Heavy Construction Industry Terminology

Addendum

A formal change to the procurement/bid documents issued before contract award that revises plans, specifications, or instructions.

Added scope for temporary shoring in Addendum 2; Bid must acknowledge receipt of Addenda 1–3; Sheet S-102 was replaced per Addendum 4

As-Built Drawings

Record drawings that depict the actual field conditions and installed locations, sizes, and dimensions at completion.

Mark the waterline offset on the as-builts; Submit signed as-builts at Substantial Completion; Update as-builts daily as utilities are relocated

BID Bond

A surety bond submitted with a bid that guarantees the bidder will enter into the contract and provide performance/payment bonds if awarded.

City requires a 5% bid bond; Bid deemed non-responsive without bid bond; Owner called the bid bond after the low bidder withdrew

BIM (Building Information Modeling)

A model-based process and set of tools that enable 3D/4D/5D coordination, clash detection, quantities, and visualization across disciplines.

Run clash detection in the federated BIM model; Use BIM quantities to validate the MTO; Export shop-drawing views from the BIM

Change Order (CO)

A formal modification to the contract that adjusts scope, price, and/or time after award.

CO-07 adds a new manhole and bypass pumping; Owner-directed CO priced on T&M; We negotiated a time extension via change order

Compaction

The process of densifying soil or aggregate to specified density/moisture targets to achieve stability and reduce settlement.

Achieve 95% of Modified Proctor per spec; Rework areas that failed density tests; Use a vibratory roller for lift compaction

Contingency

A budget reserve set aside to address uncertain, unidentified, or unquantified risks and scope growth.

Carry 10% design contingency at 30% design; Use contractor contingency for minor RFIs; Document contingency drawdown in the cost report

CPM (Critical Path Method)

A scheduling method that models activities, logic ties, and durations to determine the longest path (critical path) and float.

Critical path runs through pile driving and caps; Activity has 10 days of total float; Submit P6 CPM updates monthly

Deep Foundation

Foundation systems that transfer loads to deeper, competent strata via piles, drilled shafts, or caissons.

Install drilled shafts to bedrock; Drive H-piles to refusal per design; Perform static load tests to confirm capacity

Design-Bid-Build (DBB)

A sequential project delivery method where design is completed before competitive bidding and construction.

Low-bid award under DBB; Contractor has no design responsibility; Separate A/E and GC contracts

Design-Build (DB)

A delivery method where one entity is responsible for both design and construction under a single contract.

Best-value selection for DB; Performance specs allow design innovation; Early contractor involvement via DB

Dewatering

Temporary removal or control of groundwater to create dry, stable working conditions.

Install wellpoints around the excavation; Discharge under the NPDES permit; Monitor drawdown with piezometers

Differing Site Conditions (DSC)

Physical site conditions that materially differ from those indicated in the contract or from what is ordinarily encountered, potentially entitling the contractor to time/cost relief.

Filed DSC notice within 7 days; Unmapped utilities encountered; CO issued for rock excavation beyond borings

Escalation

Inflationary cost growth in labor, equipment, or materials over time; may be addressed via contract clauses or allowances.

Include steel escalation clause; Index-based escalation allowed after 12 months; Carry escalation in the GMP

Estimate (Conceptual and Detailed)

A cost forecast of the project at varying levels of design maturity, from rough-order-of-magnitude to fully detailed takeoffs and quotes.

Class 5 ROM at 10% design; Hard-bid detailed estimate from takeoff; Reconcile estimate to subcontractor buyout

Float (Total and Free)

The amount of time an activity can be delayed without affecting the project milestone (total) or succeeding activities (free).

Activity has 7 days of total float; Free float consumed by resequencing; Contract is silent on float ownership

Force Majeure

Contract clause covering unforeseeable events beyond the parties’ control (e.g., natural disasters) that excuse delay and may allow time relief.

Declared force majeure after hurricane; Granted non-compensable time extension; Submitted notice within 48 hours

Geotechnical Report

The subsurface investigation and engineering recommendations for foundations, earthwork, and pavements.

Follow geotech recommendations for pavement section; SPT blow counts show loose sands; CBR testing supports design

GMP (Guaranteed Maximum Price)

A contract pricing structure that caps the owner’s cost at a maximum, with defined allowances and savings/risk-sharing mechanisms.

Set GMP at 60% design; Share savings below the GMP; Cost-of-work plus fee up to the GMP

IFC (Issued for Construction)

Approved drawings/specifications released for construction that supersede earlier design or bid sets.

Build off IFC Sheet C-201; Replace IFB drawings with IFC set; Fabricate rebar per IFC details

Indemnification

A contractual obligation to defend and hold harmless another party from specified losses or claims.

Contractor indemnifies owner for third-party claims; Add additional insured language; Narrow broad-form indemnity

Inspection and Test Plan (ITP)

A project-specific QC document defining required inspections, tests, hold/witness points, and acceptance criteria by activity.

Hold point before placing concrete; Density tests each lift per ITP; QC manager signs ITP checkpoints

JHA/JSA (Job Hazard/Safety Analysis)

A task-level risk assessment that identifies hazards and defines controls before work starts.

Daily JHA for excavation work; Identify controls for crane lifts; Crew reviews and signs the JSA

Joint Venture (JV)

A contractual partnership between two or more firms to pursue and deliver a specific project.

50/50 JV with shared management; JV boosts bonding capacity; JV agreement allocates risks and profits

Lift Plan

An engineered plan detailing rigging, crane configuration, load weights, radii, ground bearing, and procedures for critical lifts.

Critical lift over rail line requires PE-stamped plan; Calculate load radius and crane capacity; Define tag lines and exclusion zones

Liquidated Damages (LDs)

Pre-agreed daily damages owed by the contractor for late completion, representing probable owner losses (not a penalty).

$10,000/day LDs after Substantial Completion; LDs start at missed milestone; Seek time extension to avoid LDs

Material Takeoff (MTO)

A quantified list of materials extracted from drawings/models used for estimating, procurement, and logistics.

MTO from BIM for piping and rebar; Update MTO for Addendum 3; Use MTO to solicit supplier quotes

Mobilization (Mob)

The initial setup and ramp-up of resources, facilities, and equipment required to begin construction.

Mobilization includes permits, temp power, and trailers; Lump-sum mob/demob line item; Mobilize earthwork fleet in Week 1

NTP (Notice to Proceed)

The owner’s written authorization to start work, which typically starts the contract time.

Contract time starts at NTP; Early procurement allowed pre-NTP with approval; No site access before NTP

P6 (Primavera P6)

Industry-standard scheduling software used to develop, update, and analyze CPM schedules.

Submit baseline .xer from P6; Resource-load the P6 schedule; Update P6 monthly with progress and logic changes

Payment Application (Pay App)

The contractor’s periodic request for payment based on the Schedule of Values and approved progress.

Bill per percent complete on the SOV; Include lien waivers with pay app; Retainage withheld from pay app

Payment Bond

A surety bond that guarantees subcontractors and suppliers will be paid for labor and materials.

Require 100% payment bond; Subcontractor filed a claim on the payment bond; Bonding capacity limits project size

Performance Bond

A surety bond that guarantees the contractor will perform the work in accordance with the contract.

Owner called the performance bond after default; 100% performance bond required; Cost included in general conditions

QA/QC (Quality Assurance/Quality Control)

Planned and systematic activities to ensure the work meets specified requirements (assurance by owner/engineer, control by contractor).

Owner performs QA audits; Contractor performs QC testing per ITP; Close NCRs before pay app approval

RFI (Request for Information)

A formal written question seeking clarification of drawings/specifications to resolve conflicts or gaps.

RFI resolves conflict between C-101 and S-201; RFI response impacts cost → submit PCO; Track RFI turnaround time

Retainage

A portion of each payment withheld to ensure performance and completion, released upon milestones.

5% retainage held until Substantial Completion; Release retainage after punch list; No retainage on stored materials

Right-of-Way (ROW)

A legal right to pass through or build within a defined corridor owned or controlled by a public or private entity.

Work restricted to the ROW; Obtain ROW permits from DOT; Utility relocation delayed by ROW acquisition

Schedule of Values (SOV)

A detailed breakdown of the contract price into identifiable line items used for progress billing.

Align SOV with cost codes; Bill stored materials on the SOV; Adjust SOV after change orders

Shoring

Temporary structural support of excavations or structures to prevent collapse and protect workers and adjacent assets.

Sheet pile shoring for the cofferdam; Soldier pile and lagging supports the cut; PE-stamped shoring design required

Submittal

Product data, samples, certifications, and shop drawings submitted for review to verify conformance with contract requirements.

Approve concrete mix design submittal; Maintain a submittal register; No substitutions without approved submittal

Substantial Completion

The stage when the project is sufficiently complete for its intended use, triggering key contractual milestones.

LDs stop at Substantial Completion; Generate the punch list at SC; Warranties often commence at SC

SWPPP (Stormwater Pollution Prevention Plan)

A regulatory plan outlining best management practices (BMPs) to control erosion, sediment, and stormwater runoff during construction.

Install BMPs per the SWPPP; Conduct weekly SWPPP inspections; Maintain stabilized construction entrances

T&M (Time and Materials)

A payment method where the owner pays actual labor, equipment, and materials plus an agreed markup, often used for uncertain scopes.

Bill emergency repairs on T&M; Daily T&M tickets signed by the inspector; Convert T&M work to lump sum via CO

Traffic Control Plan (TCP)

A plan specifying temporary traffic control devices, sequencing, and work-zone operations to protect workers and the public.

Lane closures per TCP; Flaggers and attenuators per MUTCD; Night work windows defined in the TCP

Unit Price Contract

A contract where payment is based on measured quantities multiplied by unit rates for defined pay items.

Pay per cubic yard of rock; Overrun on the trenching pay item; Adjust final pay to measured quantities

Utility Relocation

The process of moving existing utilities that conflict with new work, often involving third-party coordination and permitting.

Coordinate with utility owner schedules; Pothole to verify utility depth; Carry allowances for utility delays

Value Engineering (VE)

A structured approach to improve value by optimizing function, cost, constructability, and schedule without compromising required performance.

VE proposal to swap to MSE walls; Share savings 50/50 per VE clause; VE workshop during preconstruction

WBS (Work Breakdown Structure)

A hierarchical decomposition of project scope into manageable components used for planning, costing, and scheduling.

WBS Level 3 aligns with cost codes; Integrate schedule and cost WBS; Use WBS to track progress and EV

XCU (Excavation, Collapse, and Underground)

A liability insurance endorsement addressing risks tied to excavation, trench collapse, and underground property damage.

Add XCU coverage to GL policy; Municipality requires XCU for permit; XCU risk elevated for deep shoring

Zone of Influence

The area of soil affected by excavation or imposed loads where ground movements or stress changes may impact stability or nearby structures.

Keep spoil piles outside the zone of influence; Check adjacent footings within the zone; Design shoring for the predicted zone