| Term |
Definition |
| Bidding |
Using the construction documents, an owner will solicit bids for construction of a project. This may include negotiated bids or competitive bids. |
| Bond |
A method of financing capital projects through long-term borrowing where a loan is made by an investor to a borrower. A bond could be thought of as an I.O.U. between the lender and borrower that includes the details of the loan and its payments. |
| Cash Reserves |
An unrestricted fund balance set aside to stabilize a nonprofit's finances. In the case of capital projects, cash reserves can be helpful for overruns or working capital during a project. |
| Capital Campaign |
An intense effort to raise significant dollars over a specific period of time, typically related to a building renovation or new building project. |
| Capital Project |
A long-term, capital-intensive investment to build upon, add to, or improve a building or space. Capital projects are defined by their large scale and large cost relative to other investments that involve less planning and resources. |
| Capital Stack |
The structure of financing sources used for a capital project. This includes both equity and debt sources and the order in which debt will be repaid. |
| Case Statement |
A persuasive, concise and compelling statement to help donors and investors understand why your campaign is worthy of their support. A case statement may include your mission statement, an overview of your organization, a clear statement of your fundraising needs and how your project will benefit your community. |
| Conceptual Design |
An early phase of the design process that includes broad outlines of the function and form of your project. This is often the architectural team's initial response to your design requirements. |
| Construction Administration |
During construction, an architect provides oversight to ensure the building is constructed according to the design specifications. |
| Construction Documents |
Detailed plans indicating how to construct the physical spaces of a building. They will likely include all drawings, specifications and addenda associated with a specific construction project. |
| Construction Management |
A project delivery system that uses a construction manager to facilitate the design and construction of a project by organizing and directing people, materials and equipment to accomplish the purpose of the designer. This is a professional service that applies management techniques to the planning, design and construction of a project from inception to completion for the purpose of controlling time, cost and quality, as defined by the Construction Management Association of America (CMAA). |
| Construction Manager at Risk CMAR) |
Delivery method in which the architect and contractor hold separate contracts with the owner but work as a collaborative team
during design. |
| Contract Administration |
The process of managing the contract and the relationship with any entities under contract with an organization. This includes reviewing and documenting how a contracted entity is performing or has performed, establishing corrective actions as needed, and managing contract related changes. |
| Design-Build |
A project delivery method where a single firm is used for both design and construction. |
| Design Development |
A phase of the architectural design process where the architect will determine materials, systems and equipment necessary for your project. |
| Entitlements |
Entitlements are issued by governments and allow new building projects. They are frequently required for projects that require rezoning, conditional use permits, new utilities or those that will require a change to the land use. |
| Estimate |
An approximation of the expected cost to complete the work/project as outlined in the scope of work. |
| Facility Plan |
A plan for the management of your onsite building systems, including the mechanical, electrical, plumbing, roofing and building exterior. |
| Facility Reserve Fund |
Funds set aside for the upkeep and replacement of your building systems. |
| Feasibility Study |
A study to determine a project budget, schedule and requirements for starting a Capital Improvement Project. The feasibility study usually includes a conceptual design, site investigation such as geotechnical and utility infrastructure, cost estimating including construction costs, project management fees, financing requirements and investigation into any issue that will have an effect on the outcome of the project. |
| Fixed Fee |
A set contract amount for all labor, materials, equipment and services being performed for a specific scope of work. |
| Fundraising Plan |
A step-by-step plan to help you recruit new supporters, engage existing supporters and raise money for your capital project. |
| Guaranteed Maximum Price |
The agreed upon maximum price between the contractor and owner to build a project per the drawings and specifications developed. |
| Hard Cost |
The costs directly attributed to a scope of work, such as labor, material, equipment and subcontracts, but not the cost of operations overhead and the labor, material, equipment and subcontracts to support the undertaking. |
| In-Kind / Pro Bono |
A donation of professional expertise, a good or service without payment. |
| Master Plan |
A long-term plan that outlines future building or facilities projects based on your organization's strategic growth. |
| Operating Pro Forma |
A document used to estimate a project's expenses. Pro forma documents are essentially letters of intent that show what an invoice or transaction is anticipated to look like after completion. |
| Owner’s Representative |
A hired person who is responsible for advocating for your organization throughout the design and construction process. |
| Pre-Design |
This is the first step in the architectural design process where an architect ask questions to gain understanding of your space needs, challenges and wants. |
| Preliminary Design (Conceptual Design) |
Further developed architectural plans showing physical spaces and attributes such as doors, windows, walls, etc. |
| Project Delivery Method |
There are several different construction delivery methods including Construction Manager at Risk, Guaranteed Maximum Price and Time & Materials. Each method has benefits and shortfalls and should be selected based on your project's complexity. |
| Project Schedule |
A timeline for your building project that determines the order and duration of design and construction activities. |
| Request for Proposal (RFP) |
A solicitation for services through a bidding process. |
| Schematic Design |
Conceptual plan showing locations of program space and basic forms of new buildings at scaled size. This may include floor plans, site plans and building elevations, as well as building systems, interior and exterior finishes and the building site. |
| Site Plan |
Site plans contain information about existing structures on or near a construction project, such as roads and buildings in proximity. This includes topographical elements, or natural features, such as foliage and changes in land elevation. Site plans also detail proposed changes to the area after construction, such as through drainage systems or alterations in topography. |
| Soft Cost |
Soft costs may include architectural, engineering, legal and other fees that are not considered a direct construction cost. They are most often associated with pre- and post-construction. |
| Sources and Uses Budget |
A summary of where the capital used to fund a project will come from (the sources) and what this capital will be used for (the uses). It is usually displayed as some kind of chart or table. |
| Space Plan |
An in-depth plan of how your physical space will be used. |
| Specifications |
A detailed, exact statement of materials, methods and quality of work for a specific project. |
| Time & Materials |
A written agreement between the owner and the contractor wherein payment is based on the contractor's actual cost for labor,
equipment, materials and services plus a fixed add-on amount to cover the contractor’s overhead and profit. |
