This jargon busting schedule of commonly used terms in the Quantity Surveying profession will help you navigate the already complex world of construction. Construction projects are complex enough, without wondering what a particular word or term means. The following Quantity Surveying Dictionary is a key resource for new Quantity Surveyors as well as experienced professionals.
Here is the expanded list of quantity surveying terms sorted into alphabetical order:
Adjudication: A dispute resolution process used to settle disputes between parties in a construction contract. This process involves an adjudicator, who is an independent third party with expertise in the construction industry. Adjudication provides a quick and cost-effective means of resolving disputes, allowing construction projects to move forward without lengthy delays.
Benchmarking: Comparing a project’s costs and performance to industry standards or similar projects to identify areas for improvement. By benchmarking, construction professionals can gain insights into best practices and identify potential areas of inefficiency or opportunities for cost-saving. This information can be used to make informed decisions and optimize project performance.
Bill of Quantities (BoQ): A detailed document that lists and describes all the materials, labor, and other costs required for a construction project. It forms the basis for tendering and cost control. The BoQ provides a comprehensive breakdown of the project’s components, enabling accurate estimation of costs and facilitating the comparison of bids from contractors during the tendering process.
BOQ Coding: A systematic method of labeling items in the Bill of Quantities to enhance organization and identification. By assigning specific codes to each item in the BoQ, quantity surveyors and other construction professionals can easily locate and refer to particular items. This improves efficiency and reduces the chances of errors or confusion during the construction process.
BOQ Rate: The cost associated with a unit of measurement in the Bill of Quantities, often expressed as a rate per unit (e.g., cost per square meter). BOQ rates are crucial for estimating project costs accurately. They reflect the pricing of labor, materials, and other resources required for each unit of measurement specified in the BoQ.
Capital Expenditure (CapEx): Funds allocated for long-term investments in assets, such as buildings or equipment. Capital expenditure plays a vital role in the construction industry, as it allows for the acquisition and development of assets that generate revenue or provide essential infrastructure for various projects.
Capital Works: The construction, improvement, or extension of physical assets and infrastructure. Capital works projects encompass a wide range of construction activities, such as building new structures, renovating existing ones, or developing infrastructure like roads, bridges, and utilities. These projects contribute to the overall development and enhancement of communities and economies.
Cash Allowances: A budgeted amount for specific items or tasks that may not be fully defined in the BoQ. Cash allowances provide flexibility in accounting for costs that may vary or are subject to uncertainty. They allow for adjustments during the construction process to cover unforeseen expenses or changes in design or specifications.
Cash Flow Forecast: A projection of the expected inflows and outflows of funds over the course of a construction project. A cash flow forecast helps construction professionals understand the timing of cash inflows (e.g., payments from clients) and outflows (e.g., payments to suppliers and contractors). It assists in managing the project’s financial resources effectively and ensures that there are sufficient funds available to support ongoing construction activities.
Cash Flow Management: The process of monitoring and optimizing the flow of funds throughout a construction project to meet financial obligations. Effective cash flow management is vital for the successful execution of a construction project. It involves tracking incoming and outgoing payments, managing invoicing and collections, and making strategic decisions to ensure a steady and balanced cash flow.
Change Order: A written document that formalizes changes to the project scope, schedule, or costs. Change orders are a common part of the construction process, allowing for modifications or adjustments to the original plans as the project progresses. They provide clarity and transparency regarding any changes made, ensuring that all parties involved are aware of and agree to the revised terms.
Construction Phase Plan: A safety and logistics plan outlining the key elements of a construction project, including site layout, access, and health and safety measures. The construction phase plan is an essential document for managing the health and safety aspects of a construction project. It helps identify potential hazards, establish safety protocols, and ensure compliance with relevant regulations and standards.
Contingency Fund: An allocated budget for unforeseen or unexpected expenses that may arise during the construction project. Contingency funds act as a buffer to cover unexpected costs that are not accounted for in the initial project budget. By setting aside a contingency fund, construction professionals are prepared to address unforeseen challenges without compromising the project’s progress or quality.
Cost Control: Managing and monitoring project costs to ensure they align with the budget and making adjustments as needed. Cost control involves ongoing tracking of expenses, comparison with the budgeted costs, and implementing measures to address any deviations or potential cost overruns. Effective cost control is essential for project profitability and successful completion within the allocated budget.
Cost Documentation: The systematic recording and organization of project cost information for reference and analysis. Cost documentation includes records of expenses, invoices, receipts, and other financial data related to the construction project. Proper documentation allows for accurate cost estimation, monitoring, and analysis, helping construction professionals make informed decisions and improve cost management practices.
Cost Estimation: The process of calculating the anticipated cost of a construction project, often using historical data and cost analysis. Cost estimation is vital for determining the viability and feasibility of a construction project. It involves assessing the required resources, considering market conditions, factoring in labor and material costs, and accounting for potential risks and contingencies.
Cost Forecasting: The practice of predicting future project costs based on current and historical data. Cost forecasting helps construction professionals anticipate and plan for the financial implications of a project. It assists in efficient resource allocation, financial planning, and risk management, allowing for timely and informed decision-making.
Cost Index: A numerical value used to adjust historical cost data to account for inflation or market fluctuations. Cost indices provide a benchmark for measuring changes in cost levels over time. By applying appropriate cost indices, construction professionals can accurately compare historical and current costs and make meaningful cost projections.
Cost Overrun: The amount by which the actual project costs exceed the budgeted or estimated costs. Cost overruns can occur due to factors such as unforeseen changes, scope creep, material price fluctuations, or delays. Managing cost overruns is crucial for maintaining project profitability and ensuring financial viability.
Cost Plan: A comprehensive budgeting tool used to allocate costs to different stages of a construction project. The cost plan breaks down the overall project budget into specific categories and cost items. It serves as a reference document for tracking and controlling project costs, ensuring that resources are allocated efficiently and in line with project requirements.
Cost Variance: The numerical difference between the budgeted or estimated cost and the actual cost of a project. Cost variance indicates the extent to which the actual project costs deviate from the initial budget or estimate. Positive cost variance suggests cost savings, while negative cost variance indicates cost overruns.
Cost-to-Complete (CTC): An estimate of the remaining costs required to complete a construction project. The cost-to-complete is calculated based on the work completed and the anticipated costs of remaining activities and resources. It provides valuable insights into the financial status of the project and helps in managing resources and cash flow effectively.
Depreciation: The decrease in the value of assets over time, often considered in life cycle costing. Depreciation takes into account the wear and tear, obsolescence, and aging of assets used in construction projects. By factoring in depreciation, construction professionals can determine the expected lifespan of assets and allocate costs accordingly.
Dilapidation Survey: An assessment of the condition of neighboring buildings and infrastructure before construction, to document their state and protect against potential damage claims. Dilapidation surveys involve a detailed inspection and documentation of the existing structures and infrastructure adjacent to a construction site. This helps establish a baseline condition and can be used as evidence to support claims in case of alleged damage during the construction process.
Earned Value Analysis (EVA): A technique for assessing a project’s performance by comparing the budgeted cost of work performed to the actual cost of work performed. Earned value analysis provides insights into the efficiency and progress of a construction project. By comparing the value of completed work against the associated costs, it helps identify potential deviations from the initial plan and allows for proactive management and corrective actions.
Earned Value Management (EVM): A project management technique that integrates cost, schedule, and performance data to assess project progress and predict outcomes. Earned value management enables construction professionals to monitor and control project performance by measuring the value of completed work against the planned budget and schedule. It offers a comprehensive view of project health and facilitates data-driven decision-making.
Estimating Software: Computer programs designed to assist quantity surveyors in accurately estimating project costs and generating BoQs. Estimating software eliminates manual calculations and provides efficient tools for cost estimation, quantity takeoff, and generating detailed BoQs. These software solutions are invaluable for enhancing accuracy, consistency, and productivity in the estimation process.
Feasibility Study: An initial analysis to assess whether a construction project is economically viable and worth pursuing. Feasibility studies evaluate various aspects, such as financial, technical, legal, and environmental factors, to determine the project’s feasibility. These studies help stakeholders make informed decisions and mitigate risks before committing substantial resources to a construction project.
Final Account: The financial statement that records all costs incurred and payments made throughout a project, used to close out the project financially. The final account provides a comprehensive overview of all financial transactions related to the construction project. It includes a summary of costs, payments, and any adjustments or variations made during the project’s lifecycle.
Front-End Loading (FEL): An early project phase that involves comprehensive planning, feasibility studies, and initial cost estimation. Front-end loading aims to establish a solid foundation for a construction project by conducting thorough research, defining project objectives, and assessing potential risks and constraints. This phase sets the stage for effective project management, cost control, and successful project delivery.
Inflation Rate: The annual percentage increase in the general price level, which affects project costs. Inflation rates impact the purchasing power of money over time and can significantly influence project budgets and cost projections. Construction professionals take inflation rates into account when estimating project costs to adjust for the potential increase in prices during the project’s duration.
Interim Payment: Partial payments made to contractors at various stages of the project, usually based on the work completed and certified. Interim payments provide financial support to contractors and suppliers throughout the construction process. These payments help maintain cash flow and incentivize timely completion of project milestones while ensuring that the contractor’s financial needs are met.
Life Cycle Costing: An analysis that considers the total cost of a project over its entire lifespan, including construction, maintenance, and operational costs. Life cycle costing takes into account not only the initial investment but also the costs associated with ongoing maintenance, repairs, and eventual demolition or disposal. This approach enables stakeholders to make informed decisions by evaluating the long-term financial implications of the project.
Liquidated Damages: A predetermined amount of compensation that a contractor must pay to the client for delays or non-performance as specified in the contract. Liquidated damages serve as a form of financial protection for the client in case of breach of contract by the contractor. They provide an agreed-upon measure of compensation for potential losses incurred due to project delays or substandard performance.
Material Requisition: A document used to request the purchase of specific materials for the construction project. Material requisitions provide detailed information about the required materials, including quantities, specifications, and delivery instructions. This document helps streamline the procurement process, ensuring that the necessary materials are sourced and delivered in a timely manner.
Operating Expenditure (OpEx): Funds allocated for day-to-day operational expenses, including maintenance and utilities. Operating expenditure covers the ongoing costs associated with the maintenance and operation of buildings, equipment, and infrastructure. Proper budgeting and control of OpEx are essential for the efficient management of construction projects and the sustainability of the built environment.
Performance Bond: A financial guarantee provided by a contractor to ensure the completion of a project according to the contract terms. Performance bonds protect the client’s interests by providing assurance that the contractor will fulfill their contractual obligations. Should the contractor fail to deliver as agreed, the performance bond can be used to cover the costs of completing the project or remedying any deficiencies.
Procurement Strategy: A plan outlining how materials and services will be sourced and acquired for a construction project, including methods such as traditional procurement, design and build, or construction management. The procurement strategy considers factors such as project requirements, budgetary constraints, and the availability of resources. It helps construction professionals make informed decisions regarding the most suitable procurement approach for a given project.
Progress Payment: Payments made to the contractor at specified intervals as work progresses, based on the completion of milestones or stages of the project. Progress payments provide contractors with regular cash flow while allowing clients to verify the satisfactory completion of specific project milestones. These payments help ensure a fair and balanced financial arrangement that aligns with the project’s progress.
Project Closeout: The final phase of a construction project, including inspections, documentation, and the handover of the project to the client. Project closeout involves completing any outstanding work, conducting final inspections, verifying compliance with specifications, and obtaining necessary approvals or certifications. It includes the preparation of project documentation and the handover of relevant information, warranties, and keys to the client.
Quantity Surveyor (QS): A professional who manages and controls costs within the construction and building industry. They are responsible for estimating, procurement, and cost management of construction projects. Quantity surveyors play a crucial role in ensuring that projects are delivered within budgetary constraints, managing costs effectively, and providing accurate financial forecasts.
Quantity Surveying Software: Software tools that aid in the management of project costs, tendering, and financial analysis. Quantity surveying software enables professionals to streamline and automate various tasks, such as quantity takeoff, cost estimation, and generating detailed reports. These software solutions help improve accuracy, efficiency, and collaboration in the field of quantity surveying.
Quantity Surveyor’s Daywork Rates: Rates used for calculating the cost of additional work that is not covered in the original contract, often based on the quantity surveyor’s daywork rates. Daywork rates provide a standardized method for pricing additional works or variations that may arise during the construction process. These rates ensure transparency and fairness in the cost assessment of additional work.
Quantity Surveyor’s Report: A detailed document summarizing cost analysis, project progress, and recommendations for clients and stakeholders. The quantity surveyor’s report provides a comprehensive overview of the project’s financial aspects, including cost breakdowns, payment summaries, and progress evaluations. This report helps stakeholders assess project performance, make informed decisions, and ensure effective cost management.
Quantity Surveyor’s Standard Method of Measurement (SMM7): A set of guidelines and rules for quantifying building works, materials, and labor. The quantity surveyor’s SMM7 provides a standardized framework for accurately measuring and quantifying the components of construction projects. This method ensures consistency and enables meaningful comparisons across different projects, facilitating accurate cost estimation and cost control.
Quantity Takeoff: The process of quantifying and itemizing the materials and labor required for a construction project based on the BoQ. Quantity takeoff involves identifying, measuring, and calculating quantities for each item specified in the BoQ. This process provides the foundation for accurate cost estimation, procurement, and resource planning.
Rate Analysis: The process of analyzing unit rates in the Bill of Quantities to determine the cost of specific items or activities. Rate analysis involves reviewing and comparing rates provided in the BoQ to assess their reasonableness and accuracy. This analysis helps validate the cost estimates and contributes to effective cost control and financial management throughout the construction project.
Retention: A portion of the contract sum retained by the client until the contractor has completed their obligations and rectified any defects. Retention ensures that the contractor fulfills their contractual obligations and completes the project to the required standards. It provides financial security for the client and can be released to the contractor upon satisfactory completion of the project.
Retention Bond: A financial guarantee that can replace the retention amount to ensure a contractor’s performance. A retention bond provides an alternative to retaining a portion of the contract sum. It is a financial instrument that the contractor provides to the client, guaranteeing their obligations and assuring the client that any defects or incomplete work will be rectified within a specified period.
Risk Management: Identifying, assessing, and mitigating potential risks and uncertainties that may affect the project’s cost and schedule. Risk management involves proactive measures to anticipate and minimize the impact of risks on the construction project. By identifying and addressing potential risks early on, construction professionals can reduce the likelihood of cost overruns, delays, and other adverse consequences.
Risk Register: A document that lists and assesses potential project risks, along with proposed mitigation strategies. The risk register serves as a centralized reference for all identified risks, their likelihood, potential impacts, and the actions planned to mitigate or manage them. It helps construction professionals stay proactive and prepared by monitoring and addressing potential risks throughout the project lifecycle.
Scope Creep: The uncontrolled expansion of a project’s scope, leading to increased costs and extended timelines. Scope creep occurs when the project’s requirements gradually increase beyond the initially agreed-upon scope. Effective scope management is essential for controlling costs and ensuring that the project remains focused and aligned with the client’s objectives.
Sunk Cost: An expenditure that has already been incurred and cannot be recovered, often considered in project cost analysis. Sunk costs are expenses that have been spent on a project and cannot be recovered, regardless of the project’s outcome. When analyzing the project’s financial viability, it is crucial to focus on future costs and benefits rather than sunk costs.
Subcontractor: A company or individual hired by the main contractor to perform specific tasks or supply materials as part of a construction project. Subcontractors play a significant role in the construction industry, contributing their expertise and specialized services to complete various aspects of a project. They often work under the direction of the main contractor, providing specific skills or resources required for specific project phases.
Substantial Completion: The stage of a construction project where the work is deemed to be almost finished, allowing for occupancy or beneficial use. Substantial completion signifies that the project is functional and can be occupied or utilized for its intended purpose, although some minor works may still need to be completed. This milestone is a significant achievement and may trigger contractual obligations and payment milestones.
Tendering: The process by which contractors and suppliers submit their prices and proposals for a construction project based on the BoQ and project specifications. Tendering is a competitive bidding process that allows clients to receive multiple bids and select the most suitable contractor for their project. The tendering process ensures transparency, promotes fair competition, and helps clients secure the best value for their investment.
Unit Price Analysis: A method of estimating project costs by analyzing the cost per unit of a specific item or activity within the Bill of Quantities. Unit price analysis involves breaking down the BoQ into individual units and assessing the cost associated with each unit. This method allows for detailed cost estimation, accurate budgeting, and effective cost control.
Value Analysis: A systematic approach to evaluate project components and their associated costs to identify opportunities for cost reduction without sacrificing quality. Value analysis aims to optimize the value of a construction project by assessing various design, material, and process alternatives. By taking a holistic view and considering factors such as functionality, aesthetics, and long-term efficiency, value analysis helps achieve the best possible outcome within the given cost parameters.
Value Engineering is an essential practice in project management that aims to optimize the value of a project. It involves a systematic process of analyzing various options to reduce costs without compromising quality or performance. By carefully evaluating every aspect of a project, value engineering helps identify potential areas where costs can be minimized while maintaining the desired level of quality. This approach goes beyond simply cutting expenses; it focuses on enhancing the overall value delivered by the project.
We hope this Quantity Surveying Dictionary helped you out today!