Final Review Flashcards
(44 cards)
4 Parts of a Contract
Offer Acceptance; Consideration; Legal Subject Matter; Competence
Annual Worth
the equivalent uniform annual worth of all estimated receipts & costs during the lifecycle of a project
Annuity
constant installment of payments made on a term basis for a set amount of time
At par
Buying a bond at face value
Bid bond
issued as part of a supply bidding process by the contractor to the project owner to provide guarantee that the winning bidder will undertake the contract under the terms at which they bid
Bid documents
contract agreement & contracts; statement of work; general conditions; special conditions; bill of quantities; drawings; construction schedule
Blanket purchase
customer places an order to allow multiple delivery dates over a period of time, for predetermined pricing
Bond
a fixed income investment where an investor loans money to an entity that used funds for a defined period of time before paying them back in full at the end of period, along with a defined set of payments
Book Value
Stockholder’s Equity of a company: Stock + Retained Earnings
Breach of Contract
when a party within a contract breaks the terms set in the contract and has opened themselves for litigation
Break-even point
the point at which make $0 and lose $0, NPV = 0
Budget at Completion
total budget allocation for a project, typically plotted over time
Budgeted Cost for Work Performed
earned value; amount of work performed at some t * the budgeted cost rate of that work
Budgeted Cost for Work Scheduled
amount of work scheduled to be completed at t * budgeted cost rate of that work
Callable bond
type of bond that allows issuer of bond to redeem the bond before its maturity
Change Order
a submitted form requesting a cost or schedule change based on a change requested by the owner –> whole process of submission, review. Owner gets final say
CM-at-risk
construction management firm acts as an owner’s consultant during pre-development phase; CM is sole point of responsibility for project delivery
CM at fee
Construction manager responsible only to owner & has no financial guarantee of responsibility; paid a fee
Compensable delay
“No damages for delay” clauses where contractor can be compensated for particular delay cost
Construction manager
oversee and allocate resources for a contruction project
Cost Plus FIxed Fee contract/Cost Plus
pay GC for the cost of the project plus a fee; risk is on owner
Cost Plus Incentive Fee
cost-reimbursement contract that has initial fee that can be adjusted based on relationship between total allowable costs to target costs; share risks between owner & contractor
Cost Plus Percentage Fee contact
pay contractor cost plus percentage to cover contractor’s overhead costs. Risk on owner, rarely used.
Cost Reimburseable Contract
contractor paid for all allowed expenses to a set limit plus an additional payment for profit; diffeent than fixed-price because allowed expenses amount can change
