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 effected 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 effected 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.
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.
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.
Checks and Balances - The term used to describe the use of the overlapping expertise of each team member during team decision making.
Claim - A formal notice sent by a contractor to an owner asserting the fact that the terms of the contract have been breached and compensation is being sought by the contractor from the owner.
Clerk-of-the-Work - An individual employed by an owner to represent him on a project at the site of the work. The clerk-of-the-work's abilities, credentials, and responsibilities vary at the discretion of the owner.
Closed Bid - A specific term used where only invited bidders or estimators are given access to the prescribed project information. Usually the owner provides a designed list of invitees.
CM - The abbreviation for Construction Management and Construction Manager (a firm that provides CM services or persons who work for a CM firm).
CM Fee Plus Reimbursables - A form of payment for CM services where the construction manager is paid a fixed or percentage fee for CM expertise, plus pre-established hourly, daily, weekly, or monthly costs for field personnel and equipment.
CM Format - The interactive contracting approach to providing a project's needs, used by the CM project team to manage a project.
CM Partnering - A contractual commitment by the Owner, A/E, and CM to achieve a common goal, and doing so without a stakeholder's exposure to a potential for conflict of interest in pursuit of that goal.
CM Philosophy - An enlightened approach to accomplishing an owner-oriented end result using a system of motivating concepts and principles for achievement.
CM Procedures Manual - The depository for the proprietary micro-management procedures used by the CM to detail and facilitate the service obligations owed to a client.
CM Project Manual - The common depository for the micro-management procedures to be used on the project by the team to accomplish project requirements.
CM Services - The scope of services provided by a construction manager and available to owners in whole or in part. CM services are not consistent in scope or performance from one CM firm to another.
Codes - Prevailing regulations, ordinances or statutory requirements set forth by governmental agencies associated with building construction practices and owner occupancy, adopted and administered for the protection of public health, life safety and welfare.
Collateral Information - Information of value that is unexpectedly made available through the routine performance of another activity or activities.
Commissioning - The process at or near construction completion when a facility is put into use to see if it functions as designed. Usually applied to manufacturing type projects, and similar to Beneficial Occupancy in the commercial sector.
Completion 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.
Conditions of the Contract - Term that refers to the General Conditions and the Supplementary and Special Conditions of the contract for construction.
Construct - To assemble and combine construction materials and methods to make a structure.
Constructability - The optimizing of cost, time, and quality factors with the material, equipment, construction means, methods, and techniques used on a project; accomplished by matching owner values with available construction industry practices.
Construction - The act or process of constructing.
Construction Budget - The target cost figure covering the construction phase of a project. It includes the cost of contracts with trade contractors, construction support items other purchased labor, material and equipment, and the construction manager's cost but not the cost of land, A/E fees, or consultant fees.
Construction Coordination - The orchestration or interfacing of performing contractors on-site.
Construction Cost - (1) The direct contractor costs for labor, material, equipment, and services; contractors overhead and profit; and other direct construction costs. Construction cost does not include the compensation paid to the architect and engineer and consultants, the cost of the land, rights-of-way or other costs which are defined in the contract documents as being the responsibility of the owner.
Construction Document Review - The owners review of the borrowers construction documents (plans and specifications), list of materials, and cost breakdowns for the purpose of confirming that these documents and estimates are feasible and are in accordance with the proposed loan or project appraisal.
Construction Documents - All drawings, specifications and addenda associated with a specific construction project. These documents delineate and graphically represent the physical construction requirements established by the A/E.
Construction Documents Phase - The third phase of the architect's basic services wherein the architect prepares working drawings, specifications and bidding information. Depending on the architects scope of services the architect may assists the owner in the preparation of bidding forms, the conditions of the contract and the form of agreement between the owner and contractor.
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.
Construction Phase - The fifth and final phase of the architect's basics services, which includes the architect's general administration (G&A) of the construction contract.
Construction Schedule - A graphic, tabular or narrative representation or depiction of the construction portion of the project-delivery process, showing activities and durations in sequential order.
Construction Support 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.
Construction 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.
Constructor-XCM - A variation of the extended services form of CM where the construction manager self-performs some of the construction on the project.
Consultant Professional firm and/or individual hired by the owner or client to give professional advise.
Contingencies - Line-item amounts in the project budget, dedicated to specific cost areas where oversight is an inherent problem in project delivery.
Contract - (1) An agreement between two or more parties, especially one that is written and enforceable by law (2) The writing or document containing such an agreement.
Contract Administration - The contractual duties and responsibilities of the A/E, contractor or CM during the construction phase of a specific project fo servicing the interactive provisions in the contract for construction.
Contract Bond - A written form of security from a surety company, on behalf of an acceptable prime or main contractor or subcontractor, guaranteeing complete execution of the contract and all supplemental agreements pertaining thereto and for the payment of all legal debts pertaining to the construction of the project.
Contract Date - 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.
Contract Document Phase - The final phase of design on an architectural project when construction documents are completed and bidding documents formulated.
Contract Document Review - A review of Bid and/or Contract Documents on a continuing basis, or at short intervals during the pre-construction phase, to preclude errors, ambiguities, and omissions.
Contract Documents - A term used to represent all executed agreements between the owner and contractor, any general, supplementary or other contract conditions, the drawings and specifications, all bidding documents less bidding information plus pre-award addenda issued prior to execution of the contract and post-award Change Orders, and any other items specifically stipulated as being included in the contract documents, which collectively form the contract between the contractor and the owner.
Contract Overrun - The cost deficit after determining the difference between the original contract price and the final completed cost including all adjustments by approved change order.
Contract Payment Bond - A written form of security from a surety company to the owner, on behalf of an acceptable prime or main contractor or subcontractor, guaranteeing payment to all persons providing labor, materials, equipment, or services in accordance with the contract.
Contract Performance Bond - A written form of security from a surety company to the owner, on behalf of an acceptable prime or main contractor or subcontractor, guaranteeing the completion of the work in accordance with the terms of the contract.
Contract Period - The elapsed number of working days or calendar days from the specified date of commencing work to the specified date of completion, as specified in the contract.
Contract Sum - The total agreeable amount payable by the owner to the contractor for the performance of the work under the contract documents.
Contract Time - The time period set forth established in the contract documents for completing a specific project; usually stated in working days or calendar days. The contract time can only be adjusted by valid time extensions through change order.
Contract Underrun - The cost savings after determining the difference between the original contract price and the final completed cost including all adjustments by approved change order.
Contractability - The optimizing of cost, time, and quality factors with the contracting structures and techniques used on a project; accomplished by matching owner contracting requirements with available construction industry practices.
Contracting Officer - An official representative of the owner with specific authority to act in his behalf in connection with a specific project.
Contractor - A properly licensed individual of company that contracts to perform a defined scope of work on a construction project and agrees to furnish labor, materials, equipment and associated services to perform the work as specified for a specified price.
Contractor/Constructor-XCM - A variation of the extended services form of CM where the construction manager holds construction contracts and self-performs construction on the project.
Contractor's Option - A written provision in the contract documents giving the contractor the option of selecting certain specified materials, methods or systems without changing in the contract sum.
Contractor's Qualification Statement - A written statement of the Contractor's experience and qualifications submitted to the Owner during the contractor selection process. The American Institute of Architects publishes a standard Contractor's Qualification Statement form for this purpose.
Contractor-XCM - A variation of the extended services form of CM where the construction manager holds construction contracts for the project.
Contractual Liability - The liability assumed by a party under a contract.
Control CM - A person designated by the CM firm to interface with the owner’s and A/E’s representatives on the project team at the second management level.
Coordination Meeting - Meeting held in the field to review project status and coordinate scheduled activities.
Coordinator - A person designated to assist a Control CM, Project Manager, or Level 2 Manager in executing the CM format.
Cost Breakdown - A financial statement furnished by the contractor to the architect or engineer delineating the portions of the contract sum allotted for the various parts of the work and used as the basis for reviewing the contractor's applications for progress payments.
Cost Codes - A numbering system given to specific kinds of work for the purpose of organizing the cost control process of a specific project.
Cost Control / Cost Management - Deliberations, actions, and reactions to project cost fluctuations during a project to maintain the project cost within the project budget.
Cost of Construction - The target cost figure covering the construction phase of a project. It includes the cost of contracts with trade contractors, construction support items other purchased labor, material and equipment, and the construction manager's cost but not the cost of land, A/E fees, or consultant fees.
Cost of Work - All costs incurred by the contractor in the proper performance of the work required by the plans and specifications for a specific project.
Cost Plus Contract - A form of contract usually between an owner and contractor, A/E design professional, or CM, under which the contractor, A/E or CM is reimbursed for his/her direct and indirect costs and, in addition, is paid a fee for his/her services. The fee is usually stated as a stipulated sum or as a percentage of cost.
Cost Plus Fee Agreement - A written agreement with the owner under which the contractor, A/E or CM for "Cost-Plus" work.
Credibility - The quality of something that makes it believable.
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.
CSI - Abbreviation for theConstruction Specification Institute
CSI Master Format - The CSI Master Format is a system of numbers and titles for organizing construction information into a regular, standard order or sequence. By establishing a master list of titles and numbers Master Format promotes standardization and thereby facilitates the retrieval of information and improves construction communication. It provides a uniform system for organizing information in project manuals, for organizing project cost data, and for filing product information and other technical data.
Currant Date Line - A vertical line on the chart indicating the currant date.