| Term | Definition | Source |
| Contract | A contract is a mutually binding agreement which obligates
the seller to provide the specified product and obligates the buyer to pay
for it. Contracts generally fall into one of three broad categories:
|
[ PMK96] |
| Contract | A document containing the terms of an agreement. [D00317] | [ NPMT] |
| Contract | A mutually binding agreement in which the contractor is obligated to provide services or products and the buyer is obligated to provide payment for them. Contracts fall into three categories: fixed price, cost reimbursable or unit price. [D00318] | [ WST] |
| Contract | An agreement in law between the organization as owner, and a consultant (See Agreement) or a construction contractor. It is a commitment document. The term contract is used to refer to the document itself. Construction contracts are often classified and described by the terms of payment they contain: Stipulated Price or Lump Sum, Unit Price, Cost Plus, etc. [D00319] | [ CCCP] |
| Contract | [RMWChk] A binding agreement to acquire goods and/or services in support of a project. [D00320] | [ PMK87] |
| Contract | An agreement between two or more legally competent parties, in the proper form, on a legal subject matter or purposes, for a legal consideration. [D02291] | [ DSMC] |
| Contract | A mutually binding legal relationship obligating the seller to furnish the supplies or services (including construction) and the buyer to pay for them. [D03476] | [ GAT] |
| Contract Administration | Monitoring and control of performance, reviewing progress, making payments, recommending modifications and approving contractor's actions to ensure compliance with contractual terms during contract execution. [D00321] | [ PMK87] |
| Contract Administrator | An official who has the authority to negotiate, enter into, modify, and administer contracts. [D04044] | [ CSM] |
| Contract Award | The final outcome of the acquisition process in which generally the contract is awarded to one prospective supplier, through acceptance of a final offer generally either by issuing a purchase order or the signing of a legally binding contract formalizing the terms under which the goods/services are to be supplied. [D00322] | [ PMK87] |
| Contract Award | [RMWChk] The signing and issuing of contract documents to a contractor. [D02292] | [ RMW] |
| Contract Award Ranking | Qualitative and/or quantitative determinations of prospective suppliers' bid/tender/ proposal/quotation relative to each other measured against a common base. [D00323] | [ PMK87] |
| Contract Breakdown | The breakdown of a contract into measurable packages, measurable activities such as units of work performed, or milestones verifiable by corresponding checklists. [D02541] | [ PD-U] |
| Contract Budget Base | The negotiated contract cost value plus the estimated value of authorized but unpriced work. [D00324] | [ WST] |
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| Contract Change | [RMWChk] An authorized modification to some terms of the contract. This may involved any of the following: A change in the volume or conditions of the work involved, the number of units to be produced, the quality of the work or units, the time for delivery, and/or the consequent cost involved. [D02542] | [ PD-U] |
| Contract Change | Any written change in the terms of a contract. [D03478] | [ GAT] |
| Contract Change Notice | A written buyer notice, directing the contractor to make specific changes to the contractual effort. Cost and schedule impacts of the change must be negotiated. Also called Contract Change Order (CCO). [D04045] | [ CSM] |
| Contract Change Order | See Contract Change Notice. [D04046] | |
| Contract Closeout | [RMWChk] Contract closeout activities which assure that the contractor has fulfilled all contractual obligations and has released all claims and liens in connection with work performed. [D00325] | [ PMK87] |
| Contract Closeout | Settlement of a contract. [D00326] | [ WST] |
| Contract Dates | The dates specified in the contract that impact the project plan. [D00327] | [ PMK87] |
| Contract Dispute | Disagreement between the parties. This may occur during contract execution or at completion and may include misinterpretation of technical requirements and any terms and conditions or due to changes not anticipated at the time of contract award. [D00328] | [ PMK87] |
| Contract Document System | The system in place to store, retrieve, reference and update contract documentation. [D02543] | [ PD-U] |
| Contract Documentation | All formal documents directly associated with a contract
such as the signed agreement and its terms; general conditions,
specifications, special conditions and specifications, etc.; all
illustrative materials such as explanatory drawings, sketches schematics,
flow diagrams, production schedule, etc.; the records of any modifying
terms as a result of contract negotiations; and any other documentation
that serves to clarify the intent between the parties at the time of
contract signing. Editor's Note: Contract documents should NOT include the original invitation to bid, tender conditions, and similar instructions which are of historic interest only once the contract is let and may serve to be in conflict with the final negotiated contract. [D02544] |
[ PD-U] |
| Contract Documents | The set of documents which form the contract. [D00329] | [ PMK87] |
| Contract Elements | To be legally enforceable, a contract must include the following: an offer, an acceptance, consideration, execution by competent parties, legality of purpose, and clear terms and conditions. [D03477] | [ GAT] |
| Contract Financial Control | Exercise of control over contract costs. [D00330] | [ PMK87] |
| Contract Form | The formal legal cover sheet that is signed by the parties that gives effect to the contract. [D02545] | [ PD-U] |
| Contract Funds Status Report | A report normally required on cost or incentive type contracts to inform the buyer of funds used and status of remaining funds. [D04047] | [ CSM] |
| Contract Funds Status Report | A financial report that provides forecasted contract funding requirements. [D04619] | [ QWF] |
| Contract Guarantee | A legally enforceable assurance of performance of a contract by a contractor. [D00331] | [ PMK87] |
| Contract Law | The law governing the contract, usually the law of the land in which the work of the contract takes place. Where the work of a project takes place in different locations, different law may apply. This is particularly true where the work takes place in different countries. [D02546] | [ PD-U] |
| Contract Line Item Numbers | An identifier used in Request for Proposals to describe deliverables under the contract. [D04048] | [ CSM] |
| Contract Manager | The manager responsible for overseeing all aspects of contract preparation and administration. [D04049] | [ CSM] |
| Contract Negotiation | Method of procurement where a contract results from a bid which may be changed through bargaining. [D00332] | [ PMK87] |
| Contract Negotiations | The process of buyer and seller discussion and position modification until mutual agreement is reached on contract content. [D04050] | [ CSM] |
| Contract Order Modifications | Changes in a contract during its execution to incorporate new requirements or to handle contingencies that develop after contract placement. Changes may include price adjustments or changes in scope. [D00333] | [ PMK87] |
| Contract Package | See Contract Breakdown. [D02547] | |
| Contract Performance Control | Control of work during contract execution. [D00334] | [ PMK87] |
| Contract Plan | The conditions, methods, schedule, etc. for carrying out the work of the contract as agreed between the parties at the time of signing the contract. [D02548] | [ PD-U] |
| Contract Pre-award Meetings | Meetings with prospective suppliers before final award determination to aid ranking and/or finalize terms of agreement between parties. [D00335] | [ PMK87] |
| Contract Quality Requirements | [RMWChk] The technical requirements in the contract relating to the quality of the product or service and those contract clauses prescribing inspection, and other quality controls incumbent on the contractor, to assure that the product or service conforms to the contractual requirements. [D00336] | [ FAR 46.101] [ QMPP] |
| Contract Requirements | In addition to specified performance requirements, contract requirements include those defined in the statement of work; specifications, standards and related documents; the contract data requirements list; management systems; and contract terms and conditions. [D02293] | [ DSMC] |
| Contract Risk | The potential and consideration of risk in procurement actions. Generally the forces of supply and demand determine who should have the maximum risk of contract performance but the objective is to place on the supplier the maximum performance risk while maintaining an incentive for efficient performance. In a fixed price contract, the supplier accepts a higher risk than in a cost type contract in which supplier's risk is lowest. [D00337] | [ PMK87] |
| Contract Risk Analysis | Analysis of the consequences and probabilities that certain undesirable events will occur and their impact on attaining the contract/procurement objectives. [D00338] | [ PMK87] |
| Contract Signing | The formal meeting, sometimes conducted with ceremony, at which the duly authorized members of each party put their signatures to the contract document. [D02549] | [ PD-U] |
| Contract Strategy | A macro view of the philosophy and approach for carrying out the work of the contract. See also Procurement Strategy. [D02550] | [ PD-U] |
| Contract Target Cost ("CTC") | The negotiated costs for the original definitized contract and all contractual changes that have been definitized, but excluding the estimated cost of any authorized, unpriced changes. The CTC equals the value of the BAC plus management or contingency reserve. [D00339] | [ WST] |
| Contract Target Price ("CTP") | The negotiated estimated costs plus profit or fee. [D00340] | [ WST] |
| Contract Type | Categories of contracts that are differentiated according
to:
|
[ GAT] |
| Contract Types | The various forms of contracts by which goods/services can be acquired. See "Cost plus fixed fee", "Cost plus incentive fee", "Cost plus percentage of cost", "Firm fixed price", "Fixed price plus incentive fee", and "Unit price contracts". [D00341] | [ PMK87] |
| Contract Work Breakdown Structure ("CWBS") | A customer-prepared breakout or subdivision of a project typically down to level three which subdivides the project into all its major hardware, software, and service elements, integrates the customer and contractor effort, provides a framework for the planning, control, and reporting. [D00342] | [ WST] |
| Contract Work Breakdown Structure ("CWBS") | [RMWChk] A WBS applied within a contract. [D00343] | [ PMK87] |
| Contract/Procurement Management | [RMWChk] The function through which resources are acquired for the project in order to produce the end requirements. Contract/procurement includes both internal (informal) commitments and external (formal) contracts for people, services, materials and equipment. [D00344] | [ FWH] |
| Contract/Procurement Management | The function through which resources (including people, plant, equipment and materials) are acquired for the project (usually through some form of formal contract) in order to produce the end product. It includes the processes of establishing strategy, instituting information systems, identifying sources, selection, conducting proposal or tender invitation and award, and administering the resulting contract. [D00348] | [ PMK87] |
| Contracting | [RMWChk] The business of entering into and/or undertaking contracts. [D02552] | [ PD-U] |
| Contracting | Purchasing, renting, leasing, or otherwise obtaining supplies or services from vendors. Contracting includes description (but not determination) of supplies and services required, selection and solicitation of sources, preparation and award of contracts, and all phases of contract administration. It does not include making grants or cooperative agreements. [D03480] | [ GAT] |
| Contractor | [RMWChk] A person or organization that undertakes responsibility for the performance of a contract. [D00345] | [ PMK87] |
| Contractor | A person, company or firm who holds a contract for carrying out the works and/or the supply of goods in connection with the Project. [D04411] | [ APM] |
| Contractor Claims Release | Certificate to release and hold harmless from future claims by the contractor. [D00346] | [ PMK87] |
| Contractor Cost Data Report ("CCDR") | A US Department of Defense report developed to provide contract cost and related data in a standard format. [D04620] | [ QWF] |
| Contractor Evaluation | The collection of background, experience, past performance and current capabilities of potential contractors for purposes of soliciting bids from qualified contractors. [D02553] | [ PD-U] |
| Contractor Furnished Equipment | Contractor equipment that is committed to be used to satisfy a contract. [D04051] | [ CSM] |
| Contractor Project Office | The contractor's project manager and associated immediate staff. [D04052] | [ CSM] |
| Contractor Short Listing | A process whereby a short list of contractors is assembled and designated for receipt of an invitation to bid. This process has the effect of avoiding unnecessary tendering work by contractors who do not qualify for some reason, as well as reducing the amount of work in evaluating the competing submissions. [D02554] | [ PD-U] |
| Contractor's Performance Evaluation | A comprehensive review of contractor's technical and cost performance and work delivery schedules. [D00347] | [ PMK87] |
| Contractual | See Contractual Conditions. [D02556] | |
| Contractual Conditions | Conditions that bind parties to a performance in exchange for payment (lawful consideration.) [D02555] | [ PD-U] |
| Contractual/Legal Requirements | The legal conditions surrounding a contractual arrangement. [D02557] | [ PD-U] |
| Contributed Value | See Added Value. [D02560] | |
| Contribution Analysis | An analysis to show how much an effort, system, material or component is contributing to project objectives and its consequent success. It is particularly useful in simplifying a project management organization or system. See also Systems Analysis and Value Management. [D03052] | [ CCCP] |
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| Control | A process for assuring that reality or actual performance meets expectations or plans. Control often involves the process of keeping actions within limits by making adjustments to a plan to assure that certain outcomes will happen. [D00349] | [ OTOB 271-4] |
| Control | An end result of interactive processes involving clarity of expectation and achievement thereof. Control is not a tool per se. It is a result of excellence in applying the other concepts in the tough-minded leadership system. [D00350] | [ TML 217] |
| Control | Planning, monitoring accomplishment, and exercising any necessary corrective action to yield the required outcome. [D00351] | [ RMH] |
| Control | The exercise of a restraining or directing influence on a problem, or the ability to prevent or immediately respond to it in order to avoid wasted effort. [D00352] | [ RMW] |
| Control | The exercise of corrective action as necessary to yield a required outcome consequent upon monitoring performance. [D00353] | [ PMK87] |
| Control | The process of comparing actual performance with planned performance, analyzing variances, evaluating possible alternatives, and taking appropriate corrective action as needed. [D00354] | [ PMK96] |
| Control | [RMWChk] The process of comparing actual performance with planned performance, analyzing the differences, and taking the appropriate corrective action. [D00355] | [ WST] [ PMST] |
| Control | See also Project Control and Control Cycle. [D00363] | |
| Control | The practice of monitoring progress against a plan so that corrective steps can be taken when a deviation from a plan occurs. [D03714] | [ PPS&C p338] |
| Control Account ("CA") | A management control point where earned value measurement takes place. Synonymous with the term "cost account." [D04621] | [ QWF] |
| Control Account Manager ("CAM") | A member of a functional organization responsible for cost account performance, and for the management of resources to accomplish such tasks. [D04622] | [ QWF] |
| Control Account Plan ("CAP") | The management control unit in which earned value performance measurement takes place. Previously called Cost Account Plan. [D04623] | [ QWF] |
| Control and Coordination | Control is the process of developing targets and plans; measuring actual performance and comparing it against planned performance and taking the steps to correct the situation. Coordination is the act of ensuring that work is being carried out in different organizations and places to fit together effectively in time, content and cost in order to achieve the project objectives effectively. [D00356] | [ WST] |
| Control Chart | Control charts are a graphical display of the results, over time, of a process. They are used to determine if the process is "in control" or in need of adjustment. [D00357] | [ PMK96] |
| Control Chart | [RMWChk] The display of the results of a process over time,. They are used to determine if the process is in need of adjustment. [D00358] | [ RMW] |
| Control Cycle | A cycle that usually includes: planning, measuring,
monitoring and taking corrective action, that is:
All these together constitute control. [D03431] |
[ CRMP] |
| Control Gate | [RMWChk] A major project milestone at which the project sponsor has the opportunity at the end of one phase of exercising a ‘go/no-go’ decision on the continuation of the project. into the succeeding phase. See also Executive Control Point. [D00360] | [ PMIS] |
| Control Gate | See Management Control Point. [D02267] | |
| Control Gate | A management event in the project cycle that is of sufficient importance to be identified, defined, and included in the project schedule. A control gate requires formal examination to evaluate project status and readiness to proceed to the next control gate. Approval usually includes baselining the work reviewed. [D04053] | [ CSM] |
| Control Point | See Work Packages/Control Point [D02159] | |
| Control Requirements | The specified conditions under which control is to be exercised. [D02561] | [ PD-U] |
| Control System | [RMWChk] A mechanism which reacts to the current project status in order to ensure accomplishment of project objectives. [D00361] | [ PMK87] |
| Control System | A set of specified procedures for controlling (e.g. project time, resources, quality.) [D00362] | [ NPMT] |
| Control Theory | The view that motivation by goal setting can be further extended by understanding and predicting how humans process information and make decisions about how much effort to put forth. Based on metacognitive theory of motivation, it is hard to understand and predict. See also Expectancy Theory, Equity Theory, Goal Setting Theory, and Reinforcement Theory. [D02640] | [ PMH p317] |
| Controllable Risks | Those risks to the project which, if occurring, can be mitigated by the project Team at the direction of the project manager, by adopting a ‘work-around’ or by drawing upon the project’s Contingency Allowance. [D00366] | [ PMGdLns] |
| Controlling | See Project Control [D00364] | |
| Controlling Relationship | The early dates of an activity is controlled either by a target date on the activity or, more normally, by one of the predecessor relationships. In the latter case, the relationship is called the controlling relationship. [D00367] | [ WST] |
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| Coordinated Matrix | An organizational structure where the project leader reports to the functional manager and doesn't have authority over team members from other departments. [D00368] | [ WST] |
| Coordination | [RMWChk] The bringing together, or integration, of separate work elements, typically of a project, to form a harmonious and workable whole. See also Coordinator. [D02562] | [ PD-U] |
| Coordination | Coordination is the act of ensuring that work carried out by different organizations and in different places fits together effectively. It involves technical matters, time, content and cost in order to achieve the project objectives effectively. [D04410] | [ APM] |
| Coordinator | A person who facilitates harmonious activity within a group responsible for a common objective. Such a person does not have the same authority as a project manager, but nonetheless may still be responsible for the results. Persuasive power is usually exercised through tenure, or recognition of expertise or experience. [D03671] | [ PD-U] |
| Corporate | A group of individuals empowered to transact business as one body. [D02563] | [ PD-U] |
| Corporate Administration and Finance | The department responsible for administrative and financial affairs in a corporation. [D02564] | [ PD-U] |
| Corporate Budget. | The annual (fiscal) budget of a corporation. [D02565] | [ PD-U] |
| Corporate Business Life Cycle | A life cycle which encompasses phases of policy-planning and identification-of-needs which occur before a project is launched, as well as product-in-service and disposal after the project life cycle is completed. [D00369] | [ FWH] |
| Corporate Constraints | Limitations to the activities of a corporation. These may be as a result of the corporation's charter, its philosophy or mission, or due to market conditions. [D02566] | [ PD-U] |
| Corporate Data Bank | See Corporate Memory. [D02567] | [ PD-U] |
| Corporate Management | Management in the private sector intended to survive profitably and indefinitely based on providing a product or service. It recognizes that its products will not live forever but will be superseded by other products having the advantage of superior quality, cost, timeliness or acceptability. This recognition requires corporate management to set aside funds for technological development to maintain market advantage. The overall corporate activity must maintain a satisfactory return on investment for its share holders. [D00370] | [ CCCP] |
| Corporate Memory | A term used to describe an organization's historic records
and experience, essential for reliable estimating and forecasting. Editor's Note: In many organizations 'Corporate Memory' resides only in the collective experience and minds of its staff. When staff leave, so does this experience. Every effort should be made to capture past experience in a form usable by others to avoid the loss of this type of asset. [D02380] |
[ PD-U] |
| Corporate Philosophy | The underlying assumptions that result in a corporation
behaving in a particular way. Editor's Note: A corporations explicit (i.e. stated) philosophy may not be the same as its implicit philosophy (i.e. the way it actually behaves.) [D02568] |
[ PD-U] |
| Corporate Planning | Planning by top-level management to establish:
|
[ CCCP] |
| Corporate Project Management | See Enterprise Project Management. [D04343] | [ PCD] |
| Corporate Project Strategy | The overall direction set by the corporation of which the project is a part, and the relationship of specific procurement actions to these corporate directions. [D00371] | [ PMK87] |
| Corporate Quality Standards | The overall quality standards espoused at the corporate level. [D02569] | [ PD-U] |
| Corporate Resources | The resources available to the corporation, usually from internal sources. [D02570] | [ PD-U] |
| Corporate Responsibility Matrix | A responsibility matrix depicted at the corporate level and from the corporate perspective. [D02571] | [ PD-U] |
| Corporate Standards | The overall standards espoused at the corporate level. [D02572] | [ PD-U] |
| Corporate Supervision | Supervision exercised from the corporate level. [D02573] | [ PD-U] |
| Corporation | [RMWChk] A group of individuals legally empowered to transact business as one body. [D02574] | [ PD-U] |
| Corporation | A company or business formed by law in which shares of stock are offered as an incentive for investment. [D02575] | [ PMDT] |
| Correction | [RMWChk] The elimination of a defect. [D00372] | [ FAR 46.701] [ QMPP] |
| Corrective Action | Action for the purpose of adjusting for deviations from a project plan. In Quality Management, Corrective Actions are those measures taken to rectify conditions adverse to specified quality, and where necessary, to preclude repetition. [D00373] | [ NPMT] [ PMK87] |
| Corrective Action | In Cost Management, the development of changes in plan and approach to improve the performance of the project [D00374] | [ RMW] |
| Corrective Action | [RMWChk] Changes made to bring expected future performance of the project into line with the plan. [D00375] | [ PMK96] |
| Corrective Action | Reactive actions taken to:
|
[ CSM] |
| Correlation | The relationship between two or more variables. [D02576] | [ PMDT] |
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| Cost | Cost can be divided into internal and external expenses. External costs can be controlled by contracts and budgets for each phase of a project and for each deliverable or work product. Internal cost is the cost of project resources. [D00377] | [ WST] |
| Cost | See Project Cost. [D00378] | |
| Cost | [RMWChk] The cash value of project activity. [D00379] | [ PMK87] |
| Cost Account | The intersection of the program's work breakdown structure (WBS) and organizational breakdown structure (OBS). In effect, each cost account defines what work is to be performed and who will perform it. Cost accounts are the focal point for the integration of scope, cost, and schedule. Also called Control Account. [D00380] | [ WST] |
| Cost Account | [RMWChk] An accounting system identifier used by project participants to charge time and other allowable charges to a project. In Performance Measurement Systems, the Cost Account usually comprises work packages and is the lowest summation level in the Work Breakdown Structure. [D04055] | [ CSM] |
| Cost Account | A cost account defines what work is to be performed, who will perform it and who is to pay for it. Cost accounts are the focal point for the integration of scope, cost, and schedule. Another term for Cost Account is Control Account. [D04412] | [ APM] |
| Cost Account Breakdown | The segregation of the entries in a cost account into logical subgroups. [D02577] | [ PD-U] |
| Cost Account Manager ("CAM") | A member of a functional organization responsible for cost account performance, and for the management of resources to accomplish such tasks. [D00381] | [ WST] |
| Cost Account Plan ("CAP") | The management control unit in which earned value performance measurement takes place. [D00382] | [ WST] |
| Cost Accumulation Methods | The various ways in which the entries in a set of cost accounts may be aggregated to provide different perspectives on the information. [D02578] | [ PD-U] |
| Cost Analysis | The analysis of the cost elements of a proposal or on-going work. It includes verification of cost data, evaluation of all elements of costs, and projection of these data to determine the effect on price. [D04056] | [ CSM] |
| Cost Applications | The processes of applying cost data to other techniques that have not been described in the other processes. [D00383] | [ PMK87] |
| Cost Avoidance | An action taken in the present designed to decrease costs in the future. [D02294] | [ RMW] |
| Cost Baseline | A time-phased budget used to measure and monitor cost performance. It is developed by summing estimated costs by period and is usually displayed in the form of an S curve. [D04361] | [ PMK96] |
| Cost Benefit | The comparison of the cost versus the benefit expected (of a project) usually for purposes of evaluating alternative forms of investment. [D02579] | [ PD-U] |
| Cost Benefit Analysis | The analysis of the potential costs and benefits of a project which allows comparison of the returns from alternative forms of investment. [D03818] | [ PNG] |
| Cost Benefit Analysis | [RMWChk] An analysis of the relationship between the costs
of undertaking a task or project, initial and recurrent, and the benefits
likely to arise from the changed situation, initially and recurrently. Note: The hard tangible, readily measurable benefits may sometimes be accompanied by soft benefits which may be real but difficult to isolate, measure and value. The analysis allows comparison of the returns from alternative forms of investment. [D04413] |
[ APM] [ BS] |
| Cost Breakdown Structure ("CBS") | A hierarchical structure that rolls budgeted resources into elements of costs, typically labor, materials and other direct costs. [D00384] | [ WST] |
| Cost Breakdown Structure | [RMWChk] A system for dividing a project into
|
[ DSMC] |
| Cost Breakdown Structure | Hierarchical breakdown of a project into cost elements. [D04414] | [ APM] [ BS] |
| Cost Budgeting | [RMWChk] The allocation of cost estimates to individual project components. [D00385] | [ WST] |
| Cost Budgeting | The process of establishing budgets, standards and a monitoring system by which the investment costs of the project can be measured and managed. that is, the establishment of the control estimate. It is vital to be aware of the problems "before the fact" so that timely corrective action can be taken. [D00386] | [ PMK87] |
| Cost Ceiling | The sum of the Project Cost Target plus the project's Contingencies cost allowances. [D03779] | [ SU] |
| Cost Ceiling Bracket | A projected Cost Ceiling within a considered range, applicable to those projects where there is particular risks involved or the scope definition is incomplete. [D03780] | [ SU] |
| Cost Center | [RMWChk] The smallest unit of activity or area of
responsibility against which costs are accumulated; defined sections in
the corporate system, representing units of responsibility as well as
accounting units. Editor's Note: While popular as a means of exercising corporate control, competition between cost centers can work to the disadvantage of the organization as a whole. [D02580] |
[ PD-U] |
| Cost Center | Location, person, activity or project in respect of which costs may be ascertained and related to cost units. [D04415] | [ APM] [ BS] |
| Cost Check | A periodic estimate to give an up-to-date analysis of cost compared to progress on a design or construction work item. [D00387] | [ CCCP] |
| Cost Classes | Subdivision of the total scope of work in a project forming the project breakdown structure and to which costs are assigned. [D00388] | [ CCCP] |
| Cost Code | Unique identity for a specified element of work. Code assigned to activities that allow costs to be consolidated according to the elements of a code structure. [D04416] | [ APM] [ BS] |
| Cost Codes | Codes allocated to activities which allow costs to be consolidated according to the elements of the coding structure. [D03819] | [ PNG] |
| Cost Control | System for planning and following up disbursements in relation to budget. [D00389] | [ NPMT] |
| Cost Control | The processes of gathering, accumulating, analyzing, reporting and managing the costs on an on-going basis. Includes project procedures, project cost changes, monitoring actual versus budget, variance analysis, integrated cost/schedule reporting, progress analysis and corrective action. [D00390] | [ PMK87] |
| Cost Control | The discipline of reconciling planned and actual money figures to physical parts of the project. Cost control also involves careful treatment of changes (including claims), trend forecasting and authorization for payment. Cash flow forecasting is also a cost control function. [D03820] | [ PNG] |
| Cost Control | [RMWChk] Any system of keeping costs within the bounds of
budgets or standards based upon work actually performed. Editor's Note: Not just for the work actually performed to date but the updated estimated cost at completion. [D04624] |
[ QWF] |
| Cost Control Point | The point within a program at which costs are entered and controlled. Frequently, the cost control point for a program is either the cost account or the work package. [D00391] | [ WST] |
| Cost Control System | Any system of keeping costs within the bounds of budgets or standards based upon work actually performed. Cost Control is typically a level in the budget element breakdown structure. [D00392] | [ WST] |
| Cost Curve | A graph plotted against a horizontal time scale and cumulative cost vertical scale. [D03821] | [ PNG] |
| Cost Distribution | Usually refers to the distribution of overhead (indirect) costs on some logical basis, e.g. the time or cost of all associated direct cost activities. [D02581] | [ PD-U] |
| Cost Effective | Better value for money, or the best performance for the least cost. [D00393] | [ PMK87] |
| Cost Element | A unit of costs to perform a task or to acquire an item. The cost estimated may be a single value or a range of values. [D00394] | [ WST] |
| Cost Element | [RMWChk] A unit of costs, typically in the form of direct labor, direct materials, other direct costs, and indirect or burdened costs. [D04625] | [ QWF] |
| Cost Engineering | Technique for planning and controlling costs. [D00395] | [ NPMT] |
| Cost Envelope | The area bounded by a cost curve based on early start dates of activities and a cost curve based on late start dates of activities. [D03822] | [ PNG] |
| Cost Estimate | The expected costs to perform a task or to acquire an item. Cost estimates may be a single value or a range of values. [D04626] | [ QWF] |
| Cost Estimating | [RMWChk] The process of assembling and predicting the costs of a project. It includes economic evaluation, project investment cost and the prediction of future trends and costs. [D00396] | [ PMK87] |
| Cost Estimating | The process of predicting the costs of a project. [D00397] | [ WST] |
| Cost Estimating Relationship | A technique used to estimate a particular cost or price by using an established relationship with an independent variable. See also Parametric Estimating. [D03481] | [ GAT] |
| Cost Forecast | An estimate of an expected future expenditure. [D02582] | [ PD-U] |
| Cost Forecasting | The activity of predicting future trends and costs within the project duration. These activities are normally marketing oriented. However, such items as sales volume, price and operating cost can affect the project profitability analysis. Items that affect the cost management functions are: predicted time/cost, salvage value, etc. [D00398] | [ PMK87] |
| Cost Growth | The net change of an estimated or actual amount over a base figure previously established. [D02297] | [ DSMC] |
| Cost Incurred | Costs identified through the use of the accrued method of accounting or costs actually paid. Costs include direct labor, direct materials, and all allowable indirect costs. [D00399] | [ WST] |
| Cost Index | An offeror listing of all cost or pricing data and information accompanying or identified in a proposal for purposes of establishing a cost reference baseline for subsequent adjustments. [D03483] | [ PD-U] |
| Cost Indices | Tables of unit costs compiled on a regular basis that indicate cost trends, especially for estimating purposes. [D02583] | [ PD-U] |
| Cost Input | The cost, except general and administrative (G&A) expenses, which for contract costing purposes is allocable to the production of goods and services during a cost accounting period. [D03482] | [ GAT] |
| Cost Management | The function required to maintain effective financial control of the project throughout its life cycle. [D00400] | [ FWH] |
| Cost Management | The function required to maintain effective financial control of the project through the processes of evaluating, estimating, budgeting, monitoring, analyzing, forecasting, and reporting the cost information. [D00401] | [ PMK87] |
| Cost Management | [RMWChk] The effective financial control of the project through evaluating, estimating, budgeting, monitoring, analyzing, forecasting and reporting the cost information. [D00402] | [ WST] |
| Cost Model | Subdivides the total construction cost into costs for functional facility elements and systems, for example: Building Exterior Envelope. This leads to fewer sub-divisions than the UCI trade subdivisions, since several trades make up the typical enclosure. Useful in value management since it enables complete systems of various types to be compared in linear, square or cubic units of measure. [D00403] | [ CCCP] |
| Cost Model | [RMWChk] A tabulated presentation of logical element cost estimates summed to a total estimate for the whole. [D02298] | [ RMW] |
| Cost of Money | A form of indirect cost incurred by investing capital in facilities employed on government contracts. [D00404] | [ WST] |
| Cost of Quality | The cost of quality planning, control, assurance and rework. [D00405] | [ WST] |
| Cost of Quality | The costs incurred to ensure quality. The cost of quality includes quality planning, quality control, quality assurance, and rework. [D00406] | [ PMK96] |
| Cost of Quality | The total price of all efforts to achieve product or service quality. This includes all work to build a product or service that conforms to the requirements as well as all work that results from non-conformance to the requirements. The cost of quality is divided into internal, i.e. those costs associated with building the product or service, and external, i.e. the costs associated with the product or service after it leaves the originating activity or company. [D00407] | [ PMK87] [ QMPP] |
| Cost of Quality | [RMWChk] Those costs associated with:
Editor's Note: But it may include the cost of catch-up following rework. [D00408] |
[02 10-2] [ QMPP] |
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| Cost Overrun | The amount by which a contractor exceeds or expects to exceed the estimated costs, and/or the final limitations (the ceiling) of a contract. [D00409] | [ WST] |
| Cost Overrun | [RMWChk] The amount by which actual costs exceed the baseline or approved costs. [D02299] | [ RMW] |
| Cost Performance Baseline | See Cost Baseline. [D04362] | |
| Cost Performance Index ("CPI") | Ratio of work accomplished versus work cost incurred for a specified time period. The CPI is an efficiency rating for work accomplished for resources expended. [D00410] | [ WST] |
| Cost Performance Index ("CPI") | The ratio of budgeted costs to actual costs (BCWP/ACWP). CPI is often used to predict the magnitude of a possible cost overrun by dividing it into the original cost estimate (original cost estimate/CPI = projected cost at completion). See also earned value. [D00411] | [ PMK96] |
| Cost Performance Index ("CPI") | [RMWChk] The cost efficiency factor representing the relationship between the actual costs expended and the value of the physical work performed. [D04627] | [ QWF] |
| Cost Performance Indicator ("CPI") | The ratio of BCWP to ACWP. A positive value (i.e. greater than 1) indicates that costs are running under budget. A negative value(i.e. less than 1) indicates that costs are running over budget i.e. CPI = BCWP / ACWP [D02245] | [ PMST] |
| Cost Performance Measurement Baseline | The formulation of budget costs, measurable goals, (particularly time and quantities). for the purposes of comparisons, analysis and forecasting future costs. [D00412] | [ PMK87] |
| Cost Performance Ratio ("CPR") | See Cost Performance Indicator. [D02246] | |
| Cost Performance Report ("CPR") | A monthly cost report generated by the performing contractor to reflect cost and schedule status information for management. [D00413] | [ WST] |
| Cost Plan | [RMWChk] Sub divides the total project budget into meaningful cost classes each with its own related outline specification or scope. It provides the first principal frame of reference required for a valid cost control system. [D00414] | [ CCCP] |
| Cost Plan | A budget which shows the amounts and expected dates of incurring costs on the project or on a contract. [D04417] | [ APM] |
| Cost Plus | A form of contract for construction work in which the construction contractor is reimbursed for the costs it incurs in performing the work plus a lump sum or percentage fee; hence, cost-plus. This type of contract is favored where the scope of the work is indeterminate or highly uncertain and the kinds of labor, material and equipment needed are also uncertain. Under this arrangement complete records of all time and materials spent by the contractor on the work must be maintained. [D00433] | [ CCCP] |
| Cost Plus | See Cost Plus Fixed Fee and Cost Plus Incentive Fee Contracts. [D02584] | |
| Cost Plus Fixed Fee Contract ("CPFF") | A form of contractual arrangement in which the customer agrees to reimburse the contractor's actual costs, regardless of amount, and in addition pay a negotiated fee independent of the amount of the actual costs. [D00415] | [ SPM 304-9] |
| Cost Plus Fixed Fee Contract ("CPFF") | Provides reimbursement of allowable cost plus a fixed fee which is paid proportionately as the contract progresses. [D00416] | [ PMK87] |
| Cost Plus Fixed Fee Contract ("CPFF") | [RMWChk] A type of contract where the buyer reimburses the seller for the seller's allowable costs plus a fixed fee. [D00417] | [ WST] |
| Cost Plus Fixed Fee Contract | A cost-reimbursement contract that provides for payment to the contractor of a negotiated fee that is fixed at the inception of the contract. The fixed fee does not vary with actual cost, but may be adjusted as a result of changes in the work to be performed under the contract. This contract type permits contracting for efforts that might otherwise present too great a risk to contractors, but it provides the contractor only a minimum incentive to control costs. [D03486] | [ GAT] |
| Cost Plus Incentive Fee Contract ("CPIF") | A form of contractual arrangement similar to CPFF except that the fee is not preset or fixed but rather depends on some specified result, such as timely delivery. [D00418] | [ SPM 304-9] |
| Cost Plus Incentive Fee Contract ("CPIF") | Provides the supplier for cost of delivered performance, plus a predetermined fee as a bonus for superior performance. [D00419] | [ PMK87] |
| Cost Plus Incentive Fee Contract ("CPIFC") | [RMWChk] A type of Contract where the buyer reimburses the seller for the seller's allowable costs and the seller earns a profit if defined criteria are met. [D00420] | [ WST] |
| Cost Plus Incentive Fee Contract | A cost-reimbursement contract that provides for the initially negotiated fee to be adjusted later by a formula based on the relationship of total allowable costs to total target costs. This contract type specifies a target cost, a target fee, minimum and maximum fees, and a fee adjustment formula. After contract performance, the fee payable to the contractor is determined in accordance with the formula. [D03489] | [ GAT] |
| Cost Plus Percentage of Cost Contract ("CPPC") | Provides reimbursement of allowable cost of services performed plus an agreed upon percentage of the estimated cost as profit. [D00421] | [ PMK87] |
| Cost Reimbursable Contract | A contract that provides for payment of allowable incurred costs, to the extent prescribed in the contract. These contracts establish an estimate of total cost for the purpose of obligating funds and establishing a ceiling that the contractor may not exceed (except at its own risk) without the approval of the Contracting Officer. [D03490] | [ GAT] |
| Cost Reimbursement | Payment of direct costs and directly associated overhead costs, but without any allowance for profit. [D02585] | [ PD-U] |
| Cost Reimbursement Type Contracts | A category of contracts based on payments to a contractor for allowable estimated costs, normally requiring only a "best efforts" performance standard from the contractor. Risk for all growth over the estimated value rests with the project owner. [D00422] | [ WST] |
| Cost Reviews | Planned, systematic and rigorous reassessments of the estimated cost at completion of the scope of work in a cost class. Every design review should be accompanied by a reforecast of cost. See also Estimate to Complete. [D00423] | [ CCCP] |
| Cost Savings | An action that will result in a smaller than projected level of costs to achieve a specified objective. [D02300] | [ DSMC] |
| Cost Schedule Status Report ("C/SSR") | The low-end cost and schedule report generally imposed on smaller value contracts, not warranting full C/SCSC. [D00424] | [ WST] |
| Cost Sharing Contract | A contract that provides payment for only a share of allowable costs. Cost sharing contracts are often awarded to motivate development of new technologies. [D04058] | [ CSM] |
| Cost Status | See content under Scope Reporting. [D00425] | |
| Cost to Complete | The projected cost to complete the project from its present state. [D04057] | [ CSM] |
| Cost to Complete Forecast | A forecast by time periods for the completion of contractual tasks. Synonymous with "Estimate to Completion." [D04629] | [ QWF] |
| Cost Types | Four different cost types are typically associated with the
scope of work in a cost class. They reflect whether a cost is authorized,
contractually committed, spent or forecast for spending. These types are:
|
[ CCCP] |
| Cost Variance ("CV") | [RMWChk] The difference between the budgeted and actual cost of work performed. [D00427] | [ WST] |
| Cost Variance ("CV") |
|
[ PMK96] |
| Cost Variance ("CV") | The difference between BCWP and ACWP and shows how actual expenditure compares with the budget. This can be shown as a numeric difference, where positive values indicate costs running under budget and negative values indicate cost overruns. Can also be expressed by a percentage value such as: CV(%) = (BCWP-ACWP) x 100 / BCWP. [D02248] | [ PMST] |
| Cost-Benefit Analysis | An analysis, often stated as a ratio, used to evaluate a proposed course of action. [D00431] | [ OTOB 271-4] |
| Cost-Effectiveness | A systematic quantitative method for comparing the costs of alternative means of achieving the same stream of benefits or a given objective. [D03485] | [ GAT] |
| Cost-Time Resource Sheet ("CTR") | A document that describes each major element in the WBS, including a Statement of Work describing the work content, resources required, the time frame of the work element and a cost estimate. [D04418] | [ APM] |
| Cost/Benefit | A criterion for comparing programs, projects and alternatives when benefits can be valued in dollars. [D02295] | [ DSMC] |
| Cost/Schedule Control System Criteria ("C/SCSC") | A planning and control reporting system devised by the Department of Defense for its contractors to use, intended to foster greater uniformity as well as provide early insight into impending schedule or budget overruns. [D00429] | [ SPM 304-9] |
| Cost/Schedule Control System Criteria ("C/SCSC") | Thirty five defined standards which have been applied against private contractor management control systems since 1967 in order to insure the government that cost reimbursable and incentive type contracts are managed properly. [D00430] | [ WST] |
| Cost/Schedule Status Report ("C/SSR") | The low-end cost and schedule report generally imposed on smaller value contracts, not warranting full C/SCSC. [D04628] | [ QWF] |
| Costed Work Breakdown Structure | A work breakdown structure in which the costs corresponding to major elements of the WBS are also shown. [D00432] | [ SPM 304-9] |
| Costing | The process of determining actual costs from actual expenditures. The way costs are estimated and the way money is spent are rarely the same, making it necessary to analyze and redistribute actual costs to arrive at costs for estimating purposes. [D02586] | [ PD-U] |
| Costing Systems | Systems established to determine current costs and their trends up or down so that appropriate management action can be taken. Usually requires the setting of reference standards, often the first point of controversy. [D03054] | [ CCCP] |
| Counseling | The process of advising or assisting an individual concerning career plans, work requirements, or the quality of work performed. [D00434] | [ PMK87] |
| Countermeasures | Preventive actions that are chosen by the project team to reduce either scope or schedule risk. [D02191] | [ PMMJ97] |
Wideman Comparative Glossary of Common Project Management Terms, V2.1 is copyright by R. Max Wideman, March, 2002, http://www.maxwideman.com/pmglossary/