BACKCHARGE - Cost of corrective action taken by the purchaser, chargeable to supplier by contract terms. (June 2007) BACKUP - Supporting documents for an estimate or schedule including detailed calculations, descriptions of data sources, and comments on the quality of the data. (November 1990) BACKWARD PASS - Network schedule calculation that determines the latest each activity in the network may start (LS) and finish (LF) and still maintain the minimum overall duration of the project as calculated by the forward pass. It counts backward toward the beginning of the schedule to determine the last possible start and finish dates for each activity that will not delay project completion. See also: FORWARD PASS. (June 2007) BAR CHART - Graphic representation of a project that includes the activities that makes up the project and placed on a time scale. Bar charts are time scaled, show activity number, description, duration, start and finish dates, and an overall sequencing of the flow of work. Bar charts do not generally include the logic ties between activities. See also: GANTT CHART. (June 2007) BASE - Syn.: BASE ESTIMATE; BASE SCHEDULE. (December 2011) BASE DATE - Syn.: BASE TIME. (November 1990) BASE ESTIMATE - Estimate excluding escalation, foreign currency exchange, contingency and management reserves. Syn.: POINT ESTIMATE; SINGLE POINT ESTIMATE. See also: DETERMINISTIC ESTIMATE. (December 2011) BASE PERIOD (OF A GIVEN PRICE INDEX) - Period for which prices serve as a reference for current period prices; in other words, the period for which an index is defined as 100 (if expressed in percentage form) or as 1 (if expressed in ratio form). (November 1990) BASE POINT FOR ESCALATION - Cost index value for a specific month or an average of several months that is used as a basis for calculating escalation. (November 1990) BASE SCHEDULE - Schedule excluding risks (i.e., excluding contingency). (December 2011) BASE TIME - The date to which all future and past benefits and costs are converted when a present value method is used (usually the beginning of the study period). Syn.: BASE DATE. \[1\] (November 1990) BASELINE – (1)In project control, the reference plans in which cost, schedule, scope and other project performance criteria are documented and against which performance measures are assessed and changes noted. (2)The budget and schedule that represent approved scope of work and work plan. Identifiable plans, defined by databases approved by project management and client management, to achieve selected project objectives. It becomes basis for measuring progress and performance and is baseline for identifying cost and schedule deviations. Syn.: CONTROL BASELINE. (3)In earned value management systems, the general term to refer to the contractual baseline. See contract budget baseline and performance measurement baseline for the typical earned value management (EVM) definitions of the different baseline levels within the EVM baseline plan. See: CONTRACT BUDGET BASELINE (CBB); PERFORMANCE MEASUREMENT BASELINE (PMB). (October 2013) BASELINE SCHEDULE – (1)A fixed project schedule that is the standard by which project performance is measured. The current schedule is copied into the baseline schedule that remains frozen until it is reset. Resetting the baseline is done when the scope of the project has been changed significantly, for example after a negotiated change. At that point, the original or current baseline becomes invalid and should not be compared with the current schedule. (2)Version of schedule that reflects all formally authorized scope and schedule changes. \[9\] (June 2007) BASIS - Written documentation that describes how an estimate, schedule, or other plan component was developed and defines the information used in support of development. A basis document commonly includes, but is not limited to, a description of the scope included, methodologies used, references and defining deliverables used, assumptions and exclusions made, clarifications, adjustments, and some indication of the level of uncertainty. (June 2007) BATTERY LIMIT - Comprises one or more geographic boundaries, imaginary or real, enclosing a plant or unit being engineered and/or erected, established for the purpose of providing a means of specifically identifying certain portions of the plant, related groups of equipment, or associated facilities. It generally refers to the processing area and includes all the process equipment, and excludes such other facilities as storage, utilities, administration buildings, or auxiliary facilities. The scope included within a battery limit must be well-defined so that all personnel will clearly understand it. On drawings, this is often referred to in the phrase: inside/outside battery limits or ISBL/OSBL. See also: OFFSITES. (June 2007) BEGINNING EVENT - An event that signifies the beginning of an activity. Syn.: PRECEDING EVENT; PREDECESSOR EVENT; STARTING EVENT. (November 1990) BEGINNING NETWORK EVENT - The event that signifies the beginning of a network (or subnet). (November 1990) BEGINNING (START) NODE OF NETWORK (ADM) - A node at which no activities end, but one or more activities begin. (November 1990) BENCHMARKING - A measurement and analysis process that compares practices, processes, and/or relevant measures to those of a selected basis of comparison (i.e., the benchmark) with the goal of improving performance. The comparison basis includes internal or external competitive or best practices, processes or measures. Examples of measures include estimated costs, actual costs, schedule durations, resource quantities, etc. See also: COMPETITITVENESS. (November 2020) BENEFICIAL OCCUPANCY - Use of a building, structure, or facility by the owner for its intended purpose (functionally complete), although other contract work, nonessential to the function of the occupied section, remains to be completed. See also: SUBSTANTIAL COMPLETION. (November 1990) BENEFIT COST ANALYSIS - A method of evaluating projects or investments by comparing the present value or annual value of expected benefits to the present value or annual value of expected costs. \[1\] (November 1990) BENEFIT-TO-COST RATIO (BCR) - Benefits divided by costs, where both are discounted to a present value or equivalent uniform annual value. \[1\] (November 1990) BEST PRACTICES - Practical techniques gained from experience that have been shown to produce best results. (June 2007) BIASES - Lack of objectivity based on the enterprise’s or individual's position or perspective. Systematic and predictable relationships between a person's opinion or statement and his/her underlying knowledge or circumstances. Note: There may be "system biases" as well as "individual biases". (June 2007) BID - To submit a price for services; a proposition either verbal or written, for doing work and for supplying materials and/or equipment. (November 1990) BID BOND - Syn.: BOND, BID. (June 2007) BIDDER - The individual, partnership, or corporation, or combination thereof, acting directly or through an authorized representative, formally submitting a bid directly to the owner, as distinct from a sub-bidder, who submits a bid to a bidder. (November 1990) BID SECURITY - Security is provided in connection with the submittal of a bid to guarantee that the bidder, if awarded or offered the contract, will execute the contract and perform the work. The requirements for the bid security are usually designated in a specific section of the bidding documents. The bid security is payable to the owner (usually around 5% of the total bid price) in the form of either a certified or bank check or a bid bond issued by a surety satisfactory to the owner. The bid security of the successful bidder is usually retained until the bidder has executed the agreement and furnished the required contract security, whereupon the bid security is returned. Bid security of the other bidders is returned after the bid opening. (November 1990) BID SHOPPING - An effort by a prime contractor to reduce the prices quoted by subcontractors and/or suppliers, by providing the bid price to other subcontractors or suppliers in an attempt to get the other subcontractors or suppliers to underbid the original price quoted. The reverse of this situation is when subcontractors try to get a better price out of a prime contractor. This is known as bid peddling. (November 1990) BIDDING DOCUMENTS - The advertisement for bids, instructions to bidders, information available to bidders, bid form with all attachments, and proposed contract documents (including all addenda issued prior to receipt of bids). (November 1990) BIDDING REQUIREMENTS - The advertisement for bids, instructions to bidders, supplementary instructions and all attachments therein, information to bidders and all attachments therein, and bid form and all attachments therein. (November 1990) BILL OF MATERIALS (BOM) – (1)Set of physical elements required to build a project. (2)Hierarchical view of the physical assemblies, subassemblies, and components needed to fabricate a manufacturing product. (3)Descriptive and quantitative list of materials, supplies, parts, and components required to produce a designated complete end item of materials, assembly, or subassembly. See also: BILL OF QUANTITITES (BOQ) \[8\] (June 2007) BILL OF QUANTITIES (BOQ) − Descriptive and quantitative list of materials, supplies, parts, and components required to produce a designated complete end item of materials, assembly, or subassembly. Typically includes a description of the associated “method of measurement”. See also: BILL OF MATERIALS (BOM); METHOD OF MEASUREMENT. (June 2007) BLANKET BOND - A bond covering a group of persons, articles, or properties. (November 1990) BOND, BID - A bond that guarantees the bidder will enter into a contract on the basis of the bid. (June 2007) BOND, PAYMENT - A bond that is executed in connection with a contract and which secures the payment of all persons supplying labor and material in the prosecution of the work provided for in the contract. (November 1990) BOND, PERFORMANCE - A bond that is executed in connection with a contract and which secures or guarantees the completion, performance and fulfillment of all the work, undertakings, covenants, terms, conditions, and agreements contained in the contract. (June 2007) BONDS - Instruments of security furnished by the contractor and/or surety in accordance with the contract documents. The term contract security refers to the payment bond, performance bond and those other instruments of security required in the contract documents. (November 1990) BOOK VALUE (NET) – (1)Current investment value on the books calculated as original value less depreciated accruals. (2)New asset value for accounting use. (3)The value of an outstanding share of stock of a corporation at any one time, determined by the number of shares of that class outstanding. (November 1990) BOTTOM-LINE - Ambiguous term that in TCM cost estimating or risk management typically refers to the total overall cost or profit of a project or program. In TCM decision analysis, may refer to a stakeholder’s threshold or decision- making criterion beyond which a decision not-to-proceed, approve, or accept will be made. (December 2011) BRAINSTORMING - Process in which a group of people, selected for their creativity and knowledge, are brought together to seek solutions to particular problems or simply to find better ways of meeting objectives. Suggestions, however outlandish, are encouraged and pursued during a creativity session. From this, many ideas, some entirely new, are brought forward for analysis and ranking. (June 2007) BREACH OF CONTRACT - Failure, by either the owner or the contractor, without legal excuse, to perform any work or duty owed to the other person. (November 1990) BREAKDOWN STRUCTURE - A hierarchical structure by which project elements are broken down or decomposed. See also: COST BREAKDOWN STRUCTURE (CBS); ORGANIZATIONAL BREAKDOWN STRUCTURE (OBS); WORK BREAKDOWN STRUCTURE (WBS). (June 2007) BREAKEVEN CHART - A graphic representation of the relation between total income and total costs for various levels of production and sales indicating areas of profit and loss. (November 1990) BREAKEVEN POINT – (1)In business operations, the rate of operations output, or sales at which income is sufficient to equal operating costs or operating cost plus additional obligations that may be specified. (2)The operating condition, such as output, at which two alternatives are equal in economy. (3)The percentage of capacity operation of a manufacturing plant at which income will just cover expenses. (November 1990) BREAKOUT SCHEDULE - Jobsite schedule, generally in bar chart form, used to communicate day-to-day activities to all working levels on the project as directed by construction manager. Detail information with regard to equipment use, bulk material requirements, and craft skills distribution, as well as the work to be accomplished, forms content of schedule. Issued on a weekly basis with a two to three-week look ahead from the issue date. (June 2007) BROWNFIELD – (1)A project that has known constraints imposed by prior work. (2)In construction, work on a site that has been previously developed or may be contaminated. See also: GREENFIELD. (October 2018) BUDGET - A planned allocation of resources. The planned cost of needed materials is usually subdivided into quantity required and unit cost. The planned cost of labor is usually subdivided into the workhours required and the wage rate (plus fringe benefits and taxes). (November 1990) BUDGET AT COMPLETION (BAC) - The summation of time phased costs at any work breakdown structure (WBS) level. In earned value management according to the ANSI EIA 748 standard, all levels have BAC including work packages, planning packages, summary planning packages, performance management baseline (PMB), management reserve (MR), undistributed budget (UB), and contract budget baseline (CBB). (October 2013) BUDGET ESTIMATE - An estimate generally prepared to form the basis for authorization and/or appropriation of funds. See also: COST ESTIMATE CLASSIFICATION SYSTEM, CLASS 3 ESTIMATE. (May 2012) BUDGETED COST OF WORK PERFORMED (BCWP) - Syn.: EARNED VALUE (EV). (October 2013) BUDGETED COST OF WORK SCHEDULED (BCWS) - Syn.: PLANNED VALUE (PV). (October 2013) BUDGETING - A process used to allocate the estimated cost of resources into cost accounts (i.e., the cost budget) against which cost performance will be measured and assessed. Budgeting often considers time-phasing in relation to a schedule and/or time-based financial requirements and constraints. (January 2003) BULK MATERIAL - Material bought in lots. These items can be purchased from a standard catalog description and are bought in quantity for distribution as required. Examples are pipe (non-spooled), conduit, fittings, and wire. (November 1990) BURDEN – (1)In construction, the cost of maintaining an office with staff other than operating personnel. Also includes federal, state and local taxes, fringe benefits and other union contract obligations. In manufacturing, burden sometimes denotes overhead. (2)In earned value, this is a broad term that refers to all non-direct costs including overheads, general & administrative, and cost of money as applicable. The common characteristic of a burden is the cost is expressed as a rate on top of the direct costs. (October 2013) BURDEN OF PROOF - The necessity of proving the facts in a dispute on an issue raised between the owner and the contractor. In a claim situation, the burden of proof is always on the person filing the claim. This is true whether the contractor is claiming against the owner, or the owner is making a claim against the contractor. (November 1990) BURN RATE - Rate at which resources such as funds or man-hours are or were being expended on a project. (June 2007) BUSINESS PLANNING - The determination of financial, production and sales goals of a business organization; and the identification of resources, methods, and procedures required to achieve the established objectives within specified budgets and timetables. (November 1990) BUSINESS CASE - Defines a project’s or other investment’s justification for business decision making purposes. Depending upon the business’ decision-making criteria, it typically includes an outline of objectives, deliverables, time, cost, technical, safety, quality and other attributes in respect to how the project or investment addresses the objectives and requirements of the business. May include information on project risks (either threats or opportunities), competitive impact, resource requirements, organizational impacts, key performance indicators (particularly profitability) and critical success factors. (June 2007)