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Page 84
Suggested Citation:"Glossary." National Academies of Sciences, Engineering, and Medicine. 2014. Guide for Design Management on Design-Build and Construction Manager/General Contractor Projects. Washington, DC: The National Academies Press. doi: 10.17226/22273.
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Page 84
Page 85
Suggested Citation:"Glossary." National Academies of Sciences, Engineering, and Medicine. 2014. Guide for Design Management on Design-Build and Construction Manager/General Contractor Projects. Washington, DC: The National Academies Press. doi: 10.17226/22273.
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Page 85
Page 86
Suggested Citation:"Glossary." National Academies of Sciences, Engineering, and Medicine. 2014. Guide for Design Management on Design-Build and Construction Manager/General Contractor Projects. Washington, DC: The National Academies Press. doi: 10.17226/22273.
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Page 86
Page 87
Suggested Citation:"Glossary." National Academies of Sciences, Engineering, and Medicine. 2014. Guide for Design Management on Design-Build and Construction Manager/General Contractor Projects. Washington, DC: The National Academies Press. doi: 10.17226/22273.
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Page 87

Below is the uncorrected machine-read text of this chapter, intended to provide our own search engines and external engines with highly rich, chapter-representative searchable text of each book. Because it is UNCORRECTED material, please consider the following text as a useful but insufficient proxy for the authoritative book pages.

84 Agency: any transportation-based entity that works within the federal or local governments in the design, construction, and maintenance of road and highway projects, such as state Departments of Transportation. Alliancing: a collaborative working arrangement between the owner and one or more service providers (designer, constructor, supplier, etc.) whereby a new organization is formed for the duration of the project with personnel seconded from each participating company or organization based on the best person for the role. The alliance is governed by an Alliance Board comprising equal representation from each participating organization. Alternative Technical Concepts (ATC): the innovative and cost effective solutions proposed by contractors that potentially exceed the criteria stipulated in RFP. Biddability: the status of a set of design documents as it relates to whether a contractor can submit a competitive bid based on what is shown in those documents. If a set of documents are biddable, a competent contractor should be able to generate an accurate and competitive bid for the project, based on the contents of the documents. Blind Bid Openings (BBO): as used by UDOT, the CM (contractor) generates a “bid,” at designated milestones throughout the life of the project, estimating the eventual cost of the project. These figures are compared with an engineer’s estimate and an ICE. This process helps keep project costs within acceptable limits. Buy-In: support and agreement by members of a group for proposed solutions. Construction Engineering Inspection (CEI): the services provided by certified engineers that include contract administration, inspection, and materials sampling and testing for the construc- tion projects. Cost Growth: the actual cost of construction becomes higher than estimated or the original contract amount. Cost-Reimbursable: when a project award is of this type, the sponsor reimburses the grantee only as allowable costs are incurred by the contractor. Documentation of expenses subject to audit, then, is necessary on cost-reimbursable grants. The unspent sponsor funding authorization remaining after the closing date of the project reverts to the sponsor. The contractor is typically reimbursed for cost incurred, plus a fee, either a set amount, or a percentage of the cost incurred. In the unusual instance that a sponsor advances payment to the contractor, a refund of the unspent advance must be issued to the owner. Decision Analysis by Ranking Techniques (DART): A process for which the primary purpose is containing project costs and the design budget. The software determines change costs in terms Glossary

Glossary 85 of design, construction schedule and construction. The program tells the decision makers if the investigated change saves money, or if it will cost more than the intended benefit. Design-Builder: The contractual entity that enters in a design-build contract with the agency for the delivery of the project. Design Package: A set of documents published by the STA that contains the Public Advertisement (Notice to Bidders), the RFP, General Requirements, Design Scope of Work, Technical Speci- fications, Price Proposal Documents including the Bid Schedule, and any forms, drawings and other supporting documents necessary to guide the proposers in preparation and submittal of a proposal for a design-build project. Disadvantaged Business Enterprise (DBE): is a legislatively mandated USDOT program that applies to Federal-aid highway dollars expended on federally assisted contracts issued by USDOT recipients such as State Transportation Agencies (STAs). The U.S. Congress established the DBE program in 1982 to: • Ensure nondiscrimination in the award and administration of DOT-assisted contracts; • Help remove barriers to the participation of DBEs in DOT-assisted contracts, and • Assist the development of firms that can compete successfully in the marketplace outside of the DBE program. Every Day Counts (EDC): an initiative that is designed to identify and deploy innovation aimed at reducing time it takes to deliver highway projects, enhance safety, and protect the environment. EDC-2 and EDC-3 have followed. Fast-track: the starting or implementation of a project by overlapping activities, commonly entailing the overlapping of design and construction activities. Independent Cost Estimate (ICE): refers to the process in which a third party is hired to conduct a detailed estimate of the cost of a proposed construction project. An ICE can provide a more objective view of the cost and is used mainly for the purpose of transparency. Innovative Contracting Practices: non-traditional contracting methods that are competitive in nature but do not fully comply with the requirements in Title 23 United State Code. Integrated Team Approach: the professional management of a project during planning, design, and construction that involves the combined efforts of multi- and interdisciplinary teams working together from the conceptual onset to the final completion. Lump Sum: a bidding system for construction work under which the contractor is required to perform a take-off on the contract plans in order to develop project quantities. The contractor then submits a lump sum bid for the entire contract. Over-the-shoulder Review: an informal review of the design usually conducted by the contractor literally looking “over the shoulder” of the DP while the DP is in the process of designing the project. The concept is extended to include non-literal settings where the contractor is very closely involved in the design, to the point that the contractor can raise questions and make design changes as the design progresses instead of only at designated times. Partnering: a process used on many large transportation construction projects around the nation that molds groups of unorganized, sometimes uninterested, individuals into organized, interested teams whose members all share a common purpose—the successful completion of the construction project. To accomplish this requires developing a team concept in the minds and actions of personnel from the owner, the contractor and all other project stakeholders. Among the many outcomes of successful partnering is the ability of personnel at the project level to make important, binding decisions on issues that develop in the course of the project.

86 Guide for Design management on Design-Build and Construction manager/General Contractor Projects Pay Item: material components used in the construction of a transportation job for which a contractor is seeking payment. Phased Package: tasks and activities, usually related in some way, that occur within the same phase in the design or construction process. Phasing Plan: the organization of individual phases/segments of a construction project. Especially important in a delivery system that allows the contractor to begin work before the completion of the project design. The best phasing plans are those that take advantage of areas with quick ROW acquisition, where permits have been acquired and utility problems are absent to allow the contractor to begin construction at the earliest possible time. Preconstruction: the phase of a transportation construction project that precedes the construction phase and can include conception, planning, design, reviews, and ROW acquisition. Procurement: a process for acquiring professional and construction services for a construction project. Includes establishing contractual relationships to accomplish project objectives and the assembly, tendering and award of contracts or commitment documents. Project Delivery Method/Project Delivery System: the system used to procure those parties, materials, lands, and means necessary to execute the completion of a construction project. Includes the overall processes by which a project is designed, constructed, and, under some systems, maintained. Project Delivery Toolbox: The list of delivery systems available to decision makers in transporta- tion agencies to acquire a completed constructed facility. Qualifications-Based Selection (QBS): the procurement process established under the Brooks Act for public agencies to use when selecting architectural and engineering services for public construction projects. It involves the submission of a consulting firm’s qualifications to the owner/ agent who then evaluates the submissions and selects the most qualified firm. Project scope, schedule, budget, and fees are negotiated after the fact. Real-time Pricing: material, labor, or equipment prices as influenced by immediate responses to the outside stimulus of actual costs and prices on the open market at any point in time. Scope Creep: ongoing requirements increase without corresponding adjustment of approved cost and schedule allowances. As some projects progress, especially through the definition and development phases, requirements tend to change incrementally, causing the project manager to add to the project’s mission or objectives without getting a corresponding increase in the time and budget allowances. Self-perform: self-performing general contractors use their own labor force to accomplish a portion of a construction project, particularly critical path components. Shortlisting: a list of preferable candidates that have been selected for final consideration, when making the award of a project. Stakeholder: anyone who has a vested interest in the project. Time Growth: an increase in the projected time scheduled to complete a project. Unit Price: a construction contract in which payment is based on the work done and an agreed on unit price. The unit price contract is usually used only where quantities can be accurately measured in advance. Work Package: a group of related tasks that are defined at the same level within a work breakdown structure; or a group of tasks or work items assigned or contracted to a single entity.

Glossary 87 The authors thank the following sources for their help with the definitions and descriptions: Dictionary of Construction; Energy Facility Contractors Group; Federal Highway Administration; Florida Department of Transportation; Florida Educational Facilities Planners’ Association, Inc.; Dictionary.Com; Max Wideman’s Project Management Glossary; McCarthy; The Project Management Hut; and Project Time & Cost.

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