Construction Law and Contract Administration
Expert-defined terms from the Postgraduate Certificate in Construction Quality Assurance course at London School of Planning and Management. Free to read, free to share, paired with a globally recognised certification pathway.
**Adversarial dispute resolution #
** A process of resolving disputes in construction projects that involves parties taking opposing positions and using techniques such as litigation or arbitration to reach a resolution.
**Alternative dispute resolution (ADR) #
** Methods of resolving disputes that do not involve litigation, such as mediation, arbitration, or mini-trials.
**Arbitration #
** A form of ADR in which a neutral third party, called an arbitrator, hears evidence and arguments from both sides and makes a binding decision.
**Back charge #
** A charge made by one party to another for work or materials provided that were not included in the original contract.
**Bid #
** A proposal submitted by a contractor or subcontractor to perform work or provide materials at a specified price.
**Bid bond #
** A bond that guarantees that a contractor will enter into a contract at the price specified in their bid.
**Bond #
** A financial instrument that guarantees the performance of a contractual obligation.
**Change order #
** A document that modifies the terms of a construction contract, including the scope of work, price, or schedule.
**Claim #
** A demand for payment or other relief based on a breach of contract or other legal theory.
**Contract #
** A legally binding agreement between two or more parties that sets out the terms and conditions of a construction project.
**Contract administration #
** The process of managing and overseeing the implementation of a construction contract.
**Contract documents #
** The written and graphic documents that define the terms and conditions of a construction contract.
**Contract price #
** The total amount of money that a contractor will be paid for performing the work specified in a construction contract.
**Contract time #
** The amount of time allotted for the completion of a construction project.
**Design #
bid-build:** A traditional project delivery method in which the design and construction phases are separate and distinct.
**Dispute resolution #
** The process of resolving disputes that arise during the construction process.
**Earned value analysis (EVA) #
** A project management technique for measuring project performance and progress in an objective manner.
**Lien #
** A legal claim on property for the satisfaction of a debt or other obligation.
**Litigation #
** The process of resolving disputes through the court system.
**Mediation #
** A form of ADR in which a neutral third party, called a mediator, facilitates negotiations between the parties to help them reach a mutually acceptable resolution.
**Mini #
trial:** A form of ADR in which each party presents their case to a neutral third party who then facilitates negotiations between the parties.
**Notice of commencement #
** A document filed by the contractor at the start of a construction project that provides notice to all parties of the beginning of work.
**Notice of termination #
** A document filed by a party to a construction contract to terminate the contract.
**Payment bond #
** A bond that guarantees that a contractor will pay subcontractors, laborers, and material suppliers for work or materials provided on a construction project.
**Performance bond #
** A bond that guarantees that a contractor will perform the work specified in a construction contract.
**Prompt payment act #
** A law that requires payment for construction work to be made within a certain time frame.
**Request for equitable adjustment (REA) #
** A request by a contractor for a change in the contract price or schedule due to circumstances beyond their control.
**Request for proposal (RFP) #
** A document that solicits proposals from contractors or subcontractors to perform work or provide materials.
**Schedule #
** A plan that outlines the sequence and duration of construction activities.
**Specifications #
** Detailed written descriptions of the materials, equipment, and workmanship required for a construction project.
**Subcontract #
** A contract between a contractor and a subcontractor for the performance of a portion of the work specified in a construction contract.
**Subcontractor #
** A person or company that contracts with a contractor to perform a portion of the work specified in a construction contract.
**Surety bond #
** A bond that guarantees the performance of a contractual obligation.
**Termination #
** The cancellation of a construction contract by either party.
**Time is of the essence #
** A clause in a construction contract that requires work to be performed within a specified time frame.
**Warranty #
** A guarantee that work will be performed in a certain manner or that materials will meet certain standards.