Patron, Lester Louie C.

BSCE-4

Definitions:

1.) Contract price- The construction contract price includes the direct project cost including field
supervision expenses plus the markup imposed by contractors for general overhead expenses and profit.
The factors influencing a facility price will vary by type of facility and location as well. Within each of the
major categories of construction such as residential housing, commercial buildings, industrial complexes
and infrastructure, there are smaller segments which have very different environments about price setting.

2.) Contractor- a person or company that agrees to manage a project, especially a building project, and
provide materials and workers, and that might employ subcontractors to do parts of the work.

3.) Cost- The term 'cost' in the construction industry generally refers to the amount that has to (or will
have to) be paid to receive goods or services.

4.) Drawings - A construction drawing or plan illustrates what you will build and what the finished product
will look like when you complete it, but there are different types of construction drawings used.

5.) Owner- The construction project owner, or contracting authority, is a natural person (private or
professional) or a private legal entity (company or association) or public institution (the State or a local
authority) who assumes the financing of the project of house, building or infrastructure, and contracts the
services of third parties involved in the design and construction of the house or building.

6.) Owner’s Representative- An owner's representative operates as part of the project team, but they
work under a separate contract held with the owner. Their role is to act on behalf of the owner to oversee
the entire project. This can include the planning, design, construction, and commissioning, as well as the
closeout phases.

7.) Performance Bond- A performance bond is a type of contract construction bond that guarantees a
contractor will complete a project according to the terms outlined in a contract by the project owner, also
called the obligee. The obligee can be a city, state, or local government, as well as the federal government
or a private developer.

8.) Specifications - Construction specifications, or specs, detail the work and workmanship required for
each construction project. A specs definition is “written documentation describing the scope of work, any
materials that are to be used, the methods of installation, and the quality of workmanship under contract.”

9.) Sub-contractor- is anyone who provides labor or services on a construction project and was hired by
someone other than the owner. Subcontractors perform a portion of the work that contributes to the
overall project.

10.) Work- means putting up, demolishing, repairs or renovation of buildings, roads, bridges or other
structures including fabrication of steel structures and all other civil works.