Cost Engineering Terminology

 

Term Definition Source
A Cost E Association of Cost Engineers Provoc – Glossary of Common Project Control Terms
Acceleration The execution of the planned scope of work in a shorter time than anticipated or the execution of an increased scope of work within the originally planned duration. The Society of Construction Law, Delays and Disruption Protocol
Accepted Programme The Protocol recommends that the Contractor be required to submit a draft programme for the whole of the works to the CA and that this draft programme be accepted by the CA. Once accepted by the CA, it is known in the Protocol as the Accepted Programme. The Society of Construction, Law, Delays and Disruption Protocol
Account Primary grouping of costs established for administrative and accounting purposes. Association of Cost Engineers (UK)
Account Grouping of costs for administration and control purposes Provoc – Glossary of Common Project Control Terms
Account Code Alpha-numeric code used to identify an individual cost account. Association of Cost Engineers (UK)
Account Code Unique identifier for a cost account the code can be alpha Provoc – Glossary of Common Project Control Terms
Accountability Defined level or point of budget authority and control responsibility Association of Cost Engineers (UK)
Accountability The point of budget authority and control responsibility – usually an individual will have authority for control within the defined scope Provoc – Glossary of Common Project Control Terms
Accounts Payable Value of goods and services for which payment has not yet been made. Association of Cost Engineers (UK)
Accounts Payable Value of goods and services received and yet to be paid for Provoc – Glossary of Common Project Control Terms
Accounts Receivable Value of goods and services executed and for which payment is yet to be received Provoc – Glossary of Common Project Control Terms
Accreditation (VQ) The acceptance of qualification by QCA AND SQA as meeting the criteria specified for NVQs and SVQs. Organisations can also be accredited to carry out assessment. Provoc – Glossary of Common Project Control Terms
Accrual Cost incurred or income earned but not yet recorded in the books. Association of Cost Engineers (UK)
Accrual Basis Accounting records for costs incurred and income earned Provoc – Glossary of Common Project Control Terms
Accrued Cost Total spends to date plus accruals Provoc – Glossary of Common Project Control Terms
Accrued Income Total recorded income plus income associated with accrued work Provoc – Glossary of Common Project Control Terms
Accuracy Factor Factor used in estimating to indicate the likely range or level of accuracy of an estimate. Association of Cost Engineers (UK)
Accuracy Factor Factor expressing the range or the level of accuracy of an estimate Provoc – Glossary of Common Project Control Terms
Activity An operation or process with a defined duration. May have an associated cost number of these logic linked will underpin the lowest level in a Work Breakdown Structure Provoc – Glossary of Common Project Control Terms
Activity Float The duration contingency directly related to a single activity built into the planned duration of that activity. Activity float is established simply by dictating an activity duration that is greater than the actual time needed to complete that activity. The Society of Construction, Law, Delays and Disruption Protocol
Activity Sampling A method of recording work activity in a statistical manner in order to allow an analysis of the total activity Provoc – Glossary of Common Project Control Terms
Activity-On-Arrow Network Diagram A network presentation where the arrows represent network activities the nodes represent end events Provoc – Glossary of Common Project Control Terms
Activity-On-Node Network Precedence Diagram A network presentation where the nodes symbolise the network activities Provoc – Glossary of Common Project Control Terms
Actual Cost of Work Performed (ACWP) Recorded cost or value of work or service actually completed Provoc – Glossary of Common Project Control Terms
Actuals Recorded of actual achievements for cost/revenue/ time against planned elements Provoc – Glossary of Common Project Control Terms
Advanced Funding Funds made available prior to formal funding/contract to cover payment for goods or services contracted or delivered prior to formal funding/contract Provoc – Glossary of Common Project Control Terms
AFC Approved for construction Provoc – Glossary of Common Project Control Terms
AFD Approved for design Provoc – Glossary of Common Project Control Terms
Ageing Rate Pre-determined level of depreciation expense or capital cost for given unit of time Provoc – Glossary of Common Project Control Terms
Allowances Provision made for work which it is known by experience will occur but for which there is no information at the time of estimate preparation Provoc – Glossary of Common Project Control Terms
Ancillaries Needed auxiliary items/materials usually unspecified Provoc – Glossary of Common Project Control Terms
APL (VQ) Accreditation of prior learning. A process which enables individuals to gain credit on the basis of past achievements learning and experience Provoc – Glossary of Common Project Control Terms
APM Association of Project Management Provoc – Glossary of Common Project Control Terms
Appropriation Authorised allocation of funds for specific future work Provoc – Glossary of Common Project Control Terms
Appropriation Estimate Early cost estimate for budget purposes Provoc – Glossary of Common Project Control Terms
Appropriation Request Formal request for management approval of funding for a future project Provoc – Glossary of Common Project Control Terms
Approved Centre (VQ) An organisation accredited by an Awarding Body to carry out the assessment of candidates and to recommend the award of an NVQ or SVQ Provoc – Glossary of Common Project Control Terms
As-built programme The record of the history of the construction project in the form of a programme. The as-built programme does not necessarily have any logic links. It can be merely a bar-chart record of the start and end dates of every activity that actually took place. ‘As constructed programme’ has the same meaning. The Society of Construction, Law, Delays and Disruption Protocol
As-Sold Estimate Final purchase or contract sales estimate inclusive of all pre-contract changes and adjustments to reflect the actual as sold of supply or sc Provoc – Glossary of Common Project Control Terms
As-Sold Price Actual value of purchase order or contract as sold inclusive of all escalation and other price variation conditions Provoc – Glossary of Common Project Control Terms
Assessment (VQ) The judgement of performance and knowledge evidence to decide whether competence has been achieved Provoc – Glossary of Common Project Control Terms
Assessment Plan (VQ) A plan detailing the methods and opportunities by which evidence covering each element of competence is to be generated collected and evaluated Provoc – Glossary of Common Project Control Terms
Assessor (VQ) A person registered and approved as competent to assess candidates in a particular range of occupations Provoc – Glossary of Common Project Control Terms
Asset Reference Plan Plan setting out the main elements of how an asset will be developed and operated from inception through to disposal Provoc – Glossary of Common Project Control Terms
Asset under construction register List of the projects currently in progress where purchase has taken place Provoc – Glossary of Common Project Control Terms
Assets Current value of property investments Provoc – Glossary of Common Project Control Terms
Audit Independent verification of a projects current status against the target cost schedule and/or codes of practise Provoc – Glossary of Common Project Control Terms
Authorised Budget Any budget duly approved by pre-defined level of authority Provoc – Glossary of Common Project Control Terms
Authorised Change Approved change to a previously authorised cost/scope/time by the appropriate authority Provoc – Glossary of Common Project Control Terms
Authorised Cost Any cost: actual estimated or budgeted Provoc – Glossary of Common Project Control Terms
Authorised Estimate Estimate approved by the appropriate authority Provoc – Glossary of Common Project Control Terms
Authorised Man-hours Estimate of budgeted man-hours approved by the appropriate authority Provoc – Glossary of Common Project Control Terms
Auxiliary Facilities Non-productivity supporting elements particularly in factory or plant Provoc – Glossary of Common Project Control Terms
Available Capital Value of funds available for capital investment purchase of goods or services Provoc – Glossary of Common Project Control Terms
Average Annual Card Conversion of all capital and operating costs to a series of equivalent annual expenses Provoc – Glossary of Common Project Control Terms
Average Cost Arithmetical mean cost = total expense divided by total quantity Provoc – Glossary of Common Project Control Terms
Average Investment Return Summation of fixed and variable dividends or profile normally expressed as a percentage of the capital cost employed Provoc – Glossary of Common Project Control Terms
Average Overhead Rate Ratio of indirect to direct expenses normally expressed as a percentage per annum Provoc – Glossary of Common Project Control Terms
Awarding Body (VQ) A body approved by the Qualifications and Curriculum Authority (QCA) and/or the Scottish Qualification Authority (SQA) for the purpose of awarding an NVQ or SVQ Provoc – Glossary of Common Project Control Terms
Backcharge Claim made against supplier contractor or subcontractor for remedial work Provoc – Glossary of Common Project Control Terms
Backward Pass (Backward Plan) Critical path calculation process which having calculated earliest date for activities on the network. Work backwards to find activities latest start and finish dates/float Provoc – Glossary of Common Project Control Terms
Bar Chart A chart on which activities and their durations are represented by lines to a time scale Provoc – Glossary of Common Project Control Terms
Bar Chart schedule Graphical representation of project activities or resources drawn as horizontal lines against a common time scale Provoc – Glossary of Common Project Control Terms
Base Cost Cost (estimate or estimate item) established as a basis for calculating escalation changes Provoc – Glossary of Common Project Control Terms
Base Date Date set as a programme/estimate base for calculating price variations forward escalation Provoc – Glossary of Common Project Control Terms
Base Estimate An estimate generated against a defined scope of work and established as a basis for evaluating subsequent adjustments modifications or changes Provoc – Glossary of Common Project Control Terms
Base Exchange Rate A currency exchange rate used in preparation of a cost estimate or budget and established as a basis for calculating subsequent actual currency differentials or variances Provoc – Glossary of Common Project Control Terms
Base Line A set of dates and costs frozen at the start of the project and used as a basis for comparison as the project progresses Provoc – Glossary of Common Project Control Terms
Base Rate Rate used as a basis for evaluation of the effect of future changes in interest charges Provoc – Glossary of Common Project Control Terms
Basic Price Standard rate or value adjustable by discount escalation or variation to suite specific circumstances applications and/or arrangements Provoc – Glossary of Common Project Control Terms
Basic Time A term used in Work Study to define the time taken to achieve a task by a normally motivated and skilled operative net of all allowances for relaxation Provoc – Glossary of Common Project Control Terms
Battery Limits The boundary/maximum extent of a contract scope area or system often used to manage interfaces between contract or commissioning of systems Provoc – Glossary of Common Project Control Terms
Benchmark A comparable standard for a generic group Provoc – Glossary of Common Project Control Terms
Benefit (R) Assessed chance and impact of a potentially advantageous occurrence Provoc – Glossary of Common Project Control Terms
Benefit of Finance Interest calculation based on the net cash flow and calculated on an average weekly basis Provoc – Glossary of Common Project Control Terms
Bid Analysis (Tender Analysis) Activity of analysing suppliers’ quotations or contractors’ tenders Provoc – Glossary of Common Project Control Terms
Bid Bond Sum provided by bidder as guarantee that the bid will be submitted and if accepted Provoc – Glossary of Common Project Control Terms
Bid Check Review of suppliers’ quotations or contractors’ tenders for compliance with the bid instructions Provoc – Glossary of Common Project Control Terms
Bid Comparison Document for comparison of suppliers’ quotations or contractors’ tenders as part of the selection process Provoc – Glossary of Common Project Control Terms
Bid Quantities Material or construction quantities issued to suppliers or contractors for bidding purposes Provoc – Glossary of Common Project Control Terms
Bid Tabulation Process of summarising the results of Bid Analysis for comparison purposes Provoc – Glossary of Common Project Control Terms
Bill of Materials List of materials quantities estimated or measured from drawings for estimating or procurement purposes Provoc – Glossary of Common Project Control Terms
Bill of Quantities List of construction quantities estimated or measured from drawings for tender pricing and contract payment purposes Provoc – Glossary of Common Project Control Terms
Bill of Quantities Contract Contract awarded against a Bill of Quantities for which payment is made in accordance with the unit prices contained in the bill of quantities Provoc – Glossary of Common Project Control Terms
Bond Sum of money securities or a guarantee of a third party to guarantee completion of the work and/or recovery of s Provoc – Glossary of Common Project Control Terms
Bonus Incentive payment over and above agreed wage or contractual reimbursement usually relating to achievement targets Provoc – Glossary of Common Project Control Terms
Bonus Incentive/ Bond Scheme Payment framework agreement to increase output from work force Provoc – Glossary of Common Project Control Terms
Bonus/ Penalty Clause Contractual incentive placed on supplier or contractor to achieve certain completion targets for which a bonus payment is earned or a financial penalty incurred Provoc – Glossary of Common Project Control Terms
Book Value Asset as recorded in the books of a business Provoc – Glossary of Common Project Control Terms
Brainstorming Structural collection of ideas/solutions against a particular issue/topic. Often done in a workshop environment Provoc – Glossary of Common Project Control Terms
Brown Field Site Sites on which buildings/structures exist or have previously existed Provoc – Glossary of Common Project Control Terms
Budget Authorised target for project achievement, usually expressed in terms of quantities, manhours or costs. Association of Cost Engineers (UK)
Budget Authorised target for project achievement or part thereof usually expressed in terms of quantities Provoc – Glossary of Common Project Control Terms
Budget Centre A financial centre that owns and controls its own budget Provoc – Glossary of Common Project Control Terms
Budget Cost The target cost for completion of the work package Provoc – Glossary of Common Project Control Terms
Budget Cost of Work Performance (BCWP) Budget value for work completed or services rendered at cut off date Provoc – Glossary of Common Project Control Terms
Budget Cost of Work Scheduled (BCWS) Budget value for work or service planned (scheduled) to be completed or rendered at the cut off date Provoc – Glossary of Common Project Control Terms
Budget Transfer Authorised adjustment to budget targets which do not increase or decrease the total budget Provoc – Glossary of Common Project Control Terms
Budget Unit Cost Unit cost applied to budget item quantities to calculate the item budget cost Provoc – Glossary of Common Project Control Terms
Budget Variance Variance between budget and actual/forecast quantities man-hours or costs Provoc – Glossary of Common Project Control Terms
Budgetary Control The continuous comparison of actual with the budget values in order to maintain costs in line with the budget or to provide a basis for its revision Provoc – Glossary of Common Project Control Terms
Building Services Mechanical electrical or other specialised utilities within a building or plant Provoc – Glossary of Common Project Control Terms
Bulk Factors (1) Multipliers applied to manufactured equipment costs to calculate erected plant or total installation costs including associated bulk materials and ancillaries Provoc – Glossary of Common Project Control Terms
Bulk Factors (2) Index for granular and earthworks materials to allow for the increase in volume of an excavated material removed from its original state – need Provoc – Glossary of Common Project Control Terms
Bulk Materials Any material purchased in bulk Provoc – Glossary of Common Project Control Terms
Burden Overhead expenses distributed as an add-on cost to direct cost Provoc – Glossary of Common Project Control Terms
Buying Gain/Loss The difference between the budget provisions for a material or service and the contracted cost paid by the contractor Provoc – Glossary of Common Project Control Terms
Cancellation Charges Contract charges submitted by a supplier or contractor in the event of cancellation of purchase order or termination of contract by client or others Provoc – Glossary of Common Project Control Terms
Cancellation Costs Costs incurred on a project due to cancellation or termination or an issued purchase order or contract Provoc – Glossary of Common Project Control Terms
Capacity Factor Term used in Estimating in respect of the capacity ratio between two similar plants Provoc – Glossary of Common Project Control Terms
Capital Money invested or available for investment against which earnings and dividends are assessed Provoc – Glossary of Common Project Control Terms
Capital Budgeting Defined allocation of capital resources for approved future investment Provoc – Glossary of Common Project Control Terms
Capital Cost Estimate A proposed fixed asset cost estimate covering design Provoc – Glossary of Common Project Control Terms
Capital Expenditure Expenditure arising form the implementation of a fixed asset or improvement of an existing asset Provoc – Glossary of Common Project Control Terms
Capital Recovery Recovery of capital invested in a project over its operating including allowed depreciation Provoc – Glossary of Common Project Control Terms
Cascade Chart A bar chart where the vertical presentation shows each activity as dependent on activities higher in the list Provoc – Glossary of Common Project Control Terms
Cash Monies in hand or available for immediate use Provoc – Glossary of Common Project Control Terms
Cash Basis Method of recording cost and income data based on actual cash payments and receipts Provoc – Glossary of Common Project Control Terms
Cash Call Projection and request for future cash requirements at specific points in time Provoc – Glossary of Common Project Control Terms
Cash Flow Forecast cash balance against time based on the net flow of actual or anticipated cash payments i.e. Provoc – Glossary of Common Project Control Terms
Cash Generation Net increase in cash flow from an investment Provoc – Glossary of Common Project Control Terms
CBS Cost Break Down Structure – Generic coding hierarchy for companies cost code cost unit and cost items enabling compilation of norms and project estimating ratios Provoc – Glossary of Common Project Control Terms
CEP Capital Expenditure Proposal (generally a client document) and usually underpinned by a class II estimate Provoc – Glossary of Common Project Control Terms
Change Alert Advanced notice of potential change Provoc – Glossary of Common Project Control Terms
Change Control The process of tracking and monitoring for early detection Provoc – Glossary of Common Project Control Terms
Change Estimate Estimate evaluating a potential change to the project Provoc – Glossary of Common Project Control Terms
Change Impact Effect of change on project code and schedule Provoc – Glossary of Common Project Control Terms
Change Management The monitoring recording and assessment of changes to the scope and/or timing of a project and the management of t Provoc – Glossary of Common Project Control Terms
Change of Scope Change to the previously contracted scope of supply or work Provoc – Glossary of Common Project Control Terms
Change Order Authorised Change Order Request Provoc – Glossary of Common Project Control Terms
Change Order Request Request for authorisation to implement a change to the current project/contract scope Provoc – Glossary of Common Project Control Terms
Change/ variation Any difference between the circumstances and/or content of the contract works as carried out, compared with the circumstances and/or content under which the works are described in the contract documents as required to be or intended to have been carried out. A change or variation may or may not carry with it a right to an extension of time and/or additional payment. The Society of Construction, Law, Delays and Disruption Protocol
Charge Out-rate Price charged for man-hours etc Provoc – Glossary of Common Project Control Terms
CIF Carriage, Insurance and Freight Provoc – Glossary of Common Project Control Terms
Claim Demand made for compensation or additional remuneration for which one of the contracted parties considers he has a contractual right Provoc – Glossary of Common Project Control Terms
Class I Estimate Detailed estimate prepared for control purposes from well-defined design data to an accuracy of +1/-5% (Also know as Definitive Estimate Detailed Estimate Provoc – Glossary of Common Project Control Terms
Class II Estimate Semi-detailed estimate prepared for initial budget purposes from preliminary but largely fixed design data to an accuracy +1%/-10% (Also known as Budget Estimate Sanction Estimate Provoc – Glossary of Common Project Control Terms
Class III Estimate Pre-budget estimate prepared from very preliminary design data to an accuracy of +1%/-10% (Also known as Evaluation Estimate Pre-Design Estimate Provoc – Glossary of Common Project Control Terms
Clients Those to whom a person or business has responsibility. That responsibility may be direct and defined contractually or it may be indirect and implied through the person’s accountability for achievements and resources. In some industry sectors other terms such as ‘customer’ Provoc – Glossary of Common Project Control Terms
Clocked Time Total hours recorded by employees between clocking on and off Provoc – Glossary of Common Project Control Terms
Close-out Report (aka Project de-brief) Final end of project or end of assignment report to capture lessons learnt and out-turns for project memory Provoc – Glossary of Common Project Control Terms
Code of Accounts A complete set of Account Codes for collation analysis and allocation as part of cost control or for future estimating purposes (i.e. Project Mem Provoc – Glossary of Common Project Control Terms
Collapsed as-built A method of delay analysis where the effects of events are ‘subtracted’ from the as-built programme to determine what would have occurred but for those events. The Society of Construction, Law, Delays and Disruption Protocol
Collateral Warranty A binding legal contract alongside of but separate from Provoc – Glossary of Common Project Control Terms
Commercial Relating to trading activities and considerations Provoc – Glossary of Common Project Control Terms
Commissioning Phase The period following completion of construction and installation work of an area/system when commissioning of some/all of the works takes place Provoc – Glossary of Common Project Control Terms
Community The public in general and those that represent the public interest in particular Provoc – Glossary of Common Project Control Terms
Compensable event Expression sometimes used to describe what in the Protocol is an Employer Risk Event in respect of which the Contractor is entitled to compensation. The Society of Construction, Law, Delays and Disruption Protocol
Compensation The recovery or payment of money for work done or time taken up whether by way of valuation, loss and/or expense or damages The Society of Construction, Law, Delays and Disruption Protocol
Competence (VQ) The ability to perform work activities to the national standards required in employment Provoc – Glossary of Common Project Control Terms
Comply Meet all the specified conditions Provoc – Glossary of Common Project Control Terms
Concurrency True concurrent delay is the occurence of two or more delay events at the same time, one an Employer Risk Event, the other a Contractor Risk Event and the effects of which are felt at the same time. The term ‘concurrent delay’ is often used to describe the situation where two or more events arise at different times, but the effects of them are felt (in whole or in part) at the same time. To avoid confusion, this is more correctly termed the ‘concurrent effect’ of sequential delay events. The Society of Construction, Law, Delays and Disruption Protocol
Condition Money Additional money paid to site labour/staff to compensate for working in difficult or unusual conditions i.e. heights Provoc – Glossary of Common Project Control Terms
Conditions of Contract Terms agreed by the parties to the contract for delivery and/or cessation of the contract Provoc – Glossary of Common Project Control Terms
Confidence Limit (R) A project cost or schedule percentage probability of achievement or the value for a predefined maximum or acceptable limits (u Provoc – Glossary of Common Project Control Terms
Configuration Management The technical and administrative activities concerned with the creation maintenance and controlled change of configuration data throughout the life of a product Provoc – Glossary of Common Project Control Terms
Construction Area An area within a construction site allocated for construction purposes Provoc – Glossary of Common Project Control Terms
Construction Indirects Term commonly used to describe all indirect field expenses such as non-productive labour Provoc – Glossary of Common Project Control Terms
Construction Management Contract (CM) A contract where the contractor will be reimbursed a defined fee and preliminaries for undertaking the works (or just the fee Provoc – Glossary of Common Project Control Terms
Construction Philosophy Overall strategy for construction work defining proposed methods of execution Provoc – Glossary of Common Project Control Terms
Construction Quantities Measured and quantified construction work Provoc – Glossary of Common Project Control Terms
Constructive acceleration Acceleration following failure by the Employer to recognise that the Contractor has encountered Employer Delay for which it is entitled to an EOT and which failure required the Contractor to accelerate its progress in order to complete the works by the prevailing contract completion date. This situation may be brought about by the Employer’s denial of a valid request for an EOT or by the Employer’s late granting of an EOT. Not(currently)a recognised concept under English law. The Society of Construction, Law, Delays and Disruption Protocol
Consumables Material consumed or construction aids permanently incorporated into a construction project including non-recoverable formwork Provoc – Glossary of Common Project Control Terms
Contingency Budgetary provision for unforeseeable occurrences within a defined project scope, commonly released or reduced by formula. Association of Cost Engineers (UK)
Contingency Estimate provision to fund unforeseeable occurrences within the defined scope Provoc – Glossary of Common Project Control Terms
Contingency Draw down The transfer from contingency to authorised estimate in order to fund in deviations/risks that have arisen Provoc – Glossary of Common Project Control Terms
Contingency Management The monitoring and maintenance of remaining contingency in terms of fund transfers and remaining risk Provoc – Glossary of Common Project Control Terms
Contingent Reserve The current budgetary provisions to cover potential risk occurrences Provoc – Glossary of Common Project Control Terms
Contract Legal and binding agreement usually in writing between two or more parties defining scope of work or services to be delivered Provoc – Glossary of Common Project Control Terms
Contract Administration (CA) The person responsible for adminstration of the contract, including certifying what extensions of time are due, or what additional costs or loss and expense is to be compensated. Depending on the form of contract the person may be referred to by such tems as Employer’s Agent, Employer’s Representative, Contract Administrator, Project Manager or Supervising Officer or be specified as a particular professional, such as the Architect or the Engineer. The contract administrator may be one of the Employer’s employees. The Society of Construction, Law, Delays and Disruption Protocol
Contract Completion Date The date by which the contractor is contractually obliged to complete the works. As well as an overall date for completion, may be the date for completion of a section of the works or a milestone date. The expression ‘completion date’ is sometimes used by Contractors to describe the date when they plan to complete the works (which may be earlier than the contract completion date). The protocol avoids this confusion by using the expression ‘contract completion date’. The Society of Construction, Law, Delays and Disruption Protocol
Contract Price Adjustment (CPA) A provision in the contract to adjust the contract sum in respect of escalation Provoc – Glossary of Common Project Control Terms
Contract Programme The agreed logic schedule for the contract showing the major deliverables and their relationships/key dates against which the contract report is prepared and any justification for extensions of time or acceleration are evaluated Provoc – Glossary of Common Project Control Terms
Contractor The party responsible for carrying out the works is generally referred to as the ‘Contractor’. The Protocol is applicable to sub-contracts as well as main contracts, so when it is being applied to a sub-contract, it is the sub-contractor that is being referred to as the ‘Contractor’ in the Protocol. The Society of Construction, Law, Delays and Disruption Protocol
Contractor Delay Expression commonly used to describe any delay caused by a Contractor Risk Event. The Protocol is distinguishes between: Contractor Delay to Progress which is a delay which will merely cause delay to the Contractor’s progress without causing a contract completion date not to be met; and Contractor Delay to Completion which is a delay which will cause a contract completion date not to be met. The Society of Construction, Law, Delays and Disruption Protocol
Contractor Risk Event An event or cause of delay which under the contract is at the risk and responsibility of the Contractor. The Society of Construction, Law, Delays and Disruption Protocol
Contractor’s planned completion date The date shown on the Contractor’s programme as being the date when the Contractor plans to complete the works under the contract. The Society of Construction, Law, Delays and Disruption Protocol
Contractors Area Area on a construction site set aside for contractors site establishments Provoc – Glossary of Common Project Control Terms
Control Budget A budget used for high level control of the project/contract and against which actual performance is measured Provoc – Glossary of Common Project Control Terms
Control Estimate An estimate as a reference estimate for cost control of the project/contract Provoc – Glossary of Common Project Control Terms
Control Programme The agreed logic schedule for the contract showing the major deliverables and their relationships/key dates against which the contract report is prepared and any justification for extensions of time or acceleration are evaluated Provoc – Glossary of Common Project Control Terms
Control Tool Any cost/schedule control aid e.g. An estimate programme budget Provoc – Glossary of Common Project Control Terms
Cost Analysis Systematic segregation and manipulation of cost data into elements or categories for detail examination Provoc – Glossary of Common Project Control Terms
Cost Blackout Prolonged absence of verified actual and forecast cost status this is often caused by failing to understand the impact of migration of internal scope arising dur Provoc – Glossary of Common Project Control Terms
Cost Breakdown Structure (CBS) Systematic breakdown of costs into pre-defined elements in order to summate cost to like items/develop ratios for comparison between projects memory estimating for future projects Provoc – Glossary of Common Project Control Terms
Cost Budget Cost target for completion Provoc – Glossary of Common Project Control Terms
Cost Centre A business area with authority to manage its cost within its authorised annual budget cost are collected against the centres budget items as part of the management/feedback process Provoc – Glossary of Common Project Control Terms
Cost Classification – Application of Indices Framework different types of costs into defined groups and sub-groups to develop norms for comparison between projects and input to project memory for estimating of future projects Provoc – Glossary of Common Project Control Terms
Cost Code A unique code within a hierarchy assigned to a specific cost item with an attribute (category) Provoc – Glossary of Common Project Control Terms
Cost Control Systematic monitor of expenditure to track/manage completion within pre-determined budgets and targets Provoc – Glossary of Common Project Control Terms
Cost Deviation Variance from the current control base or basis Provoc – Glossary of Common Project Control Terms
Cost Element Classified component of larger cost item Provoc – Glossary of Common Project Control Terms
Cost Engineer An engineer who as a consequence of his training and experience is competent in the use and development of the principles of cost engineering Provoc – Glossary of Common Project Control Terms
Cost Engineering The engineering practise devoted to the project cost management involving such activities as estimating
Cost Estimate/ Forecast Any considered prediction of future or final project costs Provoc – Glossary of Common Project Control Terms
Cost History Record of previously incurred costs or cost movements against estimate items or areas of expenditure Provoc – Glossary of Common Project Control Terms
Cost Impact (R) The effect of some event often a risk occurrence or change
Cost Index Tabulation factors measured from a base date recording the cost movements for a particular category or item or unit or work over a series of time periods i.e annually Provoc – Glossary of Common Project Control Terms
Cost Indices Series of factored tabulations as defined above for Cost Index Provoc – Glossary of Common Project Control Terms
Cost Journal Accounts bookkeeping record of individual daily transactions in Cost Ledger may be within an IT system Provoc – Glossary of Common Project Control Terms
Cost Ledger Accounting book recording both cost and revenue may be within an IT system Provoc – Glossary of Common Project Control Terms
Cost Model (Cost Schedule) Plan of proposed or anticipated of expenditure phased over scheduled time periods in the case of a cost schedule costs will be attached to the activities on the network Provoc – Glossary of Common Project Control Terms
Cost Monitoring Continuous tracking of the costs of work in progress with against control estimate cost targets Provoc – Glossary of Common Project Control Terms
Cost Movement Any change in the previously recorded cost for an estimate item Provoc – Glossary of Common Project Control Terms
Cost Norm Established average or expected cost of defined item or unit of work Provoc – Glossary of Common Project Control Terms
Cost of Capital Expected return that is foregone by investing in a project rather than in comparable financial securities Provoc – Glossary of Common Project Control Terms
Cost of Date Costs committed incurred
Cost Over-run Any cost in excess of that budgeted Provoc – Glossary of Common Project Control Terms
Cost Phasing Term used to describe the distribution over time of planned or actual cost incurred Provoc – Glossary of Common Project Control Terms
Cost Plus Contract (Cost Reimbursable) Form of contract where reimbursement is based on actual costs incurred plus a mark-up or fee to cover overhead and profit Provoc – Glossary of Common Project Control Terms
Cost Status Current cost position expressed in terms of budgets commitments Provoc – Glossary of Common Project Control Terms
Cost Study Review/analysis of costs associated with a potential revision to strategy/options or a new project Provoc – Glossary of Common Project Control Terms
Cost Trend Tracking/extrapolation of Actual cost performance data Provoc – Glossary of Common Project Control Terms
Cost Variance Actual or forecast cost deviation from the previously forecast or budgeted values for the estimate item Provoc – Glossary of Common Project Control Terms
CPA Contract price adjustments Provoc – Glossary of Common Project Control Terms
CPI Cost Performance Index: the ratio of actual cost over budgeted cost for completed work Provoc – Glossary of Common Project Control Terms
Critical Activity An activity on the critical path Provoc – Glossary of Common Project Control Terms
Critical Event An event on the critical path Provoc – Glossary of Common Project Control Terms
Critical Evidence (VQ) Evidence of work performance which candidates must provide for National Vocational Qualification assessment purposes
Critical path The sequence of activities through a project network from start to finish, the sum of whose durations determines the overall project duration. There may be more than one critical path depending on workflow logic. A delay to progress of any activity on the critical will, without acceleration or re-sequencing, cause the overall project duration to be extended, and is therefore referred to as a ‘critical delay’. The Society of Construction, Law, Delays and Disruption Protocol
Critical path analysis (CPA) and Critical path method (CPM) The critical path analysis or method is the process of deducting the critical activities in a programme by tracing the logical sequence of tasks that directly affect the date of project completion. It is a methodology or management technique that determines a project’s critical path. The resulting programme may be depicted in a number of different forms, including a Gantt or bar chart, line-of-balance diagram, time-scaled logic diagram or as a time-challenge diagram, depending on the nature of the works represented in the programme. The Society of Construction, Law, Delays and Disruption Protocol
CTR Cost, Time and Resources – particular concept of project control based on assigning costs Provoc – Glossary of Common Project Control Terms
Culpable delay Expression sometimes used to describe what the Protocol calls Contractor Delay The Society of Construction, Law, Delays and Disruption Protocol
Currency Differential Cost variance arising from currency exchange rate fluctuations Provoc – Glossary of Common Project Control Terms
Current Budget Original budget plus all approved budget changes and transfers Provoc – Glossary of Common Project Control Terms
Current Cost Variance Current variance between Actual Cost of Work Performed and Budget cost of Work Performed Provoc – Glossary of Common Project Control Terms
Current Costs Based on current date cost position and derived from evaluation of current data Provoc – Glossary of Common Project Control Terms
Damages Sums of money awarded as financial compensation for a tort or breach of contract Provoc – Glossary of Common Project Control Terms
Data Bank Collection of project information norms
Date for completion The date by which the contractor is expected to complete the works, which may be earlier or later than the contract completion date. The Society of Construction, Law, Delays and Disruption Protocol
Day Work Work paid for on an hourly daily or weekly time basis Provoc – Glossary of Common Project Control Terms
Day Work Contract Contract reimbursed against Day Work rates Provoc – Glossary of Common Project Control Terms
Day Work Rates Hourly, daily or weekly rates for Day Work
De-Escalation Process of evaluating and removing actual escalation from spends to date Provoc – Glossary of Common Project Control Terms
Debit Charge to an account Provoc – Glossary of Common Project Control Terms
Deed of Warranty A specific main contract obligation for the sub-contractor to provide the warranty under deed Provoc – Glossary of Common Project Control Terms
Defective Work Charge (see Backcharge) Contract may require defective work to be replaced Provoc – Glossary of Common Project Control Terms
Definition Estimate Detailed estimate prepared for control purposes from well-defined engineering/design data Provoc – Glossary of Common Project Control Terms
Definition Phase Initial period of a project when confirmation of scope and project strategy is developed Provoc – Glossary of Common Project Control Terms
Delay event An event or cause of delay, which may be either an Employer Risk Event or a Contractor Risk Event. The Society of Construction, Law, Delays and Disruption Protocol
Delay to Completion In common usage, this expression may mean either delay to the date when the contractor planned to complete its works, or a delay to the contract completion date. The Protocol uses the expressions Employer Delay to Completion and Contractor Delay to Completion, both of which mean delay to a contract completion date – see their definitions. The Society of Construction, Law, Delays and Disruption Protocol
Delay to Progress In the Protocol, this means a delay which will merely cause delay to the Contractor’s progress without causing a contract completion date not to be met. It is either an Employer Delay to Progress or a Contractor Delay to Progess. The Society of Construction, Law, Delays and Disruption Protocol
Deliverables Project measurable documents, materials and other physical commodities or outputs capable of being delivered/tracked against a sp
Delivered Material Cost All up cost of material delivered to site inclusive of freight
Demobilisation Term used to describe final project or contract termination close-out activity Provoc – Glossary of Common Project Control Terms
Demurrage Charges payable for detention of a vessel vehicle or trailer
Departmentalisation The division of an organisation into departments cost centres or service units for budgetary cost control purposes Provoc – Glossary of Common Project Control Terms
Depreciation Drop in value of a capital asset due to use or ageing Provoc – Glossary of Common Project Control Terms
Depreciation Reserve An account set up to receive credits to offset depreciation charges Provoc – Glossary of Common Project Control Terms
Design and Construct Contract Contract based on a brief provided by the owner against which a contractor designs and constructs a project Provoc – Glossary of Common Project Control Terms
Design Basis Formal front-end document defining project scope of work anticipated execution philosophy required for engineering design activity
Design Cost Cost of preparing a defined design inclusive of all fees
Design Development Nominal allowance in an estimate or forecast for anticipated additional costs arising from natural evolution of preliminary design data Provoc – Glossary of Common Project Control Terms
Design Management & Construct Contract (DMC) A type of Design & Build which generally though not exclusively Provoc – Glossary of Common Project Control Terms
Designed Quantities Quantities derived from take off from drawings with allowances for MUI (Miscellaneous and Unspecified Items) etc.
Develop Refine an initial idea or proposal to the point at which it holds together as a coherent and potentially viable proposition Provoc – Glossary of Common Project Control Terms
Direct Cost Any cost directly allocatable to a productive account or cost centre Provoc – Glossary of Common Project Control Terms
Direct Labour (1) Labour which can be directly related/allocated to output of a productive account or cost centre compared with indirect labour which is not directly related to output
Direct Man-hours Man-hours which are directly related to the output of a productive account or cost centre as opposed to indirect man-hours
Direct Material Purchased material which is directly used a part of the output of a productive account or cost centre Provoc – Glossary of Common Project Control Terms
Discounted Cash Flow Overall cash flow on a project discounted to net present value or a specific year value Provoc – Glossary of Common Project Control Terms
Discounting Application of compound interest to adjust costs placed earlier in time
Disposal Cost The cost incurred at the end of an assets working life which would include the cost of demolition scrap or resale value and labour cost Provoc – Glossary of Common Project Control Terms
Disruption Disturbance, hindrance or interruption of a Contractor’s normal work progress, resulting in lower efficiency or lower productivity than would otherwise be achieved. Disruption does not necessarily result in a Delay to Progress or Delay to Completion. The Society of Construction, Law, Delays and Disruption Protocol
Distributables A category of costs which are spread or apportioned over other cost items Provoc – Glossary of Common Project Control Terms
Double Shift Work Two separate labour teams operating in consecutive shifts Provoc – Glossary of Common Project Control Terms
Down Time Period when equipment or plant is non-operational planned or unplanned
Drawing Measure/Quantities Construction or material quantities as measured from drawings Provoc – Glossary of Common Project Control Terms
Dummies The logic linking activities Provoc – Glossary of Common Project Control Terms
Duration Elapsed time for work to be done underpinned by quantities or standard time Provoc – Glossary of Common Project Control Terms
Duration Duration is the length of time needed to complete an activity. The time period can be determined inductively, by determining the start and finish date of an activity or deductively by calculation from the time necessary to expend the resources applied to the activity. The Society of Construction, Law, Delays and Disruption Protocol
E&OE Errors and Omissions Excepted – a qualification clause commonly used to cover mistakes in quotations Provoc – Glossary of Common Project Control Terms
Earliest Event Time (EET) Early Complete The earliest time an event can be completed within the logic and imposed targets in the network Provoc – Glossary of Common Project Control Terms
Early Start The earliest time an event can start within the logic and imposed targets in the network Provoc – Glossary of Common Project Control Terms
Early Warning System (EWS) System/process to give advance notice of a potential cost/time over-run of a deliverable/project Provoc – Glossary of Common Project Control Terms
Earned Income Actual income value to date for services rendered work performed or materials supplied Provoc – Glossary of Common Project Control Terms
Earned Man-hours Budget man-hours for work completed Provoc – Glossary of Common Project Control Terms
Earned Value Budget value for work completed; the value of the useful work done at any given point in a project Provoc – Glossary of Common Project Control Terms
ECGD Export Credit Guarantee Department – an official UK Government office for insurance of payment on overseas sales or contracts Provoc – Glossary of Common Project Control Terms
Effective Date Cut-off date for the data incorporated into a cost/progress report Provoc – Glossary of Common Project Control Terms
Element of Competence (VQ) The smallest sub-division of a unit of competence Provoc – Glossary of Common Project Control Terms
Employer The employer is the party under the contract who agrees to pay for the works. In some of the standard forms, the party who agrees to pay for the works is referred to as the Developer, the Owner, the Client or the Authority. The Procotol is applicable to sub-contracts as well as main contacts, so when it is being applied to a sub-contract, it is the main contractor that is being referred to as the Employer in the Protocol The Society of Construction, Law, Delays and Disruption Protocol
Employer Delay Expression commonly used to describe any delay caused by an Employer Risk Event. The Protocol distinguishes between: Employer Delay to Progress which is a delay which will merely cause delay to the Contractor’s progress without causing a contract completion not to be met; and Employer Delay to Completion which is a delay which will cause a contract completion date not to be met. The Society of Construction, Law, Delays and Disruption Protocol
Employer Risk Event An event or cause of delay which under the contract is at the risk and responsibility of the Employer. The Society of Construction, Law, Delays and Disruption Protocol
Engineers Order (EO) (aka Work Order-) Order raised by an Engineer or his delegate releasing a work package to be delivered to the required scope
EPC Engineering Procurement and Construction – An integrated contract covering all these functions to manage/delive
Equipment Cost (1) Delivered capital cost of permanent plant and equipment
Equipment List/ Plant List Design and progress document listing all items of major equipment/plant on a project Provoc – Glossary of Common Project Control Terms
Erected Cost Total cost of erected equipment facilities Provoc – Glossary of Common Project Control Terms
Erection Installation of equipment materials
Escalated Cost Costs which have been escalated from actual or estimated values to equivalent values at a new date
Escalation Cost increases arising from inflation or market forces resulting in a change in value against time referenced to a base date
Estimate Evaluation of expected quantities time and man-hours
Estimate Authorisation Estimate approval at the appropriate level of authority Provoc – Glossary of Common Project Control Terms
Estimate Basis Document defining all conditions and assumptions used in the preparation of an estimate Provoc – Glossary of Common Project Control Terms
Estimate Classification Categorisation of an estimate based on levels of detail and accuracy (eg Class I Class II
Estimate Reliability Level of confidence in an estimated value and the quality of underpinning information Provoc – Glossary of Common Project Control Terms
Estimate to Complete Estimate of remaining costs man-hours or quantities to completion Provoc – Glossary of Common Project Control Terms
Estimator A specialist who maintains the generic project models and norms for the business and applies item or industry standards in the preparation of the various classes of estimate Provoc – Glossary of Common Project Control Terms
Event The end or start of an activity Provoc – Glossary of Common Project Control Terms
Event Time The time by which an event can be (or is to be) achieved Provoc – Glossary of Common Project Control Terms
Ex Quay (Duty of Buyer’s A/C) All goods for which all import duties and taxes are routed through the buyer’s account Provoc – Glossary of Common Project Control Terms
Ex Quay (Duty Paid) All goods for which unloading from ship import duties
Ex Ship All goods which unloading documentation
Ex Works Goods from the factory mill Provoc – Glossary of Common Project Control Terms
Excusable Delay Expression sometimes used to describe what in the Protocol is an Employer Delay in respect of which the Contractors is entitled to an EOT. The Society of Construction, Law, Delays and Disruption Protocol
Expenditure Total value of all invoices and charges either paid or approved for payment Provoc – Glossary of Common Project Control Terms
Extension of Time Contractual extension of time to reflect agreed claims/scope changes. Sometimes used to minimise the risk of invoking penalty clauses Provoc – Glossary of Common Project Control Terms
Facilities Services to support the delivery and operation of a project Provoc – Glossary of Common Project Control Terms
Factored Estimate (1) Front-end estimate created by factoring/modelling known costs from previous similar projects or part projects
Factors (VQ) Things that may affect the setting of objectives or their achievement Provoc – Glossary of Common Project Control Terms
FAS Free alongside ship – cost of goods and all charges up to placement alongside a vessel at a contracted port Provoc – Glossary of Common Project Control Terms
Feasibility Study Assessment of the technical and/or commercial viability of a project (research/ investment) Provoc – Glossary of Common Project Control Terms
Feed-back Out-turn data used to create norms and modelling data structured to underpin future estimate. It includes data on how a process or a product meets expectations. Provoc – Glossary of Common Project Control Terms
Feed-out Term used for the analysed presentation of tender information normally prepared by an estimator for used by the project execution team as a basis for cost contro
Field Administration and Supervision Site administrative and supervisory staff Provoc – Glossary of Common Project Control Terms
Field Budget Authorised target for field activities based on designed quantities and associated budget man-hours and infrastructure/construction plant costs. Provoc – Glossary of Common Project Control Terms
Field Change Field-authorised change to overcome problems with the as-designed construction or erection drawing or specification Provoc – Glossary of Common Project Control Terms
Field Controllable Costs Cost which can only be controlled on site Provoc – Glossary of Common Project Control Terms
Field Prorates Field indirect cost distributed over direct construction cost accounts Provoc – Glossary of Common Project Control Terms
Field Purchase Order Purchased Order raised and authorised at site Provoc – Glossary of Common Project Control Terms
Field Purchased Material Permanent material purchased by site against a Field Purchase Order Provoc – Glossary of Common Project Control Terms
Final Account Agreed final settlement of payment under a contract Provoc – Glossary of Common Project Control Terms
Final Measure Agreed final measurement from as-built drawings or site construction Provoc – Glossary of Common Project Control Terms
Financial Model Plan of proposed or anticipated income and expenditure against time for a project Provoc – Glossary of Common Project Control Terms
Finish-to-Finish Activity B cannot finish until activity A has finished. It implies that B can finish at the same time as A, but not before it. The Society of Construction, Law, Delays and Disruption Protocol
Finish-to-start The normal sequential relationship of one activity following another. Activity B cannot start until activity A has finished. The Society of Construction, Law, Delays and Disruption Protocol
Firm Price Price fixed in all respects apart from an escalation clause in some contracts where additional payment may be made using an agreed formula against a base date Provoc – Glossary of Common Project Control Terms
Fixed Assets Register List of the current asset value of all completed/operational projects. This may be sub-divided into main areas/facilities created by the project Provoc – Glossary of Common Project Control Terms
Fixed Capital Capital value of fixed assets land structures and equipment
Fixed Fee Contract for service for which there is no adjustment for escalation or other reasons within the contract period providing scope is unaltered Provoc – Glossary of Common Project Control Terms
Fixed Lump Sum Price Single price for specified scope of work not subject to adjustment for escalation or other reasons Provoc – Glossary of Common Project Control Terms
Fixed Price Price held for fixed duration for specified goods or services Provoc – Glossary of Common Project Control Terms
Fixed Unit Price Unit price held for fixed duration for specified goods or services Provoc – Glossary of Common Project Control Terms
Float The duration an activity can move in time without effecting the critical path Provoc – Glossary of Common Project Control Terms
Float (Business/Stock) A buffer level of cash goods or stock maintained for immediate use maintained at a predetermined level Provoc – Glossary of Common Project Control Terms
Float Erosion The using up of available float Provoc – Glossary of Common Project Control Terms
Fluctuation Clause Contractual clause covering the procedure for handling price adjustments due to cost of living increases during the contract period Provoc – Glossary of Common Project Control Terms
FOB Free On Board – cost of goods and all charges up to being placed on board a vessel at the named port Provoc – Glossary of Common Project Control Terms
FOR Free On Rail – cost of goods and all charges up to being placed on railway trucks at the contracted station Provoc – Glossary of Common Project Control Terms
Force-Majeure Clause Contractual disaster clause specifying as a consequence of an Act of God i.e. Earthquake
Form of Contract Agreement document legally binding and enforceable in law. Can be standard form of contract
Forward Cost Estimate Forecast of outstanding costs usually to completion of a phase or the project Provoc – Glossary of Common Project Control Terms
Forward Escalation Anticipated increases in costs arising from escalation Provoc – Glossary of Common Project Control Terms
Forward Labour Load (Resource Requirements) Anticipated future manpower requirement Provoc – Glossary of Common Project Control Terms
Free Float The duration an activity can move without moving the adjacent activities planned dates Provoc – Glossary of Common Project Control Terms
Free Issue Material Fabrication or construction materials supplied at no cost
Fringe Benefits The non-projective employment cost to cover employee terms and conditions such as holidays sick leave
Front End Term commonly used to describe the initial design or definition phase of a project Provoc – Glossary of Common Project Control Terms
Funding Estimate Generally a class II estimate to underpin the funding case approval Provoc – Glossary of Common Project Control Terms
Gantt Chart Time based activity chart showing logical links and key dates Provoc – Glossary of Common Project Control Terms
General Reserves Provision within a cost estimate for undefined risks Provoc – Glossary of Common Project Control Terms
Global Claim A global claim is one in which the Contractor seeks compensatiopn for a group of Employer Risk Events but does not or cannot demonstrate a direct link between the loss incurred and the individual Employer Risk Risk Events. The Society of Construction, Law, Delays and Disruption Protocol
Grass-Roots Plant Development of a Greenfield site from site preparation to a completed facility Provoc – Glossary of Common Project Control Terms
Green Field Site Virgin site where no prior structural development has occurred Provoc – Glossary of Common Project Control Terms
Gross Commitment Total value of all orders placed to date including letters and telexes of intent Provoc – Glossary of Common Project Control Terms
Gross Margin/Profit Operating profit revenue
Growth Increase costs arising from evolution of work scope from R&D design development
Guaranteed Maximum Price (GMP) Contractual conditions which limits reimbursement to a maximum payment and for which completion is guaranteed Provoc – Glossary of Common Project Control Terms
Gulf Coast Man-hours Contraction man-hours calculated using Gulf Coast norms Provoc – Glossary of Common Project Control Terms
Gulf Coast Norms Standard construction man-hour norms developed from various US Gulf Coast projects data Provoc – Glossary of Common Project Control Terms
Hammock An activity representating the period from the start of an activity to the completion of another. Sometimes used as a ways of summarising the duration of a number of acitivites in a programme as one single duration. Provoc – Glossary of Common Project Control Terms
Handling Cost Costs of handling storing
Handover Completion of a project or area of a project and transfer to the client or next owner Provoc – Glossary of Common Project Control Terms
Hanging Activity An activity not linked to any preceding or successor activities. Same as dangling activity. The Society of Construction, Law, Delays and Disruption Protocol
Hard Target The activity must not start before a set date and/or must complete by a set date Provoc – Glossary of Common Project Control Terms
Head office Overhead formulae – Eichleay Formula contract turnover x fixed overheads for contract period total turnover = contract contribution;
contract contribution = weekly contribution from contract period;
weekly contribution x delay = sum claimable
The Society of Construction, Law, Delays and Disruption Protocol
Head office Overhead formulae – Emden Formula O&P x contract sum x period of delay
100 contract sum
O&P head office overheads and profit percentage (actual)
The Society of Construction, Law, Delays and Disruption Protocol
Head office Overhead formulae – Hudson formula O&P x contract sum x period of delay
100 contract period
O&P head office overheads and profit percentage in tender.
The Society of Construction, Law, Delays and Disruption Protocol
Height Money Wage adjustment for working at heights or adjacent to holes generally in accordance with trades union working agreements
Hierarchy of Programmes The suite of programmes necessary to control the project/contract generally at three levels though can go deeper
Histogram Bar chart indicating estimated or actual resources over each period of the contract Provoc – Glossary of Common Project Control Terms
Historical Data/Analysis Detailed and systematic analysis of recorded cost and performance data on a collection of completed projects/ project phases Provoc – Glossary of Common Project Control Terms
ICEC International Cost Engineering Council Provoc – Glossary of Common Project Control Terms
Impact The effect that a change has on an activity or the effect that a change to one activity has on another activity. The Society of Construction, Law, Delays and Disruption Protocol
Impact (R) The effect of an occurrence on cost or time generally linked to rankings for magnitude at risk workshops for conversion to modelling values
In-house Company’s internal resource or information Provoc – Glossary of Common Project Control Terms
In-house Estimate Estimate underpinned by company’s own information without use of vendor or contractor
In-Place Sub-Contracts . Provoc – Glossary of Common Project Control Terms
Incentive Cost The cost of bonus incentive payments on contract Provoc – Glossary of Common Project Control Terms
Incentive Payments Additional payments to labour and or subs/contractors for incentive purposes Provoc – Glossary of Common Project Control Terms
Incurred Cost Actual cost to date of services rendered, work done or materials supplied
Indefinite Schedule Un-resourced schedule Provoc – Glossary of Common Project Control Terms
Indirect Costs Cost for support/infrastructure eg
Indirect Wages Indirect labour wages Provoc – Glossary of Common Project Control Terms
Indirects All labour material
Inflated Cost Artificially uplifted cost as a provision for unknowns etc
Initial Approved Cost Initial approved base cost against which subsequent cost movements are measured and reported Provoc – Glossary of Common Project Control Terms
Initial Objective (VQ) Goals that are regarded as potentially achievable before a detailed analysis has been carried out Provoc – Glossary of Common Project Control Terms
Installed Cost Closeout cost of installed equipment materials and facilities
Installed Quantities Quantities installed as measured from design drawings Provoc – Glossary of Common Project Control Terms
Intangibles Cost items for non-deliverables (i.e. not a commodity) eg Labour
Integrated Work Measurement Progress payment structured around integrated cost schedule The Society of Construction, Law, Delays and Disruption Protocol
Interest Rate of Return Discounted cash flow where the average outstanding investment and interest charges are repaid by revenue from the project over a defined write off period Provoc – Glossary of Common Project Control Terms
Interface An event used to define the common point between one network and another to allow the relationship to be established. This can be within or across projects Provoc – Glossary of Common Project Control Terms
Interim Valuation Interim payment on an account using an agreed payment framework for work done to date
Internal Change (Internal Risk) Internal evolution of scope the costs of which are absorbed by the contractor or project
Internal Transfer Transfer of quantities man-hours or costs from one area of estimate to another
IPMA International Project Management Association Provoc – Glossary of Common Project Control Terms
ITP Instruction To Proceed Provoc – Glossary of Common Project Control Terms
ITS Invitation to Bid Provoc – Glossary of Common Project Control Terms
ITT Invitation to Tender Provoc – Glossary of Common Project Control Terms
Job Card Travelling document authorising a package of site work to be carried out in accordance with attached drawings/ specifications etc
Key Date Expression sometimes used to describe a date by which an identifiable accomplishment must be started or finished. Examples include ‘power on’,’weather-tight’ or the start or completion of phases of construction or of phases or sections of the contract, or completion of the works. The Society of Construction, Law, Delays and Disruption Protocol
Key Event Milestone event used to flag important targets/requirements on the project Provoc – Glossary of Common Project Control Terms
Knock-on Cost/Effect Costs/time impact of a prior or anticipated occurrence Provoc – Glossary of Common Project Control Terms
Knowledge Evidence(VQ) Evidence which demonstrates an individual’s underpinning knowledge and understanding required to support performance to the national standard. It is normally specified in the forms of:-
Labour Mix The distribution of trades in a labour force Provoc – Glossary of Common Project Control Terms
Labour Only Contract Contract for supply of labour only Provoc – Glossary of Common Project Control Terms
Ladder Where a number of activities require partial completion before their subsequent activity can start and completion before the subsequent activity can be freed-up to complete its remaining work. The
Lag The schedule lapse time on a logic link between the start or finish of one activity and the start or finish of an succeeding activity Provoc – Glossary of Common Project Control Terms
Lagged finish-to-finish ‘d’ indicates a finish-to-finish relationship but with a delay, activity B cannot finish until ‘d’ days (or whatever time units have been used) have elasped after activity A has finished. This convention provides a second means of overlapping timing of activities. The Society of Construction, Law, Delays and Disruption Protocol
Lagged finish-to-start A normal lag relationship between activites A and B; that is, B cannot start until ‘d’ days have elasped after activity A has finished. An example of this might be the curing time of concrete between completion of the pour and the commencement of further work on the concrete. The Society of Construction, Law, Delays and Disruption Protocol
Lagged start-to-finish There may be occasions where a lag is required both on the start and finish of related activities. This is achieved by activity B cannot start intil ‘d’ days after activity A has started and activity B cannot finish until ‘t’ days after activity A has finished. The Society of Construction, Law, Delays and Disruption Protocol
Lagged start-to-start Indicates a start-to-start relationship with the delay imposed showing that activity B cannot start until the period ‘d’ days has elasped after activity A has started. This convention provides one of the facilities to overlap the execution of activities. The Society of Construction, Law, Delays and Disruption Protocol
Lang Factors Estimating factors used to convert the manufactured cost of plant into the erected or installed cost and ultimately the completed project cost.
Late Complete Latest complete date for an activity without affecting the target finish date for the project Provoc – Glossary of Common Project Control Terms
Late Start Latest start date for an activity without affecting the target finish date for the project Provoc – Glossary of Common Project Control Terms
Latest Event Time (IET) Latest time an event can occur without affecting the target finish date for the project Provoc – Glossary of Common Project Control Terms
Lead Is a logic link with a duration specifying the advance between the proceeding activity and its successor Provoc – Glossary of Common Project Control Terms
Letter of Intent A document issued by a party intending to enter into a contract that purpose to confer upon the opposite party a limited set of rights and conditions with the intention of them commencing their own obligations under the same contract Provoc – Glossary of Common Project Control Terms
Level 1 Summary logic showing key activities dates and overall durations
Level 1/Level 2/Level 3 Programmes See Hierarchy of Programmes Provoc – Glossary of Common Project Control Terms
Level 2 strategic control programmes showing all strategic activities logic and durations for the project and main areas and phases i.e.
Level 3 Detail programmes or schedules under pinning level 2 programme activities and durations Provoc – Glossary of Common Project Control Terms
Level of Confidence Probability of achievability of the cost and schedule forecasts/base often linked to the risk control Provoc – Glossary of Common Project Control Terms
Level of effort Programmes Where resources limits have been set for the different skills required and the planning package is allowed to set the elapsed duration for the project activities to stay Provoc – Glossary of Common Project Control Terms
Life Cycle Cost The whole life cost of the asset including capital expenditure.
Liquidated and Ascertained damages, liquidated damages, LADs, LDs A fixed sum, usually per week or per day, written into the contract as being payable by the Contractor in the event that the works are not completed by the contract completion date (original or extended) The Society of Construction, Law, Delays and Disruption Protocol
Method Statement A written description of the Contractor’s proposed manner of carrying out the works or parts thereof, setting out the assumptions underlying the programme, the reasoning behind the approach to the various phases of construction and listing all the work encapsulated in the programme activities. It may also contain the activity duration calculations and details of key resources and gang strengths. The Society of Construction, Law, Delays and Disruption Protocol
Milestone A key event selected for its importance in the project. Commonly used in relation to progress, a milestone is often used to signify a key date. The Society of Construction, Law, Delays and Disruption Protocol
Mitigation Mitigate means making less severe or less serious. In connection with Delay to Progress or Delay to Completion, it means minimising the impact of the Risk Event. In relation to disruption or inefficient working, it means minimising the disruption or inefficiency. Failure to mitigate is commonly pleaded as a defence or partial defence to a claim. The Society of Construction, Law, Delays and Disruption Protocol
Must Start/ Must Finish Most project management software allows the planner to specify that an activity must start or must finish on a specific date. Using the software in this way restricts the ability of the programme to react dynamically to change on the project. The Society of Construction, Law, Delays and Disruption Protocol
Negative Lag The arrangement or sequence in which the successor activity is allowed to start chronologically before the predecessor activity has been completed. The Society of Construction, Law, Delays and Disruption Protocol
Negative total float Expression sometimes used to describe the time by which the duration of an activity or path has to be reduced in order to permit a limiting imposed date to be achieved. Negative float only occurs when an activity on the critical path is behing programme. It is a programming concept, the manifestation of which is, of course, delay. The Society of Construction, Law, Delays and Disruption Protocol
Non-compensable event Expression sometimes used to describe what the Protocol calls a Contractor Risk Event. The Society of Construction, Law, Delays and Disruption Protocol
Non-excusable delay Expression sometimes used to describe what the Protocol calls Contractor Delay. The Society of Construction, Law, Delays and Disruption Protocol
Outstanding Commitment The current Gross commitment less payments plus accruals for work/services completed against the contracted scope Provoc – Glossary of Common Project Control Terms
Path An activity or an unbroken sequence of activities in a project network. The Society of Construction, Law, Delays and Disruption Protocol
PERT Programme Evaluation and Review Technique: a programming technique, similiar to critical path analysis, but whereby the probability of completing by the contract completion date is determined and monitored by way of a quantified risk assessment based on optimistic, pessimistic and most likely activity durations. The Society of Construction, Law, Delays and Disruption Protocol
Practical Completion The completion of all the construction work that has to be done, subject only to very minor items of work left incomplete. It is generally the date when the obligation to insure passes from the Contractor to the Employer and the date from whixh the defects liability period runs. This is the term used under the Joint Contract Tribunal (JCT) family of contracts. Under the Institution of Civil Engineers (ICE) froms and in the International Federation of Consulting Engineers (FIDIC) forms it is referred to as Substantial Completion. The Society of Construction, Law, Delays and Disruption Protocol
Precedence diagram A multiple dependency, activity-on-node network in which a sequence arrow represents one of four forms of precedence relationship, depending on the positioning of the head and the tail of the sequence now. The Society of Construction, Law, Delays and Disruption Protocol
Programme The programme illustrates the major sequencing and phasing requirements of the project. Otherwise known as the schedule. The Society of Construction, Law, Delays and Disruption Protocol
Prolongation Prolongation is the extended duration of the works during which costs are incurred as a result of a delay. The Society of Construction, Law, Delays and Disruption Protocol
Resource Expression used to describe any variable capable of definition that is required for the completion of an activity and may constrain the project. This may be a person, item of equipment, service or material that is used in accomplishing a project task. The Society of Construction, Law, Delays and Disruption Protocol
Resource Levelling Expression used to describe the process of amending a schedule to reduce the variation between maximum and minimum values of resource requirements. The process removes peaks, troughs and conflicts in resource demands by moving activities within their early and late dates and taking up float. Most project planning software offers an automated resource-levelling routine that will defer the performance of a task within the imposed logical constraints until the resources assigned to the tasks are available. The Society of Construction, Law, Delays and Disruption Protocol
Schedule Another name for the programme The Society of Construction, Law, Delays and Disruption Protocol
Slack Another name for total float The Society of Construction, Law, Delays and Disruption Protocol
Start-to-start Activity B cannot start until activity A has started or perhaps, more accurately, activity B can start at the same time as activity A but not before it. The Society of Construction, Law, Delays and Disruption Protocol
Still to be Committed The difference between current Gross Commitment and the total planned commitment to complete the Project/Contract Provoc – Glossary of Common Project Control Terms
Sub-Network A group of activites or durations, logically linked. In the Protocol it is to be used to illustrate the work flowing directly from an Employer Risk Event. The Society of Construction, Law, Delays and Disruption Protocol
Time Impact Analysis Method of delay analysis where the impacts of particular delays are mapped out at the point in time at which they occur, allowing the discrete effect of individual events to be determined. The Society of Construction, Law, Delays and Disruption Protocol
Total Float The overall time available within a schedule or programme from the activities earliest start to its latest finish date without affecting the overall project end date Provoc – Glossary of Common Project Control Terms
Total Float The amount of time that an activity may be delayed beyond its early start/early finish dates without delaying the contract completion date The Society of Construction, Law, Delays and Disruption Protocol
Updated Programme In the Protocol the Updated Programme is the Accepted Programme updated with all progress achieved. The final Updated Programme should depict the as-built programme. The Society of Construction, Law, Delays and Disruption Protocol
Works What the contractor is obligated to construct is referred to as the works. The Society of Construction, Law, Delays and Disruption Protocol