CONSTRUCTION MANAGEMENT
QUESTIONS AND ANSWERS.
Apparent Low Bidder - Answer The bidder who has submitted the lowest competitive proposal
as determined by a cursory examination of the bids submitted.
Approved Bidders List - Answer The list of contractors that have survived prequalification
tests.
Approved Changes - Answer Changes of any nature in contract requirements which have been
agreed upon through a change approval process and approved by the owner.
As-Built Drawings - Answer Also: As Builts; Check: Record Drawings Drawings produced during
or after construction and amended to show the exact location, geometry, and dimensions of the
constructed project. As-Built Drawings are not the same as Record Drawings.
Bid - Answer A binding offer, usually expressed in dollars to provide specific services within
clearly stated requirements.
Bid Bond - Answer A pledge from a third party (usually a surety company) to pay liquidated
damages to the owner to the extent of the difference between the bonded contractor bid and
the next highest bidder but not to exceed the face value of the bond; if the bonded contractor
declines an award offered by the owner.
Bid Depository - Answer A physical location where trade contractor proposals are fled the day
before general contractor bids are to be received by an owner for pickup, opening, acceptance,
or rejection by general contractors bidding the owner's project.
Budget Estimate - Answer An estimate of cost based on rough or incomplete information, with
a stated degree of accuracy. The more information available, the more accurate the estimate.
Loosely called a "ballpark" estimate.
Change Order - Answer Also: Contract Modification The document that alters the contract
amount, contract time, or contract requirements of the original contract entered into by the
owner and a contractor.
Changed Conditions - Answer Also: Concealed Conditions; Latent Conditions Conditions or
circumstances, physical or otherwise, which surface after a contract has been signed and which
alter the circumstances or conditions on which the contract is based.
, Chart of Accounts - Answer Also: Account Codes; Codes of Accounts An alpha/numeric
identification system for budget line items that ensures that project expenditures are properly
debited/credited in the project budget as payments are made in behalf of the project.
Checks and Balances - Answer The term used to describe the use of the overlapping expertise
of each team member during team decision making.
Claim - Answer A formal notice sent by a contractor to an owner asserting the fact that the
terms of the contract have been breached and compensation is being sought by the contractor
from the owner.
Clerk-of-the-Work - Answer An individual employed by an owner to represent him on a project
at the site of the work. The clerk-of- the-work's abilities, credentials, and responsibilities vary at
the discretion of the owner.
CM Services - Answer The scope of services provided by a construction manager and available
to owners in whole or in part. CM services are not consistent in scope or performance from one
CM firm to another.
Commissioning - Answer See: Start-up; Beneficial Occupancy The process at or near
construction completion when a facility is tried out (put into use) to see if it functions as
designed. Usually applied to manufacturing type projects.
Completion Schedule - Answer Also: Occupancy Schedule A schedule of the activities and
events required to effect occupancy or the use of a facility for its intended purpose. It is used to
determine if construction progress will meet the occupancy date.
Conditions of the Contract - Answer Term that refers to the General Conditions and the
Supplementary and Special Conditions of the contract for construction.
Construction Budget - Answer The target cost figure covering the construction phase of a
project. It includes the cost of contracts with trade contractors, construction support items
other purchased labor, material and equipment, and the construction manager's cost but not
the cost of land, A/E fees, or consultant fees.
Construction Documents - Answer Drawings, technical specification, and addenda; the
contract documents that refer to the physical construction requirements established by the A/E.
Construction Management - Answer A professional service that applies effective management
techniques to the planning, design, and construction of a project form inception to completion
for the purpose of controlling time, cost and quality. (As approved by CMAA) OR A project
QUESTIONS AND ANSWERS.
Apparent Low Bidder - Answer The bidder who has submitted the lowest competitive proposal
as determined by a cursory examination of the bids submitted.
Approved Bidders List - Answer The list of contractors that have survived prequalification
tests.
Approved Changes - Answer Changes of any nature in contract requirements which have been
agreed upon through a change approval process and approved by the owner.
As-Built Drawings - Answer Also: As Builts; Check: Record Drawings Drawings produced during
or after construction and amended to show the exact location, geometry, and dimensions of the
constructed project. As-Built Drawings are not the same as Record Drawings.
Bid - Answer A binding offer, usually expressed in dollars to provide specific services within
clearly stated requirements.
Bid Bond - Answer A pledge from a third party (usually a surety company) to pay liquidated
damages to the owner to the extent of the difference between the bonded contractor bid and
the next highest bidder but not to exceed the face value of the bond; if the bonded contractor
declines an award offered by the owner.
Bid Depository - Answer A physical location where trade contractor proposals are fled the day
before general contractor bids are to be received by an owner for pickup, opening, acceptance,
or rejection by general contractors bidding the owner's project.
Budget Estimate - Answer An estimate of cost based on rough or incomplete information, with
a stated degree of accuracy. The more information available, the more accurate the estimate.
Loosely called a "ballpark" estimate.
Change Order - Answer Also: Contract Modification The document that alters the contract
amount, contract time, or contract requirements of the original contract entered into by the
owner and a contractor.
Changed Conditions - Answer Also: Concealed Conditions; Latent Conditions Conditions or
circumstances, physical or otherwise, which surface after a contract has been signed and which
alter the circumstances or conditions on which the contract is based.
, Chart of Accounts - Answer Also: Account Codes; Codes of Accounts An alpha/numeric
identification system for budget line items that ensures that project expenditures are properly
debited/credited in the project budget as payments are made in behalf of the project.
Checks and Balances - Answer The term used to describe the use of the overlapping expertise
of each team member during team decision making.
Claim - Answer A formal notice sent by a contractor to an owner asserting the fact that the
terms of the contract have been breached and compensation is being sought by the contractor
from the owner.
Clerk-of-the-Work - Answer An individual employed by an owner to represent him on a project
at the site of the work. The clerk-of- the-work's abilities, credentials, and responsibilities vary at
the discretion of the owner.
CM Services - Answer The scope of services provided by a construction manager and available
to owners in whole or in part. CM services are not consistent in scope or performance from one
CM firm to another.
Commissioning - Answer See: Start-up; Beneficial Occupancy The process at or near
construction completion when a facility is tried out (put into use) to see if it functions as
designed. Usually applied to manufacturing type projects.
Completion Schedule - Answer Also: Occupancy Schedule A schedule of the activities and
events required to effect occupancy or the use of a facility for its intended purpose. It is used to
determine if construction progress will meet the occupancy date.
Conditions of the Contract - Answer Term that refers to the General Conditions and the
Supplementary and Special Conditions of the contract for construction.
Construction Budget - Answer The target cost figure covering the construction phase of a
project. It includes the cost of contracts with trade contractors, construction support items
other purchased labor, material and equipment, and the construction manager's cost but not
the cost of land, A/E fees, or consultant fees.
Construction Documents - Answer Drawings, technical specification, and addenda; the
contract documents that refer to the physical construction requirements established by the A/E.
Construction Management - Answer A professional service that applies effective management
techniques to the planning, design, and construction of a project form inception to completion
for the purpose of controlling time, cost and quality. (As approved by CMAA) OR A project
