriptive requirement that states the results or the performance of the finished product rather than the specific methods and means used to construct the product.
Periodic payments
(aka progress payments) a payment to the contractor that compensates the contractor for work performed up to a given date. Such payments generally are made monthly and are reduced by a given percentage that is retained by the owner until final completion (retainage).
Post bid shopping
The efforts of a general contractor to get subcontractors to lower their bids after the general contractor has been declared the low bidder.
Prebid bid shopping
(aka bid peddling) The effort by a bidder, usually a subcontractor, on a project to determine the relative standing of a quoted bid. If the bid is not the lowest bid, the bidder may reassess the amount originally quoted and submit a lower bid before the deadline for bid submittal.
Preconstruction conference
A meeting between the owner, the general contractor, and the major subcontractors that takes place after the contract is awarded but before construction begins. This conference addresses various matters deemed to be of importance to the project.
Premium
A payment made to an insurance company in exchange for a specific type of coverage
Prescription
The legal transfer of private property to a public agency or another private citizen that can occur when that property has been subjected to adver use for a stipulated number of years
Professional construction management method
A method in which the owner hires a construction management firm to perform professional services and represent the owner during the design and construction phases.
Progress payment
A payment to the contractor that compensates the contractor for work performed up to a given date. Such payments generally are made monthly and are reduced by a given percentage that is retained by the owner until final completion.
Progress schedule
An updated construction schedule that presents an accurate portrayal of the work accomplished up to a given date.
Proprietary specification
A closed specification that names a project made by a particular manufacturer.
Proprietorship
A firm owned by an individual
Punch list
A list developed at the time of substantial completion that itemized all remaining work tasks that must be performed before a project reaches final completion.
Quantum meruit
Term meaning ‘as much as deserved’; an approach used to determine equitable compensation to be awarded under given conditions. It is implied by law that when one party benefits as a result of the materials or labor provided by another that there should be no unjust enrichment. If the parties do not have a contract the party providing the labor and / or materials is to receive fair compensation.
Ratification
The approval of an unsanctioned act after is has taken place.
Real property
Land and all items physically attached to it, such as buildings, fences, utilities, and walls.
Reference specification
A performance specification that defines the acceptable product in terms of its ability to satisfy a standard developed by one of several standards organizations.
Regular bid
A bid that conforms to the standards outlined in the instruction to bidders. Only such bids can be considered on public works projects to assure all bidders of fair and equal treatment.
Reserve
A given sum of money that an insurance company sets aside to cover anticipated claims costs on a case that is not closed.
Retainage
A stated percentage of the progress payment request that is withheld by the owner. This amount is generally used as an incentive for the contractor to complete the project in an expedient manner. It is generally returned to the contractor after final completion.
Self-Insurance
Arrangement by which a firm acts as its own insurance company. Specific criteria must be satisfied for a company to qualify for self insurance.
Self-Performance
A mechanism by which no contracts are awarded for a construction project. The owner’s own workers or employees are solely responsible for the construction effort.
Separate Contracts Method
An arrangement by which the owner lets contracts directly to specialty contractors for various portions of the work.
Site Investigation
An inspection of a proposed construction site during the bidding phase. Such an inspection is often contractually required to verify that the contractor is familiar with the site.
Specialty Contractors
Firms with skills in specific areas of construction work. Such firms are typically involved in construction projects as subcontractors.
Standard Specifications
A compilation of general conditions, technical specifications, and other requirements that an agency uses on numerous construction projects. Such documents are prepared by state departments of transportation and many major municipalities.
Stockholders
Owners of a corporation, also known as shareholders.
Subcontractor
A specialty contractor who enters into an agreement with a general contractor. Has no contractual agreement with the owner.
Submittals
Information concerning products to be incorporated in a construction project that must be approved by the owner before they are used. The information may include samples, calculations, performance tests, and manufacturer’s literature
Subrogation
An insurance term stating that when the insurance company pays for a particular loss to an injured party, the insurance company gains the injured party’s right to sue the third party that caused the injury.
Substantial Completion
A designation of when a project is sufficiently finished to be occupied by the owner. The duration of the project is measured against this milestone to determine when the last periodic payment can be made.
Supplementary Conditions
Modifications or additions to the general conditions that address issues that were omitted in the general conditions, ir are specific requirement for a particular project.
Surety
A firm that guarantees or vouches for he performance or indebtedness of another party.
Suspension of Work
A halt in the construction process for any of several reasons. Work is presumably resumed after the delay.
Technical Specifications
A document that provides the qualitative requirements for a project in terms of materials, equipment, work performed, and so forth.
Termination
The cancellation of a contract before construction is complete. May be for the owner’s convenience or for contractor default.
Time Extensions
Modifications to a construction contract in which the project duration is increased. Such modifications are often granted for excusable delays or for change orders that increase the project duration.
Tort
A wrong committed by a person against a second party as a result of an act or the failure to act when that person had a duty to the second party.
Turnkey Construction
AKA design-build method. An arrangement by which the owner lets a single contract for both the design and the construction of a project; also known as design-construct or turnkey construction
Ultra Vires Contracts
Agreements made by corporations for which the proper authorization was not made. Such agreements must often be ratified in order to be binding.
Umbrella Coverage
An insurance policy that is generally used to provide coverage in excess of the limits of coverage of another insurance policy.
Unbalanced Bid
A unit price bind in which the pricing of the various items of work does not reflect the actual anticipated costs, but redistributes those costs to serve a specific objective of the bidder.
Unilateral Contract
A contract in which only one of the contracting parties makes a promise. The other party exchanges something other than a promise, commonly performance.
Unit Price Contract
A contract in which payment is based on a contractor’s quoted price per unit of work performed and the owner’s measurement of the total number of such units installed.
Unjust Enrichment
A circumstance under which one party benefits at the expense of another without equitable compensation being given to the party that provided the labor and/or materials.
Value Engineering
A critical examination of construction contract documents performed for the owner to determine whether modifications can be made to decrease the delivered cost, reduce maintenance costs, simplify construction, reduce disputes, and the like.
Warranty
Certification that a certain aspect of a project is of the quality it was promised to be. In construction, such assurances are generally provided for one year from substantial completion.
Warranty Period
The duration for which a warranty is in effect, typically one year on construction projects.
Winter Exclusion Period
A block of time, often consisting of several winter months, during which no working days are assessed against the contractor. Such exclusion periods are most common in states with harsh winter weather conditions
Workers’ Compensation
Insurance coverage for the employees of a firm during their employment
Working Days
The time unit used to define the duration of a construction project. These days typically consist of work days except for holidays. Allowances are often granted to extend the project duration if adverse weather is encountered.
Wrap-Up-Insurance
Insurance for a project that is obtained entirely by the owner.
Zoning
Restrictions placed on land usage to assure orderly growth and development in a municipal area.
Limited Liability Company
A form of business organization that can protect its assets from creditors.
Malfeasance
Refers to an erroneous professional action taken by a public official.
Abatement
An action taken against a property owner to enforce a code compliance. Authorizes the removal of an improvement not allowed by code.
Exoneration
The term used to describe the release of a surety bond (term used by financial institutions)
Deed of Trust
A legal document pertaining to property ownership; required for real estate rights to transfer from one owner to another.
Practice Act
Protects public health safety and wellness (through licensure process)
Title Act
Protects the right to use the title “landscape architect”; does not protect the right of a person or firm to engage in practice activity.
