What is Construction Management
Construction management is the process of overseeing and coordinating the various aspects of a construction project, from the initial planning to the completion of the project. It involves a variety of activities such as scheduling, budgeting, and quality control. Construction managers must work with a variety of people, including architects, engineers, and subcontractors, to ensure that projects are completed within the desired timeframe and budget.
Technical Terms Used in Construction Management
Construction Management Terms are the language of the construction industry and are used to communicate with all stakeholders involved in the project. Understanding these industry-specific technical terms, acronyms, and phrases is essential for anyone wanting to work in or manage a construction project.
A professional who designs buildings and other structures.
2. All-In Rate
The All-In Rate term is a type of interest rate that includes all of the costs associated with obtaining a loan, such as origination fees and closing costs. This type of rate can be beneficial for borrowers who want to know exactly how much they will need to pay for a loan. It is also beneficial for lenders, as it allows them to clearly set the cost of the loan for the borrower.
3. Architect of Record
In architecture, the Architect of Record (AOR) is the title given to the licensed architect who is primarily responsible for the design and construction of a building project. The AOR is responsible for making sure that the design is completed according to the required building codes and regulations, and that the construction is completed within the specified budget and timeframe.
The process of submitting a proposal for a construction project.
5. Cost Modeling
Cost modeling is a process of creating a model of the expected costs associated with a project. This is usually done by analyzing the different components of a project and predicting the cost of each component based on past experience and current market conditions. Cost models can be used to accurately forecast and budget for future projects.
6. Cost Analysis
Cost analysis is a process of evaluating the costs and benefits of a project or business activity. It involves examining each cost component, such as labor, materials, and overhead, for its effectiveness and affordability. Cost analysis is used to determine the most cost-effective option for a project or activity.
Quantification is the process of assigning numerical values to qualitative factors in order to better compare and evaluate them. This can be done in a variety of ways, such as assigning dollar values to intangible items or using statistical methods to compare different factors. Quantification is often used in cost estimation and risk management.
8. Change Order
A document issued to modify the terms of a contract or order.
An allowance or provision made in a budget, plan, or contract to cover unforeseen expenses or risks.
A legally binding agreement between two or more parties.
11. Cost Estimate
A prediction of the cost of a project prior to its start.
12. Design Build
A method of project delivery in which one entity is responsible for both design and construction.
A professional who prepares cost estimates for a construction project.
14. Field Report
A document prepared after a visit to a construction site that details the progress of the project.
The amount of time a particular task can be delayed without affecting the overall project schedule.
16. Gantt Chart
A type of bar chart that illustrates a project schedule, showing the start and finish dates of the tasks.
17. Quality Control
A process that ensures the quality of materials and workmanship used in a construction project.
18. Risk Management
The process of identifying, assessing, and controlling risks associated with a project.
19. Schedule of Values
A document that outlines the various elements of a construction project and assigns a value to each element.
A document that details the requirements of a project, including materials and techniques used.
A business or individual who is hired to perform part of a construction project.
22. Value Engineering
The process of analyzing a project to identify ways to reduce costs without sacrificing quality or performance.
The individuals, businesses, or entities that are hired to perform the actual construction work.
The process of planning and creating a construction project, including the selection of materials and methods.
The technical drawings and plans are used to communicate the design of a construction project.
The skilled individuals working on a construction project, including carpenters, electricians, plumbers, and other tradespeople.
The supplies and raw materials used in a construction project, such as lumber, concrete, and steel.
Legal documents issued by a government agency granting permission to begin a construction project in a specific area.
29. Project Management
The practice of organizing and controlling the various elements of a construction project.
A list of tasks that need to be completed prior to the completion of a construction project.
31. Shop Drawings
Detailed drawings prepared by a subcontractor provide additional information about the construction project or site.
The practice of measuring and mapping land or other terrains for a construction project.
A guarantee of satisfactory performance of a product or service for a specified period of time.
34. Project Plan
A document that outlines the scope, timeline, and budget of a construction project.
35. Preconstruction Services
A set of services that are typically performed prior to the start of a construction project.
36. Construction Manager
A professional who oversees and coordinates the various activities of a construction project.
37. Cost Control
A process that involves analyzing and managing the costs of a construction project.
38. Progress Payment
A payment made by the owner of a construction project to the contractor after certain milestones are met.
Documents, samples, or other materials that are submitted to the owner of a construction project for approval.
40. Progress Reports
Documents that track the progress of a construction project, outlining any delays or changes.
41. Stakeholder Management
The practice of understanding and managing the interests and concerns of stakeholders in a construction project.
42. Testing and Inspection
The process of verifying that the quality of materials and workmanship meets the requirements of the project.
43. As-Built Drawings
Drawings that document the actual construction of a project, including any changes from the original design.
The process of completing a construction project, including settling accounts and collecting final payments.
45. Dispute Resolution
The process of resolving disputes between parties involved in a construction project.
46. Force Majeure
An event or circumstance that prevents a party from fulfilling its obligations under a contract.
47. Green Building
Construction practices that use materials and methods that are environmentally friendly.
A bonus or other reward offered to encourage a contractor to complete a project on time or under budget.
49. Surety Bond
A type of financial guarantee that protects the owner of a construction project from financial loss in the event of a breach of contract.
50. LEED (Leadership in Energy and Environmental Design)
A rating system is used to evaluate the environmental performance of a construction project.
51. Punch List Items
Minor tasks that are part of the completion of a construction project and typically identified during the inspection process.
52. Project Delivery Method
The process used to manage and execute a construction project, such as design-build or construction management.
53. Quality Assurance
A process that ensures that the quality of materials and workmanship meets the requirements of the project.
The practice of organizing and managing tasks to ensure that a construction project is completed on time and within budget.
55. Warranty Period
The length of time during which a contractor guarantees the performance of a construction project.
56. Bid Bond
A bid bond is a type of surety bond used in the construction industry. It is a guarantee that the bidder of a construction project will enter into the contract at the price specified in their bid.
57. Delay Damages
Delay damages are damages awarded to a party in a construction contract due to a delay in the completion of a project. This can include costs associated with the delay, such as increased labor costs and lost profits.
Indemnification is a term used in construction contracts that requires one party to compensate the other party for any losses or damages they may incur related to the performance of the contract.
59. Liquidated Damages
Liquidated damages are damages that are specified in a contract in advance of any actual damages that may be incurred. They are used to protect one party from the other party’s breach of contract.
60. Payment Bond
A payment bond is a type of surety bond used in the construction industry. It guarantees that the contractor will pay its subcontractors, suppliers, and laborers for their work on the project.
61. Performance Bond
A performance bond is a type of surety bond used in the construction industryIt guarantees that the contractor will complete a project in accordance with the terms of the contract.
Retention is a type of payment made by the owner of a construction project to the contractor. It is held back until the project is completed and all specifications are met.
63. Contractor’s Final Payment
Contractor’s final payment is the final payment made by the owner of a construction project to the contractor. This payment is typically made after all work is completed and all specifications are met.
64. Project Management Plan
A project management plan is a document that outlines the goals, tasks, and timeline of a construction project. It is used by the contractor and owner to ensure that all aspects of the project are completed on time and within budget.
65. Scope of Work
Scope of work is a document that outlines the specific tasks and activities that are to be completed as part of a construction project. It is used to ensure that all requirements are met and that all parties understand their responsibilities.
66. Punch List
A punch list is a list of items that need to be addressed before a construction project can be considered complete. It is typically used by the contractor and owner to ensure that all aspects of the project are completed properly.
67. Change Management
Change management is the process of managing changes to a construction project. This includes identifying and implementing changes, communicating changes to all stakeholders, and monitoring the impact of changes on the project.
68. RFI (Request for Information)
An RFI is a request for information from a contractor about a construction project. It is typically used to clarify, confirm, or update details about a project.
69. RFQ (Request for Quote)
An RFQ is a request for a quote from a contractor for a construction project. It is typically used to compare multiple bids from different contractors and select the best one.
70. Contract Administration
Contract administration is the process of managing and overseeing a construction contract and its participants. This includes managing payments, resolving disputes, and ensuring compliance with the terms of the contract.
Preconstruction is the period of time before construction on a project begins. During this period, contractors typically prepare bids, review plans, and conduct site visits.
72. Bill of Quantities
A bill of quantities is a document that lists the different materials, labor, and other costs associated with a construction project. It is typically used to estimate the total cost of a project.
73. Construction Drawings
Construction drawings are detailed diagrams and plans of a construction project. They are used by contractors and owners to visualize the project and ensure that all requirements are met.
A written guarantee from a contractor that the work has been done according to the specified requirements.
A method of project delivery in which a single entity is responsible for both the design and construction of a project.
76. Time and Materials (T&M)
Time and materials contracts are agreements in which a client agrees to pay a contractor for the hours worked and materials used on a project. These contracts are typically used when the scope of the project is unclear or the timeline is uncertain. The contractor is paid for their time and materials as the project progresses, and the client has the flexibility to adjust the scope of the project as needed. This type of contract is often used in IT, construction, and engineering projects.
Scrum is used to manage projects in the construction industry by breaking them down into smaller tasks, allowing for more flexibility, improved communication, and better collaboration. This method allows teams to quickly identify and address any issues that arise, while allowing for faster decision-making and improved project delivery. Scrum also provides a framework for teams to track progress and identify areas for improvement. The use of Scrum in construction management helps to reduce project costs, improve quality, and increase customer satisfaction.
78. Risk Mitigation
Risk mitigation in construction management is a method of reducing the potential for risks associated with the construction process. It involves taking proactive steps to identify and manage risks, and to reduce the likelihood of their occurrence. This can be achieved through a range of measures including the use of sound project management practices, effective communication and collaboration between all stakeholders, and the implementation of appropriate risk management strategies.
79. Quality Planning
Quality planning in construction management is the process of planning and managing the quality of a construction project from start to finish. This process involves setting quality goals and objectives, developing a quality plan, monitoring and controlling quality, and evaluating the performance of the project against the quality goals.
This phase includes the review of all outstanding items, the signing of release documents, and the final payment to the contractor.
These are just a few of the common construction management terms that are used in the industry. Understanding theseaterms is essential to being successful in the construction industry.
Also check: Subcontractor Documentation