acceptance: agreeing to a contractor's tender offer and creating a binding contract;

accounting officer: the chief office bearer or appointed chief executive ultimately responsible for the administration of the institution.  In a government department, this will be the Director General or Head of Department, in local government, this will be the Municipal Manager, and in other public entities, this will be the chief executive officer (CEO) or similar;

activity description: a statement specifying what must be done to achieve a desired result;

activity-on-arrow: a network diagram showing sequence of activities, in which each activity is represented by an arrow, with a circle representing a node or event at each end;

activity-on-node: a network where activities are represented by a box or a node linked by dependencies;

activity schedule: document or pricing strategy that breaks down the scope of work into a series of activities to allow contractors to be paid a lump sum upon the completion of each of the activities;

actual cost: incurred costs that are charged to the project budget and for which payment has been made, or accrued;

actual cost of work performed: total costs incurred (direct and indirect) in accomplishing work during a given time period. ACWP is used in the earned value method of progress measurement. See also earned value analysis;

actual data: data that occurred after the start date of your project plan;

actual finish date: the calendar date that work actually ended on an activity. It must be prior to or equal to the data date. The remaining duration of this activity is zero;

actual start date: the calendar date work actually began on an activity. It must be prior to or equal to the data date;

advance payment: sum of money paid by an employer to the contractor after the contract is signed, but before any work starts or goods or services are supplied;

adjudication: a form of dispute resolution that unlike other means of resolving disputes involving a third party intermediary, such as conciliation or mediation, the outcome is a decision by a third party which is binding on the parties in dispute. Normally the outcome would be negotiated by the parties concerned, the third party is only a referee in the process;

adjudicator: the third party intermediary appointed to resolve a dispute between the parties in dispute by the process of adjudication; 

agent: a natural or juristic person who is not an employee of the institution / employer who acts on the institution's / employer's behalf;

approval: authorization give by the appropriate level of authority of a stage reached within the delivery management cycle, normally of a particular milestone, which provides authorization to proceed with further activities and commitments;

approval levels: for clarity of responsibilities and delegations, four levels of approval have been defined within the delivery management system, which denote responsibility for approval at the appropriate level within the authority and management hierarchy. The levels defined are:

Level 1 - Controlling Authority - in terms of the PFMA the Minister of a Department or Provincial MEC or Municipal Council or Board of a SOE
Level 2 - Controlling Executive - the Accounting Officer of a Department, Municipal Manager in a municipality or CEO in a SOE. This can also comprise a high level committee within an organization assigned specific authorities e.g. a procurement committee
Level 3 - Senior Management - management or a committee to whom specific delegation of authority has been given
Level 4 - Project Management at a project level assigned to the project manager as principle agent of a client within a construction contract;

arbitration : a method of resolving disputes between two or more parties by reference to one or more persons appointed for that purpose, in accordance with procedures laid down in the Arbitration Act 42 of 1965;

arrow diagramming method: a network diagramming technique in which activities are represented by arrows. The tail of the arrow represents the start and the head represents the finish of the activity (the length of the arrow does not represent the expected duration of the activity). Activities are connected at points called nodes (usually drawn as small circles) to illustrate the sequence in which the activities are expected to be performed. See also precedence diagramming method;

"as built "drawings: see record drawings;

baseline: minimum starting point of a project used for comparing the performance of a project as delivery progresses;

best practice contractor recognition scheme: a best practice recognition scheme referred to in section 21 of the Construction Industry Development board Act (Act 38 0f 2000);

best practice project assessment scheme: a best practice project assessment scheme referred to in section 23;

bid: see tender offer;

bidder: see tenderer;

bidding package: see procurement document;

bills of quantities: document or pricing strategy that lists the items of work and the quantities and rates associated with each item to allow contractors to be paid at regular intervals an amount equal to the agreed rate for the work multiplied by the quantity of work completed; 

Board: the Construction Industry Development Board;

bond: sum of money or securities submitted to the employer or placed in the hands of a third party to guarantee completion of the work and recovery of the sums which the contractor would be recognised as owing in terms of the contract;

budget at completion: the sum of all budgets allocated to a project (BAC). It is synonymous with the term "Performance Measurement Baseline;

budgetary allowance: see prime cost sum;

budgeted cost of work performed: the sum of the budgets for completed portions of in-process work, plus the appropriate portion of the budgets for level of effort and apportioned effort for the relevant time period. BCWP is commonly referred to as Earned Value;

budgeted cost of work scheduled: the sum of the budgets for work scheduled to be accomplished (including in-process work), plus the appropriate portion of the budgets for Level of Effort and apportioned effort for the relevant time period (BCWS);

category of works: construction works which may be categorised as being one of the following:

1. general building works;
2. civil engineering works;
3. electrical engineering works;
4. mechanical engineering works; or
5. specialist works;

centres of excellence: flagship state entity that is committed to and is implementing good delivery management principles in line with the Toolkit;

change control board: a formally constituted group of stakeholders responsible for approving or rejecting changes to the project baselines;

contractor grading: a designation in a categorization system that indicates the capability that a contractor has to perform a contract in a specified tender value range in a particular category of works;

comparative offer: the tenderer's financial offer after the factors of non-firm prices, all unconditional discounts and any other tendered parameters that will affect the value of the financial offer have been taken into consideration;

completion (practical completion): state of readiness for occupation of the whole of the works although some minor work may be outstanding;

completion certificate: document which certifies completion of the works;

completion of defects certificate: document issued after the end of the defects liability period that certifies that defects have been made good;

conditions of contract: terms that collectively describe the rights and obligations of contracting parties and the agreed procedures for the administration of their contract;

conditions of tender: a document that establishes a tenderer's obligations in submitting a tender and the employer's undertakings in soliciting and evaluating tender offers;

construction industry:  the broad conglomeration of industries and sectors which add value in the creation and maintenance of immovable assets within the built environment;

construction industry development: the broad process /mechanism for ensuring that South Africa has sufficient capacity to service its building and engineering infrastructure needs in pursuit of a better life for all and an ability to export any surplus capacity it may have from time to time;

Construction Industry Development Board (cibd):

1. the board established in terms of section 2 of Construction Industry Development board Act (Act 38 0f 2000);
2. the Construction Industry Development Board including the Board and the executive (i.e. officials employed by the cibd);

construction management: a project delivery system that uses a construction manager to facilitate the design and construction of a project by organizing and directing labour , materials, and equipment to accomplish the purpose of the designer. A professional service that applies effective management techniques to the planning, design, and construction of a project from inception to completion for the purpose of controlling time, cost and quality;

construction registers: the construction registers service which the cibd provides to the clients and the industry including a register of contractors and of projects;

contract: a legally enforceable agreement between an institution/ employer  and a contractor;

contract administration: managing the relationship with the contractor;

contract data: document that states the applicable conditions of contract and associated contract-specific data that collectively describe the risks, liabilities and obligations of the contracting parties and the procedures for the administration of the contract;

contract document: document represent all executed agreements between the owner and contractor, any general, supplementary or other contract conditions, the drawings and specifications, all bidding documents less bidding information plus pre-award addenda issued prior to execution of the contract and post-award change orders, and any other items specifically stipulated as being included in the contract documents, which collectively form the contract between the contractor and the owner;

contract participation goal: a percentage of the value of the contract which represents the inputs of targeted enterprises and/or targeted labour in the performance of the contract;

contract strategy: the strategy which is adopted to procure supplies, services, or engineering and construction works, to hire or let moveable or immovable assets, to undertake disposals, or to operate concessions in the most advantageous and cost effective manner;

contract sum: sum stated in the contract for the execution of the work;

contractor: a natural or juristic person or partnership who contracts with an institution to perform work;

contracting strategy: the strategy which is adopted to procure supplies, services, or engineering and construction works, to hire or let moveable or immovable assets, to undertake disposals, or to operate  concessions in the most advantageous and cost effective manner;

contractor grading: a designation in a categorization system that indicates the capability that a contractor has to perform a contract in a specified tender value range in a particular category of works;

contractual claim: claim the settlement of which is provided for within the terms of the contract;

control account plan (previously called cost account plan): the management control unit in which earned value performance measurement takes place;

controlling authority: any institution having powers of approval or sanction relating to a project or any component thereof;

corrupt practice: the offering, giving, receiving or soliciting of anything of value to influence the action of  the employer or his staff or agents in the tender process;

cost: amount paid (or to be paid) by the employer for supplies, services or works;

cost control: monitoring costs for comparison with the project budget in order that control decisions can be taken;

cost performance index: the cost efficiency factor representing the relationship between the actual costs expended and the value of the physical work performed;

cost planning: cost control during the design process;.

cost plus contract: contract based on expended costs;

cost plus fixed fee: 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;

cost plus incentive fee: 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;

cost reimbursable: a pricing strategy in terms of which the  contractor is paid an agreed percentage fee to cover his overheads and profit and is reimbursed at market related rates for predefined  cost items;

cost variance: the difference between the budgeted and actual cost of work performed;

critical path method: a technique used to predict project duration by analyzing which sequence of activities has the least amount of scheduling flexibility. Early dates are figured by a forward pass using a specific start date and late dates are figured by using a backward pass starting from a completion date;

data date: the calendar date that separates actual (historical) data from scheduled data;

day work: work carried out as part of a contract and paid for on the basis of actual cost to the contractor of labour, materials and plant, plus an agreed percentage to cover overhead charges and profits;

defect: nonconformity of an item to a specified requirement;

defects liability period: period from completion during which the contractor has an obligation to make good defects in the materials and workmanship covered by the contract that are indicated by the employer or his representative;

deliverable:

1. any measurable, tangible, verifiable outcome, result or item that must be produced or completed;
2. specific output that is expected to result within each strategic objective i.e. measurable objective;

delivery management:

1. the management of the administration of the  process of infrastructure and public service delivery;
2. the management of the process of public service delivery as applied to infrastructure and maintenance projects;

demand management: involves creative intervention in the market to influence demand for services and infrastructure with forecasted consequences;

design and build: a contracting strategy whereby the contractor undertakes most of the design and all construction in accordance with the employer's brief and his detailed tender submission, usually for a lump sum price;

design by employer: a contracting strategy in terms of which the contractor undertakes only construction on the basis of full designs issued by the employer;

develop and construct: a contracting strategy similar to design and build, except that the employer issues a concept design on which tenders are based;

direct financial premium: the difference between the financial offer of the lowest acceptable financial offer received and the offer which receives the highest number of tender evaluation points in terms of the goal/price mechanism and which is awarded the contract by the contracting authority;

disposal:  the divestiture of assets, including intellectual property and other rights and goodwill by any means, including sale, rental, lease, license, tenancy, franchise, auction or any combination thereof;

domestic subcontractor: subcontractor appointed by the main contractor at his discretion;

drawing: information presented in a graphical manner that may include annotations;

duration: the length of time needed to complete an activity;

early finish date: in the critical path method, the earliest possible date on which the uncompleted portions of an activity (or the project) can finish based on the network logic and any schedule constraints. Early finish dates can change as the project progresses and changes are made to the project plan;

early start date: in the critical path method, the earliest possible date on which the uncompleted portions of an activity (or the project) can start based on the network logic and any schedule constraints. Early start dates can change as the project progresses and changes are made to the project plan;

earned value: a measure of the value of work performed so far. Earned value uses original estimates and progress-to-date to show whether the actual costs incurred are on budget and whether the tasks are ahead or behind the baseline plan;

earned value analysis: a measure of the project's progress, forecasting its completion date and final cost. A provision of schedule and budget variances along the progress of a project;

earned value management: a management technique that relates resource planning to schedules and to technical cost and schedule requirements. All work is planned, budgeted, and scheduled in time-phased increments constituting a cost and schedule measurement baseline;

emerging enterprise: an enterprise which is owned, managed and controlled by black persons and which is overcoming business impediments arising from the legacy of apartheid;

emerging sector:  that sector of the construction industry which comprises emerging enterprises;

employer: natural or juristic person or partnership entering into the contract with the contractor for the provision of supplies, services, or engineering and construction works;

employment-intensive: a generic expression that is used to describe strategies, programmes, projects, activities and assets which will promote direct, short-term or long-term employment generation at the highest possible level;

engineering and construction works: the provision of a combination of supplies and services, arranged for the development, extension, installation, repair, maintenance, renewal, removal, renovation, alteration, dismantling or demolition of structures, including building and engineering infrastructure;

estimate at completion: actual cost of work completed to date plus the predicted costs and schedule for finishing the remaining work;

estimate to complete: the value expressed in either dollars or hours developed to represent the cost of the work required to complete a task. The ETC is calculated as BAC - BCWP;
Executive Authority:

1. in relation to a constitutional institution consisting of a body of persons (e.g. a board of directors), means the chairperson on the constitutional organization.
2. in relation to a constitutional institution with a single office bearer (e.g. a government department or municipality), means the incumbent of that office (e.g. the Minister, MEC or Executive Mayor);

expenditure per unit of employment generated: the ratio of the total construction cost, including any management fees directly related to construction activities, to the total employment opportunities that are generated in the construction and maintenance of infrastructure;

expression of interest: documentation used to register a respondent's interest in undertaking a specific contract or to participate in a project or programme and to obtain their credentials so they may, in terms of the institution's procurement procedures, be invited to submit a tender offer should they qualify to do so;

extension of time: allowance of extra time for a delay occasioned by causes outside of a contractor's control and not included in his risks;

feasibility report: document reporting on the technical, social, environmental and economic implications of a proposed project;

final sum: total sum in the final account;

finish-to-start: a dependency between two project activities or between a project activity and a milestone;

firm price contract: contract in which the price cannot be amended despite changes in economic conditions;

Note: The final sum in a firm price contract may vary from the tendered sum or contract amount due to changes in the quantum of work executed or supplies delivered.  It may not, however, be varied due to currency fluctuations , the rise or fall of material and fuel  prices, consumer inflation etc.

final account: a document that states the cost of the total work carried out and the total payment to be made in terms of the contract, as accepted by the parties;

fixed price contract: contract in which the contract sum is given in the tender or is based on  bills of quantities;

fixed-price-incentive-fee: provides the supplier with a fixed price for delivered performance plus a predetermined fee for superior performance;

force majeure: event that is unforeseeable, insurmountable and outside the influence of the parties to a contract and prevents a contractor fulfilling his obligations either in part or in full;

forms of offer and acceptance: documents that formalize the legal process of offer and acceptance;

forms of securities: documents that provide for the securities required by the employer;

forms for adjudicator appointments: documents that establish the terms and conditions  upon which the adjudicator is to be appointed;

fraudulent practice: a misrepresentation of the facts in order to influence the tender process  or the execution of  a contract arising from a tender offer to the detriment of the employer, including collusive practices intended to establish prices at an artificial level;

free float or finish-to-finish: the maximum amount by which an activity can be delayed beyond its early dates without delaying any successor activity beyond its early dates;

function: a designated duty or particular activity or operation performed in response to a process, procedure or aspect thereof;

goal/price mechanism: system of tender evaluation which measures value for money in terms of the financial offer and goals emanating from a preferential procurement policy by awarding tender evaluation points for price and for under-takings to attain contract participation goals in the performance of a contract for the status of an enterprise in terms of specific parameters;

good practice agents: built environment professionals from the private sector contracted to assist departments in the roll out of the toolkit;

graphical evaluation and review technique: a network analysis technique that allows for conditional and probabilistic treatment of logical relationships (i.e., some activities may not be performed);

handover: process of handing over the work at the site to the client upon completion, without reservation;

IDP: Integrated Development Plan as implied in the Municipal Systems Act and Municipal Structures Act;

implementing agent: an agent appointed by a sponsoring department/SOE to implement a infrastructure/maintenance programme on behalf of the sponsor. The implementing agent may be another department (for example public works implementing on behalf of Health who is the sponsoring department) or another agent for example the Independent Development Trust;

infrastructure: in the context of the Toolkit means any building, construction or engineering works constructed for the betterment of the built environment and includes maintenance works;

infrastructure programme: in the context of this toolkit means a programme or portfolio of infrastructure and/or maintenance projects which are implemented by departments/SOE in terms of their infrastructure and maintenance objectives;

Note: The term is not used to describe the departmental programmes (i.e. business units and associated budgets) as defined within the strategic plans of departments;

infrastructure programme implementation plan (IPIP): (also referred to as an infrastructure programme business plan) which sets down how the infrastructure/maintenance programme will be formulated, planned, managed and implemented. It includes the following elements: objectives, targets, institutional framework, contracting arrangements, programme management structure, budgets and cash flows , timeframes, communications, monitoring and reporting, risk and quality management;

institution: a  public body i.e. a department, trading entity, constitutional institution, municipality, public entity or municipal entity;

interim certificate: document that authorises payments to be made for work executed or materials supplied up to a given date;

interim payment: payment as per the interim certificate that results from an interim valuation;

interim valuation: interim statement agreed between the parties of the total value of work carried out at a certain date and sums to be paid;

instructions: requirements by the employer or his representative, made or confirmed in writing to the contractor, regarding the carrying out of the contract;

invitation for bid: similar to a request for proposal, but often with a more specific application area;

IPIP: see infrastructure programme implementation plan;

joint venture: means a grouping together two or more contractors who jointly and severally undertake to perform an engineering and construction works contract;

KPI : key performance indicator used to measure performance and achievement of an objective or result, also referred to as OVI standing for objectively verifiable indicators by some funders;

labour: all persons involved in physical construction work;

labour-based: in relation to the production process and technologies used in the production of goods and materials and in construction works, means methods of production and technologies that are designed and managed so as to promote the creation of employment with predetermined socio-economic benefits;

labour-only contract: contract for the supply of labour;

late finish date: in the critical path method, the latest possible date that an activity may be completed without delaying a specified milestone (usually the project finish date);

late start date: in the critical path method, the latest possible date that an activity may be begun without delaying a specified milestone (usually the project finish date);

level of effort: an activity that does not readily lend itself to measurement of discreet accomplishment. It is generally characterized by a uniform rate of activity over a specific period of time;

life cycle costing: the concept of including acquisition, operating and disposal  costs when evaluating various alternatives;

liquidated damages: sum deducted under the contract from the total of payments due in the event of any delay with regard to contractual obligation;

list of returnable documents: document that lists everything the employer requires a tenderer to submit with his tender submission;

litigation: the system by which the advocates representing each side adduce arguments in a court of law to persuade the tribunal (judge, jury or assessors) that they have the better legal case;

lump sum contract: fixed price contract based on a single tendered amount;

main contractor: a contractor acting as an employer by subcontracting part of his contract;

maintenance: in the context of the Toolkit means the refurbishment and repair of infrastructure;

maintenance manual: document that contains advice on the care and servicing requirements of engineering and construction works;

management contract: a contracting strategy in terms of which a management contractor is appointed to engage and manage a number of trade contractors to carry out construction on the basis of designs issued by the employer, as and when they are completed;

Note:  The trade contracts in a management contract are between the management contractor and the various trade contractors.

measurable objectives: (or deliverables) identify very specific things that an organization intends to do or deliver in order to achieve its strategic objectives and ultimately its strategic goals. For the purpose of the strategic planning process described in this toolkit, measurable objectives need to comply with the SMART principle, i.e. objectives need to be specific, measurable, achievable, relevant and time-bound.

measured work: details of the quantities and descriptions of the works to be carried out or already carried out;

MEC: Member of the Executive Council;

mediation: a form of dispute resolution involving a third party intermediary which is intended to produce an agreement or conciliation between the parties to a contract;
method of verification: method for confirming, substantiating and ensuring that an activity or condition has been implemented in conformity with specified requirements;

Medium Term Expenditure Estimates (MTEE): expenditure estimates contained in the Medium Term Expenditure Framework;

Medium Term Expenditure Framework (MTEF): a document which details 3-year rolling expenditure and revenue plans for national and provincial tiers of government;

MTEF: Medium Term Expenditure Framework;

MFMB: Municipal Finance Management Bill which will eventually guide financial management for local government;

milestone: a significant event in the delivery management cycle, usually the completion of a major or critical deliverable;

monitoring: the capture, analysis and reporting of performance, usually compared to plan or targets;

nominated subcontractor: a subcontractor nominated by the employer which the contractor is obliged to appoint as a subcontractor;

nominal: money term that includes inflation - "What you see is what you get";

non-firm price contract: contract in which the prices are amended to reflect changes in economic conditions;

official: an employee of the institution who acts on the institution's behalf;

operational manual: document that contains instruction and advice on the use of equipment;

organ of state: see institution;

organization(al) breakdown structure: a hierarchical structure designed to pinpoint the area of an organization responsible for each part of a project (OBS);

OVI: see KPI;

partnering: the extension of the practice of common sense team working into a formal structure agreed to by the parties;

partnering departments: willing and committed partners i.e. departments who wish to enhance their capacity with respect to management of infrastructure delivery and implement the toolkit to bring about such improvements;

party:  either of the organisations that have entered into a contract for the provision of supplies, services or engineering and construction works;

percent complete: an assessment of how far along a task has progressed as a percentage of its total duration. As the assessment is very often subjective, it should not be relied upon as a firm basis for quantitative analysis of a project's progress. A better approach is the use of Earned Value Analysis;

performance measurement baseline: a project's realistic executable contract plan (PMB);

performance monitoring: continuous or periodic quantitative assessment of the actual performance compared with specific objectives, targets or standards;

permanent works: permanent work to be executed under the contract;

permissible deviation: the specified limit(s) of deviation within which a size or position must lie;

PFMA: Public Finance Management Act, no 1 of 1999 which guides financial management for national and provincial government departments and other listed public entities, including SOEs;

phase: section of work that arises from splitting up of a project or a contract in accordance with a definite agreement or a collection of logically related activities, usually culminating in a major project deliverable;

plan of work: document that details principal stages within project delivery and which identifies main tasks and persons;

planned finish date: see scheduled finish date;

planned start date: see scheduled start date;

planned value: the sum of the budgets for all planned (earned value) work, scheduled to be accomplished within a given time period. Also known as the Budgeted Costs for Work Scheduled (BCWS);

PMU:Programme management unit responsible for managing the implementation of the infrastructure programme;

practical completion certificate: a certificate issued by the employer or duly authorized representative of the employer in terms of the contract that signifies that the whole of the works have reached a state of readiness for occupation or use for the purposes intended although some minor work maybe outstanding;

pre-contract stage: stage of work covering events up to the point when a contract is placed;

precedence diagramming method: a network diagramming technique in which activities are represented by boxes (or nodes). Activities are linked by precedence relationships to show the sequence in which the activities are to be performed;

preferential procurement policy: the policy(s) developed by an institution in accordance with the requirements of section 217(2) of the Constitution of the Republic of South Africa (Act 108 of 1996) and the Preferential Procurement Policy Framework Act (Act 5 of 2000);

Note: a preferential procurement policy promotes objectives additional to those associated with the immediate objective of the procurement itself.

price: the financial offer;

price adjustment: specific method of calculating the amount to be added or to be deducted from the contract sum by way of allowances for increases or decreases in the costs of labour, plant and materials occurring during the currency of the contract using a price variation formula;

priced bill of quantities: bill of quantities that contains the contractor's rates extended and totalled to give the tendered sum;

price variation formula: formula for amending contract prices to reflect changes in economic conditions;

pricing instructions: document that provides the criteria and assumptions which it will be assumed in the contract that have been taken into account when developing prices, or target in the case of target cost contracts;

pricing strategy:  the strategy which is adopted to secure prices and to remunerate contractors in terms of the contract;

prime contract: see main contractor;

prime cost sum: amount included in a contract for work that is foreseen but cannot be accurately specified at the time the tender documents are issued;

principal:  a person who is a partner in a partnership, a sole proprietor, a  director in a company established in terms of the Companies Act, or a member of a close corporation registered in terms of the Close Corporation Act;

process: a succession of logically related actions occurring or performed in a definite manner which culminates in the completion of a major deliverable or the attainment of  a milestone;

procurement: the process which creates, manages and fulfils contracts relating to the provision of supplies, services or engineering and construction works, the hiring of anything, disposals and the acquisition or granting of any rights and concessions;

Note: Procurement as such is concerned with activities that both precede and follow the signing of a contract.

procurement document: documentation used to solicit and evaluate an expression of interest for or to initiate and conclude a contract;

procurement procedure: the selected procedure for the solicitation of tender offers in a specific procurement;

procurement strategy: the contracting, pricing and targeting strategy and procurement procedure that is selected for a contract;

programme: see "infrastructure programme" for the distinction used to define a programme or portfolio of infrastructure projects whereas a "departmental programme" as referred to in the strategic plan is a "strategic programme" within a department against which specific budget is allocated in order to achieve specific strategic outcomes. A group of related projects managed in a coordinated way. Programmes usually include an element of ongoing work;

programme implementing agent: an agent appointed by a sponsoring department/SOE to implement a infrastructure/maintenance programme on behalf of the sponsor. The programme implementing agent may be another department (for example public works implementing on behalf of Health who is the sponsoring department) or another agent for example the Independent Development Trust;

programme management: management of the infrastructure/maintenance programme to implement a number of projects utilising a common delivery management process;

project: a temporary endeavour undertaken to create a unique product, service or result;

project delivery: undertakings planned by an institution which impact directly on the services that they are mandated to deliver;

project life cycle: a collection of generally sequential project phases whose name and number are determined by the control needs of an organization/s involved in the project;

project management: the application of knowledge, skills, tools and techniques to plan activities to meet the project requirements. Also defined as the art and science of managing a project from inception to closure as evidenced by successful product delivery and transfer;

project management body of knowledge (PMBOK®): an inclusive term that describes the sum of knowledge within the profession of project management;

Project Management Professional ®: an individual certified as such by the Project Management Institute.

PMI® requires users of the PMP® symbol to do the following: "Include the registered trademark symbol, "®", immediately next to each use or appearance of the "PMP" ® mark, as well as acknowledge and state in a prominent portion of the publication on which the mark appears, that "PMP" ® is a registered service mark of the Project Management Institute, Inc."

provisioning: the acquisition, storage and issuing of consumables or supplies or ect isthe acquisition of services required to meet the day to day operating requirements of an institution;

public private partnership: a commercial transaction between an institution and a private party in terms of which:

1. the private party either performs an institutional function on behalf of the institution for a specified or indefinite period; or acquires the use of state property for its own commercial purposes for a specified or indefinite period; and
2. the private party receives a benefit for performing the function or by utilising state
   property, either by way of:

   i) compensation from a revenue fund;
   ii) charges or fees collected by the private party from users or customers of a service provided to them; or
    iii) a combination of such compensation and such charges or fees;

QMP: quality management plan formulated in order to monitor the quality of the results of the programme, particularly how quality will be ensured within each project i.e. what quality checks will be carried out when and by whom etc;

quality assurance: the function of Quality Assurance is the responsibility of (reports to) the Project Manager and is responsible for ensuring that project standards are correctly and verifiably followed by all project staff;

quality control: the process of monitoring specific project results to determine if they comply with relevant standards and identifying ways to eliminate causes of unsatisfactory performance;

record drawings: drawing that records the final state of the engineering and construction works as constructed or built;

remaining duration: the estimate of time remaining to complete an activity. A far more useful measure of progress than percentage complete;

request for proposal: a formal invitation containing a scope of work which seeks a formal response (proposal) describing both methodology and compensation to form the basis of a contract;

request for quotation: a formal invitation to submit a price for goods and/or services as specified. Equivalent to a request for proposal but with more specific application areas;

resource specification: performance specification which establishes requirements for the engagement of targeted enterprises, targeted labour or a combination thereof in the performance of a contract and indicates the means by which such engagement can be measured, quantified and verified;

resident engineer: engineer employed on site to supervise work during construction;

responsibility assignment matrix: the RAM correlates the work required by a Contract Work Breakdown Structure (CWBS) element to the functional organization responsible for accomplishing the assigned tasks. The responsibility assignment matrix is created by intersecting the CWBS with the project Organizational Breakdown Structure (OBS). This intersection identifies the cost account;

respondent: a natural or juristic person or partnership who submits an expression of interest in response to an invitation to do so;

retention sum: sum retained for a certain period by the employer to offset costs which may arise from the contractor's liability for defects or failure to comply fully with the contract;

returnable schedule: document that a tenderer is required to complete for the purpose of evaluating tender offers or a document which upon acceptance of a tender offer forms part of the subsequent contract;

risk: combination of the probability of occurrence of harm and the probable severity of that harm;

risk assessment: the assessment performed when evaluating tender offers to determine the level of commercial risks posed thereby;

risk management: the application of a formal process to the range of possible values to key factors associated with a risk in order to determine the resultant range of outcomes and their probability of occurrence;

schedule: documentation in the form of tables or detailed lists;

schedule of rates: schedule in which the prices applicable to the various items of work are listed;

scheduled finish date or start-to-finish: the date work was scheduled to finish on an activity. The scheduled finish date is normally within the range of dates delimited by the early finish date and the late finish date;

schedule performance index: the ratio of BCWP to BCWS i.e. SPI = BCWP / BCWS. A positive value (i.e. greater than 1) indicates that work is ahead of schedule. A negative value (i.e. less than 1) indicates that work is behind schedule;

scheduled start date or start-to-start: the date work was scheduled to start on an activity. The scheduled start date is normally within the range of dates delimited by the early start date and the late start date;

schedule variance: any difference between the projected duration for an activity and the actual duration of the activity. Also the difference between projected start and finish dates and actual or revised start and finish dates;

scope of work: the specification and description of  the supplies, services, or engineering and construction works which are to be provided  and any other requirements and constraints relating to the manner in which the contract work is to be performed;

security: see bond;

selected subcontractor: a subcontractor selected by the contractor in consultation with the employer in terms of the requirements of the contract;

services: the provision of labour or work, including knowledge-based expertise, carried out by hand, or with the assistance of equipment and plant;

site: the land and any other places made available by the employer for the purposes of the contract, on, under, over, in or through which the works are to be executed or carried out;

site information: document that describes the site as at the time of tender to enable the tenderer to price his tender and to decide upon his method of working and programming;

SOE:

1. state owned enterprise (Parastatals);
2. state owned enterprises, in the context of the Toolkit  are organisations responsible for funding and providing certain infrastructure and maintenance of infrastructure within South Africa (for example ESKOM, TRANSNET, TELKOM etc);

sponsor:department, municipality or state owned enterprise that is responsible for the infrastructure programme and for funding it;

sponsoring department/SOE:  the department or SOE responsible for funding and providing infrastructure or maintenance;

statement of work: a narrative description of the work to be performed;

strategic goals: (also referred to as outcomes)

1. are the desired outcomes resulting from the strategic intervention and are the areas of organisational performance that are critical to the achievement of the public institution's mission;
2. strategic goals also describe the strategic direction of the organization and should focus on service delivery, management/organization, financial management, training and learning.
3. Strategic goals normally span at least five years, but are likely to be applicable to a longer period.

strategic objectives: strategic objectives (also referred to as outputs) are the specific outputs  to achieve the goal (or the outcome). Strategic objectives are more concrete and specific than strategic goals, but should link directly to the strategic goals;

These would span at least three years, but are likely to be applicable to a longer period.

strategic plan: strategic objectives (also referred to as outputs) are the specific outputs  to achieve the goal (or the outcome). Strategic objectives are more concrete and specific than strategic goals, but should link directly to the strategic goals;

subcontracting: a plan containing the long-term goals and strategies of an organization;

subcontractor: contractor to whom a main contractor has contracted part of his work;

submission data: document that establishes the respondent's obligations in submitting an expression of interest and the employer's undertakings in the processing of the submission;

supplies:  the provision of materials or commodities made available for purchase;

supply chain management: the management of the supply chain processes and activities;

sustainable construction: the broad process/ mechanism for the realisation of human settlements and the creation of infrastructure that supports sustainable development, including:

1. the extraction and beneficiation of raw materials,
2. the manufacturing of construction materials and their components,
3. the construction project cycle from feasibility to design and deconstruction, and
4. the management and operation of the built environment;

sustainable development: development that meets the needs of the present without compromising the ability of future generations to meet their own needs;

Note: Sustainable development is a far more embracing and holistic concept than environmental sustainability. It is a way of looking at all the sources and resources that can lead to a higher quality of life for the current generation, without compromising future generations.

target completion date: an imposed date which constrains or otherwise modifies the network analysis;

target cost: a pricing strategy in terms of which the contractor is paid for work done on a cost reimbursable basis. The difference between the final cost of the works and a target price agreed at initial conclusion of the contract is shared between the contractor and the employer in accordance with a pre agreed formula;

target start date: an imposed starting date on an activity. Most PM software will not schedule an early start date earlier than the target start date;

targeted enterprise: an enterprise which is preferred in terms of an institution's preferential procurement policy and which complies with defined enterprise characteristics;

targeted labour: project specific or permanent employees of a contractor that are preferred in terms of an institution's preferential procurement policy;

targeted procurement  procedure: the process used to create a demand for the services and supplies from, or to secure the participation of, targeted enterprises and targeted labour  in contracts in response to a targeted procurement system to achieve the objectives of  the targeting strategy;

targeted procurement : a system of procurement which is used to create a demand for the services and supplies from, or to secure the participation of, targeted enterprises and targeted labour  in contracts in response to the targeting strategy to achieve the objectives of a preferential procurement policy;

targeting strategy: the approach which is adopted in procurement to implement a preferential procurement policy;

technical specification: written criteria that augment the drawings pertaining to the technical construction of the project that cannot be conveniently included on the plans;

temporary works: all temporary works of every kind required (other than equipment , i.e. apparatus, machinery, vehicles, etc) required on site for the execution of and completion of the permanent works and the remedying of defects;

tender: see tender offer;

tender data: document that establishes the tenderer's obligations in submitting a tender and the employer's undertakings in administering the tender process and evaluating tender offers;

tender notice and invitation to tender: document that alerts prospective contractors to the nature of the supplies, services and engineering and construction works required by the employer and contains sufficient information to solicit a response;

Tender Value Range (TVR):  a minimum and maximum tender price, including Value Added Tax, used to categorise the capability of tenderers to execute an engineering and  construction works contract falling within these two limits;

tender offer: a formal offer to execute a contract for monetary reward under prescribed conditions which is capable of acceptance and conversion into a binding contract;

tender submission: a submission made by a tenderer in response to an invitation to tender/ procurement document;

tenderer: a natural or juristic person or partnership who submits a tender offer to execute a contract in response to an invitation to do so;

term contract: contract that enables the employer to order work during a prescribed period at agreed rates;

termination: bringing a contract to an end before its completion under conditions specified in the contract or at common law;

tolerance: the range between the limits within which a size or position must lie;

Toolkit: Toolkit (Infrastructure Delivery Management System) for management of infrastructure delivery comprising a delivery management system and associated guidelines;

total float or target finish date: the date planned to finish work on an activity;

total quality management (TQM): an organizational approach to customer satisfaction involving customers, people and the continuous improvement of processes;

unit rate: price applied per unit of works, goods or services;

unforeseeable: not reasonably foreseeable by an experienced contractor by the date for submission of tenders;

value engineering: an organized effort to analyze the functions of systems, equipment, facilities, services, and supplies for the purpose of achieving the essential functions at the lowest life cycle cost consistent with required performance, reliability, quality, and safety;

value management: an evaluation process which addresses the technical and functional dimensions at the early stages of a project to ensure a fully integrated approach has been taken, the project is consistent with strategic goals and non-build solutions have been properly assessed;

variation of price contract: see non-firm price contract;

variation: alteration to the nature or extent of construction works, or the conditions under which they will be carried out;

variation order: instruction that makes a variation;

verification: confirmation by examination of evidence that specified requirements have been met;

work breakdown structure: a task oriented detailed breakdown, which defines the work packages and tasks at a level above that defined in the networks and schedules. The WBS initiates the development of the Organizational Breakdown Structure (OBS), and the Cost Breakdown Structure (CBS). It also provides the foundation for determining Earned Value and activity networks;

work item: see activity;

works: see engineering and construction works;
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