Glossary

Everything on a relationship before its award: scope, invitation, proposals or tenders, queries, evaluation, negotiation and the award itself. Each appointment and each contract has its own pre-contract stage.

Everything after the award: the agreement, delivery of the services or works, changes, payments, handover and close-out.

The consultant appointed to design the project, from concept to the tender package, usually with cost planning and the bills of quantities in its scope.

The consultant appointed to supervise construction and act as the Engineer under the FIDIC contract. A separate appointment with its own scope and fees, even when the designer is given it.

A no objection certificate from an authority or utility, such as civil defence, roads, power, water or telecom, needed before the building permit or a connection.

The RICS New Rules of Measurement: NRM 1 for cost estimates and cost plans, NRM 2 for detailed measurement in bills of quantities.

The RICS Principles of Measurement (International), a measurement method widely used for bills of quantities in the Gulf.

The priced list of the work measured from the drawings and specification, with preambles, preliminaries, provisional sums and dayworks.

The set the designer hands to the Employer for tender: drawing list and drawings, specification, bills of quantities, conditions and instructions to tenderers.

The Employer completes the design through its consultant, tenders it, and a contractor builds it. The FIDIC 1999 Red Book route.

The Employer states its requirements and one contractor designs and builds, carrying design responsibility. The FIDIC 1999 Yellow Book route.

The document in a Design and Build tender that states purpose, scope, performance and standards for the contractor to design to.

The contractor’s design and method response to the Employer’s Requirements, which becomes part of the contract.

The Engineer’s review outcome for the contractor’s design documents under Design and Build. It is not an approval and does not relieve the contractor of responsibility.

The Design and Build contractor’s obligation that the completed works are fit for the purposes stated in the Employer’s Requirements, stricter than reasonable skill and care.

Transfer of a contract, typically the design appointment, from the Employer to the Design and Build contractor.

A defined scope of work or supply that the main contractor tenders and awards separately: supply only, install only, supply and install, or design, supply and install.

Subcontract terms that mirror the main contract so that risk, time limits and payment pass down without gaps.

The main contractor pays the subcontractor when the corresponding work is certified under the main contract, rather than when the Employer actually pays.

A deadline for a notice after which the entitlement is lost, such as the 28 days in Sub-Clause 20.1.

The Engineer’s fair decision on a claim or variation after consulting both parties, under Sub-Clause 3.5.

Confirms substantial completion, starts the defects notification period and releases half the retention.

The only document that constitutes acceptance of the works, issued after the defects notification period.

Performance tests run after taking over under the Yellow Book, with damages if guaranteed performance is not met.

The period after taking over, commonly 365 days, in which defects can be notified for the contractor to remedy.

A percentage withheld from each certificate, released in two halves at taking over and at the end of the defects period.

An allowance in the contract price for work or goods to be instructed later, often used for nominated subcontractors.

A subcontractor selected by the Employer or Engineer and contracted to the main contractor under Clause 5.

Minor or incidental work valued on time and materials at the rates in the dayworks schedule.

Valuation of the work actually done at the contract rates, where the bill quantities are estimates. Red Book practice; the Yellow Book is lump sum.

An interest-free loan for mobilisation, paid against a guarantee and recovered through the certificates.

The pre-agreed daily sum deducted for late completion, subject to the cap in the contract data.

Materials purchased by the Employer and handed to the contractor to install.

Standard delivery terms (FOB, CIF, DDP and others) that fix who pays freight, insurance and duties and where risk passes.

A bank undertaking to pay the vendor against shipping documents, used for foreign equipment.

A direct promise from a subcontractor, designer or vendor to the Employer that survives the main contract.

Technical and commercial offers sealed separately so price is opened only for technically compliant bidders.

A final price requested from shortlisted bidders after clarifications, on an equal basis.

The matrix that fixes who may approve an award, a variation or a payment by value.

A line-by-line split of who supplies, installs, tests and warrants each element between vendor and contractor.