Words and phrases

Submitted to Submitted by
Prof. R J Shah Madhav Purohit
000RDMTCE190007
 PROCUREMENT
• Procurement is the process of finding and
agreeing to terms, and acquiring goods,
services, or works from an external source,
often via a tendering or
competitive bidding process.
 CONSORTIUM
A consortium is an association of two or more
individuals, companies, organisations or
governments (or any combination of these
entities) with the objective of participating in a
common activity or pooling their resources for
achieving a common goal.

A consortium is formed by contract, which

delineates the rights and obligations of each
member.
 CRITICLE DELAY
Critical delay is event which causes
the delay to the completion of the work
project within stipulated period,
whereas non-critical delays affect the
work progress but do not cause delay to
overall the completion of the project.
 FINALIZATION
Contract finalization occurs when a
solicitation has attached a draft form
of contract, and involves completing
the schedules to the contract and
any additional clauses to reflect the
terms set out in the solicitation and
submission.
 LUMP SUM CONTRACT
A lump sum contract (or stipulated sum
contract) is the traditional means of
procuring construction, and still the most
common form of construction contract.
Under a lump sum contract, a single
'lump sum' price for all the works is
agreed before the works begin.
 NOVATION
Novation is the act of substituting a
valid existing contract with a
replacement contract, where all
concerned parties mutually agree to
make the switch.
 PERFORMANCE BOND
A performance bond is issued to one party
of a contract as a guarantee against the
failure of the other party to meet
obligations specified in the contract. It is
also referred to as a contract bond. A
performance bond is usually provided by a
bank or an insurance company to make sure
a contractor completes designated projects.
 PROLONGATION
'Prolongation' refers to a claim for damages
by a contractor for the additional costs it
has incurred as a result of delay, such as
hire of plant, additional labour costs, off-
site overheads and loss of profits.
 RETENTION MONEY
Retention money is an amount held back from a
payment made under a
construction contract. ... It is generally held to
ensure that a contractor performs all of its
obligations under the contract, and is then
released either on practical completion or after
the end of a defects notification period.
 SURETY
A surety is a person or party that takes
responsibility for the debt, default or other
financial responsibilities of another party.
A surety is often used in contracts where
one party's financial holdings or well-being
are in question and the other party wants a
guarantor.
 SUBROGATION
Subrogation is a term describing a legal
right held by most insurance carriers to
legally pursue a third party that caused
an insurance loss to the insured. This is
done in order to recover the amount of
the claim paid by the insurance carrier
to the insured for the loss.
 MEDIATION
Mediation is a procedure in which the
parties discuss their disputes with the
assistance of a trained impartial third
person(s) who assists them in reaching a
settlement. ... Attendance at
the mediation conference is voluntary by
the parties, except where governed by
statute or contract clause.
 PROBITY
The Oxford Dictionary defines probity as
meaning good, honest, moral excellence,
integrity, rectitude, uprightness,
conscientiousness. When used in a
contractual context it means "good
process".
 AGGREGATE
CONTRACT
A type of pool contract. An aggregate
contract is used to bill usage in all the
single contracts linked with
that aggregate contract. When
single contracts are linked with
an aggregate contract, usage is not billed
separately for the single contracts.
 GHOSTING
Broadly speaking ghosting is defined as the abrupt
ending of a relationship by ceasing all
communications without explanation. The moniker
gets its roots from the online dating world, where
participants would receive no advance warning but
suddenly be cut off by a potential partner.
Similarly, job ghosting in business is 
when a candidate stops responding to emails, skips
an interview, or signs a contract and then backs out
. 
 PERIOD OF FINAL
MEASUREMENT
Period of Final Measurement. The period of
final measurement commences after the
deadline for the receipt of information has
been passed. Under the
RIAI contract the contractor must provide
all such final account details within three
months of practical completion.
 MULTI USE LIST
Multi-use list means a list of suppliers that
a procuring entity has determined satisfy
the conditions for participation in that list
and that the procuring entity intends to use
more than once.
TERMINATION BY CONTRACTOR
It allows a party at anytime for its
convenience to terminate contract by a
notice with or without indication of a
particular clause in the contract. The
Contractor will have right to receive cost
incurred up to termination and recover
damage resulting from such termination.
 PRACTICAL
COMPLETION
it is the point at which a building project is
complete, except for minor defects that can
be put right without undue interference or
disturbance to an occupier. Some
construction practitioners describe this
point as when the building project is
"capable of beneficial occupation and use".
MODE OF TENDER TRANSMISSION