Construction contract terminology pdf

Bill of materials bom a list of materials required for the construction of a project or part of a project, which may include quantities. An injured party may repudiate the contract without further obligation in the case of a breach of condition. Miscellaneous browse 1,995 acronyms and abbreviations. Prior to the start of construction, and at all times during construction, owner shall provide and maintain, at owners sole expense, an allweather roadway to the building site, and water and electrical service, including 220 amp outlet.

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. Assold estimate the estimate which matches the agreed items and price for the project scope. An essential skill of a contract administrator is the selection and management of the building contract. Once properly concluded, a contract is binding on each party. This article lists the terms that are commonly referred to in a construction contract. Feb 24, 2017 establishing standardized definitions for common project management terms is a challenge, even for seasoned pros. Pdf construction contract terminology free download pdf. The construction contract also specifies the payment terms of the contract. This is the party that is responsible for completing andor overseeing all facets of the construction, improvement, or renovation project. Ventilation built into brickwork to provide ventilation through the wall.

Scheduling, estimating, projectconstruction management, contract. Contract the entire and integrated written agreement between the owner and the contractor concerning the work. As you may know, a legally binding contract requires several necessary elements. Construction costs those costs after the contract has been let. Construction contracts a contract is an agreement entered into between two or more people with the intention of creating legally enforceable obligations. The complete glossary of project management terminology. Ac disconnect the main electrical on off switch near the ac condenser. A breach of warranty is not repudiatory and the claimant must continue the contract and claim damages. For the much larger contracts, the project is broken out into. Construction the process of assembling materials and erecting a structure. An addendum is generally issued by the owner to the. Construction contracts have many elements found in a basic business contract, however there are a number of unique terms that are found almost exclusively in construction contracts. If the contractor believes these instructions are a change to the contract, he can write a cop. This means that most of the rules of insurance law may be excluded, waived or varied by the parties.

Construction construction contract terminology page 1 construction contract terminology allowance in bidding, an amount budgeted for an item for which no exact dollar amount if available. A demand for money or services by a third party is not a claim. Changes made without approval as set forth in this paragraph shall be of no force or effect. To help you achieve this goal, were offering this authoritative reference guide, pulling together a complete list of project management terminology. Accordingly, a number of standard form contracts have been developed which set out standard terms for a construction contract to cover the related issues and risks that will most likely apply. Contractors estimating projects without a complete understanding of the cost components, including indirect costs, are.

Ac condenser the outside fan unit of the air conditioning system. Establishing standardized definitions for common project management terms is a challenge, even for seasoned pros. The lumpsum agreement will reduce owner risk, and the contractor has greater control over profit expectations. When entering into a commercial construction contract to build a commercial building, landowners should be aware of certain contract issues that can cause future legal problems. Abandonment arbitration bid protestsdisputes bond and surety breach of contract. The medium in which a building is built eg wood, steel or masonry. Jul 18, 2019 a lumpsum contract is a great contract agreement to be used if the requested work is welldefined and construction drawings are completed. A building or structure on the same lot as the main or principal building. The gc is the party who signs the prime contract for a construction project.

Glossary of construction terms air condtioning condenser the outside fan unit of the air conditioning system. Understanding construction terms and lingo bigrentz. Construction glossary of building terms abutment that part of a pier or wall either end of an arch, beam, or bridge which resists the pressure of a load. Construction contract terminology pdf free download. A ceiling of fibrous tiles that are highly absorbent of sound energy. Contract revenues and expenses are recognised by reference to the stage of completion of contract activity where the outcome of the construction contract can be estimated reliably, otherwise revenue is recognised only to the extent of recoverable. However, it is narrow in scope and limited in application.

Contour line a line drawn on a site plan joining points of the same elevation. In addition to its legal meaning, this expression is often used to describe the project as a whole. All contract terms must comply with applicable laws. A construction where the external and internal walls are built of brick. Construction terminology cheat sheet planning assignable square footage asf usable square footage within a physical space measured from finished wall to finished wall. Construction joint joint which occurs because of the sequence of construction, unlike an expansion joint. Common definitions for maintenance and construction terms the following definitions have been adapted from those developed for the february 1998 study team report entitled, facilities maintenance assessment and recommendations, from information developed by the federal real property council frpc and from descriptions. It removes the heat from the freon gas and turns the gas back into a liquid and pumps the liquid back to the coil in the.

A guide to construction contracts 5 what is a contract. A dir ective shall mean a written document containing additions, deletions, revisions, clarifications, or other. Scheduling, estimating, projectconstruction management. All of the terms, abbreviations, and acronyms used in the bim guide series. This means that each party has a legal obligation to do the things which the. Construction terminology cheat sheet planning assignable square footage asf. A practical desk reference to help identify and evaluate risky commercial terms and conditions, then negotiate or get help to resolve them. This type of construction contract is an alternative to lump sum agreements. The owner shall pay to the contractor interest on the amount of a settled claim in accordance with the gnwts financial administration manual policy 725 from the.

Ias 11 provides requirements on the allocation of contract revenue and contract costs to accounting periods in which construction work is performed. Agreement a contract between two or more parties, either written or verbal. The updated second edition of the practical guide to international construction contract law the revised second edition of international construction contract law is a comprehensive book that offers an understanding of the legal and managerial aspects of large international construction projects. International construction contract law, 2nd edition wiley.

They are usually drawn up by solicitors and can contain a lot of legal jargon. A cost plus contract states that a client agrees to reimburse a construction company for building expenses such as labor, materials, and other costs, plus additional payment usually stated as a percentage of the contracts full price. Basic contract terminology contracts are an important part of business life. Understanding and negotiating construction contracts. Numerous construction contract templates are available. This includes engineering, survey, inspection, in addition to those actual construction costs. Abandonmenta willful decision by the contractor suspending the progress of the work for an uninterrupted period of three 3 or more consecutive days excluding. For each project, key criteria must be considered and risks. Contract b usually specifies the actual work to be performed by the contractor in delivering the goods, services andor construction, and the buyers obligations to pay for the goods, services andor construction if provided according to the terms of the contract. Although these can be seen as contracts, they are governed by employment law, not contract law.

It occurs whenever there is a delay between the supplying of material, labor, and equipment to construction project and the payment for these items. Subject to any other provisions of the contract, the owner shall pay the contractor, at the times and in the manner hereinafter set out, the amount by which. Dictionary of construction terminology complete design, inc. A guide to standard forms of construction contract constructing. The owner has full authority to decide what type of contract should be used for a specific development to be constructed and to set forth the legallybinding terms and.

Glossary of construction law terms, expressions and acronyms. Scheduling, estimating, projectconstruction management, contract administration, and construction claims terminology for. Contract terms for construction contracts designing. It remains a fundamental tenet of contract law and, therefore, of insurance contract law that the parties are free to make their agreement. Asbuilt drawings drawings marked up to reflect changes made during the construction process or after construction that amend the contract drawings to show the exact location, geometry, and dimensions of the constructed project. Comfort letters documents issued to back up an agreement but. The following is a glossary of terms relating to construction cost estimating. A clause within a contract whereby the parties agree that, in the event of dispute, they. Bid security funds or a bid bond submitted with a bid as a guarantee to the recipient of the bid that the contractor, if awarded the contract, will execute the contract. These sample contract templates are available in both word and excel formats. In some cases different contracts may use different terms, where this is the case, alternatives are shown.

The construction contract allows each party to detail the exact work to be performed and the responsibilities of each party during the course of the project. A contract between two or more parties, either written or verbal. Timing of statement generally, the more time between statement and conclusion of contract, the less likely is statement to be held a term of contract. The written contract between the department and the contractor setting forth the obligations of the parties, including, but not limited to, the performance of the work, the furnishing of. Northern contractors as defined by the business incentive policy of the g. The former fundamental ie going to the heart of the contract are conditions, the latter less vital clauses warranties.

Scheduling, estimating, project construction management, contract administration, and construction claims terminology for. Glossary of common construction contract terms asamw. The legallybinding, formal agreement between two parties e. Mar 21, 2018 a stipulation in the construction contract that gives the contractor the option to choose specific materials, methods, or systems from an approved list without needing to change the contract sum. Glossary of construction cost estimating wikipedia. Associate general contractors of america, who produce a number of standard forms of construction contracts.

This article is designed to introduce beginner accountants and contractors to these terms from the perspective of financial reporting. A guide to construction contracts 9 different forms of contracts and activities. A comprehensive compilation of projectrelated documents issued by. A general contractor is a contractor with primary contract responsibility for the construction, improvement, or renovation. Standard construction contract documents form i table of contents page sec. Frustration to render a contract null and void by showing that performance has become factually or legally impossible, or there has been some change of events so serious as to undermine the foundation of the contract such that to perform it, a different contract would have to be made. A construction contract is a mutual or legally binding agreement between two parties based on policies and conditions recorded in document form. Before sharing sensitive information, make sure youre on a federal government site. Construction construction contract terminology page 4 triangle of parties in a typical construction contract, there are three parties. Glossary of building construction terminology residential reports. Dictionary of construction terminology ac an abbreviation for air conditioner or air conditioning. Addendum addenda written information adding to, clarifying or modifying the bidding documents. The two parties involved are one or more owners, and one or more contractors.

Defined terms wherever used in the contract documents, the terms listed below will have the meanings ascribed which are applicable to both the singular and the plural thereof. Glossary of construction law terms, expressions and. Procurement and contract management terminology and. Scheduling, estimating, project construction management, contract administration, and construction claims terminology for engineering and construction projects a quick reference guide of the most commonly used terms with short definitions. The most common commercial construction contract issues. Contract drawings marked up to reflect changes made during the construction process. In construction accounting accountants and bookkeepers use certain terms and there are distinct meanings associated with these terms.

Construction glossary of building terms residential reports. Glossary of common construction contract terms this glossary contains terms and their meanings that frequently are used within the context of contracts and subcontracts in the construction industry. Defined termswherever used in the contract documents, the terms listed below will have the meanings ascribed which are applicable to both the singular and the plural thereof. October 10, 2019 revision history 09 a b c d e f g h i j k l m n o p q r s t u v w x y z. It removes the heat from the freon gas and turns the gas back into a liquid and pumps the liquid back to the coil in the furnace. This glossary contains more than 600 terms and provides simple, clear explanations. They establish agreements between you and your employees, landlords or tenants, suppliers, customers and with other businesses. A comprehensive compilation of projectrelated documents issued by the owner to prospective bidders. A procurement system whereby the contractor acts as the employers agent, assisting the employer to enter into a series of trade contracts, and managing the whole design and construction process. A glazing unit used to reduce the transmission of sound through the glazed opening by bonding a soft interlayer between the layers of glass.