The language of US preconstruction.

An addendum is a written change to the bid documents issued before bids are due, such as a revised drawing, an answered question or a new due date.

Bidders usually must acknowledge every addendum on the bid form, and a bid that misses one can be rejected as nonresponsive. Late addenda are a common source of scope gaps. Bid form instructions

An additional insured is a party, such as the owner or GC, added to another party’s liability policy so it is covered for claims arising from that party’s work.

Contracts specify which endorsement forms are required. Combined with indemnification, it decides whose insurance pays for a claim. Contract insurance requirements

AIA A201 is the American Institute of Architects' General Conditions of the Contract for Construction: the standard terms that set the rights and duties of owner, contractor and architect on AIA-based US contracts. The current edition is A201-2017.

It is incorporated into the AIA owner-contractor agreements (A101, A102, A103) and flows down through AIA subcontracts such as A401. The risk sits in the supplementary conditions and owner edits that change the base form, so review starts there. AIA A201-2017

An allowance is a set amount written into the contract for an item not yet fully defined, such as finishes or hardware, reconciled against actual cost later.

Under AIA A201 the allowance covers the cost of the material or equipment, while the contractor’s handling, labor and overhead are usually included in the contract sum. Differences are adjusted by change order. AIA A201-2017 § 3.8

An alternate is a priced option in a bid, an add or a deduct to the base bid, that the owner may accept or reject when awarding.

Owners use alternates to fit the award to the budget. The award basis says which combinations of alternates can be accepted, so the low bidder can change with the alternates chosen. CSI MasterFormat 01 23 00

An award recommendation is the written case a GC or CM gives the owner for which subcontractor should get a bid package, based on leveled scope, price, exclusions and qualifications.

A defensible one shows the leveling, how each exclusion and scope gap was resolved, and why a lower number was passed over, if it was. That record is what holds up if a bidder protests. Nova drafts the award memo; your team makes the award.

A bid bond is a surety’s guarantee that a bidder will sign the contract and provide the required bonds if awarded, or pay the owner the difference up to the bond amount.

Public owners set the amount, usually as a percentage of the bid price. A missing or defective bid bond is a frequent reason a public bid is rejected. AIA A310

Bid leveling is the process of adjusting competing subcontractor bids to one common scope so they can be compared fairly.

It usually runs as a bid tab: one column per bidder, one row per scope item, with exclusions, alternates and allowances noted. Once bids are leveled, the apparent low bidder often changes. CSI MasterFormat

Bid shopping is a contractor using one sub’s price to pressure other subs to bid lower, after the prime bid is submitted.

Some public owners limit it by requiring the prime to list its subcontractors in the bid. Many trade groups treat it as an unethical practice. Owner subcontractor listing rules

A bid tabulation, or bid tab, is the table of all bids received, with base bids, alternates and unit prices side by side.

Public owners often publish bid tabs after opening. Contractors build their own internal bid tabs to compare sub bids before leveling. Owner procurement rules

Builder’s risk insurance covers physical loss or damage to the work under construction, such as fire or storm.

AIA A201 makes the owner responsible for purchasing it unless the parties agree otherwise. Exclusions and deductibles decide who absorbs a loss. AIA A201-2017 § 11.2

Certified payroll is the weekly payroll report a contractor signs to certify that workers on a prevailing wage project were paid the required rates.

On federal projects it is commonly filed on form WH-347. Errors can hold up payment or lead to penalties. DOL form WH-347

A change order is a written agreement between owner and contractor that changes the work, the contract sum, the contract time or several of these.

Under AIA A201 a change order is signed by the owner, contractor and architect. Where the parties do not yet agree on price or time, a construction change directive can be used instead. AIA A201-2017 § 7.2

A construction manager at risk joins during design, advises on cost and schedule, then commits to deliver the project, usually under a GMP.

The CMAR typically bids out trade packages and carries the risk of finishing within the GMP. Texas public owners can use CMAR under Government Code chapter 2269. Tex. Gov’t Code ch. 2269

ConsensusDocs is a family of standard US construction contracts written by a coalition of owner, contractor, subcontractor and surety groups, and the main alternative to AIA documents.

The most used forms are ConsensusDocs 200 (owner and contractor, lump sum), 500 (CM at risk) and 750 (subcontract). Many contractors see them as more balanced than AIA forms; check each clause rather than assume. ConsensusDocs 200, 500, 750

A construction change directive (CCD) is a written order from the owner, prepared by the architect, directing a change in the work before price or time is agreed.

The contractor proceeds with the change, and the adjustment is settled later by one of the methods the contract allows, such as lump sum, unit prices or cost plus a fee. AIA A201-2017 § 7.3

A contingency is an amount set aside in a budget or GMP for costs that are expected but not yet identified.

The contract decides who controls it and what happens to unused amounts, which matters in GMP and cost-plus contracts. AIA A102-2017

A cost-plus-fee contract pays the contractor its actual cost of the work plus a fee, either fixed or a percentage.

The owner carries more cost risk than under a lump sum, so the contract’s definition of reimbursable cost and the audit rights matter. A GMP adds a price ceiling. AIA A102-2017

CSI MasterFormat is the Construction Specifications Institute's numbering system that organizes US specifications into 50 divisions, numbered 00 through 49.

Bid packages, sub scopes and schedules of values usually reference MasterFormat section numbers, such as 03 30 00 Cast-in-Place Concrete. When spec sections, drawings and bid scopes drift apart, scope gaps appear. CSI MasterFormat

The Davis-Bacon Act requires contractors on federal construction contracts over $2,000 to pay laborers and mechanics at least the locally prevailing wages and fringe benefits.

Rates come from Department of Labor wage determinations included in the solicitation, and contractors file certified payrolls weekly. 40 U.S.C. § 3142

DBE goals are participation targets for Disadvantaged Business Enterprises set in federally assisted solicitations, mostly on US DOT funded work under 49 CFR Part 26.

Bidders meet the goal with certified DBE subcontractors or document good-faith efforts, and missing paperwork can make a bid nonresponsive. Since a US DOT interim final rule effective October 3, 2025, DBE eligibility is decided case by case and existing DBEs must be recertified, so check the goal and certification rules in each solicitation (as of October 2026). 49 CFR Part 26

Design-bid-build is the traditional delivery method: the owner hires a designer, completes the design, then bids it to contractors and awards to one.

Most US public work still uses it. Because the design is complete at bid time, gaps between drawings, specs and bid forms land on bidders to find. Owner procurement rules

Design-build is a delivery method where one entity, the design-builder, holds a single contract with the owner for both design and construction.

Federal agencies use two-phase design-build selection, which first shortlists on qualifications, then asks the shortlist for technical and price proposals. FAR 36.3

Differing site conditions are physical conditions at the site, often subsurface, that differ materially from the contract documents or from what is usual.

A differing site conditions clause lets the contractor claim time and money when they are found, with prompt written notice. Some owners try to disclaim it. AIA A201-2017 § 3.7.4; FAR 52.236-2

EJCDC documents are standard contracts from the Engineers Joint Contract Documents Committee, used mostly on engineered public works such as water, wastewater and infrastructure.

The C-700 General Conditions play the role A201 plays on AIA projects, with different clause numbering and different rules for changes, payment and termination. They are common where an engineer, not an architect, leads design. EJCDC C-700

Exclusions and qualifications are the statements in a bid or proposal that limit what is included or set conditions on the price.

They are where most scope gaps hide when leveling sub bids. A qualification accepted at award can become a change order later. Bid forms and sub proposals

FAR 52 is the part of the Federal Acquisition Regulation that holds the standard clauses and provisions incorporated into federal contracts, including construction.

Federal solicitations often list clauses by number only, from 52.222 labor standards such as Davis-Bacon to 52.236 construction clauses, and the bidder is responsible for what each one requires. FAR Part 52

A flow-down clause makes the subcontractor bound to the GC by the same terms the GC owes the owner, as they apply to the sub’s work.

It passes owner risks such as LDs, notice periods and indemnities down the chain, so subs need to read the prime contract, not only the subcontract. AIA A401-2017

Force majeure covers events beyond the parties’ control, such as natural disasters, that excuse delay in performance.

Most construction contracts grant extra time for such events but not extra money. AIA A201 handles this through its delay clause rather than a clause with that title. AIA A201-2017 § 8.3.1

General conditions are the standard contract terms that set the rights and duties of owner, contractor and architect, such as AIA A201 or ConsensusDocs 200.

In estimating, "general conditions" also means the contractor’s project-level overhead costs, such as supervision, temporary facilities and insurance. AIA A201-2017

A guaranteed maximum price is a cost-plus-fee contract with a ceiling: the owner pays actual cost plus fee, but not more than the GMP.

GMPs are common with construction managers at risk. The contract defines what counts as cost, how contingency and savings are handled, and when the GMP is set. AIA A102-2017

A Go/No-Go (bid/no-bid) decision is the early call on whether to pursue a bid, weighing fit, risk, capacity and competition before estimating hours are spent.

A typical checklist covers the owner, the contract form, schedule realism, scope clarity, location, prevailing wage and DBE goals, bonding capacity and known competitors. Clara drafts a first-pass Go/No-Go memo from the solicitation; your team makes the call.

An IDIQ (indefinite delivery, indefinite quantity) contract sets terms for an open quantity of work over a period, ordered later through task orders.

Federal agencies award IDIQ contracts with a minimum and maximum value, then compete or assign task orders among the holders. FAR 16.504

Indemnification is a contract promise by one party to cover another party's losses from defined claims, usually third-party injury and property damage.

There are three forms: broad (you cover the other party even for its sole negligence), intermediate (unless it is solely at fault) and limited (only to the extent of your own fault). A201-2017 § 3.18 uses the limited form, and Texas voids most indemnity for the other party's own negligence under Insurance Code chapter 151, with an exception for employee injury claims. AIA A201-2017 § 3.18, Tex. Ins. Code ch. 151

An ITB (invitation to bid) is a solicitation asking contractors for a price on a fully defined scope, usually awarded to the lowest responsive, responsible bidder.

It typically includes the bid form, instructions to bidders, contract form, drawings, specifications and clauses incorporated by reference. Federal sealed bidding follows FAR Part 14, where the solicitation is called an invitation for bids (IFB). FAR Part 14

A lien waiver is a document where a contractor, sub or supplier gives up lien rights for a payment, either conditional on receiving it or unconditional once paid.

Owners and GCs usually require waivers with each pay application. Several states, including Texas, require statutory waiver forms. Tex. Prop. Code § 53.284

Liquidated damages (LDs) are a fixed amount, usually per day, that the contractor owes the owner for finishing late, agreed in the contract instead of proving actual losses.

On AIA projects the rate goes in A101-2017 § 4.5, not in A201. LDs must be a reasonable estimate of the owner's loss, not a penalty; the rate, the cap and the excusable delays decide your exposure. AIA A101-2017 § 4.5

A Little Miller Act is a state law that requires payment and performance bonds on state or local public construction, modeled on the federal Miller Act.

Thresholds, notice deadlines and who is protected vary by state. In Texas, Government Code chapter 2253 sets the bond rules for public work. Tex. Gov’t Code ch. 2253

A lump sum, or stipulated sum, contract pays the contractor a fixed price for the defined scope, with the contractor carrying cost overrun risk.

AIA A101 is the standard owner-contractor agreement for a stipulated sum. Changes in scope are priced by change order. AIA A101-2017

A mechanic’s lien is a claim against private property by those who supplied labor or materials and were not paid.

Deadlines and notice rules are set by state law and are strict. Liens are generally not available on public property, where payment bonds take their place. Tex. Prop. Code ch. 53

The Miller Act requires performance and payment bonds on federal construction contracts above the dollar threshold set in the FAR.

It gives subcontractors and suppliers a right to sue on the payment bond, with strict notice and filing deadlines. Most states have similar laws for state projects, often called Little Miller Acts. 40 U.S.C. §§ 3131 to 3134; FAR 28.102

A notice to proceed (NTP) is the owner’s written instruction to start the work, often the date the contract time starts running.

On many public projects the contract time, and with it any liquidated damages clock, is counted from the NTP date. Owner contract terms

A pay application is the contractor’s periodic request for payment, showing work completed and stored materials against the schedule of values.

AIA G702 and G703 are the common forms. Retainage, prior payments and change orders are tracked on each application. AIA G702 and G703

Pay-when-paid and pay-if-paid are subcontract payment clauses: pay-when-paid sets when the sub gets paid, while pay-if-paid makes owner payment a condition and shifts the risk of owner nonpayment to the sub.

A201-2017 § 9.6.2 has the contractor pay subs within seven days of receiving owner payment, a timing rule. Pay-if-paid language must be clear to be enforced, and in Texas, Business and Commerce Code chapter 56 limits when a contingent payment clause can be enforced. AIA A201-2017 § 9.6.2, Tex. Bus. & Com. Code ch. 56

A payment bond is a surety’s guarantee that the contractor will pay its subcontractors and suppliers for labor and materials on the project.

On public projects, where liens on public property are not allowed, the payment bond is the main way unpaid subs and suppliers get paid. AIA A312

A performance bond is a surety’s guarantee to the owner that the contractor will complete the work under the contract.

If the contractor defaults, the surety may finish the work, pay another contractor to finish it or pay the owner up to the bond amount. Federal and most state public projects over a threshold require one. AIA A312

A pre-bid meeting, or pre-bid conference, is a session where the owner explains the project and bidders can ask questions before bids are due.

Some solicitations make attendance mandatory, and skipping it can disqualify a bid. Answers given there usually bind only if issued in an addendum. Solicitation instructions

Prevailing wage is the minimum hourly wage and fringe benefit rate required for workers on public construction, set under Davis-Bacon for federal work and by state or local law for other public work.

The wage determination is part of the solicitation and has to be priced into the bid; compliance is shown through certified payroll. In Texas, Government Code chapter 2258 requires public bodies to set and pay prevailing wage rates on public works. 40 USC 3141 et seq., FAR 52.222-6, Tex. Gov't Code ch. 2258

A punch list is the list of incomplete or defective items that must be finished after substantial completion and before final payment.

The architect or owner prepares it during the substantial completion inspection, and final completion follows when the list is closed. AIA A201-2017 § 9.8.2

A responsive bid conforms to every material requirement of the solicitation; a responsible bidder is one able to perform the work.

Public sealed-bid awards go to the lowest responsive, responsible bidder. Missing addenda acknowledgments, bonds or required forms make a bid nonresponsive. FAR 14.301 and 9.104

Retainage (retention) is the part of each progress payment the owner holds back until the work is substantially complete, as security against unfinished or defective work.

On AIA projects the percentage is set in the Agreement, and A201-2017 § 9.8.5 ties release to Substantial Completion. Many states regulate retainage on public work. Example (illustrative): 5 percent retainage on a $200,000 pay application holds back $10,000. AIA A201-2017 § 9.8.5

An RFI (request for information) is a written question to the designer or owner asking them to clarify a conflict or gap in the documents, during bidding or construction.

Bid-time answers usually come back as an addendum every bidder must acknowledge. During construction, RFI answers can change scope and become part of the project record. AIA A201-2017 § 3.2

An RFP (request for proposal) is a solicitation that asks for both an approach and a price, with award based on weighted criteria such as qualifications, approach and cost.

RFPs are common on design-build, CM at risk and complex work. Federal negotiated procurements follow FAR Part 15; read the evaluation criteria as closely as the scope. FAR Part 15

SAM.gov is the US government's system for federal contract opportunities and contractor registration; you need an active registration to be awarded federal work.

Federal construction solicitations often arrive as an SF-1442 with attachments and FAR clause lists, and amendments post separately. A bid that does not acknowledge every amendment can be rejected as nonresponsive. SAM.gov, SF-1442

A schedule of values (SOV) is the line-item breakdown of the contract sum that the contractor bills against each month.

It is approved before the first pay application, usually organized by CSI division, and billed on AIA G702 and G703. Where the dollars sit in the SOV is an early sign of an unbalanced bid. AIA G702/G703

A scope gap is work the project requires that no subcontractor bid covers, usually at the seams between trades.

Common zones include moisture mitigation between concrete and flooring, firestopping between MEP and drywall, and controls between mechanical packages. Each unresolved gap becomes a change order or a self-perform cost after award. CSI MasterFormat

A scope of work is the written description of what a contractor or subcontractor must deliver, including inclusions, exclusions and interfaces with other trades.

Example (illustrative): on a Travis County, TX job, the Division 09 flooring bid and the Division 03 concrete bid both exclude moisture mitigation. Each sub assumed the other carried it, which is a classic scope gap. CSI MasterFormat

Self-performed work is the part of a project a general contractor does with its own crews rather than subcontracting.

Concrete, carpentry and general labor are common examples. Some owners and CMAR rules require competing self-performed packages. Owner procurement rules

Shop drawings are detailed drawings prepared by a contractor, sub or supplier to show how a part of the work will be fabricated and installed.

They are submittals: the architect reviews them for conformance with the design intent, but they do not change the contract documents. AIA A201-2017 § 3.12

A solicitation is any owner-issued package that invites bids or proposals, including ITBs, RFPs, RFQs and federal SF-1442 packages.

It sets the scope, schedule, contract form and submission rules, and includes instructions to bidders, forms, conditions, specifications, drawings and addenda. It is the first document Clara reads once a bid lands in your inbox, from her portal scan or your own upload.

A submittal is the product data, shop drawings, samples or test reports a contractor sends the design team for review before fabrication or installation.

The submittal register is built from Division 01 and each technical section. A late submittal on a long-lead item such as switchgear can move the critical path. AIA A201-2017 § 3.12

Substantial completion is the stage when the work is complete enough that the owner can occupy or use it for its intended purpose.

It usually stops liquidated damages, starts warranties and triggers release of most retainage. The remaining items go on a punch list. AIA A201-2017 § 9.8

Supplementary conditions are the owner’s project-specific changes and additions to the general conditions.

They are where owners shift risk: uncapped LDs, shorter notice periods or broader indemnities usually appear here rather than in the standard form. CSI MasterFormat 00 73 00

A takeoff is the measured list of quantities, such as areas, lengths and counts, taken from the drawings and specifications for a scope of work.

Takeoffs feed the estimate and the schedule of values. Example (illustrative): a 5 percent quantity miss on structural steel can decide a competitive sub bid. Theo takes quantities off 2D PDF plan sets and marks each one on its sheet. CSI MasterFormat

Termination for convenience lets the owner end the contract without the contractor being at fault, usually paying for work done plus certain costs.

What the contractor recovers, especially overhead and profit on unperformed work, depends on the clause. Federal contracts include it by FAR clause. AIA A201-2017 § 14.4; FAR 52.249-2

An unbalanced bid prices some line items above cost and others below, often front-loading early work or loading unit prices expected to overrun, while the total still looks competitive.

FAR 15.404-1(g) tells contracting officers to look for unbalanced pricing and allows rejecting an offer when the imbalance poses unacceptable risk. On private work it is usually a leveling finding, not a disqualifier, but it changes cash flow and change order exposure. Nova flags unbalanced line items on the bid tab. FAR 15.404-1(g)

A unit price is a set price per unit of work, such as per cubic yard of rock excavation, used where quantities are uncertain.

The final payment is the unit price times the measured quantity. Bid forms often require unit prices alongside a lump sum, and very high or low unit prices can signal an unbalanced bid. CSI MasterFormat 01 22 00

Value engineering is a review that looks for lower-cost ways to deliver the same function, such as a different system or material.

Federal contracts may share the savings with a contractor whose value engineering change proposal is accepted. FAR 52.248-3

A waiver of consequential damages is a clause where the parties give up claims for indirect losses, such as lost profits or loss of use.

AIA A201 includes a mutual waiver, but it does not stop liquidated damages. Owners sometimes delete or narrow it in the supplementary conditions. AIA A201-2017 § 15.1.7

A waiver of subrogation is an agreement that the parties’ insurers will not sue the other parties to recover what they paid on a covered loss.

AIA A201 includes mutual waivers for damages covered by property insurance, so losses are settled by insurance rather than lawsuits between the parties. AIA A201-2017 § 11.3