200+ Terms Used For Construction Tendering For Civil Engineers and Construction Professionals of India and Gulf Countries

1. Tender

A formal offer to carry out work at a specified price.
Example: "The company submitted a tender to build the new bridge."

2. Tendering

The process of inviting and submitting bids for a project.
Example: "Tendering for the new stadium project will close next week."

3. Bid

A contractor’s proposed price to complete the work specified.
Example: "We put in a bid to renovate the office building."

4. Bidder

The individual or company submitting a bid.
Example: "There are five bidders for the road expansion project."

5. Request for Proposal (RFP)

A document issued by a client inviting contractors to submit a proposal.
Example: "The council issued an RFP for the new housing project."

6. Request for Quotation (RFQ)

A request for a price on specific services or items.
Example: "We received an RFQ for the supply of construction materials."

7. Bill of Quantities (BOQ)

A detailed list of materials, labour, and quantities needed for a project.
Example: "The BOQ outlines every item needed for the new shopping mall."

8. Expression of Interest (EOI)

A preliminary response to indicate interest in bidding on a project.
Example: "We submitted an EOI to show interest in the bridge project."

9. Prequalification

The process of screening contractors to determine their ability to bid.
Example: "Only prequalified contractors can submit bids for the project."

10. Tender Documents

A set of documents that include all the information a contractor needs to submit a bid.
Example: "The tender documents were distributed to all interested contractors."

11. Scope of Work (SOW)

A detailed description of the work to be done under the contract.
Example: "The scope of work includes both demolition and construction phases."

12. Contractor

The person or company that is hired to complete the construction work.
Example: "The contractor will begin work on the site next month."

13. Subcontractor

A contractor hired by the main contractor to perform specific tasks.
Example: "The electrical work was assigned to a specialised subcontractor."

14. Main Contractor

The contractor responsible for overseeing the entire construction project.
Example: "The main contractor will coordinate all the work on site."

15. Provisional Sum

An allowance in the contract sum for a specific item of work that cannot be priced accurately at the time of tender.
Example: "The provisional sum covers the uncertain costs of underground utilities."

16. Contingency Sum

A sum added to cover unexpected costs that may arise during construction.
Example: "The budget includes a contingency sum for any unforeseen issues."

17. Bid Bond

A type of guarantee ensuring the bidder will take on the job if selected.
Example: "The bid bond reassured the client that the contractor was serious."

18. Performance Bond

A guarantee that the contractor will complete the project according to the contract terms.
Example: "A performance bond was required for the high-risk project."

19. Retention Money

A percentage of payment withheld from the contractor until the project is satisfactorily completed.
Example: "The client withheld retention money to ensure any defects were corrected."

20. Letter of Intent (LOI)

A letter from the client indicating their intent to enter into a contract with a contractor.
Example: "The LOI was issued before finalising the contract."

21. Letter of Acceptance (LOA)

A letter from the client accepting the contractor's bid and confirming the award of the contract.
Example: "The LOA formalised the contractor’s selection for the project."

22. Award of Contract

The process of selecting a contractor and entering into a contract.
Example: "The award of contract was made after evaluating all the bids."

23. Construction Contract

A legally binding agreement between the client and contractor.
Example: "The construction contract was signed, and work began immediately."

24. Contract Sum

The total agreed cost of the project as set out in the contract.
Example: "The contract sum for the project is £2 million."

25. Lump Sum Contract

A contract where the contractor agrees to complete the work for a fixed price.
Example: "A lump sum contract was signed for the office renovation."

26. Cost-Plus Contract

A contract where the client agrees to cover the contractor's costs plus an agreed-upon fee.
Example: "The cost-plus contract covered all labour, materials, and a fee for the contractor."

27. Turnkey Contract

A contract where the contractor is responsible for both design and construction, delivering a complete project.
Example: "The client opted for a turnkey contract for the new hospital."

28. Design-Build Contract

A contract where the contractor is responsible for both the design and construction phases.
Example: "The design-build contract streamlined the project’s timeline."

29. Tender Submission

The process of submitting a formal bid or offer to carry out work.
Example: "The tender submission deadline is the 30th of October."

30. Addendum

A modification or clarification issued after the tender documents have been distributed but before tenders are submitted.
Example: "An addendum was issued to correct a mistake in the specifications."

31. Clarification Request

A request by the contractor for further details or explanation on tender documents.
Example: "We submitted a clarification request about the project timelines."

32. Alternative Bid

A bid that offers a different method or approach to completing the project.
Example: "The contractor proposed an alternative bid using different materials."

33. Non-compliant Bid

A bid that does not meet the requirements set out in the tender documents.
Example: "The bid was rejected as non-compliant due to missing documentation."

34. Lowest Bidder

The contractor offering the lowest price for the work.
Example: "The lowest bidder was awarded the contract after a thorough review."

35. Negotiated Contract

A contract awarded after direct negotiation between the client and contractor, without competitive bidding.
Example: "The client opted for a negotiated contract to speed up the project."

36. Two-Stage Tendering

A process where the contractor is appointed in two stages: first for pre-construction services, then for the construction phase.
Example: "Two-stage tendering helped the client finalise costs before construction began."

37. Open Tendering

A tender process where any qualified contractor can submit a bid.
Example: "The open tendering process attracted multiple bids from across the region."

38. Selective Tendering

A process where only pre-selected contractors are invited to submit bids.
Example: "The council used selective tendering for the high-profile project."

39. Post-Tender Negotiation

Negotiations conducted after tenders have been received to clarify or amend the terms.
Example: "Post-tender negotiations were held to reduce costs."

40. Tender Evaluation

The process of assessing submitted bids based on criteria such as price, experience, and quality.
Example: "The tender evaluation committee reviewed all submissions carefully."

41. Contractor’s Proposal

A document outlining the contractor’s plan for carrying out the work.
Example: "The contractor’s proposal included an innovative construction method."

42. Work Programme

A detailed timeline for how the contractor plans to carry out the work.
Example: "The work programme ensures the project stays on schedule."

43. Construction Schedule

A detailed plan that outlines the start and completion dates of each phase of the project.
Example: "The construction schedule was reviewed and approved by the client."

44. Payment Schedule

A document outlining when and how much the contractor will be paid during the project.
Example: "The payment schedule aligned with project milestones."

45. Milestone

A significant point in the project, such as the completion of a phase.
Example: "Completing the foundation was a major milestone in the project."

46. Provisional Item

An item of work listed in the tender that may or may not be required.
Example: "Provisional items were included for additional landscaping work."

47. Daywork

Work that is paid for on the basis of time spent and materials used.
Example: "The contractor was compensated for extra work through daywork payments."

48. Liquidated Damages

A pre-agreed amount of money to be paid by the contractor if the project is delayed.
Example: "The contract included liquidated damages for late completion."

49. Extension of Time (EOT)

A formal request by the contractor for more time to complete the project.
Example: "The contractor requested an extension of time due to bad weather."

50. Practical Completion

The stage where the construction work is completed and can be handed over to the client.
Example: "Practical completion was achieved two weeks ahead of schedule."

51. Final Completion

The stage where all outstanding work is finished, and the project is fully completed.
Example: "Final completion was confirmed after all the defects were corrected."

52. Snagging List

A list of minor defects or incomplete items that need to be resolved before final completion.
Example: "The snagging list included fixing a few cracked tiles and paint touch-ups."

53. Defects Liability Period (DLP)

The period after practical completion during which the contractor is responsible for repairing defects.
Example: "The DLP ensured the contractor fixed any issues within the first year."

54. Variation Order

A formal request to change the scope of work after the contract has been awarded.
Example: "A variation order was issued to include additional parking spaces."

55. Change Order

Similar to a variation order, it is an amendment to the original contract, typically related to scope, time, or cost.
Example: "The change order reflected the updated project timelines due to weather delays."

56. Prime Cost

The direct cost of materials and labour without overheads or profit.
Example: "The prime cost for the foundation was estimated before overheads were added."

57. Tender Security

A deposit or bond provided by the bidder to guarantee their commitment to the tender.
Example: "Tender security was required to ensure only serious bidders participated."

58. Unit Price Contract

A contract where the contractor is paid based on unit rates for specific work items.
Example: "The unit price contract helped manage fluctuating material costs."

59. Provisional Completion

A stage before practical completion, where the project is complete enough to be used but may still require some finishing touches.
Example: "Provisional completion allowed the office to open while minor works continued."

60. Penalties

Financial consequences for failing to meet contract obligations, such as deadlines.
Example: "The contractor faced penalties for delays in completing the project."

61. Notice to Proceed

A formal instruction from the client to the contractor to begin work on the project.
Example: "The notice to proceed was issued as soon as the site was cleared."

62. Bill of Materials (BOM)

A list of materials required for a construction project, including quantities and specifications.
Example: "The BOM helped the procurement team source the required materials."

63. Submittals

Documents or samples provided by the contractor for approval before starting work.
Example: "The submittals included material samples and structural drawings."

64. Shop Drawings

Detailed drawings provided by contractors to show how specific components will be fabricated and installed.
Example: "The shop drawings for the steel beams were approved by the architect."

65. As-Built Drawings

Final drawings that show the completed construction, including any changes made during the project.
Example: "As-built drawings were submitted at the end of the project to reflect all modifications."

66. Mobilisation

The process of preparing to start work on-site, including setting up equipment and resources.
Example: "Mobilisation began as soon as the site access was granted."

67. Demobilisation

The process of winding down a construction site after the work is completed.
Example: "Demobilisation involved removing equipment and clearing the site."

68. Site Inspection

A visit to the construction site to assess progress and ensure compliance with the plans and specifications.
Example: "The engineer conducted a site inspection to check the quality of the concrete work."

69. Site Plan

A detailed plan showing the layout of the construction site, including buildings, roads, and utilities.
Example: "The site plan included the locations of drainage systems and temporary offices."

70. Architectural Drawings

Drawings produced by the architect that show the design and layout of the building.
Example: "The architectural drawings were used to guide the construction team."

71. Structural Drawings

Drawings that detail the structural elements of the building, such as beams and columns.
Example: "The structural drawings specified the size and placement of steel reinforcements."

72. Mechanical, Electrical, and Plumbing (MEP)

Refers to the systems involved in the mechanical, electrical, and plumbing aspects of the project.
Example: "The MEP contractor was responsible for installing the HVAC systems."

73. Turnkey Project

A project where the contractor is responsible for everything from design to completion, and the client simply "turns the key" to a finished product.
Example: "The factory was delivered as a turnkey project, ready for immediate operation."

74. Project Manager

The person responsible for overseeing the entire construction project, ensuring it is completed on time and within budget.
Example: "The project manager coordinated between the client, contractors, and suppliers."

75. Client Representative

A person appointed by the client to act on their behalf and ensure the project meets their requirements.
Example: "The client representative visited the site regularly to monitor progress."

76. Request for Information (RFI)

A formal request by the contractor for clarification on certain aspects of the project.
Example: "The contractor submitted an RFI to clarify the dimensions of the doorways."

77. Site Engineer

The engineer responsible for day-to-day supervision of the work on the construction site.
Example: "The site engineer checked that all work complied with the plans."

78. Health and Safety Plan

A plan outlining the safety measures and procedures to be followed on the construction site.
Example: "The health and safety plan was strictly enforced to prevent accidents."

79. Risk Assessment

An evaluation of the potential risks associated with a construction project and the measures to mitigate them.
Example: "A thorough risk assessment was carried out before work began on the high-rise building."

80. Handover

The process of formally transferring responsibility for the completed project from the contractor to the client.
Example: "The handover was completed once all the final inspections were passed."

81. Notice of Default

A formal notice from the client or contractor informing the other party that they are in breach of the contract.
Example: "The client issued a notice of default due to delays in the project timeline."

82. Force Majeure

A clause in the contract that exempts the contractor from liability in case of unforeseen events like natural disasters.
Example: "The contractor invoked the force majeure clause due to a severe storm that halted construction."

83. Liquidated and Ascertained Damages (LAD)

A specific amount of money agreed upon in the contract that the contractor must pay if they fail to complete the project on time.
Example: "LADs were applied when the contractor missed the completion deadline."

84. Prime Contractor

The main contractor responsible for overseeing the entire project and managing subcontractors.
Example: "The prime contractor coordinated with all trades to ensure the project stayed on schedule."

85. Subcontract Agreement

A contract between the main contractor and a subcontractor to perform specific parts of the work.
Example: "The subcontract agreement covered all electrical installations for the building."

86. Value Engineering

A process of reviewing the project design to find cost savings without compromising quality or functionality.
Example: "Value engineering identified a more cost-effective method for constructing the foundation."

87. Interim Payment

A partial payment made to the contractor during the construction process for work completed up to that point.
Example: "The interim payment was released after the completion of the first phase."

88. Final Payment

The last payment made to the contractor after the project is completed and all work is approved.
Example: "The final payment was processed once the handover was completed."

89. Labour Report

A report detailing the number of workers on-site, their hours, and their roles.
Example: "The labour report helped track productivity and manage workforce costs."

90. Equipment Schedule

A list of the equipment needed for the project, including the rental or purchase costs and timelines.
Example: "The equipment schedule ensured all necessary machinery was available on-site."

91. Escalation Clause

A clause in the contract that allows for adjustments in the contract sum due to changes in the cost of materials or labour.
Example: "The escalation clause was triggered by the rising price of steel."

92. Drawings Register

A log that keeps track of all the drawings used for the project, including revisions and updates.
Example: "The drawings register ensured everyone was working from the latest plans."

93. Provisional Completion Certificate

A document issued when the project is complete enough for its intended use but some minor works remain.
Example: "The provisional completion certificate was issued, allowing the building to be occupied."

94. Final Account

A statement of the total cost of the project, including all variations and adjustments, prepared at the end of the project.
Example: "The final account confirmed the total cost was within the budget."

95. Cost Overrun

When the actual cost of the project exceeds the original budget.
Example: "The project faced a cost overrun due to unexpected site conditions."

96. Claims

Requests for additional payment or time due to changes or delays in the project.
Example: "The contractor submitted claims for the extra work caused by design changes."

97. Dispute Resolution

Methods used to resolve disagreements between the client and contractor, such as mediation or arbitration.
Example: "Dispute resolution was needed when the parties couldn’t agree on the cost of variations."

98. Adjudication

A quick and temporary dispute resolution process used in construction contracts.
Example: "The dispute was resolved through adjudication, and work continued without delay."

99. Arbitration

A formal dispute resolution process where an independent arbitrator makes a binding decision.
Example: "The parties agreed to resolve their contract dispute through arbitration."

100. Litigation

The process of taking legal action to resolve a dispute in court.
Example: "The contractor pursued litigation after the client refused to pay for additional work."

101. Mediation

A voluntary process where a neutral third party helps resolve a dispute without making a binding decision.
Example: "The client and contractor used mediation to resolve the payment dispute amicably."

102. Performance Specifications

Specifications that outline the operational requirements of the project, leaving the contractor flexibility in how they meet those requirements.
Example: "The performance specifications required the HVAC system to maintain a specific temperature range."

103. Prescriptive Specifications

Specifications that detail the exact materials, products, and methods to be used in the project.
Example: "The prescriptive specifications outlined the use of specific concrete grades."

104. Material Substitution

Replacing a specified material with an alternative, often to reduce costs or improve availability.
Example: "Material substitution was approved when the specified tile was out of stock."

105. Pay-When-Paid Clause

A contract clause where a subcontractor is paid only after the main contractor has been paid by the client.
Example: "The subcontractor had to wait for payment due to the pay-when-paid clause."

106. Early Contractor Involvement (ECI)

A procurement method where the contractor is involved early in the design process to provide input on costs, methods, and constructability.
Example: "Early contractor involvement helped identify cost-saving measures during the design phase."

107. Target Cost Contract

A contract where the client and contractor agree on a target cost, and any cost savings or overruns are shared between them.
Example: "The target cost contract incentivised the contractor to keep costs under control."

108. Key Performance Indicators (KPIs)

Metrics used to measure the performance of the contractor, such as safety, quality, and time management.
Example: "KPIs were tracked monthly to assess the contractor’s adherence to the project schedule."

109. Site Logistics Plan

A plan that outlines how materials, equipment, and workers will move around the construction site.
Example: "The site logistics plan ensured efficient delivery and storage of materials."

110. Procurement Strategy

A plan that details how goods and services will be acquired for the project, including supplier selection and contracting methods.
Example: "The procurement strategy prioritised local suppliers to reduce delivery times."

111. Provisional Sums

Amounts included in the contract for work that cannot be fully defined at the time of tender but will be confirmed later.
Example: "Provisional sums were included for landscaping, as the design was not yet finalised."

112. Cost Breakdown Structure (CBS)

A detailed breakdown of the project's costs, often divided into categories such as labour, materials, and overheads.
Example: "The CBS helped the project manager track where money was being spent."

113. Procuring Entity

The party responsible for purchasing goods or services, often the client or owner of the project.
Example: "The procuring entity was responsible for issuing the tender documents."

114. Bid Opening

The formal process of opening and reviewing all bids submitted for a project.
Example: "Bid opening was conducted in the presence of all bidders to ensure transparency."

115. Invitation to Tender (ITT)

A formal invitation to potential contractors to submit a tender for a project.
Example: "The council issued an ITT for the new road project."

116. Schedule of Rates

A list of unit prices for specific items of work, often used in maintenance contracts.
Example: "The schedule of rates made it easy to price additional work as it arose."

117. Guaranteed Maximum Price (GMP)

A type of contract where the contractor is paid for actual costs, but the total payment will not exceed an agreed maximum.
Example: "The GMP contract gave the client cost certainty while allowing flexibility for changes."

118. Work Breakdown Structure (WBS)

A hierarchical breakdown of the project into smaller, manageable components.
Example: "The WBS helped the project team assign tasks and track progress."

119. Bill of Resources

A list of the labour, materials, and equipment required to complete the project.
Example: "The bill of resources was used to plan the workforce requirements."

120. Advance Payment

A payment made to the contractor before work begins, often to help with mobilisation costs.
Example: "The advance payment was used to secure materials and equipment."

121. Retention Clause

A contract clause that allows the client to withhold a percentage of each payment until the project is completed satisfactorily.
Example: "The retention clause ensured the contractor addressed any defects before receiving full payment."

122. Certificate of Substantial Completion

A document issued when the project is sufficiently complete for the client to occupy or use it.
Example: "The certificate of substantial completion allowed the building to be occupied while minor works continued."

123. Fixed-Price Contract

A contract where the contractor agrees to complete the project for a set price, regardless of actual costs.
Example: "The fixed-price contract protected the client from cost overruns."

124. Time and Materials Contract

A contract where the client agrees to pay the contractor based on the actual time and materials used, plus a fee.
Example: "The time and materials contract gave flexibility for changes during construction."

125. Cost Estimate

An approximation of the total cost of the project, based on available information.
Example: "The initial cost estimate helped the client secure financing for the project."

126. Cost Plan

A detailed plan that outlines the anticipated costs of each phase of the project.
Example: "The cost plan was updated regularly to reflect changes in material prices."

127. Bill of Activities

A detailed list of the work tasks to be completed, often used to calculate the cost of the project.
Example: "The bill of activities was used to monitor progress and payments."

128. Notice of Delay

A formal notification from the contractor to the client informing them of a delay in the project.
Example: "The contractor issued a notice of delay due to unexpected weather conditions."

129. Shop Inspection

An inspection carried out at the supplier’s facility to ensure materials and equipment meet the project specifications.
Example: "Shop inspections were conducted to verify the quality of the steel beams."

130. Insurance Certificate

A document that proves the contractor has the required insurance coverage for the project.
Example: "The contractor provided the insurance certificate before work began."

131. Schedule of Payments

A document that outlines when and how much the contractor will be paid for completed work.
Example: "The schedule of payments was tied to specific project milestones."

132. Client Instructions

Directions given by the client to the contractor regarding changes or clarifications to the work.
Example: "Client instructions were issued to modify the design of the main entrance."

133. Mobilisation Costs

The expenses incurred by the contractor to prepare the site and workforce before construction begins.
Example: "Mobilisation costs included transporting heavy machinery to the site."

134. Occupancy Certificate

A certificate issued by local authorities allowing a building to be occupied, typically after passing safety inspections.
Example: "The occupancy certificate was granted after the fire safety systems were inspected."

135. Completion Certificate

A document that certifies the construction work has been completed in accordance with the contract.
Example: "The completion certificate marked the official end of the construction phase."

136. Indemnity Clause

A contract provision that protects one party from financial loss due to the actions of the other party.
Example: "The indemnity clause covered the client in case of damage caused by the contractor."

137. Provisional Certificate

A certificate issued when the project is almost complete but still requires some minor work before final completion.
Example: "The provisional certificate allowed the client to move in while the contractor finished minor details."

138. Certificate of Non-Completion

A certificate issued when the contractor fails to complete the project by the agreed deadline.
Example: "The certificate of non-completion triggered penalties for project delays."

139. Cash Flow Forecast

A projection of the expected cash inflows and outflows over the course of the project.
Example: "The cash flow forecast helped the contractor plan for upcoming payments."

140. Extension of Time (EOT) Claim

A formal request by the contractor for additional time to complete the project, typically due to unforeseen delays.
Example: "The contractor submitted an EOT claim after prolonged heavy rains."

141. Hard Costs

Direct construction costs, such as materials and labour.
Example: "The hard costs for the project included concrete, steel, and labour expenses."

142. Soft Costs

Indirect costs that are not directly related to construction, such as design fees and permits.
Example: "The soft costs included architectural fees and project management."

143. Bidder Conference

A meeting where potential bidders can ask questions and get clarification on the tender documents.
Example: "The bidder conference allowed contractors to clarify the scope of work before submitting bids."

144. Bid Tabulation

A summary of all bids received, showing each bidder's proposed price and other relevant information.
Example: "The bid tabulation revealed that all bids were within the client’s budget."

145. Tender Addendum

A formal amendment or clarification to the tender documents issued before the submission deadline.
Example: "A tender addendum was issued to correct an error in the BOQ."

146. Bid Protest

A formal objection by a bidder against the award of a contract, typically due to perceived unfairness or errors in the process.
Example: "The contractor filed a bid protest after discovering that the tender evaluation process was not followed."

147. Performance Guarantee

A guarantee provided by the contractor, ensuring that the project will be completed as per the contract.
Example: "The performance guarantee reassured the client that the contractor was capable of completing the work."

148. Retention Bond

A bond provided by the contractor to replace the need for the client to withhold retention money.
Example: "The contractor secured a retention bond to free up cash flow during the project."

149. Lien Waiver

A document signed by the contractor waiving their right to place a lien on the property in exchange for payment.
Example: "The contractor provided a lien waiver before receiving the final payment."

150. Completion Schedule

A timeline that outlines when the various phases of the project will be completed.
Example: "The completion schedule helped the client track the progress of each stage of the project."

151. Liquidated Damages Clause

A contract clause that specifies the amount of damages the contractor must pay the client for failing to complete the project on time.
Example: "The liquidated damages clause imposed a daily penalty for each day of delay."

152. Variation Clause

A provision in the contract that allows for changes in the scope of work, time, or cost.
Example: "The variation clause was invoked when the client requested additional work on the building."

153. Provisional Final Account

A financial statement prepared near the end of a project, accounting for most but not all of the costs.
Example: "The provisional final account helped both parties assess outstanding payments before completion."

154. Preliminary Costs

The initial costs incurred to set up the site and project, such as site offices, utilities, and security.
Example: "Preliminary costs included setting up temporary power supplies and fencing."

155. Insolvency Clause

A clause in the contract that outlines the procedures to be followed if one of the parties becomes insolvent.
Example: "The insolvency clause allowed the client to terminate the contract if the contractor went bankrupt."

156. Joint Venture (JV)

A partnership between two or more companies to undertake a specific project.
Example: "The bridge construction was a joint venture between two international contractors."

157. Benchmarking

The process of comparing the performance of a project against industry standards or similar projects.
Example: "Benchmarking helped the client assess whether the project was progressing efficiently."

158. Practical Completion Certificate

A certificate issued when the project is practically complete and fit for use, even if minor work remains.
Example: "The practical completion certificate allowed the building to be occupied."

159. Fixed Overhead Costs

Costs that do not change with the level of production or activity, such as rent or management salaries.
Example: "Fixed overhead costs were factored into the overall project budget."

160. Fluctuations Clause

A clause in the contract that allows for adjustments in the contract price due to changes in the cost of materials, labour, or inflation.
Example: "The fluctuations clause was triggered when steel prices increased."

161. Collateral Warranty

A contract that provides an additional layer of protection to a third party, such as a financier, allowing them to claim against the contractor or designer if necessary.
Example: "The client required a collateral warranty for the project’s investors."

162. Prime Cost Sum

An amount included in the contract for specific works or services that are yet to be fully defined, such as specialist installations.
Example: "The prime cost sum covered the installation of specialised equipment in the building."

163. Nominated Subcontractor

A subcontractor specifically chosen by the client, rather than the main contractor.
Example: "The client nominated a specialist subcontractor for the electrical works."

164. Certificate of Making Good Defects

A certificate issued once all identified defects in the project have been corrected.
Example: "The certificate of making good defects was issued after all the issues in the snagging list were resolved."

165. Final Certificate

A certificate issued at the end of the defects liability period, signifying that all work has been completed and accepted.
Example: "The final certificate was issued after the contractor addressed all outstanding issues."

166. Procurement Risk

The potential risks involved in the procurement process, such as delays, cost increases, or supplier issues.
Example: "Procurement risk was mitigated by sourcing multiple suppliers for key materials."

167. Re-measurement Contract

A contract where the final price is determined by measuring the actual quantities of work completed, rather than a fixed price.
Example: "The re-measurement contract allowed for flexibility in case of changes in the scope of work."

168. Bills of Approximate Quantities

A bill that lists estimated quantities of work, which are subject to re-measurement upon completion.
Example: "The bills of approximate quantities were used for budgeting purposes but adjusted after the work was measured."

169. Price Adjustment Formula

A method for adjusting contract prices based on changes in the cost of materials, labour, or other factors.
Example: "The price adjustment formula was applied due to the fluctuating cost of raw materials."

170. Notice of Termination

A formal notice given by one party to end the contract, typically due to non-performance or other issues.
Example: "The client issued a notice of termination after the contractor failed to meet key deadlines."

171. Design Risk

The risk that the project design may fail to meet the client’s needs or technical requirements.
Example: "The design risk was mitigated by conducting thorough reviews at each stage of the design process."

172. Design and Build Contract

A contract where the contractor is responsible for both the design and construction of the project.
Example: "The design and build contract streamlined communication between the design and construction teams."

173. Force Account

A method where the owner or client hires workers directly and manages the construction project themselves, instead of contracting it out.
Example: "The municipality decided to use a force account to build the public park, using their own workforce."

174. Partnering Agreement

An agreement where the client and contractor work collaboratively throughout the project to achieve mutual goals, often focusing on quality, efficiency, and cost savings.
Example: "The partnering agreement fostered cooperation between the client and the contractor, reducing disputes."

175. Incentive Contract

A contract where the contractor is rewarded with bonuses for completing the project ahead of schedule or under budget.
Example: "The incentive contract encouraged the contractor to finish the project a month early."

176. Procurement Plan

A detailed plan outlining how goods and services will be acquired for the project, including supplier selection and contracting methods.
Example: "The procurement plan ensured that all materials were ordered well in advance to avoid delays."

177. Severance Clause

A clause that allows for the removal of unenforceable or illegal parts of the contract without affecting the validity of the remaining contract.
Example: "The severance clause protected the parties in case any part of the contract was found to be unenforceable."

178. Latent Defects

Defects in the construction that are not immediately visible or detectable during the project but appear later.
Example: "Latent defects in the foundation were discovered years after the project was completed."

179. Turnaround Time

The amount of time it takes to complete a specific task or process, such as responding to a request or processing a payment.
Example: "The contractor’s turnaround time for submitting reports was within 24 hours."

180. Variation Notice

A formal notification from the client or contractor informing the other party of a proposed variation in the project scope.
Example: "The variation notice detailed the client’s request to add an extra floor to the building."

181. Guaranteed Maximum Price (GMP) Contract

A contract where the contractor is reimbursed for costs but cannot exceed a specified maximum price without client approval.
Example: "The GMP contract helped the client avoid cost overruns on the project."

182. Contract Milestone

A significant event or point in the project timeline that signifies progress and triggers payment or other actions.
Example: "The completion of the roof was a major contract milestone."

183. Assignment Clause

A clause that allows one party to transfer their rights or obligations under the contract to another party.
Example: "The assignment clause allowed the contractor to assign a portion of the work to a subcontractor."

184. Parent Company Guarantee

A guarantee provided by the parent company of the contractor to ensure the obligations of the contractor are fulfilled.
Example: "The parent company guarantee provided additional security for the client."

185. Indemnification Clause

A clause that obligates one party to compensate the other for any losses or damages resulting from the project.
Example: "The indemnification clause protected the client from liability in case of accidents on-site."

186. Variation Instruction

A formal instruction issued by the client to change the scope, quality, or quantity of work after the contract has been awarded.
Example: "A variation instruction was issued to change the roofing materials."

187. Direct Costs

Costs that can be directly attributed to the construction work, such as labour, materials, and equipment.
Example: "The direct costs included all the materials and workers needed for the foundation."

188. Indirect Costs

Costs that are not directly tied to the construction work but support the project, such as overheads and administrative expenses.
Example: "Indirect costs included project management fees and site office expenses."

189. Escrow Account

A financial arrangement where funds are held by a third party (escrow agent) until certain conditions of the contract are met.
Example: "The escrow account was used to hold payments until the contractor completed specific milestones."

190. Supplier Agreement

A contract between the contractor and a supplier to provide materials, equipment, or services for the project.
Example: "The supplier agreement ensured the timely delivery of construction materials."

191. Pass-Through Agreement

A contract provision that allows claims or liabilities to be passed from the contractor to the subcontractor.
Example: "The pass-through agreement shifted responsibility for defective materials to the subcontractor."

192. Cost Reimbursement Contract

A contract where the client agrees to reimburse the contractor for the actual costs incurred, plus a fee or profit.
Example: "The cost reimbursement contract allowed flexibility for changes during the construction process."

193. Price Ceiling

A maximum price set in the contract that cannot be exceeded without client approval.
Example: "The contract included a price ceiling to prevent cost overruns."

194. Termination for Convenience

A contract clause that allows the client to terminate the contract for any reason, even if the contractor is not at fault.
Example: "The client exercised the termination for convenience clause due to changes in project funding."

195. Open-Book Contract

A type of contract where the contractor provides full transparency of costs, allowing the client to review all expenses.
Example: "The open-book contract gave the client insight into every cost incurred during the project."

196. Confidentiality Agreement

An agreement between the parties to keep sensitive project information confidential.
Example: "The confidentiality agreement prevented the contractor from sharing proprietary design details."

197. Employer’s Requirements

A document that sets out the client’s requirements for the project, which the contractor must meet.
Example: "The employer’s requirements specified the need for sustainable building materials."

198. Commissioning

The process of testing and adjusting systems and equipment to ensure they work as intended before project handover.
Example: "The HVAC system was commissioned to ensure it operated efficiently before handover."

199. Post-Completion Review

A review conducted after the project is completed to assess its success, identify lessons learned, and address any remaining issues.
Example: "The post-completion review highlighted areas for improvement in project management."

200. Owner-Contractor Agreement

A formal contract between the project owner (client) and the contractor, outlining their roles, responsibilities, and terms of the project.
*Example: "The owner-contractor agreement set the foundation for how the project would be executed."

Bhadani’s Quantity Surveying Institute offers a comprehensive and structured learning path that equips students with the necessary skills to excel in the construction industry, particularly in the field of quantity surveying and tendering. Level 3 and Level 4 at Bhadani’s Institute are designed to build on the foundational knowledge gained in earlier levels and focus specifically on more advanced aspects of the tendering process, contract management, and financial controls.