06 - GLOSSARY &LINKS
- Landscape Practice Class
- Mar 25, 2020
- 3 min read
Updated: Apr 7, 2020
GLOSSARY
Contracts
A contract is an agreement between individuals, which can be enforced by law. It is the legal relationship between the parties.
Procurement
Procurement is a term which describes the activities undertaken by a client or employer who is seeking to bring about the construction of a design project undertaken by design consultants.
Traditional / Conventional Procurement
The traditional / conventional procurement method has been a standard practice in the construction industry for many years.
design process is separate from the construction
Require full documentation e.g. drawings, work schedules, bills of quantities
Lump Sum Contracts
The contract sum is determined before construction work is started. Lump sum contracts are sometimes also referred as “fixed price contracts”.
Re-measurement Contracts
In re-measurement contracts, the contract sum is ascertained by measurement of the actual works done and valued at the rates in the bills of approximate quantities
Cost Reimbursement Contracts
In cost reimbursement contracts, the price to be paid to the contractor is determined by the actual cost (normally called the “prime cost”) incurred by the contractor in carrying out the works, plus an agreed amount to cover overheads and profit.
Bills of Quantities (BOQ)
It defines what is included in the contract sum and is part of the contract documents, the quantities must therefore accurately quantify the works to be done and clearly describe its extent.
Schedule of Rates (SoR)
A list in a contract setting out the staff, labour and plant hire rates the contractor will use for pricing cost. It may be used when the nature of work required is known but it cannot be quantified. In the absence of an estimate, tenderers quote unit rates against a document that is intended to cover all likely activities that might form part of the works.
[1-8] References:
Garmory N., Tennant R. & Winsch C., 2016. “Professional Practice for Landscape Architects” Routledge Taylor & Francis Group.
Design-build is a method of project delivery in which one entity - the design-build team - works under a single contract with the project owner to provide design and construction services. One entity, one contract, one unified flow of work from initial concept through completion. Design-build is also known as design/construct and single-source responsibility
The particular goods provided by the supplier are not widely available.
There is an existing relationship with the supplier.
Long delivery items are required where ordering is necessary before the appointment of a main contractor.
Specialist design input is required in the early stages of design development.
Complex or specialist industrial plant or equipment may be required, upon which the design will be based.
A risk premium is the return in excess of the risk-free rate of return an investment is expected to yield; an asset's risk premium is a form of compensation for investors who tolerate the extra risk, compared to that of a risk-free asset, in a given investment. For example, high-quality corporate bonds issued by established corporations earning large profits typically have very little risk of default. Therefore, such bonds pay a lower interest rate, or yield, than bonds issued by less-established companies with uncertain profitability and relatively higher default risk.
Management procurement is a method where construction work is completed using a series of separate works or trade contracts which the main contractor is responsible for managing. The contractor does not actually do the physical work but is paid a sum for managing the project through the various works packages.
The employer starts by appointing consultants and a contract administrator to prepare drawings, a project specification and cost plan. The employer has control over design throughout the project through their professional team. The contractor is appointed by negotiation or tender, and interview. The works packages are usually let by competitive tender.
Agreement between investors or owners of a project, and a management company hired for coordinating and overseeing a contract.
A construction contract is a mutual or legally binding agreement between two parties based on policies and conditions recorded in document form. The two parties involved are one or more owners, and one or more contractors. The owner has full authority to decide what type of contract should be used for a specific development to be constructed and to set forth the legally-binding terms and conditions in a contractual agreement. A construction contract is an important piece of document that outlines the scope of work, risks, duties, and legal rights of both the contractor and the owner.
Quantity surveyors manage the costs on a construction project. They help to ensure that the construction project is completed within its projected budget. Alternative job titles for a quantity surveyor include ‘cost consultant’, ‘commercial manager’, ‘cost manager’ and ‘cost engineer’.
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