Construction Claims and Contracts Glossary

Claims and Contracts Suite

Construction Claims and Contracts Glossary

Definitions of the contractual, programming, delay, disruption and quantum expressions upon which construction claims turn. Each entry states the meaning the expression bears in practice, together with the errors most frequently encountered in its application. Where the executed contract defines an expression, that definition prevails over the general meaning given here.

343 terms

Jump to a letter
Sections Back to top
Contract formation and interpretation
Acceptance Acceptance is an unqualified agreement to the terms of an offer, made in the manner required by the offer or the surrounding circumstances. A purported acceptance that changes the terms may instead amount to a counter-offer. See alsoOffer, Counter-offer, Contract
Agreement An agreement records what two or more parties have assented to. It becomes an enforceable contract only if the legal requirements for formation and enforceability are satisfied. See alsoContract, Offer, Acceptance
Ambiguity Ambiguity exists where contractual wording can reasonably bear more than one meaning. Its effect is resolved by construing the contract as a whole, in its factual and legal setting. Also called Clausal ambiguity See alsoContract interpretation, Order of precedence, Contra proferentem
Amendment An amendment is an agreed change to the terms of an existing contract. The parties must follow any formalities required by the contract and the governing law. Also called Contract amendment See alsoVariation, Supplemental agreement, No oral modification clause
Applicable law Applicable law is the body of law governing the parties' rights, obligations and remedies. It may be selected in the contract, subject to mandatory rules that cannot be excluded. Also called Governing law See alsoJurisdiction, Seat of arbitration, Contract interpretation
Assignment Assignment transfers a contractual right or benefit from one person to another. It does not usually transfer the burden of performing obligations without a novation or another recognised legal mechanism. See alsoNovation, Privity of contract, Collateral warranty
Breach of contract A breach occurs when a party fails to perform a contractual obligation without lawful excuse. The available response depends on the term breached, the seriousness of the failure and the remedies provided by law and contract. See alsoRepudiatory breach, Damages, Specific performance
Business day A business day is a day counted for contractual administration under the definition in the contract. Weekends, public holidays and local working calendars may be excluded, so the actual definition must be checked. Also called Working day See alsoCalendar day, Time limit, Notice
Calendar day A calendar day is any day in the calendar, including weekends and public holidays, unless the contract says otherwise. It should not be confused with a business day or working day. See alsoBusiness day, Time limit, Notice
Condition A condition is a contractual term whose breach may entitle the innocent party to terminate and claim damages, depending on the governing law. The label used by the contract is relevant but may not be conclusive. See alsoWarranty, Intermediate term, Repudiatory breach
Condition precedent A condition precedent is a requirement that must be satisfied before a stated right or obligation arises. In claims clauses it may govern entitlement, procedure or both, and its effect depends on the exact wording and governing law. See alsoTime bar, Notice, Entitlement
Consideration In common law systems, consideration is the value exchanged for a contractual promise. A deed can make a promise enforceable without consideration if the required formalities are met. See alsoDeed, Contract, Variation
Contra proferentem Contra proferentem is an interpretive rule under which unresolved ambiguity may be read against the party responsible for the wording. It is generally a rule of last resort, not the starting point for construction of the contract. See alsoAmbiguity, Contract interpretation, Exclusion clause
Contract A contract is a legally enforceable agreement that creates rights and obligations between its parties. Its terms may be express, implied or incorporated from other documents. See alsoAgreement, Contract documents, Privity of contract
Contract interpretation Contract interpretation is the process of deciding what the contractual language means. The wording is read in the context of the document as a whole and the legally admissible background. See alsoAmbiguity, Defined term, Order of precedence
Counter-offer A counter-offer responds to an offer with different terms. It normally rejects the original offer unless the original offeror renews or preserves it. See alsoOffer, Acceptance, Tender qualification
Deed A deed is a document executed with special legal formalities and intended to take effect as a deed. Under English law it can support obligations without consideration and often carries a longer limitation period than a simple contract. Also called Specialty See alsoConsideration, Limitation period, Collateral warranty
Defined term A defined term has the meaning assigned to it by the contract. Capitalisation often signals defined status, but the definitions clause and the particular document must be checked. See alsoContract interpretation, Contract documents, Definition
Entire agreement clause An entire agreement clause states that the written contract contains the parties' agreement on its subject matter. Its effect on prior statements, misrepresentation and collateral agreements depends on the wording and governing law. See alsoContract documents, Misrepresentation, Collateral agreement
Estoppel Estoppel may prevent a party from departing from a representation or shared assumption on which another party reasonably relied to its detriment. The precise requirements and remedy depend on the type of estoppel and the governing law. See alsoWaiver, Representation, Reliance
Exclusion clause An exclusion clause seeks to remove or restrict liability that would otherwise arise. Its operation depends on incorporation, interpretation and any statutory controls on unfair or unreasonable terms. Also called Limitation clause See alsoLiability cap, Indemnity, Contra proferentem
Express term An express term is stated in the parties' written or oral agreement. It is distinguished from a term implied by law, fact, custom or statute. See alsoImplied term, Defined term, Contract documents
Fitness for purpose A fitness-for-purpose obligation requires the completed work or design to achieve a stated purpose or performance outcome. It may impose a stricter obligation than reasonable skill and care, so the exact wording and any professional indemnity implications matter. See alsoReasonable skill and care, Performance specification, Design responsibility
Force majeure Force majeure is a contractual allocation of risk for exceptional events beyond the parties' control. Its scope and consequences come from the clause itself, because the term has no single universal effect across legal systems. See alsoExceptional event, Relief event, Frustration
Frustration Frustration is a common law doctrine that may discharge a contract when an unforeseen event makes performance impossible, illegal or radically different from what was agreed. It is applied narrowly and does not merely relieve a bad bargain. See alsoForce majeure, Impossibility, Termination
Good faith Good faith describes standards such as honesty, fidelity to the bargain and proper dealing. Whether it is implied, express or limited to particular decisions depends on the contract and governing law. See alsoMutual trust and co-operation, Discretion, Contract administration
Implied term An implied term forms part of the contract without being set out expressly. A term may be implied by statute, law, custom or the facts, subject to the applicable legal test. See alsoExpress term, Contract interpretation, Statutory term
Incorporation by reference Incorporation by reference brings terms from another document into the contract without repeating them. The reference must be effective, and conflicting documents may require an order-of-precedence analysis. See alsoContract documents, Order of precedence, Standard form
Indemnity An indemnity is a contractual promise to meet specified loss, liability or expense suffered by another party. Its scope, exclusions and relationship with ordinary damages depend on the wording. See alsoDamages, Liability cap, Insurance
Intermediate term An intermediate term is neither automatically a condition nor merely a warranty. The remedy turns on the consequences of the breach and whether they deprive the innocent party of substantially the whole contractual benefit. Also called Innominate term See alsoCondition, Warranty, Repudiatory breach
Joint and several liability Joint and several liability allows a claimant to recover the whole recoverable loss from any one of several liable parties, subject to contribution rights between them. Its availability depends on the legal basis of liability. See alsoContribution, Apportionment, Liability
Jurisdiction Jurisdiction is the legal authority of a court, tribunal or adjudicator to decide a dispute. It may depend on the parties, subject matter, territorial connection, referral and procedural limits. See alsoSeat of arbitration, Adjudicator's jurisdiction, Governing law
Liability cap A liability cap limits the amount recoverable for specified liabilities. The cap must be read with its exclusions, aggregation rules, insurance provisions and any statutory controls. See alsoExclusion clause, Indemnity, Consequential loss
Material breach A material breach is a serious failure that has the contractual or legal consequences attached to that level of breach. The phrase should not be assumed to permit termination unless the contract or governing law supports that result. See alsoRepudiatory breach, Default, Termination
Misrepresentation Misrepresentation is a false statement of existing fact or law that induces a party to enter a contract. Depending on the legal basis, remedies may include rescission and damages. See alsoEntire agreement clause, Representation, Rescission
No oral modification clause A no oral modification clause requires changes to be made in a stated written form. Whether later words or conduct can displace it depends on the governing law and the facts. Also called NOM clause See alsoAmendment, Waiver, Variation
Novation Novation replaces an existing contract or party with a new contractual arrangement by agreement of those concerned. Unlike assignment, it can transfer both rights and future obligations. See alsoAssignment, Privity of contract, Transfer agreement
Offer An offer is a sufficiently certain proposal made with an intention to be bound if accepted. Invitations to tender and requests for quotations are not automatically offers. See alsoAcceptance, Counter-offer, Invitation to tender
Order of precedence An order-of-precedence clause ranks contract documents for resolving inconsistency. It does not remove the need to read the documents together or apply any specific conflict procedure. Also called Document priority See alsoContract documents, Ambiguity, Particular Conditions
Privity of contract Privity means that contractual rights and obligations generally belong to the parties to the contract. Third-party rights legislation, collateral warranties and assignments may create routes outside that general rule. See alsoThird-party rights, Collateral warranty, Assignment
Repudiatory breach A repudiatory breach is a breach serious enough to permit the innocent party to accept the repudiation and terminate future performance. The innocent party may instead affirm the contract, subject to legal limits. See alsoTermination, Material breach, Affirmation
Reservation of rights A reservation of rights states that a party is not giving up identified contractual or legal rights by taking a step or continuing performance. It does not preserve rights that do not exist or cure non-compliance with a condition precedent. See alsoWaiver, Estoppel, Notice
Severability Severability allows an unlawful or unenforceable provision to be removed or limited while the remainder of the contract continues, where the law permits. A severability clause does not guarantee that every defective term can be saved. See alsoIllegal term, Contract interpretation, Enforceability
Standard form contract A standard form contract is a published set of conditions intended for repeated use on projects. Amendments, schedules and project data can change its risk allocation, so the executed version controls. See alsoParticular Conditions, Contract data, Bespoke contract
Supplemental agreement A supplemental agreement records an agreed addition or change to an existing contract. It should identify the affected terms, its effective date and its priority against earlier documents. See alsoAmendment, Variation, Contract documents
Term A term is a contractual promise, obligation, condition or allocation of risk. Its legal effect depends on its wording, classification and place within the contract. See alsoCondition, Warranty, Express term
Third-party rights Third-party rights allow a non-party to enforce a contractual benefit where legislation or the contract permits. They are distinct from an assignment or a collateral warranty. See alsoPrivity of contract, Collateral warranty, Assignment
Time is of the essence Time is of the essence means timely performance is a condition of the relevant obligation, so delay may permit termination as well as damages. The phrase should not be treated as a general synonym for an important date. See alsoCompletion Date, Repudiatory breach, Notice making time essential
Waiver Waiver is the voluntary relinquishment of a known right, whether express or inferred from conduct. Its effect, and whether the right can be revived on notice, depends on the facts and governing law. See alsoEstoppel, Reservation of rights, Affirmation
Warranty A warranty is a contractual assurance about fact, quality or performance, or a term classified as a warranty under the governing law. Breach normally sounds in damages, but the contract may provide other remedies. See alsoCondition, Collateral warranty, Defect
Parties, roles and project documents
Activity Schedule An Activity Schedule breaks a priced contract into activities or items for assessment and payment under the chosen form. It is not necessarily a bill of quantities and may allocate pricing risk differently. See alsoBill of quantities, Schedule of Values, Lump sum
Adjudicator An adjudicator is the independent person appointed to decide a dispute under a contractual or statutory adjudication procedure. The adjudicator must remain within the referred dispute and comply with the applicable duty of impartiality and fairness. See alsoAdjudication, Notice of adjudication, Referral notice
Arbitrator An arbitrator is a member of the tribunal appointed to determine a dispute by arbitration. The arbitrator's authority comes from the arbitration agreement, applicable rules and the law of the seat. See alsoArbitration, Arbitral tribunal, Seat of arbitration
Architect An architect may design the works and, under some contracts, administer specified contractual functions. The role, authority and duty must be taken from the appointment and building contract, not from the professional title alone. See alsoContract administrator, Designer, Lead consultant
As-built drawings As-built drawings record the completed installation as actually constructed, subject to the accuracy of the records used. They support operation, maintenance and later alteration but do not replace contractual proof of compliance. Also called Record drawings See alsoConstruction information, Handover, Common data environment
Bill of quantities A bill of quantities lists and describes measured items of work for pricing and contract administration. Its contractual status and effect on quantity risk depend on the chosen form and documents. Also called BoQ, BQ See alsoMeasurement, Remeasurement, Pricing document
Building information modelling Building information modelling is an information-management approach using structured digital information about an asset. The model, processes and responsibilities must be defined by the information requirements and appointments. Also called BIM See alsoCommon data environment, Information container, Federated model
Client The client is the person or organisation procuring and paying for the works or services. Many contracts use the defined term Employer instead, and the executed contract determines the legal role. Also called Employer See alsoEmployer, Procuring authority, Developer
Common data environment A common data environment is the agreed process and solution for collecting, managing and exchanging project or asset information. Status, revision and approval controls determine how information may be relied on. Also called CDE See alsoInformation container, BIM, Document control
Construction information Construction information is the information used to construct the building systems on site. It may be produced by the design team or a specialist contractor, as allocated by the contract and responsibility matrix. Also called Production information See alsoDrawings, Specification, Design responsibility
Contract administrator The contract administrator carries out functions assigned by the building contract, such as issuing instructions and certificates. When making decisions, the administrator must apply the contractual standard governing that function. See alsoArchitect, Employer's agent, Certification
Contract Data Contract Data records project-specific information required by an NEC contract, including selected options, dates and named persons. Part one is supplied by the Client and part two is supplied by the Contractor in relevant forms. Also called NEC Contract Data See alsoAccepted Programme, Scope, Secondary Option
Contract documents Contract documents are the writings and other information that together form the parties' agreement. Their identity, status and priority should be confirmed from the executed contract. See alsoAgreement, Drawings, Specification
Contractor The contractor is the party engaged to execute and complete the works described in the contract. Its design, programme, quality and claims obligations depend on the chosen procurement route and contract terms. Also called Main contractor, General contractor See alsoSubcontractor, Employer, Works
Contractor's Proposals Contractor's Proposals describe how the contractor proposes to meet the Employer's Requirements under a design and build arrangement. Their contractual status and priority depend on the executed documents. See alsoEmployer's Requirements, Design and build, Contract documents
Designer A designer prepares or develops design information for the project. Responsibility for design adequacy, co-ordination and review depends on the professional appointment, building contract and statutory duties. See alsoArchitect, Engineer, Design responsibility
Dispute board member A dispute board member serves on a standing or ad hoc board appointed under the contract to help avoid or decide disputes. The board's powers and the effect of its decisions depend on the selected form and edition. Also called DAB member, DAAB member See alsoDispute board, DAB, DAAB
Drawings Drawings communicate dimensions, arrangement, interfaces and design intent or construction information. Revision status, approval and precedence must be checked before reliance. Also called Plans See alsoSpecification, Construction information, Document control
Employer The Employer is the party that engages the contractor under many construction forms. The contract allocates the Employer's payment, access, information and other obligations. Also called Client See alsoClient, Contractor, Employer's agent
Employer's agent An Employer's agent acts for the Employer within authority granted by the appointment and building contract. The role is common in design and build procurement but is not identical across standard forms. See alsoContract administrator, Employer, Agent
Employer's Requirements Employer's Requirements state what the Employer requires from a design and build project, including output, performance and information requirements. Gaps or conflicts with the Contractor's Proposals should be resolved under the contract. Also called ERs See alsoContractor's Proposals, Performance specification, Design and build
Engineer The Engineer is the person appointed to perform defined administration and decision functions under certain engineering contracts. The Engineer is not automatically a party to the construction contract and has only the authority the contract gives. See alsoContract administrator, Employer, Determination
Expert witness An expert witness gives independent opinion evidence within their expertise. In English civil proceedings the expert's overriding duty is to help the court, not the party paying the fees. See alsoExpert report, Joint statement, Part 35 questions
General Conditions General Conditions are the standard or base terms governing the contract. They must be read with project-specific amendments, Contract Data and Particular Conditions. See alsoParticular Conditions, Standard form contract, Contract documents
Information container An information container is a persistent set of information managed as a file, model, document or other defined unit. Its identifier, status, revision and suitability support controlled exchange. See alsoModel, Common data environment, BIM
Method statement A method statement explains how a contractor proposes to carry out a work activity safely and in compliance with project requirements. Acceptance or review does not automatically transfer responsibility unless the contract says so. See alsoWork method, Risk assessment, Construction methodology
Particular Conditions Particular Conditions are project-specific provisions that amend or supplement the General Conditions. They can alter standard risk allocation, procedures and defined terms, so they must be checked before relying on a standard form. See alsoSpecial Conditions, General Conditions, Amendment
Programme A programme sets out the planned sequence and timing of project activities. Its contractual status, required content, update cycle and use in assessing change depend on the contract. Also called Schedule See alsoAccepted Programme, Baseline programme, Critical path
Project Execution Plan A Project Execution Plan records how the project team intends to organise, manage and control delivery. It may address governance, information, programme, cost, risk and reporting, but its contractual status must be confirmed. Also called PEP See alsoResponsibility matrix, Reporting, Project controls
Project manager A project manager plans, co-ordinates and controls delivery functions assigned by the project arrangements. Under NEC contracts, Project Manager is a defined contractual role with powers and duties fixed by the chosen form. See alsoContract administrator, NEC Project Manager, Programme
Quantity surveyor A quantity surveyor measures, values and reports construction cost and commercial matters within the scope of the appointment. The role may include procurement, interim valuations, change control and final account work. Also called QS See alsoCost consultant, Valuation, Final account
Request for information A request for information seeks clarification or missing project information. It does not by itself amend the contract, instruct a variation or establish entitlement. Also called RFI See alsoInstruction, Notice, Design information
Responsibility matrix A responsibility matrix allocates tasks, deliverables or decisions among project participants. It should match the appointments and contract because a management table cannot safely contradict binding obligations. See alsoDesign responsibility matrix, Interface matrix, Project Execution Plan
Risk register A risk register records identified risks, assessments, owners and planned responses. It is a management record and does not, without contractual wording, change legal risk allocation. See alsoEarly warning register, Risk allocation, Mitigation
Schedule of Values A Schedule of Values allocates the contract sum among work items for valuation and payment administration. It is common in North American practice and should not be confused with a measured bill of quantities. See alsoActivity Schedule, Bill of quantities, Interim valuation
Scope Scope describes the work, services and constraints the contractor must provide under NEC4 and in general usage. Under a specific form, the capitalised defined term and its amendment procedure control. Also called Works Information See alsoWorks, Specification, Compensation Event
Site diary A site diary is a daily record of work, resources, conditions, instructions and events on site. Its evidential weight depends on contemporaneity, detail, consistency and the knowledge of its author. Also called Daily site record See alsoContemporaneous records, Progress report, Labour return
Specification A specification states technical, material, workmanship or performance requirements for the works. Conflicts with drawings or other documents are handled under the contract's interpretation and priority provisions. See alsoDrawings, Performance specification, Order of precedence
Subcontractor A subcontractor contracts with a main contractor or another supply-chain party to perform part of the works or services. It does not normally have a direct contract with the Employer. See alsoSpecialist subcontractor, Contractor, Privity of contract
Supervisor A Supervisor is a defined role in NEC works contracts responsible for specified testing, inspection and defect functions. The role should not be assumed to have general authority outside the contract. Also called NEC Supervisor See alsoDefect, Test, Inspection
Surety A surety promises to answer for another party's default under the terms of a bond. The surety's liability depends on whether the instrument is conditional, on demand or otherwise drafted. See alsoPerformance bond, Payment bond, Guarantee
Tender A tender is a contractor's priced and qualified submission in response to an invitation. Whether it forms an offer, and which parts become contractual, depends on the procurement process and executed agreement. Also called Bid See alsoOffer, Tender qualification, Invitation to tender
Tender clarification A tender clarification records an explanation or resolution sought during procurement. It becomes contractually binding only if incorporated into the final agreement. See alsoPost-tender clarification, Tender qualification, Contract documents
Tender qualification A tender qualification states an assumption, exclusion or departure in a bid. It must be resolved and incorporated if it is to affect the final contract. See alsoExclusion, Counter-offer, Tender clarification
Work breakdown structure A work breakdown structure divides the project scope into organised deliverables or work packages. It supports estimating, programming and control but does not itself allocate contractual responsibility. Also called WBS See alsoCost breakdown structure, Activity, Work package
Work package A work package is a defined portion of work used for procurement, management or cost control. Interfaces, inclusions and exclusions must be stated clearly to avoid scope gaps or overlap. See alsoScope, Subcontract, Work breakdown structure
Works The Works are the permanent and, where defined, temporary works to be delivered under the contract. The capitalised term must be read with the scope, drawings, specifications and definitions. See alsoScope, Temporary works, Contract documents
Works Information Works Information is the NEC3 term for information specifying and describing the works and constraints on how they are provided. NEC4 uses Scope, so the edition must be identified. Also called NEC Works Information See alsoScope, Contract Data, NEC3
Z clauses Z clauses are bespoke amendments added to an NEC contract. They can change the operation of the core and option clauses and must be reviewed as part of the complete contract. See alsoParticular Conditions, Secondary Option, Amendment
Contract administration and change
Advance payment An advance payment is money paid before the corresponding work is performed, usually to support mobilisation or procurement. The contract commonly provides for security and staged recovery from later payments. See alsoMobilisation, Advance payment guarantee, Interim payment
Advance payment guarantee An advance payment guarantee secures repayment of an advance if the contractor fails to satisfy the contractual conditions. The wording determines whether the guarantee is payable on demand or only after proof of default. Also called Advance payment bond See alsoAdvance payment, Bond, On-demand security
Change Any difference between the work as actually carried out and the work as the contract documents required or contemplated it, whether in content or in the circumstances of execution. A change may or may not carry an entitlement to time or money: that depends on the clause relied on and on whether the change was properly instructed. Treating every difference as a compensable variation is one of the most common errors in claim preparation. Also called Variation See alsoVariation, Instruction, Extension of time, Compensation
Change control Change control is the process for identifying, instructing, pricing, approving and recording changes. It should keep scope, programme, cost and authority records consistent. See alsoVariation, Change register, Instruction
Change order A change order is a written instrument used in some contract families to record an authorised change and its agreed or directed consequences. The term is not universal and should be read under the chosen form. See alsoVariation order, Instruction, Amendment
Compensation Event A Compensation Event is an NEC event that may change the Prices, Completion Date or a Key Date under the contract's assessment procedure. It is assessed against the relevant dividing date and Accepted Programme rules. Also called CE See alsoAccepted Programme, Defined Cost, Early warning
Constructive change Constructive change describes work treated as changed because of conduct, defective information or an informal direction, despite the absence of a formal change order. Recognition of the concept depends on the contract and governing law. See alsoVariation, Implied instruction, Change order
Daywork Daywork values work by reference to the time spent, materials used and plant employed. The applicable rates, percentage additions and record-signing procedure come from the contract. Also called Time and materials See alsoVariation, Daywork sheet, Valuation
Daywork sheet A daywork sheet records labour, plant and materials used for work valued on a daywork basis. A signed sheet may confirm resources used without necessarily agreeing entitlement, rates or final value. See alsoDaywork, Contemporary records, Valuation
Defined Cost Defined Cost is an NEC term used for payment and assessment under the selected main option and Schedule of Cost Components. Its content differs between options and editions and may be reduced by Disallowed Cost where the contract provides. See alsoDisallowed Cost, Compensation Event, Fee
Defined provisional sum A defined provisional sum allows for work that is not fully designed but for which specified information about nature, location, quantity and limitations is available. Its treatment on use follows the contract and measurement rules. See alsoProvisional sum, Undefined provisional sum, Bill of quantities
Disallowed Cost Disallowed Cost is an NEC defined term used under cost-based options to identify amounts excluded from Defined Cost for payment. The precise grounds are those stated in the selected contract and amendments. See alsoDefined Cost, Open-book accounting, Compensation Event
Early warning Early warning is the NEC process for notifying a matter that could affect cost, time or performance so the parties can consider responses. Failure to warn may affect a later assessment where the contract says so. See alsoEarly warning register, Compensation Event, Mitigation
Early warning register An early warning register records notified NEC early warning matters and related actions. It supports management of risk but does not by itself establish a Compensation Event or entitlement. Also called Risk register See alsoEarly warning, Compensation Event, Risk reduction meeting
Engineer determination An Engineer determination is a decision made under a contractual determination clause after the required consultation and assessment. Its binding effect and route for challenge depend on the contract form and edition. See alsoDetermination, Engineer, Notice of dissatisfaction
Fee Fee is an NEC percentage applied to stated components of Defined Cost when assessing payment or Compensation Events. The Contract Data records the applicable percentage or percentages for the chosen form. See alsoDefined Cost, Compensation Event, Overheads and profit
Final account The final account is the agreed or determined closing valuation of the contract, including adjustments, payments and relevant claims. It is a commercial account, not automatically a release of every right unless the contract or settlement says so. See alsoFinal statement, Final payment, Valuation
Final statement A final statement is the contractor's or consultant's closing submission of the amount claimed to be due under the contract. Its required content, timing and effect depend on the selected form. See alsoFinal account, Final Payment Certificate, Discharge
Instruction An instruction is a direction issued under a contractual power by an authorised person. Its validity, required form and consequences depend on the relevant clause and the instructor's authority. See alsoVariation, Direction, Contract administrator
Instruction to vary An instruction to vary directs a change within the contractual power to alter the works. A valid instruction does not settle valuation or time entitlement unless those matters are also agreed. See alsoVariation, Change order, Quotation
Notice A notice is a formal communication given under a contractual or statutory provision. The sender must check the trigger, content, addressee, method, place and time for service. See alsoCondition precedent, Time bar, Service
Notice to correct A notice to correct identifies a contractor default and requires correction within the contractual period. It may be a step towards further remedies, but its consequences depend on the clause and the adequacy of the notice. See alsoDefault notice, Termination, Defect
Notice to Proceed A Notice to Proceed is a formal communication authorising the contractor to start work under contract systems that use that mechanism. Its effect on commencement and contract time must be read from the agreement. Also called NTP See alsoCommencement Date, Site access, Possession of Site
Omission An omission removes work from the contractual scope under a valid variation power. Whether omitted work can be given to another contractor, and any loss-of-profit consequence, depends on the contract and governing law. See alsoVariation, Scope, Loss of profit
Open-book accounting Open-book accounting gives the other party access to specified cost records for payment, audit or target-cost administration. Recoverability still depends on the contract's cost definitions, exclusions and proof requirements. See alsoDefined Cost, Audit, Target cost
Prime cost sum A prime cost sum is an allowance for the supply of specified goods or work, with associated attendance, overheads or profit treated as the contract provides. Usage differs between forms and measurement rules. Also called PC sum See alsoProvisional sum, Bill of quantities, Allowance
Provisional sum A provisional sum is an allowance for work that cannot be sufficiently described or measured at tender stage. It is replaced by the valuation of instructed work under the contract, not treated as an automatic payment entitlement. See alsoDefined provisional sum, Undefined provisional sum, Prime cost sum
Quotation A quotation states the proposed price, time effect and assumptions for instructed or proposed work. Its submission does not itself create an agreement unless the contract or parties give it that effect. See alsoVariation, Compensation Event, Change order
Risk reduction meeting A risk reduction meeting is the NEC meeting used to consider early warning matters and possible responses. Decisions and actions should be recorded without confusing management discussion with a formal instruction. See alsoEarly warning, Early warning register, Mitigation
Undefined provisional sum An undefined provisional sum covers work that is not sufficiently designed and lacks the information required for a defined provisional sum. The pricing and programme consequences follow the applicable contract and measurement rules. See alsoDefined provisional sum, Provisional sum, Bill of quantities
Value engineering Value engineering examines whether function or performance can be achieved at lower whole-life cost or with another stated benefit. Any change to contractual requirements needs proper approval and agreement on savings, risk and design responsibility. See alsoContractor's proposal, Variation, Shared saving
Variation A variation is a contractually authorised change to the scope, quantity, quality, sequence or conditions of the work. Entitlement, valuation and time consequences must be assessed under the relevant provisions. See alsoChange order, Instruction, Omission
Variation order A variation order is a formal document used to instruct or confirm a variation under some contract families. Its issue does not necessarily mean that price and time effects have been agreed. Also called VO See alsoChange order, Variation, Quotation
Time, programme and delay
Acceleration Acceleration is the use of changed sequence, hours, resources or methods to complete earlier than the current forecast or contractual requirement. Entitlement to additional cost depends on why acceleration occurred and how it was authorised. See alsoDirected acceleration, Constructive acceleration, Mitigation
Accepted Programme The Accepted Programme is the NEC programme identified in Contract Data or later accepted by the Project Manager under the contract. Acceptance supports administration but does not transfer the Contractor's obligations or design responsibility. See alsoProgramme, Compensation Event, Project Manager
Activity A discrete element of work within the programme which consumes time and, in most cases, labour, plant or materials. It is the unit from which the programme is constructed, defined narrowly enough to be assigned to a single team and measured, yet broadly enough to warrant separate reporting. An activity incapable of measurement is incapable of progress reporting, and delay to it cannot afterwards be demonstrated. See alsoProgramme, Duration, Path, Critical path
Activity float Contingency concealed within the planned duration of a single activity, that duration exceeding the time the work genuinely requires. It arises from the planner's allowance rather than from the network logic and is not reported as float by the software. Activity float commonly explains why a programme absorbs delay without movement in the completion date, and why a planned duration should be tested against the resources and output rates upon which it depends. See alsoFloat, Total float, Time Risk Allowance, Duration
Activity-on-the-node network A network in which each activity is represented by a node and the relationships between activities are represented by the connecting links. It is the convention adopted by ordinary planning software and is synonymous with a precedence diagram. The earlier activity-on-arrow convention is now seldom encountered in construction practice. See alsoPrecedence diagram, Logic link, Programme, Critical Path Method
Actual progress Actual progress records work performed up to a stated data date. It should be supported by reliable site records and entered consistently into programme updates. See alsoProgress update, Data date, As-built programme
Adverse weather Adverse weather is weather that satisfies the contractual test for relief, which may refer to exceptional conditions, statistical thresholds or stated events. The remedy may be time only or another form of relief depending on the contract. See alsoWeather delay, Exceptionally adverse weather, Extension of time
As-built programme An as-built programme records when activities actually occurred, using contemporaneous records and reliable updates. It is an evidential reconstruction if no complete contemporaneous programme exists. Also called As-built schedule See alsoActual progress, Retrospective analysis, Site diary
As-planned programme An as-planned programme records the intended sequence, duration and timing before the analysed events occurred. Its reliability depends on whether it was realistic, logic-linked and contractually accepted or approved. Also called As-planned schedule See alsoBaseline programme, Planned Completion, Critical path
As-planned versus as-built analysis As-planned versus as-built analysis compares planned timing with actual timing to identify variance. A simple comparison does not by itself prove critical delay, causation or responsibility. Also called APAB See alsoBaseline programme, As-built programme, Delay analysis
As-planned versus as-built windows analysis A retrospective windows method which depends upon the analyst's reasoned assessment of the project records rather than upon recalculation of a network. The construction period is divided into windows bounded by revised programmes, key dates or material events. Within each window the analyst determines from the evidence which sequence in fact governed completion, measures the critical delay by comparison of achieved dates against the baseline, and then examines the records to establish the cause. Because the reasoning is not carried by the software, the analyst is required to state expressly the basis upon which criticality was determined. The method is appropriate where the baseline or the contemporaneous updates are too limited or too unreliable to be modelled. See alsoTime slice windows analysis, Critical path, Baseline programme, As-built programme
Bar chart A bar chart displays activities against time as horizontal bars. It communicates sequence and duration clearly but may conceal logic, constraints and the calculated critical path. Also called Gantt chart See alsoProgramme, Network diagram, Activity
Baseline programme A baseline programme is the reference plan against which progress and change are compared. It should be properly logic-linked, resourced where required and consistent with contractual dates. Also called Baseline schedule See alsoAs-planned programme, Programme update, Critical path
Collapsed as-built analysis Collapsed as-built analysis removes selected delay events from an as-built model to calculate a counterfactual completion date. Its reliability depends on the reconstructed logic, removal assumptions and treatment of concurrent causes. Also called But-for analysis See alsoAs-built programme, Retrospective analysis, Delay event
Commencement Date The Commencement Date is the contractually established date from which performance or the Time for Completion begins under the chosen form. It may be set by notice rather than stated as a fixed calendar date. Also called Start date See alsoTime for Completion, Notice to Proceed, Completion Date
Completion Completion is the contractual state reached when the work required for that milestone has been performed. Its test differs between forms and may not be the same as practical completion, Taking Over or final completion. See alsoPractical Completion, Taking Over, Completion Date
Completion Date The Completion Date is the contractual date by which Completion is required, as adjusted under the contract. It should be distinguished from planned completion and the actual completion date. See alsoDate for completion, Time for Completion, Planned Completion
Concurrent delay True concurrent delay arises where a delaying event at the employer's risk and one at the contractor's risk both operate on the completion date over the same period, each independently sufficient to cause the delay that occurred. Contracts and governing laws part company on what follows for time and for money, so the label settles nothing on its own. Also called Concurrency See alsoEmployer delay, Contractor delay, Critical delay
Constructive acceleration Constructive acceleration describes acceleration undertaken after an excusable delay is not given proper time relief and the contractor is held to the existing completion requirement. Recognition and proof vary by jurisdiction and contract. See alsoImplied acceleration, Extension of time, Directed acceleration
Contract completion date The date upon which the Contractor is obliged under the contract to achieve completion, as adjusted by any extension of time granted. It may apply to the works as a whole, to a section, or to a milestone. It is to be distinguished from the date upon which the Contractor intends to finish, which is frequently earlier and imposes no contractual obligation. Failure to maintain that distinction is a recurrent source of dispute as to whether any delay is culpable. See alsoContractor's planned completion date, Date for completion, Extension of time, Liquidated damages
Contractor delay Contractor delay is delay for which the contractor bears contractual responsibility. It may consume float, delay completion and expose the contractor to damages, subject to concurrent events and relief provisions. See alsoNon-excusable delay, Employer delay, Concurrent delay
Contractor's planned completion date The date on the contractor's programme when it intends to finish. It is frequently earlier than the date the contract requires, and the gap between the two is where arguments about terminal float and ownership of time begin. Planning to finish early does not by itself create an entitlement to be kept on that plan. Also called Planned completion date See alsoContract completion date, Terminal float, Float, Programme
Critical activity A critical activity lies on the current critical path or otherwise directly controls a contractual completion milestone. It need not always have exactly zero calculated float, particularly where calendars or constraints affect the model. See alsoCritical path, Near-critical activity, Total float
Critical delay Critical delay is delay that affects the critical path and therefore delays a contractual completion milestone. Delay to a non-critical activity may consume float without delaying completion. See alsoDelay to Completion, Critical path, Non-critical delay
Critical path The critical path is the sequence of activities and logic that controls the earliest calculated completion date. It may change as work progresses, logic changes or delays occur. See alsoLongest path, Critical activity, Path migration
Critical path analysis Examining the chains that govern completion, together with those running close behind them, to see how exposed the finish date is and where management effort will earn most. The near-critical chains repay as much attention as the governing one, since a modest slip can promote them and change which sequence is driving the job. Also called CPA See alsoCritical path, Critical Path Method, Total float, Programme
Critical Path Method Critical Path Method is a network calculation that determines activity dates and float from durations and logic. It identifies the longest controlling path through the model at the relevant data date. Also called CPM See alsoCritical path, Network diagram, Float
Culpable delay A term used in practice for delay caused by an event at the contractor's risk, for which no extension is due and for which the contractor bears the consequences. It carries no technical meaning of its own and should be replaced in analysis by the specific risk event and the clause said to allocate it. See alsoContractor delay, Non-excusable delay, Contractor Risk Event, Liquidated damages
Data date The data date separates recorded progress from forecast work in a programme update. Status, actual dates and remaining durations should be consistent with that date. Also called Status date See alsoProgramme update, Actual progress, Forecast
Date for completion The day the contractor is anticipated to finish, which may fall before or after the day the contract fixes. It is a planning expression rather than an obligation, and substituting it for the contract completion date when liability for delay is assessed will produce the wrong answer. See alsoContract completion date, Contractor's planned completion date, Extension of time
Delay Delay is an event or effect that causes work or completion to occur later than planned or required. The term alone does not identify responsibility, criticality or entitlement. See alsoDelay event, Critical delay, Disruption
Delay analysis Delay analysis examines programme and factual evidence to assess when delay occurred, what caused it and whether completion was affected. The chosen method must suit the contract, records, timing and issue in dispute. See alsoForensic schedule analysis, Prospective analysis, Retrospective analysis
Delay damages Delay damages are the NEC term for the stated amount payable where Completion is later than the Completion Date under Option X7. Other forms may use liquidated damages or damages for delay. See alsoLiquidated damages, Completion Date, Sectional Completion
Delay event A delay event is an occurrence alleged to affect the timing of one or more activities. Analysis must distinguish the event, its immediate effects and any resulting delay to completion. See alsoCause, Delay, Impacted activity
Delay to Completion Delay to Completion is delay that moves a contractual completion milestone later than it would otherwise have occurred. It is distinct from local activity delay and from disruption without critical delay. See alsoCritical delay, Completion Date, Extension of time
Delay to Progress Delay that holds up an activity or a work face without moving the completion date, because float absorbs it or the affected work is not driving completion. It may still cost money through standing time, lost output or resequencing, so it should be recorded and analysed even where no extension of time follows. Progress delay and completion delay answer different questions and should never be merged in a claim. See alsoDelay to Completion, Total float, Disruption, Critical path
Directed acceleration Directed acceleration follows an express instruction or agreement to increase the rate of progress or achieve an earlier date. The parties should record the target, measures, cost basis and residual extension-of-time position. See alsoAcceleration, Constructive acceleration, Acceleration quotation
Disruption event An event or cause that interferes with the manner in which work is carried out, reducing productivity, whether or not it delays completion. It is proved through resource and output records rather than through the programme, which is why disruption claims fail more often on evidence than on principle. See alsoDisruption, Delay event, Productivity, Measured mile
Dominant cause Dominant cause is a legal approach that selects the effective or overriding cause where several causes operate. Its availability and effect depend on the governing law and facts, not merely the programme result. See alsoEffective cause, Concurrent delay, Causation
Duration The period of time an activity requires from commencement to completion. It may be fixed by the planner or derived from the quantity of work, the resources allocated and the output rate assumed. A duration incapable of explanation by reference to quantity, resource and output rate is an assertion only, and will be assessed as such when the programme is examined. See alsoActivity, Resource, Programme, Activity float
Early completion Early completion occurs when the works finish before the contractual completion requirement. A contractor's intention to finish early does not automatically create a right to compensation if the Employer delays that earlier plan. See alsoPlanned Completion, Completion Date, Bonus
Employer delay Employer delay is delay caused by an act, omission or risk allocated to the Employer. It may support time or money relief only where the contract and causation evidence provide that result. See alsoEmployer Risk Event, Contractor delay, Compensable delay
Employer Risk Event An Employer Risk Event is an event for which the contract allocates time or cost risk to the Employer. The label is used in delay guidance and must be mapped to the actual contract provisions. See alsoEmployer delay, Contractor Risk Event, Extension of time
Excusable delay Excusable delay is delay for which the contractor may receive time relief under the contract or applicable law. It may be compensable or non-compensable depending on risk allocation. See alsoCompensable delay, Non-compensable delay, Extension of time
Extension of time An extension of time adjusts the contractual completion requirement for qualifying delay under the contract. It relieves exposure to delay damages for the extended period but does not itself establish a right to money. Also called EOT See alsoCompletion Date, Relevant Event, Prolongation cost
Float Float is calculated scheduling flexibility between activity dates or paths and a relevant milestone. Its existence, use and contractual ownership depend on the programme, contract and applicable rules. See alsoTotal float, Free float, Project float
Forecast completion Forecast completion is the current predicted date for achieving a completion milestone based on actual progress and remaining work. It may differ from both planned completion and the contractual Completion Date. See alsoPlanned Completion, Completion Date, Programme update
Forensic schedule analysis Forensic schedule analysis investigates how events interacted with a CPM or other scheduling model for use in a dispute or formal assessment. It combines technical method with factual research and professional judgement. See alsoDelay analysis, Retrospective analysis, Expert evidence
Fragnet A fragnet is a small logic network representing a change or delay event for insertion into a programme model. Its activities, durations and links must reflect the event being analysed. See alsoImpacted as-planned analysis, Time impact analysis, Delay event
Free float Free float is the scheduling allowance available before use of that allowance moves a successor's earliest calculated start. It is narrower than total float and depends on the network calculation. See alsoTotal float, Float, Successor
Hammock A summary activity extending from the commencement of one activity until another has been completed, deriving its duration from those activities rather than from any work of its own. It is used to report upon a group of activities as a single line. A hammock should not be permitted to determine the critical path, having no independent content. See alsoActivity, Sub-network, Programme, Critical path
Hanging activity An activity with no predecessor, no successor, or neither, so that it floats free of the network logic. Hanging activities distort float and can hide the true critical path, and their presence is one of the first things to check when testing whether a programme is fit to be relied on in a delay analysis. Also called Dangling activity See alsoLogic link, Programme, Total float, Critical path
Impact The consequence which a change or event produces upon an activity, together with the further consequence transmitted through the network logic to the activities which follow. The expression is used both of the modelling step and of its outcome, and the sense intended should be identified: the event introduced into the programme, or the delay which that introduction produced. See alsoDelay event, Time impact analysis, Critical path, Sub-network
Impacted as-planned analysis Impacted as-planned analysis inserts delay events into a baseline or planned programme to model their effect. It may be unsuitable where the original plan, actual progress or changing critical path cannot be addressed reliably. See alsoFragnet, Prospective analysis, Time impact analysis
Key Date A Key Date is an NEC contractual date by which stated conditions must be met. Failure may expose the contractor to the additional cost the Client incurs, subject to the contract and any Compensation Event adjustment. See alsoCompletion Date, Condition to be met, Compensation Event
Lag A period imposed upon a logic link so that the successor activity may not commence, or may not complete, until a stated interval after the predecessor. The curing of concrete before the striking of formwork is a conventional illustration. A lag conceals both work and risk where it is employed in substitution for an activity, and a programme containing numerous unexplained lags should be examined with care. See alsoLead, Negative lag, Logic link, Programme
Lead The converse of a lag, permitting a successor activity to commence before its predecessor has completed. Most planning software records a lead as a negative lag, so that the two expressions describe a single mechanism approached from opposite directions. See alsoLag, Negative lag, Logic link
Level of effort An activity type used for continuous support work, such as supervision or site management, whose duration is set by the activities it serves rather than by any output of its own. It stretches as the work it supports stretches. Level of effort activities should be excluded when identifying the critical path, since they follow the works and do not drive them. See alsoHammock, Activity, Duration, Preliminaries
Logic link A logic link defines the dependency between programme activities. Missing, open-ended or artificial links can distort dates, float and the critical path. Also called Relationship See alsoPredecessor, Successor, Network logic
Longest path The longest path is the continuous sequence of activities that drives the calculated completion date in a CPM model. It is one means of identifying criticality and should be checked against calendars, constraints and actual facts. See alsoCritical path, Float path, Critical Activity
Milestone A milestone is a zero-duration programme point marking an event, decision or contractual date. It can represent commencement, access, completion or another control point. See alsoKey Date, Completion Date, Activity
Mitigation Mitigation is reasonable action taken to avoid or reduce loss or delay after a risk or breach arises. It does not require unreasonable expenditure or sacrifice, and the contract may impose separate management duties. See alsoDuty to mitigate, Acceleration, Early warning
Must start / must finish constraint A date imposed on an activity in the software so that it starts or finishes on a fixed day regardless of the network logic. Constraints override the calculation, can generate or destroy float, and can produce negative float that has nothing to do with events on site. Every constraint in a programme relied on for a delay claim should be identified and justified. See alsoNegative total float, Total float, Logic link, Programme
Near-critical activity A near-critical activity has limited scheduling flexibility and may become critical after a small change or update. The threshold used to identify it should be stated rather than assumed. See alsoFloat path, Critical activity, Total float
Negative float Negative float is the calculated amount by which the current forecast misses a constrained or required date. It signals a programme conflict but does not by itself allocate responsibility. See alsoTotal float, Constraint, Forecast completion
Negative lag An overlap applied to a logic link which permits the successor activity to commence before the predecessor has completed. Applied with restraint it records a genuine overlap between trades. Applied extensively it compresses the programme without any corresponding change in the method of construction, and it is a common means by which an unachievable sequence is made to appear achievable. See alsoLag, Lead, Logic link, Programme
Negative total float The amount by which an activity or chain must be shortened for the programme to meet a required date. It is a signal that the current plan does not achieve the date, whether because of delay, because of an imposed constraint, or because the logic was never achievable. Negative float shows a problem exists; it does not by itself show who is responsible for it. See alsoTotal float, Must start / must finish constraint, Critical path, Delay to Completion
Network diagram A network diagram shows activities and their logical dependencies. It allows the programme calculation to be examined in a way a simple bar chart may not. See alsoCPM, Logic link, Bar chart
Non-compensable delay Non-compensable delay gives time relief without a right to recover delay cost, where the contract allocates the financial risk that way. The precise event and remedy must be checked. See alsoExcusable delay, Extension of time, Prolongation cost
Non-excusable delay Non-excusable delay is delay for which the contractor receives no time relief. It may expose the contractor to delay damages and its own prolongation cost. See alsoContractor delay, Liquidated damages, Excusable delay
Out-of-sequence progress Out-of-sequence progress occurs when work is performed contrary to the programme's current logic. The update method must record what happened without allowing software settings to rewrite history improperly. See alsoProgress override, Retained logic, Programme update
Pacing Pacing is a conscious slowing of one activity because another delay already governs completion or the workfront. Its factual basis, reasonableness and cost consequences require project-specific proof. Also called Pacing delay See alsoConcurrent delay, Mitigation, Float
Path An activity, or an unbroken chain of logically linked activities, running through the network. A programme contains many paths; the longest governs completion and is the critical path, and those close behind it are near-critical and can take over as progress changes. See alsoCritical path, Critical path analysis, Logic link, Programme
Path migration Path migration is the movement of criticality from one sequence of activities to another over time. It is one reason a single baseline critical path may not explain the whole project. See alsoCritical path shift, Windows analysis, Programme update
PERT Programme Evaluation and Review Technique. A network method related to critical path analysis, but one that weights an optimistic, a likely and a pessimistic estimate to arrive at each duration. It was designed for work whose durations are genuinely unknown, such as research or first-of-a-kind engineering, and it is seldom met on ordinary construction projects. See alsoCritical Path Method, Duration, Programme
Planned Completion Planned Completion is the NEC expression for the finish date shown on the Accepted Programme, being the date the contractor intends to reach completion. It may sit earlier than the Completion Date the contract requires, and the interval between the two is where the argument over terminal float is fought. See alsoCompletion Date, Forecast completion, Accepted Programme
Precedence diagram A network drawing activities as nodes, with each link carrying a defined relationship so that one activity may govern when another begins or when it ends, and may do so after an interval. All four relationship types are available to it, and it is the standard form of construction programme. See alsoActivity-on-the-node network, Logic link, Lag, Programme
Programme narrative The written explanation which should accompany a programme, recording the assumptions upon which it proceeds: the method of construction, the resources and output rates underlying the durations, the access and information dates relied upon, the constraints imposed and the reasons for the sequence adopted. Without it the programme is a series of bars whose reasoning must afterwards be reconstructed, frequently by persons with no contemporaneous knowledge of the project. It is among the least costly records to produce and among the most valuable in a dispute. See alsoProgramme, Accepted Programme, Updated Programme, Method statement
Programme update A programme update records progress to a data date and forecasts remaining work. It should preserve a clear audit trail of actual dates, logic changes, constraints and assumptions. Also called Schedule update See alsoData date, Actual progress, Forecast completion
Prospective delay analysis Prospective delay analysis forecasts the likely effect of an event using information available at the time of assessment. It does not use later hindsight to replace what could reasonably be predicted then. See alsoContemporaneous analysis, Time impact analysis, Retrospective analysis
Recovery programme A recovery programme sets out measures intended to regain lost progress or meet a required date. It should identify changed logic, resources, working hours and assumptions without conceding responsibility unless agreed. See alsoCatch-up programme, Acceleration, Mitigation
Remaining duration Remaining duration is the forecast working time needed to finish an activity from the data date. It should reflect actual status and current productivity rather than simply subtracting elapsed time. See alsoOriginal duration, Data date, Progress update
Resource Any definable and quantifiable requirement without which an activity cannot proceed, including labour, supervision, plant, materials, temporary works, permits, information and access. Resource loading converts the programme from an expression of intention into a proposition capable of being tested, and it is resource data rather than the bar chart which ultimately establishes a disruption claim. See alsoDuration, Resource levelling, Disruption, Productivity
Resource levelling Adjusting a programme to smooth the peaks and troughs in demand for labour or plant, so that the resource profile can actually be manned and funded. Levelling moves activities within their float and can extend the programme where float runs out. Where it does, the change is a consequence of the resource constraint and should not be presented as delay caused by an event. See alsoResource, Total float, Programme, Duration
Retrospective delay analysis Retrospective delay analysis examines delay after events have occurred, using actual progress and project records. It may use windows, as-built or modelled techniques depending on data quality and the issue. See alsoForensic schedule analysis, Windows analysis, As-built programme
Retrospective longest path analysis A retrospective method that traces the longest continuous as-built chain back from actual completion to identify the path that in fact governed the outcome. It requires a verified as-built programme and no baseline. Its weakness is that a single backward-looking path takes no account of how criticality shifted during the works, so it can attribute delay to a chain that was not driving completion at the time the events occurred. See alsoAs-built programme, Critical path, Collapsed as-built analysis, Time slice windows analysis
Revised programme A programme showing how delay to completion is to be recovered, using changed sequence, added resource or revised methods. It should be built on the accepted or updated programme rather than drawn afresh, and it should state plainly what has been changed and what the change assumes. A revised programme is a recovery proposal, and issuing one does not by itself concede who caused the delay it seeks to recover. See alsoAccepted Programme, Updated Programme, Acceleration, Mitigation
Rolling wave programming Planning in progressive detail, the immediate works being programmed at a detailed level while later works are held at summary level and developed as the design, procurement and site information mature. The method is an appropriate response to genuine uncertainty, but it complicates subsequent delay analysis, since the detail against which later delay falls to be measured did not exist when the baseline was accepted. See alsoProgramme, Accepted Programme, Updated Programme, Sub-network
Sectional Completion Sectional Completion divides the works into contractual sections with separate completion requirements and consequences. Each section should have clear scope, dates, access and damages provisions. See alsoSection, Completion Date, Taking Over
Slack An alternative expression for total float, encountered principally in certain planning software and in overseas practice. The two expressions are synonymous and should not be treated as distinct concepts in analysis. Also called Slack time See alsoTotal float, Float, Free float
Sub-network A small group of logically linked activities representing a single event or discrete package, built so that it can be inserted into a programme and its effect calculated. Delay events are modelled as sub-networks in the impacted as-planned and time impact methods. The reasoning that produced the sub-network, its activities, durations and links, is where most of the argument about the resulting delay figure lies. See alsoTime impact analysis, Impacted as-planned analysis, Logic link, Delay event
Time at large Time at large describes a position where no enforceable contractual completion date applies and the contractor must complete within a reasonable time. Whether it arises depends on the contract's extension mechanism and governing law. See alsoPrevention principle, Reasonable time, Completion Date
Time for Completion Time for Completion is the contractual period for reaching the stated completion or Taking-Over requirement under FIDIC terminology. It may be extended under the applicable provisions. See alsoCompletion Date, Commencement Date, Extension of time
Time impact analysis Time impact analysis models a delay event in an accepted or updated programme near the time of the event. The analysis should isolate the event's effect and use a programme suitable for the relevant assessment date. Also called TIA See alsoFragnet, Prospective analysis, Compensation Event
Time Risk Allowance Time incorporated by the Contractor within an activity duration in respect of the risks which it has priced and accepted, such as weather, access or plant reliability. It belongs to the Contractor as an element of its own planning, and it is not spare capacity available to absorb what an event at the Employer's risk does to the works. Whether it can be identified at all depends upon the candour and detail of the programme narrative. See alsoActivity float, Float, Programme narrative, Duration
Time slice windows analysis A retrospective windows method run on the contemporaneously updated programmes, usually month by month. Each slice reveals the critical path that actually applied in that period and the critical delay incurred by its end. The analyst then goes to the records to identify what caused that delay. It is more rigorous than a single backward-looking view because it follows criticality as it moved, but it depends on regular, reliable updates, and each slice must be checked to confirm that its history matches what happened and its remaining logic is achievable. See alsoAs-planned versus as-built windows analysis, Updated Programme, Critical path, Time impact analysis
Total float Total float is the time an activity can be delayed before it delays the relevant completion date in the calculated network. Its value can change with updates, constraints and calendars. See alsoFree float, Float, Critical path
Updated Programme The accepted programme brought up to date with actual progress, together with such revisions to logic and duration as the progress of the works requires. It constitutes the contemporaneous record of what was understood at each stage as to the manner in which the works would be completed, and a disciplined series of updates is the most valuable material a project can hold when delay subsequently falls to be determined. See alsoAccepted Programme, Programme narrative, Time slice windows analysis, Revised programme
Windows analysis Windows analysis divides the project into periods and examines criticality and delay within each. It can reflect changing paths more accurately than a single whole-project comparison where suitable updates exist. See alsoContemporaneous period analysis, Window, Retrospective analysis
Payment, valuation and quantum
Accepted Contract Amount The Accepted Contract Amount is the amount accepted in the Letter of Acceptance for execution and completion under FIDIC terminology. It is later adjusted under the contract to produce the Contract Price. See alsoContract Price, Tender, Letter of Acceptance
Actual cost Actual cost is expenditure shown by reliable records to have been incurred. It is not automatically recoverable, because entitlement, reasonableness, causation and contractual cost rules must also be satisfied. See alsoIncurred cost, Defined Cost, Proof of loss
Advance payment recovery Advance payment recovery is the contractual deduction of an earlier advance from later payments. The recovery rate, start point and limit must match the payment terms and any guarantee reduction. See alsoAdvance payment, Interim payment, Deduction
Ascertainment Ascertainment is the contractual process of determining loss and expense or another amount due. It requires evidence of entitlement, causation and the amount actually incurred or lost. See alsoLoss and expense, Valuation, Quantum
Back charge A back charge is an amount claimed by one party for cost allegedly caused by another's default, often for remedial or completion work. It must have a contractual or legal basis and be supported by notice, causation and cost records. See alsoCross-claim, Set-off, Remedial cost
Betterment Betterment arises where remedial work leaves the claimant with an asset or benefit better than the contractual position. Any deduction depends on whether the improvement is real, unavoidable and properly valued. See alsoDamages, Remedial cost, Diminution in value
Bonus A bonus is a contractual payment for achieving an agreed performance or timing outcome. The trigger, calculation and interaction with delay or sectional completion must be read from the clause. See alsoIncentive, Early completion bonus, Gain share
Compensation Sums recovered in respect of work executed or time expended, whether by valuation of a variation, by ascertainment of loss and expense, or by way of damages for breach. The route of recovery is material: each carries its own trigger, its own evidential burden and its own measure, and a sum recoverable under one route may be irrecoverable under another. See alsoLoss and expense, Damages, Valuation, Prolongation
Contract Price The Contract Price is the amount defined by the contract, usually subject to additions, deductions and adjustments. Its meaning may differ from the tender total, accepted contract amount or final account. See alsoAccepted Contract Amount, Final account, Price adjustment
Damages Damages are monetary compensation for legally recoverable loss caused by breach or another wrong. Their assessment is subject to causation, remoteness, mitigation and proof. See alsoLiquidated damages, General damages, Loss
Daywork rates Daywork rates are the agreed rates and percentage additions used to value labour, plant and materials on a daywork basis. The records and resource classifications must match the contract schedule. See alsoDaywork, Daywork sheet, Labour rate
Default payment notice A default payment notice may be given by the payee where the payer fails to issue the required payment notice. Its timing and effect are governed by the statutory and contractual payment mechanism. See alsoPayment notice, Notified sum, Payment application
Direct cost A direct cost can be traced to a specific activity, work item or event. Classification does not establish recoverability, which still depends on the contract and evidence. See alsoIndirect cost, Actual cost, Cost code
Disruption cost Disruption cost is the financial effect of lost productivity or uneconomic working caused by an event. It should be separated from prolongation and supported by a method that links cause, productivity loss and cost. See alsoProductivity loss, Measured mile, Prolongation cost
Due date The due date is the date on which a construction payment becomes due under the payment mechanism. It starts the timetable for notices and is distinct from the Final Date for Payment. See alsoFinal Date for Payment, Payment notice, Payment cycle
Entitlement Entitlement is the contractual or legal right to a remedy such as time, payment or damages. It is distinct from causation and quantum, all of which must be established where the claim requires them. See alsoCausation, Quantum, Claim
Escalation Escalation is an increase in the cost of labour, materials, plant or services over time. Recovery depends on the pricing basis, fluctuation provisions, change clauses and allocation of inflation risk. See alsoInflation, Price adjustment, Fluctuation
Fee percentage A fee percentage is a contractual percentage applied to a stated cost base for overheads, profit or both. The base and exclusions matter as much as the percentage. See alsoOverheads and profit, Defined Cost, Mark-up
Final Date for Payment The Final Date for Payment is the date by which a construction payment must be made under the contract or statutory scheme. It is distinct from the due date and interacts with payment and pay less notices. See alsoDue date, Notified sum, Pay less notice
Final Payment Certificate A Final Payment Certificate records the final amount certified under the relevant contract procedure. Its evidential or conclusive effect depends on the form, amendments and any timely challenge. See alsoFinal account, Final statement, Certificate
Financing charge A financing charge is the cost of funding additional expenditure or delayed payment. Recovery may arise under the contract, statute or damages principles, with the actual basis and period requiring proof. See alsoInterest, Working capital, Late payment
Fluctuation provision A fluctuation provision adjusts prices for defined changes in labour, material, tax or other cost indices. The formula, base date and excluded risks determine its operation. See alsoPrice adjustment, Escalation, Indexation
Gain share Gain share allocates an agreed portion of savings below a target or benchmark. The contract must define the target, allowable cost, adjustments and calculation point. See alsoPain share, Target cost, Shared saving
Global cost claim A global cost claim seeks a composite sum for the combined financial effect of several events rather than pricing each event separately. It remains subject to proof of responsibility, causation, loss and the treatment of other effective causes. See alsoGlobal claim, Total cost claim, Cumulative impact
Head office overhead Head office overhead is the cost of central business functions supporting projects and the organisation. A claim must distinguish actual additional cost, lost contribution and amounts already recovered through pricing. Also called HOOH See alsoUnabsorbed overhead, Overhead recovery, Prolongation cost
Head office overheads The cost of maintaining the Contractor's undertaking generally, as distinct from the cost of any individual project, comprising management, premises, finance and administration. Where prolongation prevents the recovery of those costs through turnover, the lost contribution may be recoverable, but the Contractor must first establish that the overheads were in fact unrecovered and that other work was available which the resources so detained could have earned. A formula quantifies the loss once established; it does not establish it. See alsoProlongation, Loss and expense, Unabsorbed overheads, Compensation
Indirect cost An indirect cost supports more than one activity or the project generally and cannot be traced economically to one work item. Allocation must follow the contract and a consistent cost basis. See alsoDirect cost, Overhead, Preliminaries
Interim Payment Certificate An Interim Payment Certificate records the amount certified for an interim payment under the contract. It is usually provisional and may be corrected in later certificates, subject to the form. Also called IPC See alsoInterim valuation, Amount due, Payment certificate
Interim valuation An interim valuation assesses the value due at a payment stage for work, materials and permitted adjustments. It remains subject to the contract's measurement, notice and certification rules. See alsoInterim payment, Payment application, Valuation
Liquidated damages Liquidated damages are a contractually stated sum payable for a specified breach, commonly late completion. Enforceability and calculation depend on the clause, applicable law and any extension-of-time mechanism. Also called Delay damages, LADs See alsoPenalty, Completion Date, Extension of time
Loss and expense Loss and expense is a contractual route for recovering defined financial loss caused by specified events or defaults. The claimant must satisfy the clause's procedural, causal and evidential requirements. See alsoAscertainment, Prolongation cost, Disruption cost
Loss of profit Loss of profit is the net profit a party says it would have earned but for the relevant breach or event. The claimant must prove the opportunity, causation, amount and legal recoverability. See alsoLost opportunity, Omitted work, Damages
Lump sum A lump sum is an agreed price for the defined scope, subject to contractual adjustments. It does not mean that every quantity, condition or change risk necessarily sits with the contractor. See alsoFixed price, Remeasurement, Contract Price
Mark-up A mark-up is a percentage or amount added to a cost base for overheads, profit, risk or another stated purpose. The contract must be checked to avoid applying it to an excluded or already marked-up amount. See alsoFee percentage, Overheads and profit, Compound mark-up
Materials on site Materials on site are goods delivered for incorporation into the works but not yet installed. Payment depends on identification, title, insurance, protection and the contract's valuation rules. See alsoUnfixed materials, Vesting, Interim valuation
Measured work Measured work is valued by applying contract rates or derived rates to verified quantities. Measurement rules, descriptions and records govern the assessment. See alsoRemeasurement, Bill of quantities, Valuation
Notified sum The notified sum is the amount identified by a valid payment notice or default notice for the purposes of the statutory payment regime. The payer must pay it by the Final Date for Payment unless a valid pay less notice changes the amount. See alsoPayment notice, Pay less notice, Final Date for Payment
Overheads and profit Overheads and profit is a contractual addition to a defined cost or valuation base. The applicable percentage, compounding and exclusions must be taken from the contract. Also called OHP See alsoMark-up, Fee percentage, Head office overhead
Pain share Pain share allocates an agreed portion of cost above a target between the parties. The contract should define the target, adjustment rules, cap and treatment of Disallowed Cost. See alsoGain share, Target cost, Disallowed Cost
Pay less notice A pay less notice states the payer's intention to pay less than the notified sum and the basis of calculation. It must be served within the contractual or statutory period. See alsoPayment notice, Notified sum, Final Date for Payment
Payment application A payment application is the payee's statement of the amount considered due and its calculation. Whether it also operates as a statutory payment notice or default notice depends on timing, content and the payment mechanism. See alsoInterim valuation, Payment notice, Default payment notice
Payment bond A payment bond secures payment to specified subcontractors, workers or suppliers under some jurisdictions and contract systems. Its beneficiaries, conditions and claim procedure come from the bond wording and applicable law. See alsoSurety, Performance bond, Bond claim
Payment notice A payment notice states the sum considered due at the due date and the basis of calculation. Under the UK statutory regime, responsibility and timing depend on the agreed mechanism and the legislation. See alsoDefault payment notice, Pay less notice, Notified sum
Penalty A penalty is a contractual consequence that the applicable law refuses to enforce because it is penal rather than a permissible protection of the innocent party's interest. The legal test is jurisdiction-specific and should not be reduced to whether the sum matches a pre-estimate. See alsoLiquidated damages, Delay damages, Remedy
Preliminaries Preliminaries are project-wide items and services needed to execute the works, such as management, welfare, temporary services and site facilities. Their pricing and recovery depend on the bill, schedule and claim basis. See alsoSite overhead, General items, Prolongation cost
Price adjustment Price adjustment changes contract prices under an agreed formula or index. It is distinct from damages and must be applied to the defined cost base and period. See alsoFluctuation, Escalation, Indexation
Prolongation The extended period over which the works are executed in consequence of delay, together with the time-related cost incurred throughout that period. Such cost is recoverable in respect of the period during which the delaying event took effect, and not in respect of the period at the conclusion of the works during which the overrun becomes apparent. Misidentification of the relevant period is the error most frequently encountered in prolongation claims. See alsoDelay to Completion, Head office overheads, Loss and expense, Compensation
Prolongation cost Prolongation cost is additional time-related cost caused by compensable delay to the project period. It should be proved by reference to actual cost and causation rather than assumed from the value of work. See alsoDelay cost, Site overhead, Extension of time
Quantum Quantum is the amount of money claimed, assessed or awarded. It is separate from legal entitlement and factual causation. See alsoEntitlement, Causation, Damages
Quantum meruit Quantum meruit is a claim for reasonable remuneration for work or services in circumstances recognised by the applicable law. It should not be assumed to override an effective contractual pricing mechanism. See alsoRestitution, Reasonable value, Unjust enrichment
Remeasurement Remeasurement determines the final quantity of work actually executed and values it under the contract rates and measurement rules. It transfers quantity risk differently from a fixed lump sum. See alsoBill of quantities, Measured work, Unit rate
Retention Retention is money withheld from sums otherwise due as security for completion and defect correction. Release, trust status and permitted deductions depend on the contract and applicable law. See alsoRetainage, Retention bond, Defects
Retention bond A retention bond replaces some or all cash retention with security issued by a bank or surety. The amount, expiry and call conditions must follow the contract and instrument. See alsoRetention, Bond, On-demand security
Schedule of rates A schedule of rates lists prices for defined units, resources or work items. Whether rates are binding, adjustable or suitable for changed work depends on the contract. See alsoUnit rate, Daywork rates, Bill of quantities
Set-off Set-off is a legal or contractual right to reduce a sum otherwise payable by a cross-demand. Statutory payment notices and anti-set-off wording may control when and how it can be used. See alsoBack charge, Cross-claim, Pay less notice
Site overhead Site overhead is the cost of project-specific management, facilities and support not measured as permanent work. A prolongation claim should identify which costs continued or increased because of the relevant delay. See alsoPreliminaries, Prolongation cost, Indirect cost
Target cost A target cost is the benchmark against which defined actual cost is compared under a pain-share and gain-share mechanism. Compensation Events and other adjustments may change the target under the contract. See alsoPain share, Gain share, Defined Cost
Total cost method The total cost method calculates claimed loss by comparing total actual cost with an adjusted tender or expected cost. It is vulnerable where tender adequacy, claimant-caused cost or direct proof has not been addressed. See alsoModified total cost method, Global cost claim, Actual cost
Unit rate A unit rate is a price applied to each measured unit of work. Adjustments may be required where quantity, conditions or character of work changes beyond the contractual basis. See alsoSchedule of rates, Bill rate, Remeasurement
Valuation Valuation is the assessment of the monetary amount of work, change, materials or another contract item. The applicable rules may use contract rates, derived rates, fair rates, Defined Cost or another basis. See alsoInterim valuation, Variation, Quantum
Claims, evidence and dispute resolution
Adjudication Adjudication is a rapid dispute process in which an appointed adjudicator issues a decision. Under the UK statutory scheme, the decision is binding unless and until the dispute is finally resolved by agreement, litigation or arbitration. See alsoNotice of adjudication, Referral notice, Enforcement
Alternative dispute resolution Alternative dispute resolution covers processes used to resolve disputes without a court trial, such as mediation, conciliation and expert determination. Arbitration and adjudication are sometimes grouped under the label, although both can produce binding decisions. Also called ADR See alsoMediation, Conciliation, Expert determination
Arbitration Arbitration is a private process in which an impartial tribunal determines disputes under an arbitration agreement. The procedure is shaped by party agreement, institutional rules and the law of the seat. See alsoArbitral tribunal, Award, Seat of arbitration
Burden of proof The burden of proof identifies which party must prove a fact or issue. A claimant generally proves the elements of its claim, while a party advancing an affirmative defence or cross-claim proves that case. See alsoStandard of proof, Evidence, Substantiation
Causation Causation is the required link between an event or breach and the delay, disruption or loss claimed. Programme correlation and cost occurrence may support the analysis but do not alone prove the link. See alsoCause and effect, Entitlement, Quantum
Claim A claim is an assertion of a contractual or legal right to time, money or another remedy. A sound claim identifies the basis, facts, compliance, causation, evidence and relief sought. See alsoEntitlement, Particulars, Quantum
Claim narrative A claim narrative explains the relevant contract, facts, event, response and consequence in a traceable sequence. It should match the records and calculations rather than substitute assertion for proof. See alsoStatement of case, Cause-and-effect narrative, Chronology
Claim register A claim register records notices, events, contractual routes, dates, status and claimed relief. It supports control but does not replace the notices or evidence required by the contract. See alsoNotice register, Change register, Risk register
Compensable event An expression used in practice, though not a defined term in most standard forms, to describe an employer risk event carrying an entitlement to payment in addition to or in place of time. It bears no settled meaning across the forms, and entitlement must accordingly be established by reference to the clause relied upon rather than to the description applied to the event. See alsoEmployer Risk Event, Non-compensable event, Compensation, Extension of time
Contemporaneous records Contemporaneous records are documents and data created at or near the time of the events recorded. Their reliability depends on authorship, consistency, completeness and the purpose for which they were made. See alsoPrimary records, Site diary, Progress records
Cumulative impact Cumulative impact is the combined productivity effect of multiple changes or disruptions where the overall consequence may exceed the sum of isolated effects. It requires proof of the affected work, interaction and loss. See alsoRipple effect, Disruption, Global claim
Disruption Disruption is loss of productivity or uneconomic working caused by interference with planned methods or sequence. It may occur without delaying the contractual completion date. See alsoProductivity loss, Measured mile, Delay
Duty to mitigate The duty to mitigate limits recovery where a claimant unreasonably fails to reduce avoidable loss after breach. It does not require the claimant to take disproportionate risk or expenditure. See alsoMitigation, Avoidable loss, Acceleration
Evidence matrix An evidence matrix maps each proposition or claim element to the records and witnesses relied on. It exposes gaps between entitlement, event, causation and quantum before submission. See alsoProof matrix, Issue matrix, Claim register
Expert determination Expert determination refers a defined issue to an independent expert for a contractually binding or otherwise agreed decision. It differs from arbitration because the expert usually acts within personal expertise under the contractual mandate. See alsoExpert witness, Arbitration, Valuation
Global claim A global claim presents the combined effect of several events without full event-by-event separation. It is not automatically invalid, but the claimant still bears the burden of proving responsibility, causation and loss while addressing other effective causes. See alsoGlobal cost claim, Total cost method, Cumulative impact
Limitation period A limitation period is the statutory period within which proceedings must be started. Under English law, many simple contract claims have a six-year period and claims on a specialty commonly have twelve years, subject to accrual and statutory exceptions. See alsoStatute of limitations, Deed, Cause of action
Litigation Litigation is the determination of disputes by a court through formal proceedings. Construction cases in England and Wales may be managed in the Technology and Construction Court where they fall within its specialist work. See alsoCourt proceedings, TCC, Civil Procedure Rules
Measured mile The measured mile compares productivity in an impacted period with a comparable unimpacted period on the same project. The comparison requires like work, reliable quantities, stable measurement and reasoned adjustments for material differences. See alsoProductivity analysis, Disruption, Baseline productivity
Mediation Mediation is a confidential negotiation assisted by an independent mediator who does not impose a decision. Any settlement becomes binding through the parties' agreement. See alsoAlternative dispute resolution, Settlement, Without prejudice
Non-compensable event An informal term for an event at the contractor's risk, carrying no entitlement to money. Like its compensable counterpart it is a label rather than a defined term, and the analysis must return to the clause said to allocate the risk. See alsoCompensable event, Contractor Risk Event, Non-excusable delay
Particulars Particulars are the factual and calculated details supporting a notice, claim or pleading. They should identify the events, dates, contractual basis, causal effect, records and amount with enough precision for a response. See alsoClaim narrative, Substantiation, Pleading
Productivity Productivity is output achieved per unit of input, such as installed quantity per labour hour. Claims analysis must define both the output and input consistently across compared periods. See alsoLabour productivity, Production rate, Efficiency
Standard of proof The standard of proof is the level of persuasion required to establish a fact. In English civil proceedings the usual standard is the balance of probabilities, applied to the evidence on each issue. See alsoBalance of probabilities, Burden of proof, Evidence
Substantiation Substantiation is the evidence and explanation used to prove a claimed fact, entitlement or amount. Adequate substantiation is specific to the issue and cannot be replaced by volume of documents alone. See alsoParticulars, Contemporary records, Burden of proof
Time bar A time bar is a contractual or statutory deadline that may restrict or extinguish a claim or remedy if not met. Its operation depends on the wording, governing law and any recognised answer such as waiver or prevention. See alsoCondition precedent, Notice, Limitation period
Without prejudice Without prejudice protection generally prevents genuine settlement communications from being put before the tribunal as admissions on the merits. The label is not conclusive, and recognised exceptions may apply. See alsoPrivilege, Settlement, Mediation
Quality, completion and remedies
Defect A defect is work, design, material or equipment that does not comply with the contractual requirement. The contract determines inspection, notification, correction and valuation consequences. See alsoNon-conformity, Remedial work, Defects Notification Period
Defects Liability Period Defects Liability Period is an older and still-used label for the post-completion period during which specified defects may be notified and corrected under the contract. It does not make the contractor liable for every defect first discovered during that period. Also called DLP See alsoMaking good defects period, Defects Notification Period, Practical Completion
Defects Notification Period Defects Notification Period is the FIDIC term for the period for notifying defects after the Works or a Section is completed as certified under the contract. Its duration and any extension must be taken from the Contract Data and applicable edition. Also called DNP See alsoTaking-Over Certificate, Defect, Performance Certificate
Performance Certificate The Performance Certificate is the FIDIC certificate issued after the contractor has completed and tested the Works and remedied notified defects as required by the contract. It is distinct from the Taking-Over Certificate and Final Payment Certificate. See alsoTaking-Over Certificate, Defects Notification Period, Final Payment Certificate
Practical Completion Practical Completion is the contract milestone certified when the works satisfy the applicable completion test, despite minor items that do not prevent the required use where the form permits. The exact test and consequences come from the contract and governing law. Also called PC See alsoCompletion, Defects Liability Period, Sectional Completion
Substantial Completion Substantial Completion is the milestone used in some contract systems when the work is sufficiently complete for its intended use, subject to the contract's test. It is not automatically identical to Practical Completion or FIDIC Taking Over. See alsoPractical Completion, Taking Over, Punch list
Taking-Over Certificate A Taking-Over Certificate is the FIDIC certificate recording completion of the Works or a Section under the Taking Over provisions. It affects care of the Works, delay damages and the Defects Notification Period as the contract provides. Also called TOC See alsoTaking Over, Defects Notification Period, Time for Completion
Risk, security and project delivery
Collateral warranty A collateral warranty is a separate contract under which a project participant gives specified promises to a funder, purchaser, tenant or other beneficiary. Its duty, limitation, insurance and assignment terms require separate review. See alsoThird-party rights, Privity of contract, Deed
Contractor Risk Event An event or circumstance productive of delay or disruption which the executed contract places within the Contractor's risk. It carries neither an extension of time nor an entitlement to payment, and where completion is thereby delayed the Contractor will ordinarily be liable for liquidated damages. The allocation of any particular event is determined by the contract in question and not by general industry practice. See alsoEmployer Risk Event, Contractor delay, Risk Event, Liquidated damages
Design and build Design and build is a procurement route in which one contractor is responsible to the Employer for both design and construction within the agreed scope. The design standard and retained Employer design responsibility depend on the documents. Also called D&B See alsoEmployer's Requirements, Contractor's Proposals, Design responsibility
Differing site conditions Differing site conditions are physical conditions materially different from those represented or contractually anticipated under the applicable clause. Notice, foreseeability, reliance and relief depend on the contract and governing law. Also called Changed conditions See alsoUnforeseen site conditions, Ground conditions, Site data
EPC contract An engineering, procurement and construction contract places the stated design, procurement and construction obligations with one contractor. Risk allocation varies and the label alone does not prove a fixed price, single-point liability or fitness obligation. Also called Engineering, procurement and construction See alsoTurnkey contract, Design and build, Performance specification
Parent company guarantee A parent company guarantee supports the obligations of a subsidiary contractor or consultant. Its scope follows the guarantee wording and may be affected by changes to the underlying contract. Also called PCG See alsoGuarantee, Performance bond, Surety
Performance bond A performance bond secures specified loss arising from the contractor's default, subject to the instrument's conditions and limit. A conditional bond differs from an on-demand security. See alsoPerformance security, Surety, Parent company guarantee
Performance security Performance security is the bond, guarantee or other security provided for performance of contractual obligations. Its amount, reduction, expiry and call conditions are governed by the contract and instrument. See alsoPerformance bond, On-demand security, Surety
Possession of Site Possession of Site is the contractual right or opportunity given to the contractor to occupy and control the Site for the Works. Timing, extent, shared use and continuing Employer access depend on the contract. See alsoSite access, Commencement Date, Employer delay
Professional indemnity insurance Professional indemnity insurance covers specified civil liability arising from professional services, subject to the policy terms. Claims-made cover, exclusions, excess, aggregation and the required maintenance period should be checked. Also called PI insurance See alsoDesign responsibility, Fitness for purpose, Reasonable skill and care
Risk allocation Risk allocation assigns the financial, time and performance consequences of stated events between the parties. It is found across the conditions, scope, price, programme, insurance and remedy provisions rather than in one clause alone. See alsoRisk register, Employer Risk Event, Contractor Risk Event
Risk Event An event or circumstance causing delay or disruption which the contract allocates to one party or the other. Every delay analysis proceeds by first classifying the events as employer risk or contractor risk, that allocation and not the gravity of the event determining which party bears the time and which bears the cost. See alsoEmployer Risk Event, Contractor Risk Event, Delay event, Disruption event
Site access Site access is the ability or right to enter and use a work area, route or facility as the contract permits. Restrictions may affect method, sequence, productivity or completion without amounting to full possession of the Site. See alsoAccess route, Possession of Site, Employer delay
Suspension Suspension is a contractual or legal stopping of some or all work or performance. Authority, notice, protection of the Works, payment and restart consequences depend on the reason and clause used. See alsoSuspension for non-payment, Employer suspension, Resumption
Termination for convenience Termination for convenience allows a party to end the contract without proving default where an express clause permits. The clause controls notice, payment, demobilisation and any limits on the power. See alsoTermination, Omission, Demobilisation
Termination for default Termination for default ends future performance following a specified serious default and compliance with the contractual procedure. Wrongful termination may itself be a repudiatory breach. Also called Termination for cause See alsoDefault notice, Repudiatory breach, Notice to correct
Turnkey contract A turnkey contract requires the contractor to deliver a facility ready for the stated operation or use, subject to the contract's requirements and tests. The phrase does not replace the need to read the actual design, performance and risk provisions. See alsoEPC contract, Fitness for purpose, Performance specification
Unforeseen site conditions Unforeseen site conditions are physical conditions that satisfy the contract's test for unforeseeability or abnormality. The test is often objective and may differ from a simple mismatch with tender assumptions. See alsoPhysical conditions, Differing site conditions, Ground risk

No expression matches the current search.

These definitions record the meaning which the expressions bear in practice. They are not contract wording. Where an executed contract defines an expression, that definition prevails and this glossary does not apply. Nothing stated here constitutes legal advice upon any project or dispute.