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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
Cost Plus Fixed Fee Contract   - to -   Crash Duration
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Term
Definition     Editor's Choice
Cat Source
Cost Plus Fixed Fee Contract ("CPFF")
A type of contract where the buyer reimburses the seller for the seller's allowable costs plus a fixed fee. [D00417]

FGJN
CHMT

 WST
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]

GJ
CH

 SPM p304-9
Provides reimbursement of allowable cost plus a fixed fee which is paid proportionately as the contract progresses. [D00416]

GJ
CH

 PMK87
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]

GJ
CH

 GAT
Cost Plus Incentive Fee Contract ("CPIF")
A type of Contract where the buyer reimburses the seller for the seller's allowable costs and the seller earns a profit according to defined criteria. [D00420]

FGJN
CHMT

 WST
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]

GJ
CH

 SPM p304-9
Reimburses the supplier for cost of delivered performance, plus a predetermined fee as a bonus for superior performance. [D00419]

GJ
CH

 PMK87
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]

GJ
CH

 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]

GJ
CH

 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]

FGJ
CHMT

 GAT
Cost Reimbursement
Payment of direct costs and directly associated overhead costs, but without any allowance for profit. [D02585]

FGJ
CHMT

 RMW
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]

FGJ
CHMT

 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]

N

 CCCP
Cost Savings
An action that will result in a smaller than projected level of costs to achieve a specified objective. [D02300]

N

 DSMC
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]

FGJN
MT

 CSM
Cost Status
See content under Scope Reporting. [D00425]

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CHMT

  
Cost to Complete
The projected cost to complete the project from its present state. [D04057]

J
CHMT

 CSM
Cost to Complete Forecast
A forecast by time periods for the completion of contractual tasks. Synonymous with "Estimate to Completion." [D04629]

GJ
CHMT

 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:
  1. Authorized Appropriation
  2. Committed Cost
  3. Expenditure (or Actual)
  4. Estimate To Complete, or Forecast to Complete, or Uncommitted.
Types 1 and 4 contain contingencies. The sum of type 2 and type 4 is the estimated cost at completion. Before any commitments are made within a cost class, the type 4 cost contains a component called the anticipated award cost, which in turn may contain an allowance for escalation. Type 3 costs are further sub-divided into payments and retentions (holdbacks). [D00426]

GJ
CHMT

 CCCP
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]

GJN
CHMT

 PMST
The difference between the budgeted and actual cost of work performed. [D00427]

JN
C

 WST
Either
  1. Any difference between the estimated cost of an activity and the actual cost of that activity, or
  2. In earned value, BCWP less ACWP.
[D00428]

JN

 PMK96
A measure of the amount that Actual Costs vary from the Baseline Cost. Cost Variance equals Earned Value minus Actual Cost. [D05628]

JN
C

 069
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]

JN
CHMT

 SPM p304-9
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]

JN
CH

 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]

JN
CH

 QWF
Cost-Benefit
A criterion for comparing programs, projects and alternatives when benefits can be valued in dollars. [D02295]

FGJN
CHMT

 DSMC
Cost-Benefit Analysis
An analysis, often stated as a ratio, used to evaluate a proposed course of action. [D00431]

N

 OTOB p271-4
Costed Work Breakdown Structure
A work breakdown structure in which the costs corresponding to major elements of the WBS are also shown. [D00432]

N

 SPM p304-9
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]

JN
CH

 GAT
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]

N

 RMW
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]

N

 CCCP
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]

N

 APM
COTS
See Commercial Off-the-Shelf

JN
T

  
Counseling
The process of advising or assisting an individual concerning career plans, work requirements, or the quality of work performed. [D00434]

N

 PMK87
Countermeasures
Preventive actions that are chosen by the project team to reduce either scope or schedule risk. [D02191]

JN
CH

 PMMJ97
CPFF
See Cost Plus Fixed Fee Contract

FGJN
CHMT

  
CPI
See Cost Performance Indicator

JN
C

  
See Cost Performance Index

JN
CHM

  
CPIF
See Cost Plus Incentive Fee Contract

FGJN
CHMT

  
CPM
See Critical Path Method

FGJN
CH

  
CPN
See Critical Path Network

FGJN
CH

  
CPPC
See Cost Plus Percentage of Cost Contract

GJ
CH

  
CPR
See Cost Performance Report

J
CHM

  
See Cost Performance Ratio

JN
C

  
CPU
See Central Processing Unit

T

  
CR
See Change Request

FGJN
CHMT

  
Craft
The manual dexterity that is required for certain types of skilled work [D02587]

N
CH

 RMW
Crash Costs
The cost of reducing an Activity to its Crash Duration. [D03823]

N

 PNG
Crash Duration
If there is an urgent need to shorten the Critical Path of a Network, activities may be "Crashed". This represents drastic action to reduce the duration of a critical activity and should only be taken in exceptional circumstances because it requires a dramatic increase in resource consumption. [D03824]

N

 PNG
Definitions for page C14: 50

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