| A | B |
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| Chart of Accounts | An alpha/numeric identifications system for budget line items that ensures that project expenditures are properly debited/credited in the project budget as payments are made in behalf of the project. |
| Checks and Balances | The term used to describe the use of the overlapping expertise of each team member during team decision making. |
| CM Fee plus Reimbursables | A form of payment for CM services where the construction manager is paid a fixed or percentage fee for CM expertise plus pre-established hourly, daily, weekly, or monthly costs for field personnel and equipment. |
| Constructability | The optimizing of cost, time, and quality factors with the material, equipment, construction means, methods, and techniques used on a project; accomplished by matching owner values with available construction industry practices. |
| Construction Budget | The target cost figure covering the construction phase of a project. It includes the cost of contracts with trade contractors construction support items other purchased labor, material and equipment, and the construction manager’s cost but not the cost of land, A/E fees, or consultant fees. |
| Contingencies | Line-item amounts in the project budget, dedicated to specific cost areas where oversight is an inherent problem in project delivery. |
| Direct Costs | The costs directly attributed to a work-scope, such as labor, material, equipment, and subcontracts but not be cost of operations overhead and the labor, material, equipment, and subcontracts expended in support of the undertaking. |
| Direct Labor Costs | Costs accruing from expended labor excluding the bonus portion of overtime, insurance, and payroll taxes. |
| Direct Material Costs | Costs accruing from material acquisition including purchase price, fright, and taxes. |
| Escrow Account | Money put into the custody of the third party by the first party for disbursement to the second party. A brief temporary depository for progress payments until authorized for release according to the depositor’s explicit instructions. |
| Fee Enhancement | The awarding of an additional fee, over and above the basic fee for services, based on the performance quality of the party providing the basic service. |
| FMCS | A manual or computerized system used by the team to guide the course of a project and record its progress. |
| Force Account Work | Work done and aid for on an expended time and material basis. |
| Indirect Costs | Costs for items and activities other than those directly incorporated into the building or structure but considered necessary to complete the project. |
| Job-Site Overhead | Supportive and necessary on-site construction expense, such as construction support costs, supervision, bonus labor, field personnel, and office expense. |
| Life-Cycle Cost | The cost of purchasing, installing, owning, operating, and maintaining a construction element over the life of the facility. |
