Provoc – Glossary of Common Project Control Terms

1 Provoc Glossary of Common Project Control TermsPage 1 of 31 KEY:(VQ) Vocational Qualification term(R) Risk TermAAccountGrouping of costs for administration and controlpurposesAccount CodeUnique identifier for a cost account, the code canbe alpha, numeric or a combinationAccounts PayableValue of goods and services received and yet to bepaid forAccountabilityThe point of budget authority and controlresponsibility usually an individual will haveauthority for Control within the defined ReceivableValue of goods and services executed and for whichpayment is yet to be receivedAccreditation (VQ)The acceptance of qualifications by QCA and SQAas meeting the criteria specified for NVQs andSVQs. Organisations can also be accredited tocarry out of work/services received, and not yetinvoiced/paid for, but recorded in the BasisAccounting records for costs incurred and incomeearnedAccrued CostTotal spends to date plus IncomeTotal recorded income plus income associated withaccrued FactorFactor expressing the range or the level of accuracyof an estimateA Cost EAssociation of Cost operation or process with defined a May have an associated cost, a numberof these logic linked will underpin the lowest levelin a Work Breakdown Structure,Activity-On-Arrow Network DiagramA network presentation where the arrows representnetwork activities.

2 The nodes represent end Network Precedence Diagrama network presentation where the nodes symbolisethe network RelationshipLogical link between two activities(directionrepresented by arrow):Four Common relationships are: Finish to Start to Finish to Start to SamplingA method of recording work activity in a satisticalmanner in order to allow an analysis of the of actual achievements for cost/revenue/time against planned elementsActual Cost of Work Performed (ACWP)Recorded cost or value of work or service FundingFunds made available prior to formalfunding/contract , to cover payment for goods orservices contracted or delivered prior to ) Approved for ) Anticipated final for Glossary of Common Project Control TermsPage 2 of 31 Ageing RatePre-determined level of depreciation expense orcapital cost for given unit of made for work which it is known byexperience will occur, but for which there is noinformation at the time of estimate preparation.

3 Seealso auxiliary items/materials, usuallyunspecified, particularly of plant and Final CostSee Forecast Final (VQ)Accreditation of prior learning. A process whichenables individuals to gain credit on the basis ofpast achievements, learning and of Project ManagementAppropriationAuthorised allocation of funds for specific EstimateEarly cost estimate, for budget purposes, usually byClient, based on preliminary but largely fixed designdata to an accuracy of 15% to +25%, to establishviability of proposed Project and secure necessaryadvanced funding approval to generate a class IIestimate, also known as class III, evaluation, outlinedefinition, pre sanction and study or RequestFormal request for management approval of fundingfor a future BudgetSee Authorised Centre (VQ)An organisation accredited by an Awarding Bodyto carry out the assessment of candidates and torecommend the award of an NVQ or ChangeSee Authorised EstimateFinal purchase or contract sales estimate, inclusiveof all pre-contract changes and adjustments toreflect the actual as sold scope of supply or scopeof PriceActual value of purchase order or contract as sold,inclusive of all escalation and other price (VQ)The judgement of performance and knowledgeevidence to decide whether competence has Plan(VQ)A plan detailing the methods and opportunities bywhich evidence covering each element ofcompetence is to be generated, collected (VQ)

4 A person registered and approved as competent toassess candidates in a particular range value of property, investments, stock Reference PlanPlan setting out the main elements of how an assetwill be developed and operated from inceptionthrough to RegisterSee Fixed Assets verification of a projects current statusagainst the target cost schedule and/or codes BudgetProvoc Glossary of Common Project Control TermsPage 3 of 31 Any budget duly approved by pre-defined level ChangeApproved change to a previously authorisedcost/scope/time by the appropriate CostAny cost: actual, estimated or budgeted, approvedby the appropriate EstimateEstimate approved by the appropriate ManhoursEstimate of budgeted manhours approved by theappropriate Variation (Cost, time, scope)Client or buyer approved change to previouslyissued contract or purchase FacilitiesNon-productive supporting elements, particularly infactory or plant, such as administrative buildings,utilities, services, CapitalValue of funds available for capital investment,purchase of goods or services, Annual CostConversion of all capital and operating costs to aseries of equivalent annual CostArithmetical mean cost = total expense divided bytotal quantityAverage Investment ReturnSummation of fixed and variable dividends or profitsnormally expressed as a percentage of the capitalcost Overhead RateRatio of indirect to direct expenses normallyexpressed as a percentage per Body (VQ)A body approved by the Qualifications andCurriculum Authority(QCA) and /or the ScottishQualification Authority (SQA)

5 For the purpose ofawarding an NVQ or chargeClaim made against supplier, contractor or subcontractor for remedial work, loss or damagesuffered in respect of goods or services notreceived to agreed Pass (Backward Plan) Critical path calculation process which havingcalculated earliest date for activities on the backwards to find activities latest start andfinish dates/floatBallpark EstimateSee Order of Magnitude ChartA chart on which activities and their durations arerepresented by lines to a time Chart ScheduleGraphical representation of Project activities orresources drawn as horizontal lines against acommon time CostCost (estimate or estimate item) established as abasis for calculating escalation, changes,provisions or other related Line A set of dates and costs frozen at the start of theproject and used as a basis for comparison as theproject DateDate set as a programme/estimate base forcalculating price variations, forward escalation,currency differentials or other time-based cost EstimateProvoc Glossary of Common Project Control TermsPage 4 of 31An estimate generated against a defined scope ofwork and established as a basis for evaluatingsubsequent adjustments.

6 Modifications or Exchange RateA currency exchange rate used in preparation of acost estimate or budget and established as a basisfor calculating subsequent actual currencydifferentials or RateRate used as a basis for evaluation of the effect offuture changes in interest PriceStandard rate or value adjustable by discount,escalation or variation to suit specificcircumstances applications and/or TimeA term used in Work Study to define the time takento achieve a task by a normally motivated andskilled operative, net of all allowances for relaxation,remedial works and other non-productive LimitsThe boundary/maximum extent of a contractscope, area or system often used to manageinterfaces between contract or commissioningof systemsBenchmarkA comparable standard for a generic (R)Assessed chance and impact of a potentiallyadvantageous of FinanceInterest calculation based on the net cash flow andcalculated on an average weekly Analysis (Tender Analysis)

7 Activity of analysing suppliers quotations orcontractors BondSum provided by bidder as guarantee that the bidwill be submitted, and if accepted, the bidder willproceed into the CheckReview of suppliers quotations or contractors tenders, for compliance with the bid ComparisonDocument for comparison of suppliers quotationsor contractors tenders, as part of the EstimateSee Tender EvaluationSee Bid QuantitiesMaterial or construction quantities issued tosuppliers or contractors for bidding TabulationProcess of summarising the results of Bid Analysisfor comparison of MaterialsList of material quantities estimated or measuredfrom drawings for estimating or of QuantitiesList of construction quantities estimated ormeasured from drawings for tender pricing andcontract payment of Quantities ContractContract awarded against a Bill of Quantities forwhich payment is made in accordance with the unitprices contained in the bill of of money.

8 Securities or a guarantee of a thirdparty to guarantee completion of the work and/orrecovery of sums payable if owed by the contractorunder the Terms of the Glossary of Common Project Control TermsPage 5 of 31 Incentive payment over and above agreed wage orcontractual reimbursement, usually relating toachievement Incentive/Bonus SchemePayment framework agreement, to increase outputfrom work force, by payingt for achievementagainst a range of ClauseContractual incentive placed on supplier orcontractor to achieve certain completion targets forwhich a bonus payment is earned or a financialpenalty ValueAsset as recorded in the books of a collection of ideas/solutions against aparticular issue/topic. Often done in a workshopenvironmentBudget(1)Authorised target for Project achievement, orpart thereof usually expressed in Terms ofquantities, manhours or costs.

9 (2)An approved financial or quantitative planagainst financial periods, and used as abenchmark against which achievements can becompared / referencedBudget CentreA Financial Centre that owns and controls its CostThe target cost for completion of the work Cost of Work Performed (BCWP)Budget value for work completed or servicesrendered, at cut off Cost of Work Scheduled (BCWS)Budget value for work or service planned(scheduled) to be completed or rendered at the cutoff EstimateSee Class II TransferAuthorised adjustment to budget targets which donot increase or decrease the total Unit CostUnit cost applied to budget item quantities tocalculate the item budget VarianceVariance between budget and actual/forecast:quantities, manhours or ControlThe continuous comparison of actual with thebudget values in order to maintain costs in line withthe budget or to provide a basis for its ServicesMechanical, electrical or other specialised utilitieswithin a building or Factors (1)Multipliers applied to manufactured equipmentcosts to calculate erected plant or total installationcosts, including associated bulk materials Factors (2)

10 Index for granular and earthworks materials, to allowfor the increase in volume of an excavated materialremoved from its original state needing moreprovision for transporting, storing and disposalthan its net MaterialsAny material purchased in expenses distributed as an add-on cost todirect Gain/LossThe difference between the budget provision for amaterial or service and the contracted cost paid bythe ChargesContract charges submitted by a supplier orcontractor in the event of cancellation of purchaseorder or termination of contract by client or othersCancellation CostsProvoc Glossary of Common Project Control TermsPage 6 of 31 Costs incurred on a Project due to cancellation ortermination of an issued purchase order or FactorTerm used in Estimating in respect of the capacityratio between two similar invested or available for investment againstwhich earnings and dividends are BudgetingDefined allocation of capital resources for approvedfuture Cost EstimateA proposed fixed asset cost