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Definition of Terms

BARCHART
* Medium used for gauging and controlling construction activities
* To prepare a bar chart, the contractor should meet with the architects and engineers to
determine completion dates of working drawings. In sequence, such as foundations, steel,
walls below grade, archer, masonry, mechanical trade and interiors. Receipt of these
drawings determines the date on
which quantity estimates and subcontractors bids can be taken.
* A bar chart generally shows the items of work and calendar covering the estimated
construction period for the project. The estimated duration of each item is indicated by a ash
or a colored line extending from starting to completion date. Actual progress is noted on the
chart by a sold line or a line of a different color. The chart also may show percent completion
of each item and of the project as a whole weather and daily temperature.
(CPM)
* The CRITICAL PATH METHOD is a more comprehensive system of time scheduling. It
permits a more realistic analysis of the daily problems that end to delay work than does the
customary chart. It involves detailing in normal sequence, the various steps to be taken by
each trade, from commencement to conclusion.
* The procedure calls for a coordination of these steps with those of other traders with
continuous activities or allied or supplementary operations, to insure completion of the tasks
as scheduled, so as not to delay other work. It enables the contractor o put pressure where it
will do the most good to speed a project and to expedite the work at minimum cost.
ACT OF GOD OR FORCE MAJEURE
Includes an earthquake, flood, typhoon, cyclone and other cataclysmic phenomena of nature
and all misfortune and accidents which human precedence could not foresee or prevent.
ADDENDUM
A written additional information, provision, and/or other document issued by the client prior
to the closing date for the receipt of Bids, which is made an Integral part of the tender and
Contract Documents
ADDITIONAL CONTRACT TIME
The period of time allowed the Contractor by the Client in addition to the stipulated Contract
Time necessitated by a duly issued extra work or charge order.
ADVERTISEMENT OR INVITATION TO BID
Refers to the notice published by the Owner or the invitation issued to prospective bidders,
giving information as to the nature of the proposed project, conditions for the issuance of
Contract documents, date of bidding, and information that would give the Contractor a
general idea of the magnitude and extent of the project.
AGREEMENT
The contract between the owner and the contractor undertaking the project described in the
contract documents there to and all general and special provisions pertaining to the work of
materials therefore.
ARBITRATION
* The binding resolution of disputes by one or more neutral person as substitute for judicial
proceedings.

* Offer of a bidder to perform the work described by he contract documents when made out
and submitted on the prescribed form properly signed and guaranteed
* Is the tender, or proposal, or quotation, or offer of a bidder to perform the work described in
the Contract, which inform and substance complies with the Instruction to Bidders.
BID/TENDER
* The written offer of Bidder/Tenderer submitted in the prescribed from in response to the
invitation to Bid and the Tender Documents issued by the Client to furnish the required labor,
equipment and materials, to execute the specified work within the time prescribed therein, in
consideration of payment at prices quoted in the Bid/Tender as submitted.
BID/ TENDER DOCUMENTS
Collectively, the Invitation to Bid, Instructions to Bidders, Form of Contract Agreement,
Conditions of Contract, Drawing/ Plans, Specifications, and Form of Bid and the required
Annexes, including Addenda
BID BOND
Refers to any acceptable form of bond accompanying the Bid submitted by the bidder as a
guarantee that the bidder will enter into Contract with the Owner for the construction of the
work, if the Contract is awarded to him.
BID BULLETIN
* The additional information on contract documents issued to bidders before date of bidding.
* Is a document containing additional information on Bid Documents issued to bidders before
date of Bidding.
BID DOCUMENTS
Collectively refer to all documents provided or made available to prospective bidders, which
include the Invitation to Bid and a copy of the Contract, which the winning bidders would be
required to sign with the Owner.
BREAKDOWN OF WORK AND CORRESPONDING VALUE
Is a listing of the different parts of the work indicating each part and its corresponding value.
CHANGE ORDER
Is a written order to the Contractor issued by the Owner after the execution of the Contract,
authorizing a change or variation in the work or an adjustment in the Contract time.
CLOSED SPECIFICATION
Specifications stipulating the use of specific products or processes without provision for
substitution.
CONTRACT
A legal enforceable promise or agreement between two or more persons.
CONTRACTOR
The person or firm whose proposal has been accepted and to whom the contract was
awarded.
CONTACT / CONTRACT DOCUMENTS
The duly perfected and approved Contract Agreement including the Conditions of Contract,
Drawing/ Plans, Specifications, Invitations to Bid, Instruction to Bidders, duly accomplished
form of Bid including it Annexes, Addenda, Performance Bond, Pre- Qualification Statement,

including Credit Line, Evidence of Working Capital (Cash Deposit), Notice of Award and
Conforme and other documents required in the Contract Agreement
CONTRACT PRICE
The unit prices of lump sums or other sums named in the Notice of Award to be paid to the
Contracts in consideration of the implementation of the Works, subject to such addition
thereto or deduction there from as may be made under the provisions contained or
stipulated in the Contract.
CONTRACT TIME EXTENSION
The period of time allowed by the Client for the delay suffered by the Contractor due to
causes beyond his control.
CONTRACT WORK/WORKS
The furnishings of all labor, materials, supplies, equipment, facilities, and other incidentals
necessary or convenient to the successful completion of the Works and carrying out of all
the duties and obligations imposed in the Contract as defined by the Contract document.
CREDIT LINE
The amount of credit extended to the Contractor by a bank of other financing institution to
cover the projected expenditures for out of pocket equipment rentals, materials, fuel, labor
and overhead expenses of the project construction, in the amount prescribe by the Client.
CONTRACTOR
The individual, partnership, firm, corporation, company, joint venture, association or
syndicate whose bid has been accepted by the Client and which includes the Contractors
personal representative, successors and permitted assignees.
DEED OF ASSIGNMENT
An agreement by virtue of which the owner of a credit transfers his credit and its accessory
right to another, who acquires the power to enforce it to the same extent as the assignor,
duly approved by the Client.
DRAWING
* Graphical presentation of the work involved in the project.
* Are graphical presentations of the Work. They include all supplementary details and shop
drawings.
EXTRA WORK
Such additional labor, materials, supplies and other incidentals necessary to complete the
works but not originally covered or called for in the Contract
FINAL PAYMENT
Refers to the payment of the final progress billing and all approved claims including but not
limited to those variations in the work, Contract Price adjustments and/or escalations,
acceleration of work, and others. It does not include the retention money.
FURNISH
The word furnish shall be understood to mean purchase and/or fabricate and deliver to
the jobsite or other location when so designated.
GENERAL CONDITIONS
Printed documents stipulating the procedural and administrative aspects of the contract.
GURANTEE BOND

A bond furnished by the contractor and his surety as a guaranty to the quality of the
materials and equipment installed and the workmanship performed by the contractor.
INSTALL
The word install shall mean to build in, mount in positions, connect or apply any object
specified ready for the intended use.
INSTRUCTION TO BIDDERS
The list of instruction stipulating the manner on how bids are to be prepared and conditions
for the award of the contract.
INTERIOR DECORATIONS
The art of profession of decorating or furnishing the interior of rooms, houses, etc.
INVITATION TO BID
The notice published by the owner giving information as to the nature of the proposed
project, conditions for the issuance of contract documents and date of bidding .
LIEN
A right enforceable against specific property to secure payment of an obligation.
NOTICE OF AWARD OF CONTRACT
A written notice from the Client to the successful Bidder stating that its Bid has been
accepted and that, in accordance with the terms of the Tender/ Bid Documents, he is
required to enter into contract and to furnish the required Performance Bond and other
stipulated documents.
NOTICE TO PROCEED
A written notice to the Contractor of the date on which he is to begin the prosecution of the
works he has contracted.
ORIGINAL CONTRACT TIME
The stipulated period of time within which the Contractor shall complete the Contract Works.
OWNER
The person or firm ordering the project for execution, including duly appointed successors or
authorized representative.
PAYMENT BOND
Is the approved form of security furnished by the Contractor and his Surety as a guarantee
of good faith on the part of the Contractor to faithfully comply with the Contract in respect of
its obligations arising there from to its workers, subcontractors, and suppliers.
PENALTY CLAUSE
A contract provision setting forth the damages a party must pay in the event of his breach.
PERFORMANCE BOND
Is the approved form of security furnished by the Contractor and his Surety as a guarantee
of good faith on the part of the Contractor to execute the Work in accordance with the
Contract.
PERMANENT WORKS
The permanent structures to be constructed and completed in accordance with the contract
documents.

PROVIDE
The word provide shall be understood to mean, furnish and install.
SCHEDULE OF MATERIALS AND FINISHES
Is an outline specification enumerating the type or trade names of materials required to be
used by the Contractor for the Work.
SLIPPAGE
The difference between scheduled and actual accomplishment per approved PERT/CPM
and approved revisions thereof, usually indicated in percentage, positive or negative.
SPECIAL PROVISIONS OR CONDITIONS
Are instructions that are issued prior to bidding to supplement and/o modify the Drawings,
Specifications and for General Conditions of the Contract.
SPECIFICATIONS
The description in detail of the Works executed the character and quality of materials and
workmanship and special responsibility of the Contract that are not covered by the
conditions of the contract. It includes Addenda, Supplemental Specifications, Special
Provisions and Bulletins referred to in the contract documents together with all the written
agreements made.
SUB- CONTRACTOR
* The individual, partnership, firm or corporation, joint venture, association having a direct
contract with the Contractor duly approved by the MOH
* Is a Contractor duly registered and licensed by the Philippine Contractors Accreditation
Board having a direct contract with the Contractor in executing any part of the Contract. One
who merely furnishes materials without labor is a supplier and not a Sub-Contractor.
SUPPLEMENTARY SPECIFICATIONS
Refers to additional information, which may be issued as an addition to or amendment of the
provisions of the Specifications.
SURETY
Is the person, firm or corporation, which issues the bond required of the Contractor.
WRITTEN NOTICE
Means information, advice or notification pertinent to the project delivered in person or sent
by registered mail to an individual, firm or corporation at the latters last known business
address.