Insights

Glossary


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Change Order

A written document between the owner and the contractor signed by the owner and the contractor authorizing a change in the work or an adjustment in the contract sum or the contract time. A change order may be signed by the architect or engineer, provided they have written authority from the owner for such procedure and that a copy of such written authority is furnished to the contractor upon request. The contract sum and the contract time may be changed only by change order. A change order may be in the form of additional compensation or time; or less compensation or time known as a Deduction (from the contract) the amount deducted from the contract sum by change order.

Closed Bid/Estimate

A service offered where only invited bidders or estimators are given access to the project specific RFP (Request for Proposal) information.This option is for those seeking bids/estimates from a prequalified and selected list of professionals or service. For security and easy access, the RFP poster receives an e-mail showing the list of bidders/estimators and links to View the RFP Details and View any Bids as they are received.This e-mail gives the poster the ability to file and track their respective RFP's using their own e-mail filing system. (see Open Bid/Estimate)

CSI Master Format

The CSI Master Format is a system of numbers and titles for organizing construction information into a regular, standard order or sequence. By establishing a master list of titles and numbers Master Format promotes standardization and thereby facilitates the retrieval of information and improves construction communication. It provides a uniform system for organizing information in project manuals, for organizing project cost data, and for filing product information and other technical data.

Construction Management/General Contractor

See Construction Management at Risk. These two terms are often used interchangeably as the selection method and contract are similar.

Construction Management at Risk

A project delivery method in which the general contractor holds the subcontractor contracts and works under a guaranteed maximum price (GMP) established once construction documents are completed. The contractor is usually selected based on their qualifications alone and is usually heavily involved in the design process, working with the owner and architect to create the best possible project for the owner within their budget.

Competitive Sealed Proposal

This project delivery method is a variation of the hard bid method. Under this method, usually only a limited number of qualified contractors are invited to submit proposals and the selection of the contractor is based on a combination of the contractor's price and qualifications.

Construction Management Agency

A project delivery method in which the owner holds the contracts directly with the subcontractors (in addition to their contract with the general contractor), and carries all the risk for design, subcontractors, performance, schedule, quality, safety, budget overruns, errors and omissions, etc. However, the selection process and involvement of the contractor in the design phase are very similar to those under Construction Management at Risk.