ARE 5.0 Project Management

Mechanic's Lien

A claim by one party against the property of another party for the satisfaction of a debt.

Sustainability Plan

A contract document that identifies and describes the objective, measures to achieve the objective, strategies to implement sustainable measures, responsibilities of the owner, architect and contractor, details about design reviews, testing required to verify achievement and documentation required for the project.

Constructive Acceleration

A contractor may opt to speed up a project due to an excusable or unavoidable delay caused by weather, deliveries or change orders. The contractor may choose to file a claim for damages if the extra time is warranted but not given and the contractor had to incur extra expenses to complete the work on time.

Work Plan

A detailed project schedule, breaking the project down into its component tasks and assigning staff members and other resources to each task. (Aka Fee projection)

Stipulated Sum

A fixed price that the owner agrees to pay the contractor for the work as shown in the contract documents.

Arbitration

A formal, legally binding process for resolving disputes without litigation

Checklist

A list of things that need to be considered or accomplished in order to complete a particular task.

Architects Supplemental Instructions (ASI)

A means for the architect to address minor changes to the extent that AIA Document A201 authorizes, and may include both written instructions and drawings.

Life-Cycle Cost Analysis (LCCA)

A method for determining the total cost of a building, building component, or system over the expected life of the building.

Retainage

A percentage of each payment is withheld until final completion of the work.

Sample

A physical example of a portion of the work, intended to show exactly how a material, finish, or piece of equipment will look in the completed job.

Mediation

A process in which a neutral third party helps the disputing parties negotiate a settlement, using rules established by the American Arbitration Association (AAA)

Project Files

A record of how the entire job progressed, from initial marketing to project closeout and follow-up.

Cut Sheet

A short-format summary of a material or product's properties and characteristics and is often included in the product data submission.

Quality Circle

A small group of employees who meet regularly to identify, analyze, and solve problems related to their particular sphere of work.

Sustainable Measure

A specific design or construction element, or a post-occupancy use, operation, maintenance or monitoring requirement, that must be completed in order to achieve the sustainable objective.

Request For Information (RFI)

A standard form that the owner, architect and contractor may use to request further information from one another during construction.

Earned Value Management Method

A technique used to predict both the time and money that is required to complete certain tasks.

Addendum

A written or graphic document issued by the architect during the bid period prior to the execution of the contract, that modifies or interprets the bidding documents by addition, deletion, clarification, or correction.

Hearsay

A written or oral statement that was made outside of the court, usually by another person than the witness. Usually not allowed as evidence in court.

Minor change in the work

A written order by the architect directing the contractor to make a minor change that does not involve modification to the contract sum or time and is consistent with the contract documents.

Achieving Quality through Checking

Achieving quality by making sure a finished product is correct before it is delivered to the end user.

Achieving Quality through Process

Achieving quality by making sure tasks are performed correctly the first time so that there is no need to redo them later.

Design Delegation

Allows the use of performance specifications for products and building assemblies. It can also let the contractor select the best approach to completing the work.

Bottom-Up Approach

An approach for estimating fees where the PM begins by breaking the project down into individual tasks and estimating how much time will be needed to complete each one.

Top-Down Approach

An approach for estimating fees where the PM begins by estimating the total fee needed to complete the project using a combination of rules of thumb and historical data.

Claim

An assertion, made by one of the parties to the contract, that he or she is owed payment or some other form of relief from under the contract's terms.

Business Entry Rule

An exception to hearsay where a project record must have been made during the normal course of business, it must have been made at or shortly after the act, event, or transaction being recorded, and it must be the regular course of business for such a record to be made.

Consultant

An expert who is not part of the firm's regular staff but is employed to work on one or more specific projects.

Change Order

An order written by the architect and signed by the owner, contractor, and architect

Quality Control (QC)

An organized set of procedures, systems, and tools established by an office that aid in meeting the expectations of the client, maintaining a high level of professional service, and reducing risks and liability.

Instruments of Service

Any representations of the tangible and intangible creative work of the architect and the architect's consultants. Includes studies, surveys, models, sketches, drawings, specs, etc.

Professional Services

Architectural and engineering fees as well as costs for services such as topographic surveys, soil tests, special consultants, appraisals, and legal consultation.

Process-Based System

Automates a procedure so that a task can be performed accurately and consistently with little or no human intervention.

Product Data

Brochures, charts, instructions, performance data, catalog pages and other information that illustrate some portion of the work.

Substitutions

Can be made by the contractor so long as he or she receives consent from the owner, after evaluation from the architect and in accordance with a change order.

Sustainability Certification

Certification of sustainable design, construction, environmental performance, or energy performance.

Critical Path Method (CPM)

Common scheduling tool that graphically depicts all the tasks needed to complete a project, the sequence in which tasks must occur, and each task's duration.

Work

Consists of the contractor's obligations to provide improvements to the project.

Project

Consists of the work of the contractor plus construction by other contractors or the owners own forces.

Record Documents

Copies of all construction drawings, specifications, and other contract documents, marked to record exactly how the project was built, noting any changes or deviations from the original documents.

Site Development Costs

Cost of parking, drives, fences, landscaping, exterior lighting, and irrigation systems.

Furniture, Fixtures, and Equipment (FF&E)

Costs of movable equipment, furnishings, accessories, and window coverings.

Consequential damages

Damages that are not caused directly and immediately by the other party's actions, but from the consequences of those actions. (Aka Indirect Damages)

Structural Engineer

Designs and produces the drawings and specs for any new structure or structural modifications, including the building foundation, frame, floors, and load-bearing walls.

Mechanical Engineer

Designs and produces the drawings and specs for the heating, ventilating, and air conditioning (HVAC) systems on a project, as well as any plumbing systems needed.

Shop Drawings

Detailed drawings, diagrams, schedules and other data prepared to show how a subcontractor or supplier proposes to supply and install work to conform to the requirements for this specific project.

Meeting Minutes

Documentation of all meetings and serve as the formal record of the proceedings and may have legal implications later on.

Reimbursable Expenses

Expenses paid by the architect that are directly related to the project.

Unit Cost

Fees are based on a definable unit, such as Sq Ft, for such work as tenant planning in a leased building, or on a per-house basis in a large residential project.

Liquidated Damages

Fees paid by the contractor to the owner for every day the project is late.

Project Notebook

Gives the PM immediate access to information for planning, coordinating and monitoring the job. One of the most useful PM tools.

Steering Committee

Guide the quality circle program, set goals and objectives, monitor progress, and, in general, see that the program is consistent with the overall goals of the firm.

Scope Creep

Happens when the client or the architect makes uncontrolled changes to the original list of services set forth in the owner-architect agreement.

Basic Services

Include the five traditional phases of a design-bid-build project: schematic design, design development, construction documents, bidding, and construction administration.

Project Management

Includes project planning, scheduling, monitoring, coordinating and directing, updating documentation, closing out the job, and following up with clients.

Financing

Includes the long-term interest paid on permanent financing as well as the immediate costs of loan origination fees, construction loan interest, and other administrative costs.

Construction Change Directive

Instructs the contractor to proceed with the stated changes in the work, even if the contractor does not agree with the basis for adjustment in contract sum or contract time.

Bar Chart

Method commonly used for scheduling design and construction projects. Tasks are listed in chronological order on vertical access and time period is listed on horizontal axis. (Aka Gantt Chart)

Parameter Method

Method of budgeting that involves an expanded itemization of construction quantities and assignment of unit costs to these quantities.

Matrix Costing

Method of budgeting where a matrix is drawn showing the various alternatives along one side and the individual elements that combine to produce the total cost of the alternatives on the other side.

Unit Cost Method

Method of budgeting where the project is broken down into its individual building components and the labor needed to install them.

Competitive Bidding

Must be conducted within clearly defined guidelines that protect the owner from disreputable contractors and unethical bidding practices.

Invitation to Bid

Only sent to prospective, prequalified contractors to submit a bid.

Additional Services

Other services not apart of basic services which can include programming, building information modeling, LEED certification, and post occupancy evaluation.

Value-Based Selection (VBS)

Process that considers more than just the lowest bid cost, but also factors such as quality, schedule, and contractor personnel.

Surety Bond

Protection for the owner against default by the contractor (Aka contract bond)

Special Conditions

Provisions that are completely unique to a particular project or project site.

Advertisement for Bids

Published in one or more newspapers, trade journals or online publications when any contractor is permitted to submit a bid.

Value Engineering

Reviewing individual systems and materials to see if the same function can be accomplished in a less expensive way.

Submittals

Shop drawings, samples, product data and documents related to sustainability issues (where applicable) that the contractor is responsible for providing after the contract is awarded.

Pro Forma

Statement listing the expected income that the project will generate and the expected costs to build the project.

Sustainability Workshop

Team members confirm the sustainability objective, establish the goals and expectations for the project, and discuss possible sustainable measures.

Cost Plus Fee

The architect is compensated for the actual expenses of doing the job plus a reasonable fee for profit.

Allowance

The architect's estimated cost of a particular material or piece of equipment when the actual cost cannot be precisely determined at the time of the bid or negotiated proposal.

Warranty

The contractor guarantees that the materials and workmanship furnished under the contract are of good quality, free of defects and conform to the requirements of the contract documents.

Cost-Plus-Fee

The contractor is compensated for the actual expenses of labor, materials, and subcontractors in addition to a fixed fee.

Voluntary Acceleration

The contractor may decide to speed up the work because the work has fallen behind the original schedule, the construction company is trying to finish early to collect a bonus, or they want to move personnel to another job.

Guaranteed Maximum Price (GMP)

The contractor or construction manager guarantees the owner a fixed, maximum price.

Indemnification

The contractor will indemnify and hold harmless the owner, architect, architects consultants, and agents against claims, damages, and expenses arising from performance of the work.

Cost of the Work

The cost of labor and materials furnished by the owner and the cost of items specified or designed by the architect, plus a reasonable allowance for overhead and profit.

Direct damages

The cost of repairing defective work or completing unfinished work.

Debt Service

The cost to pay off the construction loan for a project and is generally considered an ongoing cost over many years, not part of the original cost of the project.

Project Perfection Syndrome

The desire to continue to pursue perfection.

Corporate Knowledge

The documentation of information that an Architectural firm has gained through the work it has done and that can be applied to new projects.

Total Working Fee

The fee available to pay people to do the job after subtracting fees for proffit, consultants and other expenses.

Contract Documents

The formalized form of mutual understanding about what the architect will do and what the client will give in return for services rendered.

Float

The maximum length of time a noncritical task can be delayed or extended before it causes a delay.

Building Cost

The money needed to construct the building, including structure, exterior cladding, finishes, and electrical and mechanical systems, as well as the contractor's overhead and profit.

Communication

The most important aspect of project management that includes 4 basic kinds known as work assignments, instructions, reward and punishment and social interaction.

Directed Acceleration

The owner instructs the contractor to speed up the schedule and agrees to pay the additional costs associated with the changes, which is directed through a change order.

Contract Time

The period from the starting date established in the agreement to the time of substantial completion, including any authorized adjustments.

Negotiation

The process in which the owner, with the assistance of the architect, works out a final contract price with one contractor.

Percentage of Construction Cost

The professional fee is a fixed percentage of the cost of construction.

Contemporaneous Documentation

The recording of communications, decisions, and other actions that are not normally relegated to a standard form or whose occurrence cannot be predicted to take place at a given time or circumstance, such as within a regularly scheduled project meeting.

Dependency

The relationship between a task that must be completed before another can start.

Substantial Completion

The stage at which the work, or a designated portion of it, is sufficiently complete that the owner can occupy it or use it for its intended purpose.

Indemnify

To secure against loss or damage.

Project Monitoring Chart

Used to monitor employees' time sheets weekly in order to compare the actual hours expended to the budgeted time and take corrective action if the actual time exceeds the budgeted time.

Partnering

Various stakeholders in a project (such as the architect, owner, contractor and vendors) all participate in the decision-making process.