Ethics in Construction
Expert-defined terms from the Undergraduate Certificate in Construction Law and Contracts course at London School of Planning and Management. Free to read, free to share, paired with a globally recognised certification pathway.
Acceptance #
The agreement by the owner to take over the constructed facility or project, indicating that the owner accepts the work as completed in accordance with the contract documents. (see also: Contract Documents)
Bid #
A formal offer made by a contractor to perform construction work at a specified price and within a given time frame. (see also: Invitation for Bid, Bid Bond)
Bid Bond #
A type of surety bond that guarantees the contractor will enter into a contract at the bid price if awarded the project. (see also: Surety Bond, Performance Bond, Payment Bond)
Building Information Modeling (BIM) #
A digital representation of the physical and functional characteristics of a building, which provides project stakeholders with a shared knowledge resource to support decision-making during the design, construction, and operation phases.
Change Order #
A written document that modifies the terms and conditions of the original construction contract, including the scope of work, price, and/or completion date.
Claim #
A request for additional time or compensation due to an unexpected event, condition, or disagreement during the construction process. (see also: Change Order)
Code of Ethics #
A set of principles and guidelines that outline acceptable behavior and professional conduct for individuals working in the construction industry. (see also: Ethics in Construction)
Contract Documents #
The legally binding agreements and specifications that define the scope, terms, and conditions of a construction project, including the contract, drawings, specifications, and addenda. (see also: Acceptance)
Contractor #
A person or organization hired by the owner to perform construction work as specified in the contract documents. (see also: Subcontractor)
Contractor's License #
A legal requirement for contractors to obtain a license from the appropriate state or local authority in order to perform construction work within a specific jurisdiction.
Cost #
Plus Contract: A type of construction contract where the owner agrees to pay the actual costs of construction plus a predetermined fee to the contractor, usually a percentage of the total costs.
Design #
Build: A project delivery method where the contractor is responsible for both the design and construction of a project, allowing for a single point of responsibility and potential cost and time savings.
Dispute Resolution #
The process of resolving disagreements between parties involved in a construction project, which may include negotiation, mediation, arbitration, or litigation. (see also: Claim)
Ethics in Construction #
A set of moral principles and values that guide decision-making and conduct in the construction industry, with a focus on fairness, integrity, and transparency.
Invitation for Bid #
A formal request for contractors to submit a bid for a construction project, which typically includes the project specifications, contract terms, and conditions. (see also: Bid)
Lien #
A legal claim against a property for unpaid debts or obligations related to the construction project, which may prevent the owner from selling or refinancing the property until the debt is satisfied.
Mechanic's Lien #
A specific type of lien that guarantees payment for work performed or materials supplied in the construction, repair, or improvement of real property.
Mediation #
A form of dispute resolution where a neutral third party facilitates communication and negotiation between the disagreeing parties, with the goal of reaching a mutually acceptable resolution.
Negotiation #
A process of communication and dialogue between parties in a dispute, with the aim of reaching a mutually acceptable agreement or resolution.
Occupational Safety and Health Administration (OSHA) #
A federal agency responsible for enforcing workplace safety and health regulations in the United States.
Performance Bond #
A type of surety bond that guarantees the contractor will complete the project in accordance with the contract documents. (see also: Surety Bond, Bid Bond, Payment Bond)
Prompt Payment Act #
A set of state and federal laws that require owners, contractors, and subcontractors to pay their bills in a timely manner to ensure the financial stability of the construction industry.
Public #
Private Partnership (PPP): A collaborative arrangement between a public agency and a private entity to finance, design, construct, operate, and maintain a public infrastructure project.
Surety Bond #
A three-party agreement between the owner, contractor, and a surety company, which guarantees the contractor will fulfill their obligations under the construction contract. (see also: Bid Bond, Performance Bond, Payment Bond)
Subcontractor #
A person or organization hired by the contractor to perform specific tasks or provide materials for a construction project. (see also: Contractor)
Surety #
A company that provides surety bonds, acting as a guarantor for the contractor's performance and payment obligations under the construction contract.
Time and Materials Contract #
A type of construction contract where the owner agrees to pay for the actual time and materials required to complete the project, with a predetermined markup or fee for the contractor.
Warranty #
A guarantee or promise made by the contractor to the owner regarding the quality and durability of the construction work, typically covering a specified period of time after completion.