Term
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Definition
| Basic element of work, or task that must be performed in order to complete a project. An activity occurs over a given period of time. (10S-90). |
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Term
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Definition
| Any combination of letters, numbers, or blanks which describes and identifies any activity or task shown on the schedule. (See also Activity Identification) (10S-90). |
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Term
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Definition
| a concise explanation of the nature and scope of the work to be performed, which easily identifies an activity to any recipient of the schedule. (10S-90). |
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Term
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Definition
| The length of time from start to finish of an activity, estimated or actual, generally quantified in working or calendar day time units. (10S-90). |
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Term
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Definition
| A unique alphanumeric set of characters used for identification and computer use. (See also Activity Code) (Werderitsch). |
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Term
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Definition
| In the context of value, the outline and work plan the team has planned in order to accomplish the study in a given period of time. (Younker). |
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Term
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Definition
| Additional resources included in estimates to cover the cost of known but undefined requirements for an individual activity, work item, account, or subaccount (10S-90). |
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Term
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Definition
| A uniform annual amount equivalent to the project costs or benefits taking into account the time value of money throughout the study period. Syn.: Annual Worth, Equivalent Uniform Annual Value (10S-90). |
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Term
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Definition
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Term
| Arrow Diagramming Method (ADM) |
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Definition
| A method of constructing a logical network of activities using arrows to represent the activities and connecting them head to tail. This diagramming method shows the sequence, predecessor, and successor relationships of the activities. (10S-90). |
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Term
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Definition
| (1) the entire property of a person, association, corporation, or estate applicable or subject to the payment of debts; (2) a: an item of value owned, b: plural—the items on a balance sheet showing the book value of property owned. (Merriam-Webster On-Line Dictionary) |
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Term
| Asset, Capital (also Fixed Asset) |
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Definition
| Physical facilities or items whose costs are not accounted for as a current expense and for which depreciation is allowed. Characteristically, it cannot be converted readily into cash. (Hollmann). |
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Term
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Definition
| The stages or phases of asset existence during the life of an asset. Asset life cycle stages typically include ideation, creation, operation, modification, and termination. (Hollmann). |
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Term
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Definition
| Any unique physical or intellectual property that is of long term or ongoing value to the enterprise. As used in total cost management, it most commonly includes capital or fixed assets, but may include intangible assets. Excludes cash and purely financial assets. Strategic assets are created by the investment of resources through projects. (10S-90) |
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Term
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Definition
| Calculation of the latest finish time and latest start time for all uncompleted network activities or late time for events in the ADM and PDM methods. It is determined by working from the final activity and subtracting durations from uncompleted activities. (10S-90). |
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Term
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Definition
| A graphic presentation of project activities shown by a time-scaled bar line. (10S-90) |
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Term
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Definition
Documentation that describes how an estimate, schedule, or other plan component was developed and defines the information used in support of development. A basis document commonly includes, but is not limited to, a
description of the scope included, methodologies used, references and defining deliverables used, assumptions and exclusions made, clarifications, adjustments, and some indication of the level of uncertainty (10S-90). |
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Term
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Definition
| Basis documentation specifically prepared in support of a project estimate. (Dysert) |
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Term
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Definition
| Geographic boundaries, imaginary or real, enclosing a plant or (process) unit of a plant. The term is generally used to describe a process-oriented unit of a plant, and excludes facilities such as utilities, storage, auxiliary facilities, office buildings, etc. The term is sometimes used in reference to a single piece of equipment to refer to a small geographic area around the piece of equipment which includes an amount of piping, controls, foundation, etc. which are directly associated with the piece of equipment. (Dysert). |
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Term
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Definition
| For most manufacturing and all mining industries, indexes reflecting changes in output between census years. (10S-90) |
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Term
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Definition
A measurement and analysis process that compares practices, processes, and relevant measures to those of a selected basis of comparison (i.e., the benchmark) with the goal of improving performance. The comparison
basis includes internal or external competitive or best practices, processes or measures. Examples of measures include estimated costs, actual costs, schedule durations, resource quantities and so on. (10S-90). |
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Term
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Definition
| An economic analysis technique whereby benefits are divided by costs to obtain a ratio number. Both benefits and costs are discounted to a present value or uniform equivalent annual value. (Opfer) |
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Term
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Definition
| A method of evaluating projects or investments by comparing the present value or annual value of expected benefits to the present value or annual value of expected costs. (10S-90) |
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Term
| Benefit-To-Cost Ratio (BCR) |
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Definition
| Benefits divided by costs, where both are discounted to a present value or equivalent uniform annual value (10S-90) |
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Term
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Definition
| A detailed listing of all materials required for a product or a project. (Opfer) |
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Term
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Definition
a planned allocation of resources. The planned cost of needed materials is usually subdivided into quantity
required and unit cost. The planned cost of labor is usually subdivided into the workhours required and the wage rate (plus fringe benefits and taxes). (11/90) |
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Term
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Definition
A process used to allocate the estimated cost of resources into cost accounts (i.e., the cost budget) against which cost performance will be measured and assessed. Budgeting often considers time-phasing in relation to a
schedule and/or time-based financial requirements and constraints (10S-90) |
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Term
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Definition
material bought in lots. These items can be purchased from a standard catalog description and are bought in quantity for distribution as required. Examples are pipe (nonspooled), conduit, fittings, and wire. (10S-90)
CAD—see Computer Aided Design |
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Term
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Definition
the number of continuous days
(including holidays and weekends) to complete an activity or a project. Generally, contracts refer to calendar days from the notice to proceed through substantial completion.
(Werderitsch) |
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Term
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Definition
| Computer-Aided Manufacturing |
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Term
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Definition
| one of the factors of production, the wealth that makes business possible. The amount of money used within a business. (Singh) |
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Term
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Definition
| a plan for making expenditures on capital assets. (Hollmann) |
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Term
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Definition
a systematic procedure for classifying,
evaluating, and ranking proposed capital expenditures for the purpose of comparison and selection, combined with the analysis of the financing requirements. (10S-90) |
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Term
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Definition
the net flow of dollars into or out of a project. The algebraic sum, in any time period, of all cash receipts,
expenses, and investments. Also called cash proceeds or cash generated. The stream of monetary (dollar) values—costs and benefits—resulting from a project investment. (10S-90) |
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Term
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Definition
a systematic numeric method of identifying various categories of expenses incurred. The segregation
of expenses into elements for accounting purposes. (See also Code of Accounts) (Cokins) |
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Term
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Definition
a statistical method of predicting
the probability that a value will occur within one or more standard deviations (+) of the mean (10S-90) |
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Term
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Definition
a written statement requesting additional time and/or money for acts or omissions during the performance
of the construction contract. The contract must set forth the facts and circumstances for which the owner or the engineer is responsible to be entitled to additional compensation
and/or time (10S-90) |
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Term
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Definition
a systematic coding structure for
organizing and managing asset, cost, resource, and schedule activity information. A COA is essentially an index to facilitate finding, sorting, compiling, summarizing, and otherwise
managing information that the code is tied to. A complete code of accounts includes definitions of the content of each account. Syns.: Chart of Accounts, Cost Codes. (10S-90) |
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Term
| Competency (also Core Competency)— |
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Definition
| a set of skills and knowledge in an individual or in an organization that are a source of competitive advantage. Core competency represents the integration of the skills and knowledge of cost engineering in a personal or organizational context. (Hollmann) |
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Term
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Definition
those individual aspects of the
business that attract its customers and set it aside from its main rivals. (Singh) |
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Term
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Definition
the utilization of computer tools
including computer graphics to readily develop and evaluate product or project design. (Opfer) |
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Term
| Computer-Aided Manufacturing |
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Definition
| the utilization of computer tools including computer graphics to achieve and monitor manufacturing operations. (Opfer) |
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Term
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Definition
an externally imposed factor affecting the scheduling of an activity. The external factor may be a resource, such as labor, cost or equipment, or, it can be a physical event that must be completed prior to the activity
being restrained. Syn.: Restraint. (10S-90) |
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Term
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Definition
optimum use of construction knowledge
and experience in planning, design, procurement, and field operations to achieve overall project objectives (Construction Industry Institute) |
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Term
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Definition
the review by a multidiscipline
team improving the methods of procuring, constructing, testing,
and delivering the intended project scope and goals for the owner. This review may be separate from or a part of the Value Engineering study. (Younker) |
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Term
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Definition
an amount added to an estimate to allow for items, conditions, or events for which the state, occurrence, and/or effect is uncertain and that experience shows will likely result, in aggregate, in additional costs. Typically estimated using statistical analysis or judgment based on past asset or project experience. Contingency usually excludes; (a)
major scope changes such as changes in end product specification, capacities, building sizes, and location of the asset or project (see management reserve), (b) extraordinary events
such as major strikes and natural disasters, (c) management reserves, and (d) escalation and currency ffects. Some of the items, conditions, or events for which the state, ccurrence, and/or effect is uncertain include, but are not limited to,
planning and estimating errors and omissions, minor price fluctuations (other than general escalation), design developments and changes within the scope, and variations in market
and environmental conditions. Contingency is generally included in most estimates, and is expected to be expended to some extent. (10S-90). |
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Term
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Definition
the date established in the contract
for completion of all or specified portions of the work. This date may be expressed as a calendar date or as a number of days after the date for commencement of the contract time is issued (10S-90) |
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Term
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Definition
| the agreement, addenda (which pertain to the contract documents), contractor’s bid (including documentation accompanying the bid and any post-bid documentation submitted prior to the notice of award) when attached as an exhibit to the agreement, the bonds, the general conditions, the supplementary conditions, the specifications and the drawings as the same are more specifically identified in the agreement, together with all amendments, modifications and supplements issued pursuant to the general conditions on or after the effective date of the agreement (10S-90). |
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Term
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Definition
| in project control and accounting, it is the amount measured in money, cash expended or liability incurred, in consideration of goods and/or services received. From a total cost management perspective, cost may include any investment of resources in strategic assets including time, monetary, human, and physical resources. (10S-90) |
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Term
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Definition
| the name, number, or both, of a function, hardware, or other significant cost category for which costs are summarized. (10S-90) |
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Term
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Definition
| the application of procedures to monitor expenditures and performance against progress of projects or manufacturing operations; to measure variance from authorized budgets and allow effective action to be taken to achieve minimum costs (10S-90) A.3 |
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Term
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Definition
| a procedure which establishes an estimated cost objective for each project, then designs to that cost objective to produce a reliable product or service. (Younker) |
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Term
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Definition
| a basic constituent of effort (work) and/or physical composition of an activity and/or asset. The value of a resource used to perform an activity or create an asset. (Postula) |
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Term
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Definition
| the prediction of the probable costs of a project, of a given and documented scope, to be completed at a defined location and point of time in the future. (Dysert) |
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Term
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Definition
| a predictive process used to quantify, cost, and price the resources required by the scope of an asset investment option, activity, or project. As a predictive process, estimating must address risks and uncertainties. The outputs of estimating are used primarily as inputs for budgeting, cost or value analysis, decision making in business, asset and project planning, or for project cost and schedule control processes. As applied in the project engineering and construction industry, cost estimating is the determination of quantity and the predicting and forecasting, within a defined scope, of the costs required to construct and equip a facility. Costs are determined utilizing experience and calculating and forecasting the future cost of resources, methods and management within a scheduled time frame. Included in these costs are assessments and an evaluation of risk. (10S-90) |
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Term
| Cost Estimating Relationship (CER) |
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Definition
in estimating, an algorithm or formula that is used to perform the costing operation. CERs show some resource (eg, cost, quantity, or time) as a function of one or more parameters that quantify scope, execution strategies, or other defining elements. A CER may be formulated in a manner that in addition to providing the most likely resource value, also provides a probability distribution for the resource value. Cost estimating relationships may be used in either definitive or parametric
estimating methods. (10S-90) |
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