ARE 5.0: CE key terms

The complete set of drawings, specifications, and bidding documents issued to contractors so each can prepare a comparable price. A well-organized package ensures every bidder prices the same scope of work.

A meeting held before bids are due where the owner and architect explain the project and answer contractors' questions. The discussion is usually documented in an addendum so all bidders receive the same information.

A written modification to the bidding documents issued before the bid deadline. It may clarify, correct, or change the drawings or specifications, and bidders must acknowledge it in their proposal.

A surety's guarantee that a bidder will honor its proposal and sign the contract if selected. If the bidder walks away, the owner may claim the bond, usually a percentage of the bid amount.

A surety's promise to pay for completion of the work if the contractor defaults. It protects the owner up to the bond amount, typically the full contract sum.

A surety's promise to pay subcontractors, suppliers, and laborers if the contractor fails to pay them. It protects the owner from mechanic's liens filed against the property.

A process in which the owner screens contractors for experience, financial capacity, and past performance before allowing them to bid, reducing the risk of awarding work to an unqualified firm.

Defined optional changes to the base bid, such as adding or deleting a scope item, priced separately by bidders. The owner then selects the combination that best fits the budget.

A stated amount in the contract for work that cannot be fully defined at bid time. The contractor prices it later, and the contract sum is adjusted to reflect the actual cost.

A structured review that looks for lower-cost ways to achieve the same function and performance. Suggestions are adopted through the proper approval process, not by unilateral contractor action.

An early review of drawings and specifications by people who build, looking for details that are hard to construct, unclear, or likely to cause conflicts, so problems are resolved before bidding.

A contract ceiling the contractor promises not to exceed, with savings above it typically shared with or returned to the owner. Costs above the cap are generally the contractor's risk.

A pre-agreed amount the contractor pays the owner for each day of late completion, intended to approximate the owner's actual losses rather than to punish the contractor.

The architect's periodic visits to the site to check that the work generally conforms to the contract documents. It is not continuous supervision and does not guarantee the contractor's work.

A written record of each site visit describing progress, weather, workforce, tests, and any observed deviations. It becomes part of the project file and supports later decisions.

A full-size sample of a construction assembly or finish built on site for review and approval before the work proceeds, establishing the standard that the rest of that work must match.

An inspector hired by the owner, often for structural, welding, or fireproofing work, who performs tests and observations outside the architect's normal scope and reports results in writing.

Work that does not meet the contract documents. The architect documents it, the contractor must correct it, and the owner is not obligated to accept it or pay for it.

The owner's use of a completed portion of the project before substantial completion. It may shift certain responsibilities, such as utilities and insurance, from the contractor to the owner.

Information the contractor sends to the architect for review, such as shop drawings, product data, and samples, showing how the contractor intends to meet the design requirements.

A detail drawing prepared by a contractor, fabricator, or supplier showing how a component will actually be made and installed, used for coordination and for the architect's review.

A contractor's formal proposal to use a product or method different from what the specifications name, which the architect evaluates for equivalence and either approves or rejects.

A written request asking the architect to clarify or interpret the contract documents. Responses are logged and may lead to a change order or supplemental instruction if cost or time is affected.

A written instruction from the architect that clarifies or interprets the contract documents. It does not change the contract sum or contract time unless a change order later does so.

A written, signed agreement among owner, contractor, and architect that modifies the contract sum, the contract time, or the scope of the work.

A written instruction from the owner, prepared by the architect, ordering a change before the parties agree on price and time. Costs are documented later and formalized in a change order.

The contractor's periodic request for money, supported by a schedule of values, showing work completed and materials stored, subject to architect certification and owner approval.

An itemized breakdown of the contract sum allocating value to each portion of the work. It supports progress payments and shows how much each phase is worth.

A percentage held back from each payment until the work is substantially or finally complete, giving the owner leverage to ensure remaining items are finished. It is often reduced at substantial completion.

A document in which a contractor or subcontractor gives up the right to file a mechanic's lien for a stated amount, usually exchanged for a payment and conditioned on funds clearing.

The stage when the work, or a designated portion, is sufficiently complete for its intended use so the owner can occupy it. It starts warranty periods and shifts certain risks to the owner.

A list of incomplete or defective items identified near the end of construction, which the contractor agrees to finish or correct before final completion and final payment.

Drawings the contractor marks up to show actual installed conditions, including changes, concealed work, and field adjustments, then delivers to the owner at closeout.

Written materials from the contractor describing how to operate, clean, and maintain the installed systems and equipment, along with parts lists and warranties, delivered to the owner at closeout.

The contractor's or manufacturer's written promise to repair or replace defects in materials or workmanship for a stated period after substantial completion, excluding damage from misuse or normal wear.

The last payment to the contractor after all closeout requirements are met, including final inspection, lien waivers, and consent of surety, releasing the remaining retainage.

A structured review, conducted after the building has been in use for a while, of how well it serves occupants and the owner, feeding lessons into future projects and correction decisions.

A systematic process of verifying that building systems and assemblies perform as designed and as the owner needs, documented in reports and carried through to operator training at handover.

The architect's last review of the site, made with the contractor and often the owner, to confirm the punch list is complete and the work is ready for final payment.