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Wideman Comparative Wideman Comparative Glossary of Common Project Management Terms v5.5 is copyright © R. Max Wideman, 2000-2017.

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Last updated 12-22-17

Master Glossary
Contingency Allowance   - to -   Contract Form
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Term
Definition     Editor's Choice
Cat Source
Contingency Allowance
Specific provision to cover variations which may occur in the expected values of elements of cost or schedule, but not scope or quality.
Editor's Note: Contingency Allowance is not the same as Contingency Reserve. [D00308]

FGJN
CHM

 RMH
See Reserve. [D00307]

N

  
Specific provision for unforeseen elements of cost within the defined project scope: particularly important where previous experience relating estimates and actual costs has shown that unforeseen events which will increase costs are likely to occur. If an allowance for escalation is included in the contingency it should be as a separate item, determined to fit expected escalation conditions of the project. [D00309]

N

 PMK87
Contingency Budget
The amount of money required to implement a contingency plan. If the project board approves a contingency plan, it would normally set aside a contingency budget, which would only be called upon if the contingency plan had to be implemented. [D05297]

FGJN
CHM

 PRNC2 2002
Contingency Budget Procedure
A formal approval process by which sums identified as budget contingency may be applied where needed.
Editor's Note: There is much controversy over the management of contingency sums, ranging from dipping into the "big pot" approach to the incremental allocation of money to activities based on their relative risks. Moreover, the reallocation of contingency money is frequently a bone of contention between management and accounting departments. [D02536]

N

 RMW
Contingency Plan
If a particular risk event occurs, a plan to be executed in order to minimize the impact after that event. [D05949]

FGJN
CHM

 MoR-UK
A plan that identifies key assumptions beyond the project manager's control, and their probability of occurrence. The plan identifies alternative strategies for achieving project success. [D00310]

J

 PMK87
A fallback position, or workaround in the event of an adverse occurrence, or risk event, on the project. [D02537]

J

 RMW
An alternative for action if things don't go as planned or if an expected result fails to materialize. [D00311]

J

 OTOB p271-4
Mitigation plan. Alternative course(s) of action devised to cope with project risks. See also Risk Plan. [D04576]

J

 APM
BS
A plan that provides an outline of decisions and measures to be taken if defined circumstances, outside the control of a PRINCE2 project, should occur. [D05298]

J

 PRNC2 2002
Contingency Planning
The development of a management plan that uses alternative strategies to ensure project success if specified risk events occur. [D00313]

JN

 WST
The development of management plans to be invoked in the event of specified risk events. Examples include the provision and prudent management of a Contingency Allowance in the budget, the preparation of alternative schedule activity sequences, workarounds and emergency responses to reduce the impacts of particular risk events, and the evaluation of liabilities in the event of complete project shut down. [D00312]

J

 RMH
Contingency Reserve
A provision held by the project sponsor for possible changes in project scope or quality. Scope and quality changes constitute changes in the project manager's mandate and will affect the project's cost and schedule. Such a reserve also improves the probability of project success.
Editor's Note: Compare with Contingency Allowance. [D00315]

FGJN
CHM

 RMH
See Reserve. [D00314]

N

  
Schedule and/or financial resources set aside to be used for unforeseen but reasonably anticipated surprises. [D05299]

J

 MFC
Continuous
Happening without a break, non-stop. [D02538]

N

 RMW
Continuous Improvement
Constantly striving to make things better, which is a particular aim of a Quality Assurance Program [D02539]

N

 RMW
Continuous Reporting
Reports available on-line from data that is entered in real time. [D02540]

N

 RMW
Contract
An agreement between two or more persons, which creates an obligation to do or not to do a particular thing. Its essentials are competent parties, subject matter, legal consideration, mutuality of agreement, and mutuality of obligation. [D05770]

GJ
CHMT

 087
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: [D00316]

J
CHMT

 PMK96
A document containing the terms of an agreement. [D00317]

J
CHMT

 NPMT
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]

J
CHMT

 WST
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]

J
C

 CCCP
A binding agreement to acquire goods and/or services in support of a project. [D00320]

GJN
CHMT

 PMK87
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]

J
CHMT

 DSMC
A mutually binding legal relationship obligating the seller to furnish the supplies or services (including construction) and the buyer to pay for them. [D03476]

J
C

 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]

GJ
CHMT

 PMK87
Contract Administrator
An official who has the authority to negotiate, enter into, modify, and administer contracts. [D04044]

GJ
CHMT

 CSM
Contract Award
The signing and issuing of contract documents to a contractor. [D02292]

GJN
CHMT

 RMW
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]

GJ
CHMT

 PMK87
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]

N

 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]

N

 RMW
Contract Budget Base
The negotiated contract cost value plus the estimated value of authorized but unpriced work. [D00324]

JN
CHM

 WST
Contract Change
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]

GJN
CHMT

 RMW
Any written change in the terms of a contract. [D03478]

N

 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]

JN
CH

 CSM
Contract Change Order
See Contract Change Notice. [D04046]

JN
CH

  
Contract Closeout
Activities that assure that the contractor has fulfilled all contractual obligations and has released all claims and liens in connection with work performed. [D00325]

GJN
CHMT

 PMK87
Settlement of a contract. [D00326]

JN

 WST
Final contract settlement including resolution of all outstanding items and payments. [D05300]

JN

 MFC
Contract Completion Date
The date established in the contract documents for the completion of all or specified portions of the work. This date may be expressed as a calendar date or a number of work days from the issuance of the Notice To Proceed. When time extensions are issued by the owner, this revised contract completion date is referred to as the Adjusted Contract Completion date. [D04951]

GJN
CHMT

 PDG
Contract Dates
The dates specified in the contract that impact the project plan. [D00327]

JN

 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]

GJN
CHMT

 PMK87
Contract Document System
The system in place to store, retrieve, reference and update contract documentation. [D02543]

JN

 RMW
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]

N
CHMT

 RMW
Contract Documents
The set of documents which form the contract. [D00329]

JN
CHMT

 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]

FGJN
CHMT

 GAT
Contract Financial Control
Exercise of control over contract costs. [D00330]

JN

 PMK87
Contract Form
The formal legal cover sheet that is signed by the parties that gives effect to the contract. [D02545]

N

 RMW
Definitions for page C09: 50

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