Construction Management Vocabulary

Open Bid

A competitive bidding requirement for all public projects. An open bid is advertised publicly and allows any qualified contractor to submit a bid on the project.

Prequalification

The process in which an owner, based upon minimum financial, management, and other qualification date, determines whether a construction firm is fundamentally qualified to compete for a project or class of projects

Closed Bid

A notification sent to a selected list of contractors, furnishing information on the submission of bids on a private project.

Public-Private Partnership

A business approach where a public sector authority and private enterprise join forces and combine resources to deliver government projects aimed at serving the public good.

Advertisement for Bid

A public notice, usually published in magazines, newspapers, and journals regarding bidding procedures for public projects.

Request for Proposal (RFP)

A solicitation document, written by the owner, requesting pricing and a technical solution for design for design and construction services.

Request for Qualifications (RFQ)

A document issued by the owner prior to an RFP to solicit contractor design builder qualifications. The RFQ can be used by the owner to shortlist potential proposers. RFQ can also be used as the final competitive submittal employed in qualifications based selection.

Responsive Bid or Proposal

A bid or proposal package that meets all of the requirements of the solicitation instruments.

Notice to Proceed

The owner authorizes the contractor to begin work on a project on a particular day. ASAP. Notice is linked to the duration of the project.

Best Value:

Any selection process in which proposals contains both price and qualitative components and the award is based upon a combinations of price and qualitative considerations.

Shortlisting

Narrowing the field of offers through this selection of the most qualified proposers on the basis of qualifications.

Technical Proposal

The part of a design-build proposal that contains the conceptual design for the project. It mat also include information regain schedule, team makeup, and overall management plan for the project.

Price Proposal

The part of the design-build proposal that stipulates the price at which the design-builder will provide the design and construction services necessary to complete the project.

Weighted Criteria

An evaluation method used in best value selection in which maximum point values are assessed for qualitative and price components of a proposal. Contract award is based upon the highest total points earned.

Contract Documents

The drawings, terms, conditions, and specifications setting forth the requirements for constructing the project.

Perspective Drawing

A two dimensional drawing representing a three dimensional object displaying the width, length, and height of a structure.

Addendum

A change or addition to the contract documents issued after the document have been released but before the bids are due.

Change Order

Requests made by the owner to add features to or subtract features from the scope of the project resulting in changes to the contract.

Time and Materials (Cost-Plus-Fee contract)

Two factors that are reimbursed under this contract. Time and materials. Time equated to the cost of labor, and materials equate to the cost of the building products used in the construction.

Guaranteed Maximum Price (GMP)

A contract method before designs finished, in which the contractor is reimbursed for actual costs of material, labor, equipment, subcontracts, overhead, and profit up to a maximum fixed price amount. The contractor shall pay for any costs over the maximum. Any savings below go to the owner.

Contract Documents (Working Drawings)

The final detailed drawings used for construction.

Unforeseen Conditions

Unknown physical conditions at the site that were not anticipated by the owner or contractor.

Punch List

The minor adjustments, repairs, and work items that must be done before substantial completion can be achieved. The owner, contractor, and architects prepare the list. Confirmed by architect.

Substantial Completion

The point at which all punch list work has been completed and the owner can occupy or take possession of the new facility.

Commissioning

A process of testing and checking all equipment and systems within the facility at the end of a project to assure everything is functioning. May include the training of owner personnel in the operation and maintenance of the equipment.

As-Built Drawings

Record drawings completed by the contractor and turned over to the owner at the end of the contract. It identifies any changes or adjustments made to the conditions and dimensions of the work relative to the original plans and specs.