Construction Dictionary - 0 Bids & Contracts Terminology

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SECTION 00010

ADVERTISEMENT FOR BIDS: Published public
notice soliciting bids for a construction
proj ect. Most frequently used to con—
form to legal requirements pertaining to
projects to be cons tructed public
authority, and usually published in news—
papers of general circulation in those
districts from which the public funds
are derived. (AIA)

BIDDER: One who submits a bid for a prime
contract with the Owner, as distinct from
a who submits a bid to a prime
bidder. Technically, a bidder is not a
contractor on a specific project until a
contract exists between him and the
Omer. (AIA)
BID SHOPPER: A term used to describe a
biyer who generally plays one proposed
supplier or subcontractor against another
for the purpose of reducing his purchase
price.
(AGC)
IWITATION TO BID: A portion of the bidding
requirements soliciting bi.ds for a pii—
vately financed construction Proj ect.
(AIA)
INVITED BIDDERS: bidders selected by
the Architect ard the as the only
ones from whom bids will be recedved.
(AIA)
NOTICE TO BIDDERS: A notice contained in
the bidding requirements informing pros—
pective bidders of the opportunity to
sub-nit bids on a Proj ect and setting forth
procedures for doing so. (AIA)
PREQUALIFICATION OF PROSPECTIVE BIDDERS :
The process of investigating the quali—
fications Of bidders on the
basis of their competence, integrity and
respons ibili ty relative to the contemplated
PRE-BID INFORMATION
Project. (AIA)
RF'P; Request for proposal .
(AGC)
00010

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SECTION 00100
BID DATE: The date established by the Omer
or the Architect for the receipt of bids.
(AIA)
BID FORM: A form furnished to a bidder to
be filled out, signed and submitted as his
bid. (AIA)
BID TIhF,: The date and hour established by
the Owner or the Architect for the receipt
CAIA)
of bids .
See also "Bid Date"
BIDDING DOCUMENTS; The advertisement or in-
vitation to bid, Instructions to Bidders,
the bid form and the proposed Contract
Documents including any Addenda issued
prior to receipt Of bids. (ÄIA)
BIDDING PERIOD: The calendar period begin—
ning at the time of issuance of bidding
requirements and Contract Documents and
ending at the prescribed bid time .
See
also Bid Time. (AIA)
BIDDING REQUIREMENTS: Those documents pro-
viding information and establishing pro—
cedures and condi tions for the submission
of bids. They consist of the notice to
bidders or advertisement for bids, Ins truc—
tions to Bidders, invitation to bid, and
sample forms. See also "Bidding Documents"
(AIA)
Specif ications stipu—
CLOSED SPECIFICATIONS :
lating the. use of specific products or pro—
cesses without provision for substitution.
(NIA)
CONDITIONS OF THE BID: conditions set forth
in the Instructions to Bidders, the notice
to bidders or advertisement for bi.ds, the
invitation to bidders or other similar
documents prescr ibing the conditions under
which bids are to be prepared, executed,
subni tted, received and accepted. (AIA)
INSTRUCTIONS TO BIDDERS: Instructions con-
tained in the bidding requirements for pre—
paring and submitting bids for a construc—
tion Project. See also "Notice to Bidders"
(AIA)
INSTRUCTIONS TO pr.ppF.RS

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0200
(C. P.M.) A task or Itan of wrk
that must be performed in order to corn—
(AGC)
plete a proj ect.
ACTIVITY DURATION: The ænount of time es-
timated as required to accomplish an ac—
(AGC)
tivi ty.
ADDITION (to the structure) : A construc—
tion project physically connected to an
existing structure, as distinct from al—
terations within an existing structure .
(ÄIA)
(1) A construction project
ALTERATIONS :
(or portion of a project) comprising re—
visions within or to prescribed elements
of an existing structure, as distinct from
additions to an existing structure. (2) Re—
modeling . (AIÄ)
APPRAISAL:
Evaluation or estimate (prefer—
ably by a qualified professional apprais—
er) of the market or other value, cost,
utility or other attribute of land or
other facility. (AIA)
(C. P.M.) An arranganent of
ARROW DIAGRAM:
arrows representing activities trBt des—
cribe a project. The head to tail rela—
tionship of the activity arrows indicate
the sequence in which activities will be
per formed .
(AGC )
BAR CimRT: The most common form of *schedul—
ing" used for construction wrk. It shows
total length of time, general cate—
gor Ies of wrk and the time each is ex—
pected to take but does not show the inter—
relation between the various activities.
(Forum)
BOUNDARY SURVEY: A mathematically closed
diagram of the complete peripheral boun—
dary of a site, reflecting dimensions ,
compass bearings and angles.
It should
bear a licensed land surveyor' s signed
certification, and may include a metes
and bounds or other written description .
(AIA)
BORING: A drilling into the earth to bring
up samples of the soil to be found at
various depths, with the purpose of es—
tima ting the load—carrying capacity Of
the soil.
(AGC)
CONTRACT LIMIT: A limit line or perimeter
line established on the Drawings or else—
where in the contract Documents defining
the boundar ies of the site available to
the Contractor for construction purppse s.
(AIA)
CONTRACT LINES :
The survey lines on the
construction drawing within vhich the con—
tractor has the responsibility the
00200
contract. Work outside the •contract i inesti
such as sewer, streetmains, will be the res—
ponsibi1iEy of the owner or developer (Forum)
CRITICN„ PATH (CPM); A charting of all
events and operations to be encountered in
canpleting a given process, rendered in a
form permitting determination of the rela—
tive significance of each event, and estab—
shing the optimum sequence and duration
of operations.
See also R Pert Schedule" .
IAIA)
DUMMY: (CPM) A psegdoactivity with duration
of zero. A duruny is a dotted line arrow
and used solely to indicate sequence. (AGC)
EARLIEST EVmvr OCCURRENCE TIME: (C. P.M. )
The earliest point in time that all activi—
ties that precede (whose arrows enter) the
event will be completed .
(AGC)
EARLIEST FINISH (EF): (C.P.M.) Earliest time
that an activity can be finished. (AGC)
EARLIEST START (ES) :
(C. P.M.) Earliest time
an activity can be started.
(AGC )
EXIENT; (C. P.M. ) The starting point in an
arrow diagram for an activity. Also the
completion of an activity. It requires no
time.
Indicated on the arrow diagram by a
number enclosed in a circle.
(AGC)
FAST TRACK: A construction contract that is
let without final plans and specs which are
supplied as the work progresses. Popular
with some government agencies and a splendid
source of income to lawyers.
(Forum)
FREE FLOAT:
(C. P.M.) The amount of extra time
1:
J:
-i
available for an activity if every activity
in the starts as early as it is possi—
ble. It is thus the amount of float that can
be allocated to an activity without inter—
fering with subseuqent work.
(AGC)
(C. P.M.) A symbol that describes the event
at the tail Of an activity arrow (see move—
ment of inertia ) . (AGC)
(C. P.M.) Any arrow in an arrow diagram.
(AGC)
(C. P.M.) A number that describes the event
at the head of an activity arrN. (AGC)
IND SURVEY: A survey Inade to determine the
lengths and directions of boundary lines and
the area of the tract bounded by these lines
or a survey made to establish the positions
of the boundary lines on the ground.
(See
survey; survey) .
(AGC)
LAND SURVEYOR (TOPOGRAPHICAL SURVEYOR) : A
person who measures land and buildings for
nzpping Most engineers, structural, civil
or mechanical, can act as surveyors since
designing requires a knowledge of surveying.
(AGC)

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SECTION 00200
(C.P.M.) The dead-
LATE* EV%NT OCCURRENCE TIME:
line by which time an event must be cornpleted if
the project is not to be delayed.
(AGC )
(C. P.M.) The latest point in•
LATEST FINISH DATE:
time by which no further work must be done on
an activity if the project is not to be delayed.
(AGC)
(C. P.M.) The latest possi—
LATEST START DATE:
ble point in time by which an activity must be
started if the project is not to be delayed.
(AGC )
METES AND BOUNDS: The boundaries, property lines
or limits of a parcel of land, defined by dis—
tances and compass directions . (A1 A)
PERT: In the pure sense, a probalistic, event—
oriented control technique. An acronym for
Project Evaluation and Rev iew Technique.
In
recent tirnes, the term PERT has been used as
a synonym for critical path method. (AGC)
An acronym for Project Evalua—
PERT SCHEDULE:
tion Review Technique.
The Pert Schedule
charts the activities and events anticipated
See also "Critical Path
in a work process.
Method (CPM)
PROGRESS SCHEDULE: A diagram, graph or other
pictor ial or written schedule showing proposed
and actual tiraes of starting and completion of
the various elements of the Work.
(1) critical Path Method (CPM); (2) PERT
Schedule. (A1 A)
"S" CURVE: A chart showing when and . how much
rnoney must be paid by the owner to contrac—
tor on the anticipated job progress on the con—
tractor's requisitions. The base data from this
is taken from the C. P.M. or Bar which
shows anticipated rates of progress on the job
and is translated into the
dollars needed by
the owner to pay for job progress. A financial
tool showing the "cash flow" to the job .
(Porum)
SOIL: Generic term for fine earth material pro—
duced by the of various rocks,
mixed organic matter and decomposed vegetable
(AGC )
matter above bedrock.
SOIL MECHANICS; The study of the composition of
soils, their classif ications, strength, water
flow through them and active and passive earth
pressures in relation to them. (AGC)
SOIL PROFILE: A section showing the vertical
succession of soil on a site.
(AGC )
SOIL SAMPLER (SAMPLING SPOON) : A tube driven
into the ground to obtain an undi sturbed sample
Used primarily for clays, since the technique
of getting undisturbed samples of clean sand
is much more cmplicated.
(AGC)
SOIL TEST: A test to ascertain whether soil
is suitable for leaching and to determine
the size of the tile field.
(AGC)
00200
INFORMATION AVAILABLE TO BIDDERS
SUBSURFACE IWESTIGATION: The soil boriog
and sampling program, together with the
associated laboratory tests, necessary
to establish subsurface prof i Ies and the
relative strengths, compressibility and
other character istics of the various
strata encountered within the depths
likely to have an influence on the de—
sign of the project.
(AGC)
SURVEY : (I) Boundary and/or topographic
(2) Measuring an exist—
of a site.
(3) Analyzing a building
ing building.
(4) Determining Owner's
for use of space
(5) Investi—
requirements for a Project.
ga ting and reporting of reauired data
for a Proj ect. (AIA)
TIME (as the essence of the Contruction Con—
Tine limits or periods stated in
tract) :
the Contract . A provision in a Construc—
tion Contract that ntirne is of the es—
sence of the Contract" signif ies that
the parties consider that punctual per—
formance within the time limits or periods
in the Contract is a vital part of the
per formance and that failure to perform
on time is a breach for which the injured
party is entitled to darnages in the
of loss sustained. (AIÄ)
Date establ ished in
TIME OF COMPLETION :
the Contract, by name or by number of days ,
for Substan tial Completion of the Work .
TOPOGRAPHIC SURVEY: The conf iguration of a
surface including its relief and the loca—
tions of its natural and manmade features,
usually recorded on a drawing showing
surface variations by means of con tour
lines indicating height above or below a
fixed datum. (AIA)
TOTAL FLOAT (C. P.M.) The difference be-
tween the amount of time available to ac—
complish an activity and the time neces—
sary. The difference between an activity's
late start and its early start. The
amount of extra time available to an ac—
tivity assuming that all activities pre—
ceding have started as early as they can,
and that all activities following will
start as late as they can.
(AGC)

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SECTION 00300
AREA METHOD (of estimating cost) : Method Of
estimating probable total construction cost
by multiplying the adj usted gross floor area
by a predetermined cost per unit of area
(AIA)•
BASE BID: Amount of money stated in the bid
as the sum for which the bidder offers to
perform the Work, not including that work
for Which Alternate Bids are also submitted.
(AIA)
The specif ications
EASE BID SPECIFICATIONS :
listing or describing only those ITBteriaIs
equipment and methods of construction upon
which the Base Bid must be predicated ,
exclusive of any Alternate Bids .
(AIÄ) .
BID: A complete and properly signed proposal
to do the work or designated portion there—
of for the sums stipulated therein; supported
by data called for by the bidding require—
men ts . (AIA)
BONA FIDE BID: Bid subrnitted in good faith,
complete and in prescribed forrn which meets
the conditions of the bidding requirements
and is properly signed by someone legal Iy
(AIA)
authorized to sign such bid.
LOW BID: Bid stating the lox-est bid ice,
including selccted alternates, and com—
plying with all bidding requiranents .
LOWEST RESPONSIBLE BIDDER: Bidder who submits
the lowest bona fide bid and is
cons id er ed
by the owner and the Architect to be fully
responsible and qualif led to perfom the
Work for which the bid is submitted.
(AIA)
LOWEST RESPONSIVE BD: The lowest bid which
is responsive to am complies with the bid—
(AIA)
ding requirements.
LUMP SUM BID: A bid of a set antount to cover
all labor, equipment, materials, overhead
and profit necessary for construction of
a variety of unspecif led items of
(AGC)
T & M (time and materials): work agreed to
between the owner and the contractor with
payment based on the contractor' s actual
cost for labor, equipment and 11BteriaIs
plus an add—on factor to cover overhead
and profit.
(AGC)
TURNKEY OPERATION: A tem for all phases
necessary to complete construction Of a
proj ect with urdeveloped land and ending
with the finished product.
(AGC)
00300
BID/TENDER FORMS

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SECTION 00400
BBSTRACT OF BIDS: A of unit
furnished by the owner or his representa—
tive for a given job, for the purpose of
selecting the contractor to be awarded the
job on the basis of low bid
(AGC)
ADDITIVE ALTERNATE: An alternate bid result-
ing in an addition to the same bidder 's Base
Bid. (AIA)
AFFIDAVIT OF NONCOLLUSJ.ON: A sworn statement,
by bidders for the same wrk, that their
proposal prices Ere arrived at irdependent—
Iy without consultation between or arrong
them. (AGC)
ALTERNATE BID: Arnount stated in the bid to be
added to or deducted from the ænount of Ehe
Base Bid if the corresponding change in
project scope or alternate materials and/or
methods of construction is accepted. (AIA)
BID BOND: A form of bid security executed by
the bidder as Principal and by a Surety.
(AIA)
BID SECURITY: The deposit of cash, certified
check, cashier's check, bank draft, money
order or Bid Bond sub-nit ted with a bid and
serving to guarantee to Owner that the
bidder, if awarded the Contract, will exe—
cute such contract in accorddnce with the
ments. and the contract Docu—
BILL OF MATERIALS: Quantity survey; a detailed
listing of all items of material required
for construction of a EE0ject.
(AGC)
DEDUCTIVE ALTERNATE: An alternate bid result-
ing in a deduction from the same bidder
Base Bid.
See also "Alternate Bid" .
(AIA)
DEPOSIT FOR BIDDING DOCUMENTS: Monetary de-
posit required to obtain a set of Construc—
tion Documents and bidding
customarily refunded to bona fide bidders
on return of the documents in good condi—
tion within a specif led time. (AIÄ)
QUANTITY SURVEY: Detailed analysis and list-
ing of all items of material and equipmeht
necessary to cmstruct a Project. (AIÄ)
00400
SUPPLEMENTS TO BID/TENDER FOUS

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aGRE2åENT: (1) A meeting of minds.
legally enforceable promise or promises
between two or ænong several per sons.
(3) On a construction project, Ehe docu—
ment stating the essential terms of the
Construction contract which incorporates.
by reference the other contract Documents .
(4) The document setting forth the terms
of the Contract between the Arch it ect and
Owner or between the Architect and a con—
sultant.
AGREEMENT FORM: A document setting forth
in printed form the general provisions of
an Agreement, with spaces provided for
insertion of specific data relating to a
particular project. (AIA)
AWARD: A cornmunication from an accept—
ing a bid or negotiated proposal An
award creates legal obligations betæen the
parties. (AIA)
CONTRACT: A legally enforceable promise or
agreement between two or arnong several per—
See also "Agreanent"
(AIA)
sons .
CONTRACT DOCUMENTS :
The Ovmer —Contractor
Agreement, the Conditions of the Contract
(General , Supplementary and other Condi—
tions) , the Drawings, the Specif ications ,
all Addenda issued prior to execution of
the Contract, all Modifications thereto,
and any other items specifically stipulated
as being included in the Contract Documents.
(AIA)
CONTRACT SUM: The price stated in the Owner—
Contractor Agreement, which is the total
amount payable by the Owner to the Con—
tractor for the per formance of the Work
under the Contract Documents, The Con—
tract Sum can be adjusted only by CYEnge
order. (AIA)
CONTRACT TIME: The period of time establish-
ed in the Contract Documents within which
the Work must be completed. The Contract
Time can be adjusted only by Order.
'(AIA)
COST PLUS FEE AGREEMENT: An Agreement under
which the Contractor (in an —Contractor
Agreænent) or the Architect (in an Owner—
Architect Agreement) is reimbursed for his
direct and indirect costs and, in addition,
is paid a fee for his services.
This fee
is usually stated as a stipulated sum or
(-AIA)
as a percentage of cost.
DATE OF AGREE}ENT: The date stated on the
face of the agreement. If no date is
stated, it could be date on which the
agreaaent is actually signed, if this is
recorded, or it ray be the date established
by the award. Also, sometimes referred to
as the contract date,
(AGC)
FEE: A term used to denote payment for pro—
fessional ability, capability and avail—
ability of organization, excluding
sation for direct, indirect and/or reim—
bur sable expenses, as an Agreement based
00500
on a "professional fee plus expenses" . •
Sane times used to denote compensation Of any
kind for services rendered. (AIA)
GENERAL CONTRACT:
(1) Under the single con—
tract system, the Contract between the Owner
and the Contractor for construction of the
entire Work. (2) Under the separate con—
tract system that contract between the
Omer and a Contractor for construction of
archi tectural and structural Work.
TKIA)
LETTER AGREEMENT (LETTER OF AGREEMENT) : A
letter stating the terms of an agreement be—
tween addressor and addressee, usually pre—
pared to be signed by the addressee to in—
dicate his acceptance of those terms as
legally binding
(AGC)
LETTER OF INTENT: A letter signifying an in-
tention to enter into a formal Agreement,
usually setting forth the general terms of
such Agreement. (AIA)
LUMP SUM cowrmcrr: A contract which pro-
vides that the owner will pay the contrac—
tor a specified sum of money for the com—
pletion of a project.
(AGC)
hEAStJREMENT AND PAYMENT: A system of paying
for work completed by mea suring the work
in place and applying a previously agreed
unit cost to the measured amount to deter—
mine the total payment.
(AGC)
NOTICE OF AWARD. Written notice to the con-
tractor that his proposal has been accepted.
(AGC)
OVERRUN (CONTRACT: QUANTITY) :
See contract
overrun; quantity overrun.
(AGC )
OWNER: (1) The Architect's client and party
to the Oimer—Architect Agreement. (2) The
owner of the Project and party to the Owner—
Contractor Agreement. (AIÄ)
OWNER-CONTRACTOR AGREEMENT: Contract between
Ovmer and Contractor for a construction
Project. (h.r»)
PEkCENTAGE FEE: compensation based upon a
percentage Of Construction Cost.
See so
PRIE CONTRACT : Contract between Owner and
Contractor for construction of a Project
of portion thereof. (AIA)
PRIME CONTRACTOR: Any contractor on a Proj-
ect having a contract directly with the
owner. (ÄIÄ)
PROJECT COST: Total cost of the Project in-
cluding professional compensation, land
costs, furnishings and equipment, financing
and other charges. as well as the Construc—
tion Cost.(AIA)

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00500
QUANTJTY: Tem used to indicate the znount of
wrk to be performed a variety Of items
lineal feet, cubic
and measurements, e.g. ,
yard, square yard, per each, etc.
(AGC)
QUANTITY OVERRUN/UNDERRUN: The difference
between the original estimated contract guan—
tities ard the quantities in the completed
(AGC)
work.
SELECTED BIDDER: The bidder selected by the
for discussions relative to the possible award
of the Construction Contract. (NIA)
SEPARATE CONTRACT: one of several prime con-
tracts on a construction Project. (AIA)
SINGLE CONTRACT: contract for construction of
a Project under which a single prime contractor
is responsible for all of work. (AIA)
STIPULATED SUM AGREEMENT: contract in which a
specific amount is set forth as the total
payment for perforrnance of the Contract. (AIA)
UNIT PRICES: Xnounts stated in a contract as
prices per unit of measurernent for REteriaIs
or services as descr i bed in the Contract
Decuments. (AIA)
00500
AGREEMENT ppFMs

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SECTION 00600
BTTORNEY IN FACT: A person autrorized to
act for or in behalf of another per son
or organization, to the extent prescr ibed
{n a written instrurtEnt known as a Power
of Attorney. See also n Power of Attorney"
(AIA)
BOND AGENT (bonding agent) : An independent
agent, representing bonding or surety
panies, who acts as the Iiaison between
the contractor and the surety company. (AGC)
COMPREHENSIVE GENEmL LIABILITY INSURANCE:
A broad form of liability insurance covering
claims for bodily Injury and property dam—
age which canbines urEer one policy cover—
age for all liability exposures (except
those specifically excluded) on a blanket
basis and automatically covers new and un—
known zards that my develop. Ca•npre—
hensive Liability Insurance automatically
Includes contractual liability coverage
for certain types of contracts.
Prod ucts
Liability, Completed Operations Liability
and Broader Contractual Liability cover—
ages are available on an optional basis.
This policy nay also be written to include
Automobile Liability. (A1 A)
CONTRACTOR ' S LIABILITY INSURANCE: Insurance
purchased and maintained by the contractor
to protect hü•n from specified clairns which
may arise out of or result from his opera—
tlons under the Contract, whether such op—
erati.ons be by himself or by any Subcontrac—
tor or by anyone directly or indirectly an—
ployed by any of than, or by anyone for
whose acts any of them may be liable.
DISTRESS WRITER: A surety canpany which
specializes in writina bonds for
pals who do not for bonding by
more conservative surety companies.
Such
companies rnay rely more heavily on secur ity
posted by the principal or on collateral
Indemnities rather than the traditional
n Tlxee C ' s" of surety
char—
acter, competence and credit. (Forum)
EMPLOYER ' S LIABILITY INSURANCE: Insurance
protection for the anployer against claims
by employees for damages which arise out
of injuries or diseases sustained In the
course of the±r wrk and which are based on
common law negligence rather than on Ida—
bility wrkmen' s compensation acts .
LABOR AND MATERIAL PAYBENT BOND: A bond of
the. Contractor in which a Surety guaran—
tees to the Omer that the Contractor will
pay for labor and materials used In the per—
formance of the Contract. The claimants
undu the bond are defined as those IEving
direct contracts with the Contractor or
any Subcon tractor. (AIA)
LIABILITY INSURANCE; Insurance which protects
the Insured against liability on account
of injury to the person or property of an—
other, (AIA)
00600
BONDS AND CERTIFICATES
hAKE GOOD: To repair or correct a defe#. (AGC)
MAINTENANCE BOND: A document given by the con-
tractor to the owner, guaranteeing to rectify
defects in workmanship or mater iaIs for a
specified time following completion of the
project. A one—year bond is normally incl ud—
ed in the performance bond
(AGC)
MAINTENANCE PERIOD: The period of time after
completion of a contract during which a con—
tractor is required to make good at his own
expense any work which needs repair. Also
called warrantee time. (AGC)
MILLER ACT BOND or MILLER ACT TYPE BOND:
For on federal contracts the government
under 40 U. S.C. Section 270 (a) requires that
the general contractor post a bond for per—
formance and payment. The payment bond re—
ci tes certain conditions and limi tations,
such as requiring suit within one year of the
date after a party does his last work on a
project.
It also requires materialmen and
subcontractors to give written notice in a
certain form to the general contractor with—
in 90 days after the date they last supplied
the job in order to have a valid claim under
the bond. This statute has become a model
for state legislation called the "Little
i.e., Section 137 Of the New
Miller Act, "
York State Finance Law. The form of the
bond is adopted in the AIA forms and in many
other bonds required by municipal agencies
and private owners.
By far, the most common
form of payment bond .
(Forum)
PERFORMANCE BOND: A bond of the Contractor in
which a surety guarantees to the Owner that
the work will be performed in accordance
with the Contract Documents. Except where
prohibited by statute, the Performance Bond
is frequently combined with the Labor and
Material Payment Bond. (AIA)
POVER OF ATTORNEY: An instrument authorizing
another to act as one's agent. see also
"Attorney In Fact"
(AIA)
PROPERTY INSURANCE:
Insurance on the Wock at
the site against loss or damage caused by
perils of fire, lightning, extended cover—
age (wind, hail, explosion, except steam
boiler explosion, riot, civil commotion,
aircraft, land vehicles and srnoke) , vanda—
I ism and malicious mischief and additional
perils (as otherwise prov ided or requested) .
Soe also t' Special Hazards Insurance". (MA)
SPECIAL i•mZARDS INSUmNCE: Additional perils
insurance to be included in Property Insur—
ance (as provided in contract Documents or
requested by Contractor or at option of
Owner) such as sprinkler leakage, collapse ,
water damage, all physical loss, or insurance
on materials and supplies at other locations
and/or in transit to the site .
See al so
"Property Insurance" .
(AIR)

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SECTION 00600
6TATUTORY BOND:
BONDS AND CERTIFICATES
A bond, the form or content of
which is prescribed by statute. (AIA)
SUBCONTRACTOR BONDS: document given to the
prime contractor by the subcontractor, guar—
an teeing performance of his contract and pay—
ment of all labor and materials bills in
connection with that contract.
(AGC)
SUPPLY BOND: A document given by the manufac—
turer or supply distributor to the owner
guaranteeing that materials contracted for
will be delivered as specified in the con—
(AGC)
tract.
SURETY: person or organization who, for a
consideration, promises in writing to make
good the dept or default of another. CAIA)
SURETY BOND. legal instrument under which
one party agrees to answer to another party
for the debt, default or failure to per—
form of a third party. (AIA)
WORKMEN'S COMPENSATION INSURANCE: Insurance
covering liability of an employer to his em—
ployees for compensation and other benefits
required by workmen 's compensation laws with
respects to injury, sickness, disease or
death arising from their employment.
(AIA)
XCU (insurance terminology) : Letters which re—
fer to exclusions from coverage for property
damage liability arising out of (I) explosion
or blasting, (2) collapse of or structural
damage to any building or structure, and
(3) underground damage caused by and occurr—
ing during the use of mechanical equipment.
(ZIA)
00600

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SECTION 00700
ACCEIERÄTION: Where a contractor is required
to canplete at an earlier date than that
originally scheduled. This Is seldom done
in a literal sense, but when an owner re—
fu ses to grant an extension of time to com—
plete to which contractor is entitled,
the project is said to have been "construc—
tlvely accelerated" and may entitle the con—
tractor to additional compensation (Forum)
ARBITRATION: Method of settling claims or
disputes between parties to a contract,
rat)rr than by litigation, under which an •
arbitrator or a panel of arbi trators, se—
lected for his or their specialized know—
ledge in the field in question, hears the
evidence and renders a deci sion .
(AGC)
Bau-JS AND PENALTY CLAUSE: A provision in
the Construction Contract for payment
of a bonus to the Contractor for complet—
ing the Work prior to a stipulated date,
and a charge against the Contractor for
failure to complete the Work by such sti—
pulated date. (RIA)
CERTIFICATE FOR PAYMENT: A statement from
the architect to the owner conf irmina the
arnount of money due contractor for work
accanplished or rlEteria1s ard equipment
suitably stored, or both.
(AGC)
CHANGE ORDER: A written order to the con-
tx actor signed by owner and engineer
or architect, issued after the. execu tion
Of the contract, authorizing a change {n
the work or an adj ustment in the contract
sum or the contract time. A change or der
nzy be signed by the architect or engin—
eer, provided they have written authority
from the owner for such procedure and that
a copy of such written authority is fur—
nished to the contractor upon request. A
change order may also be signed by the
contractor if he agrees to the adj ustment
in the contract sum or the contract time.
The contract sum and the contract time
may be changed only by change order.
(See "Deduction") .
(AGC)
COMPLETION DATE: The date established in the
Contract Documents for Substantial Comple—
tion of the Work. (A1 A)
CONDITIONS OF THE CONTRACT: Tl-•ose portions
of the Contract Documents which define ,
set forth, or relate to:
Contract ter—
minology; the rights and responsibilities
of the contracting parties and Of others
involved in the Work; requirements for
safety and for compliance with laws and
regulations; general procedures for the
orderly prosecution and managernent of the
Work; payments to the Contractor; and simi—
lar provisions of a general, nontechnical
nature. The Conditions of the Contract in—
clude General conditions , Supplementary
Cond itions and other Conditions .
(AIA)
GENERAL CONDITIONS OF THE CONTRACT
CONTRACTING OFFICER: Person designated as an
off icial representative of the owner with
specific authority to act in his behalf in
connection with a project.
(AGC)
When a contract contains clauses re—
lating to sums payable for delays amounting
to a breach of contract, these sums can gen—
era Ily only be recovered from the contrac—
tor if it can be proved that they are related
to the loss caused by the delay.
(See "Ii—
guidated damages") .
(AGC)
DEFECTIVE WORK: Work not complying with the
contract requirements
(AGC)
DEDUCTION (FROM CONTRACT SUM): Amount deducted
from the contract sum by change order.
(AGC )
DELAY: Anything that delays the completion of
the job. The delay may be the type which is
not the fault of any party and hence result
only in the extension of time to finish the
job. If, however, the delay is the fault Of
any party, damages may be assessed against
him, e.g.,
a sub who fails to install his
wrk on time may be liable to the general and
the other trades for their added expenses
caused by his holding up the job. He rnay
be "backcharged " by the general and sued by
the other subs. An owner who fails to de—
liver the site to the general on time may be
liable to the general for the added expenses
caused the general by the late start.
(FORUM)
EXTRA: An item Of work involving additional
(See "addition .
(AGC)
cost.
FRONT-END LOADING: The practice of overpricing
the items to be done at the beg inning of a
job and underpr icing those at the end so that
the con tractor or sub can be disproportionately
large payments at the beginning of the con—
In a fixed price contract there is no
tract
to the other if the contract is
ul timately completed (other than the loss of
interest on the money used to make the over—
payment) .
However, in a unit price contract
this practice, if allowed, will distort the
fi.nal price of the job and may also hinder
redesign of the project dur ing the job's prog—
ress since the items to be saved or added may
be unrealistically pr iced. TO halt this prac—
tice; on fixed price contracts, disapprove
trade payrnent breakdowns that are so loaded.
In unit pr ice contracts rej ect (under terms
of bid documents) bids which are "unbalanced l' .
(FORUM)
GENERAL CONDITIONS (of the Contract for construc-
tion) :
That part of the Contract Documents
which sets forth many Of the rights, respon—
sibilities and relationships of the parties
involved.
tract 't
See also "Condi tons of the Con—
(AIA)
GUARANTEED MAXIMUM COST: Arnount established in
an Agreement between Owner and Contractor as
the neximurn cost of perfowming specified Work
00700 1

****** Result for Image/Page 12 ******
SECTION 00700
on the basis of cost of labor and naterials plus
ov&head expense and profit. (AZ)
IN)EMNIFICATION: A contractual obligation, by
which one per son or organization agrees to se—
cure another against loss or dartnge from speci—
fled liabilities.
Implied: An indemnification which is implied
by law rather than ar out of a contract.
(AGC)
LIQUIDATED DNAGES: A sum established in a con-
struction Contract, usually as a fixed sum per
day, as the measure of damages suffered by the
Owner due to fai lure to complete the Work with—
in a stipulated time. (A1 h)
MINOR CHANGE (in the Work) : A change of minor
nature in the Work not involving an adjust—
ment in the Contract Sum or Contract Time,
which may be effected by Field Order or other
wr itten order issued by the Architect. (XIÄ)
MODIFICATION (to the contract Documents) :
(1)
A written amendraent to the Contract signed by
(2) A crnnge Order.
both parties.
wr itten or graphic interpretation issued by
the Architect.
(4) A written order for a
minor change in the Work issued by the Archi—
tect. (ÄIA)
NONCONFORMING WORK: Work that does not fulfill
the requireraents of the Contract Documents.
(AIA)
PAY ITEM: Any item of wrk designated on the
con tract; or an item of wrk Wth parties
agree will be paid for, if and when it should
ar ise during the wrk on the project. (AGC)
PROGRESS PAYBENT: Partial payment made during
progress of the Work on account of mrk com—
pleted and/or mater i als suitably stored. CAIA)
RETAINAGE: A sum withheld from progress payments
to the Contractor in accordance with the terms
of the Ovmer—contractor Agreement. (AIA)
SAMPLES; Physical examples furnished by the
Contractor for the Architect's review and appro—
Val, Which illustrate materials, equipment or
and which establish standards by
which the Work will be judged. (QIÄ)
SHOOTING THE or SECTIONING THE WORK: In a
unit price contract, a surveyor's final REthe—
11EticaI determination as to much ltEteria1
was renoved or placed within the R pay lines" .
SHOP DRAWINGS: Drawings, diagrams, Illustra tions,
schedules, performance charts, brochures and
other data prepared by the Contractor or any
Subcontractor, manufacturer, supplier, or
distr ibutor, which illustrate specific por—
tions Of the Work shall be fabr icated and/or
installed. (A1 A)
00700
GENERAL CONDITIONS OF THE CONTRACT
SPECIAL CONDITIONS: A section of the cop-
ditions of the Contract, other than Gen—
era I Conditions and Supplementary condi—
tions, which may be prepared for a parti—
cular Project. See also "Conditions of
the Contract" (AIA)
STOP WORK ORDER: An order issued by the
owner's representative to stop project
wrk for a variety of reasons, e.g. ,
failure to perform according to contract
specif ications, unsatisf led liens, labor
disputes, inclement weather, etc. (AGC)
TIME (as the essence of the Construction
Contract) : Time limits or periods stated
in the contract. A provision in a Con—
struction Contract that "time is of the
essence of the Contract" signif Ies that
the parties consider that punctual per—
formance within the time limits or periods
in the Contract is a vital part of the per—
formance and that failure to perfom on
time is a breach for which the injured
party is entitled to damages in the
of loss sustained. (.NI*)
TIME OF COMPLETION: Date established in the
Contract, by name or by number of days,
for Substantial Completi.on of the Work.
(AIN

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SECTION 00800
ADDENDUM: Written or graphic instruments
issued prior to the execution of the Con—
tract which modify or interpret the bid —
ding docunents, including Drawings and
Specifications, by addi tions, deletions ,
clarif ications or corrections Addenda
will become part of the contract Documents
when the Cons truction Contract is executed.
CLARIFICATION DRAWmG: A graphic interpreta-
tion of the Drawings or other Contract Docu—
ments issued by the Architect as part of an
Addendum, Modif ication, crenge Order or
Field order. (AIA)
DETAIL: A drawing, at a larger scale, of a
part of another drawing, icating in de—
tail the design, location,
composition and
correlation of the elements and materials
shown. (AIA)
MODIFICATION (to the Contract Documents) :
'(I) written amendment to the Contract
signed by both parties.
(2) A CrEnge Or—
der . (3) A written or graphic Interpre—
tatåon issued by the Architect.
written order for a minor change in the
Work issued by the Architect. See also
(1) CYange Order; (2) Field Order. (AIA)
PIANS: The official approved plans, pro—
files, typical cross sections, working draw—
ings and supplemental drawings, or exact
reproductions thereof , *lich show the 10—
cation, character, dimensions and details
of the work to be per formed.
(AGC)
PLOT PLAN: A scale drawing indicating the
location of the construction in relation
to the site.
(AGC)
PROFILE : (I) A charted line indicating
grades and distances and usually depth
of cut and height of fill for excavation
and grading %ork; comrnonly taken along the
centerline; a side view, as distinct from
a plan or overhead view. (2) A British
term for batterboard.
(3) In plaster {ng,
a template for shaping a mold. (AGC)
RECORD DRAWINGS: Construction drawings re-
vised to show significant changes Nde
during the construction process, usually
based on marked—up prints, drawings and
other data furnished by the Contractor to
the Architect. (ÄIA)
SECTION (drawing) : A drawing of a surface
revealed by an imaginary plane cut through
the Proj ect, or portion thereof, in such
a manner as to show the composition of the
surface as it wuld appear if the part in—
tervening between the cut plane and the
eye of the observer were removed. (AIÄ)
SCHEDULE OF VALUES: A statanent furnished by
the Con tractor to the Archi tect reflecting
the portions of the Contract Surn allotted
for the various parts Of the Work and used
00800
SUPPLEMENTARY CONDITIONS
as the basis for reviewing the Contractor s
applications for progress payments. (A1 A)
SPECIAL DETAIL DRAWINGS: Larger-scaled and
sometimes full—size detailed drawings of
specific areas Irede to insure the builder
full information.
(AGC)
SUPPLE!.E.NTARY CONDITIONS; A part of the Con-
tract Documents which supplements and may
also modify provisions of the General Condi—
tions. (AIA) -
WORKING DRAWING: Any drawing showing suffi-
cient detail so that whatever is shown can
be built without other drawings or instruc—
tions; a detail
(See Drawings) .
(AGC)