Procurement and contracts
Delivery methods, contract forms, tendering and payment legislation.
16 terms. Combine with other filters.
Start with these
Design-bid-build (DBB)
The traditional delivery method in which the owner first has the design completed by consultants, then invites contractors to bid on it, then awards a separate construction contract — usually for a stipulated price.
Design-build (DB)
A delivery method in which one entity, the design-builder, contracts with the owner to provide both the design and the construction under a single contract.
General contractor (GC)
The firm that contracts directly with the owner to build the project for an agreed price, hires and coordinates the trade contractors and suppliers, and controls the site.
Prequalification
A procurement step in which an owner assesses firms' experience, capacity, safety record and financial standing before inviting a shortlist to bid or propose.
Principal-in-charge (PIC)
The senior partner or principal of a consulting firm — typically architecture or engineering — who carries overall accountability for the firm's performance on a project and is the client's top-level contact.
Stipulated price contract
A construction contract in which the contractor agrees to perform a defined scope of work for a fixed total price, adjusted only through the contract's change provisions.
Trade contractor
A specialist firm that performs one part of the work — such as mechanical, electrical, masonry or curtain wall — under a contract with a general contractor, construction manager or owner.
Going further
Construction adjudication
A fast, interim dispute-resolution process for construction payment disputes, in which an adjudicator issues a decision within weeks that is binding unless and until it is overturned by a court or arbitrator.
Construction lien
A statutory claim against an improved property (or against holdback funds for public property) that unpaid contractors, subcontractors and suppliers can register to secure payment for services or materials supplied.
Construction management (CM)
A project delivery method in which the owner engages a construction manager early to advise on cost, schedule and constructability during design, and to manage the procurement and execution of the work through trade contracts.
Cost plus contract
A construction contract in which the owner reimburses the contractor's actual costs of the work plus a fee, which may be fixed or a percentage, sometimes capped by a guaranteed maximum price.
Holdback
A percentage of each payment that the payer must retain under lien legislation — 10% in Ontario — until the period for registering construction liens has expired, as security for subcontractors and suppliers.
Integrated project delivery (IPD)
A collaborative delivery approach in which the owner, designers and builder work as one team, usually under a single multi-party agreement, sharing risk and reward according to project outcomes.
Prompt payment
Legislation that sets mandatory deadlines for paying construction invoices down the contract chain and gives unpaid parties fast remedies, such as adjudication.
Tender
A formal, competitive bid submitted in response to an owner's call for bids, offering to perform defined work on stated terms; also the process of calling and evaluating such bids.
Unit price contract
A construction contract priced on rates per unit of work (per cubic metre, tonne, linear metre and so on), with payment based on the quantities actually installed and measured.