CSM

Retainage

A certain percentage of money owed to the contractor for work progress that is held back by the owner to encourage completion of the project.

Addendum

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

Liquidated Damages

A daily amount of money paid by the contractor to the owner for each day that the project fails to meet the completion date specified in the contract. Not all contracts contain a liquidated damages clause

Commissioning

A process of testing and checking all equipment and systems within the facility at the end of a project to assure proper functioning and operation. This may also include the training of owner personnel in the operation and maintenance of the equipment. Occurs in the Project Closeout stage.

Estimate

A summary based on the best information available for probable quantities and costs of materials, labor, equipment, and subcontractors to complete a project. Excludes taxes, overhead, and profit. It is the number used to develop the project bid price.

Shop Drawing

A supplemental drawing to the plans and specifications that details fabrication methods, materials, and models of a product or installation associated with the project. Items that have to be fabricated in a shop or manufactured specifically for the job need to be submitted as a shop drawing. Steel rebar bends, steel beams, ornamental handrails, trusses, and architectural woodwork are examples of products that require shop drawings.

Partnering

A team-building technique, calling upon the parties to the construction contract to establish a common set of project goals and objectives and develop a mutually acceptable protocol for communication and conflict resolution through a formal agreement.

Contract Administration

All about managing the business details and relationships. Staying on top of all contracts, rules, regulations, and procedures for every aspect of the construction process.

CSI MasterFormat

All work in construction is organized and managed under this format. Organizes data, materials, specs, and estimates and tracks project costs.

Liquidated Damages

An amount of money that is assessed to the contractor for a failure to meet a specified contract completion date. Used as a punishment, threatened. (Stick).

Claim

An issue that occurs during construction and remains unresolved after the job is complete.

Indirect Costs

Expenses incurred in order to manage and deliver the materials, labor, equipment, and subcontracts employed on any given job. 'Job-Specific Overhead'

Certificate of Substantial Completion

First step towards project completion. The point at which all punch list work has been completed and the owner can occupy or take possession of the new facility. Marks the official end of the project and establishes the start of the warranty period. Issued by the Architect. Conditional upon payment to contractor.

Certificate of Occupancy

Issued by the Building Inspector. Signifies that all life safety code requirements are met prior to anyone occupying the building. Building must be safe. Conditional Occupancy can be issued for occupancy to be allowed in part of build as other sections are still being worked on.

Direct Costs

Items that actually go into building the facility. Considered a direct cost if it can be linked to a specific item of work on a project.

Punch List

Minor adjustments, repairs, and work items that must be done before substantial completion can be achieved. Prepared jointly by the owner, architect, and contractor. The architect confirms completion of each item on the list.

Due Diligence

Process of identifying any problems or areas of concern that exist so that those problems can be factored into the decision making that takes place during the pre-construction stage.

Value Engineering

Process that thoroughly analyzes the design, products, and materials with their application, installation, and execution to determine whether the proposed design solutions are really the best solutions relative to their cost. Delivered by a construction management team.

Pre-Construction Conference

Purpose of this meeting is to establish the rules by which the game is to be played and to clarify the lines of authority and communication. All the major players must attend. (Owner's reps, architect, engineers, project manager, and supervisory staff). Establishes preliminary relationships and introductions. Covers material similar to that in the general conditions and supplemental conditions but in much greater detail.

Lead Time

The amount of time it takes for a product or equipment to be delivered to the job site. Products that have a long delivery time are called long lead-time items and require special planning and considerations

Contract Documents

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