Source: https://www.quantsurv.com/library/definitions Content format: Markdown version of the public page. Content reviewed: 2026-10-14 Interactive forms, calculators and booking actions require the linked web page. Any displayed calculation is the page's initial example, not a calculation for your circumstances. # Definitions Understand a term and what it means in practice. Search definitions ## Definitions 94 results ### A #### [Activity schedule]() About 1 min read In an NEC contract under Option A or C, the list of activities, each with a price, that makes up your price. Under Option A you are paid for each activity once it is complete: see [NEC main options](). #### [Adjudication]() About 1 min read A fast way to have a construction dispute decided by an independent adjudicator, usually within 28 days of the referral. The decision binds both sides unless the dispute is later settled by agreement, arbitration or court: see [how adjudication works](). #### [Administration]() About 1 min read A statutory insolvency procedure in which an administrator takes control of a company to pursue the relevant statutory objectives. See [termination and insolvency](). #### [ADR (alternative dispute resolution)]() About 1 min read Any way of settling a dispute without going to court, such as negotiation, mediation, adjudication or arbitration. See [Construction disputes: your options](). #### [Arbitration]() About 1 min read A process in which an agreed tribunal decides a dispute through an award, generally binding subject to limited challenge or appeal rights. See [arbitration](). #### [Assembly]() About 1 min read The preparation of a clear claim or response from the chronology, entitlement analysis, evidence and calculation. It connects each assertion to the documents and figures that support it. #### [Assessment date]() About 1 min read The date on which the amount due is assessed under the relevant NEC payment mechanism. Check your contract timetable in [payment and notices](). ### B #### [Back-to-back]() About 1 min read A subcontract whose terms mirror the main contract, passing its obligations down to you. It can bind you to terms you have never seen: see [reading your contract documents]() #### [Base date]() About 1 min read A contractual reference date used for specified adjustments or risk allocation. Its effect depends on the particular clause and contract. #### [BOQ (bill of quantities)]() About 1 min read A document that lists the work item by item, with quantities, for pricing. Your rates in it are often the starting point for [valuing changes](). ### C #### [CDP (contractor's designed portion)]() About 1 min read The part of a JCT building contract that the contractor designs. If your package includes design, some of that design risk passes to you: see [which JCT form applies](). #### [Collateral warranty]() About 1 min read A separate contract in which you promise a third party, such as a funder or a tenant, that you have met your contract duties. It lets that party claim against you directly: see [reading your contract documents]() #### [Compensation event]() About 1 min read An NEC event assessed under the contract for effects on price, time or both; entitlement depends on its rules and facts. Check the exact contract notification period and exceptions in [changes and compensation events](). #### [Conclusive evidence clause]() About 1 min read A clause that makes a final certificate or final account conclusive once a set time passes without a challenge. Check the particular document, deadline and contractual exceptions. #### [Concurrent delay]() About 1 min read Overlapping delays from different causes that each affect completion during the relevant period. The applicable test and consequences depend on the contract and law. #### [Construction Act]() About 1 min read Part II of the Housing Grants, Construction and Regeneration Act 1996 sets payment and adjudication rules for qualifying construction contracts. See [the Construction Act explained](). #### [Construction claims consultant]() About 4 min read A construction claims consultant advises a party on preparing, assessing or responding to a claim about construction work. Their appointment defines the commercial, contractual, evidence and specialist analysis they provide. #### [Contra-charge]() About 1 min read A deduction the other party makes from your account for costs it says you caused, such as cleaning or putting right defects. See [assessing and responding to a claim]() #### [Cost to complete]() About 1 min read What the other party says it cost to finish your work after terminating your contract, which it usually tries to recover from you. See [termination and insolvency]() #### [Critical path]() About 1 min read The sequence of activities that determines the earliest completion of the work or milestone being analysed, using the programme’s logic, durations and constraints. #### [CVR (cost value reconciliation)]() About 1 min read A regular comparison of what a job has cost with what it has earned, usually monthly. It shows early where a job is losing money. ### D #### [Daywork]() About 2 min read A method of valuing work using recorded labour, plant and materials under agreed rates and rules. See [changes to contract work](). #### [Default notice]() About 1 min read A notice from the other party saying you are in breach and must put it right, often the first step towards termination. See [termination and insolvency](). #### [Default payment notice]() About 1 min read A payee notice used within the applicable payment mechanism after a missing payer notice, subject to the contract and statutory requirements. See [payment documents and deductions](). #### [Defects liability period]() About 1 min read A contractual period after completion for addressing defects, also called a rectification period in relevant JCT forms. See [completion and retention](). #### [Defined Cost]() About 1 min read Cost calculated under the relevant NEC cost-component rules, which may involve incurred or forecast resources depending on the assessment. See [NEC pricing options](). #### [Disallowed Cost]() About 1 min read Cost excluded by the applicable NEC contract’s Disallowed Cost provisions; the definition, payment option, evidence and amendments determine the assessment. #### [Disruption]() About 1 min read A loss of productivity caused by interference with the planned way of working; disruption can occur even when the completion date does not move. #### [Domestic subcontractor]() About 1 min read A subcontractor the main contractor chooses and employs itself, as most subcontractors are. The client does not choose you, though the contract may give a list of names to choose from. ### E #### [Early warning]() About 1 min read In an NEC contract, a notice either side gives as soon as it sees something that could raise the cost or delay the job. See [changes and compensation events]() #### [ECI (early contractor involvement)]() About 1 min read Bringing a contractor in at the design stage, before the price is fixed. It is often done under a pre-construction services agreement. #### [Entitlement]() About 1 min read The contractual or other legal basis for the remedy being claimed, such as additional payment or time. It is a separate question from what happened, what the records prove and how much is claimed. #### [Event]() About 1 min read An occurrence or change that prompts a potential claim or response, such as a revised instruction, late access or an alleged defect. Record what happened and compare it with the agreed scope before deciding whether it gives rise to an entitlement. #### [Evidence]() About 1 min read The records and other material used to support or test the facts, responsibility and amount in a claim. Relevant evidence may include instructions, correspondence, photographs, programmes, measurements and cost records. #### [Extension of time (EOT)]() About 1 min read More time to finish your work, for a delay your contract says is not your risk. It protects you from delay damages for that period: see [time entitlement and delay costs](). ### F #### [Fair Payment Code]() About 1 min read A voluntary UK code under which businesses commit to paying their suppliers fairly and on time. It replaced the Prompt Payment Code. #### [Fee (NEC)]() About 1 min read In an NEC contract, the amount calculated by applying the contractual fee percentage to Defined Cost, distinct from the percentage itself. See [how the NEC Fee works](). #### [Final account]() About 1 min read The closing valuation of the contract work and relevant adjustments, which may be proposed, disputed or agreed. See [preparing your final account](). #### [Final date for payment]() About 1 min read The deadline for paying the relevant sum under the applicable payment mechanism, distinct from the due date. See [your payment cycle and notices](). #### [Fixed price]() About 1 min read A price that does not change when labour or material costs rise, unless your contract says it does. Check any express adjustment terms before assuming an increase is recoverable. #### [Float]() About 1 min read The time an activity can move within a programme before affecting a defined successor or completion milestone, depending on the type of float being measured. #### [Fluctuations]() About 1 min read Terms that adjust your price for rises and falls in costs after your base date. They apply only if your contract includes them. #### [Full and final settlement]() About 1 min read An agreement settling the claims within its stated scope, often in return for an agreed payment. See [preparing your final account](). ### G #### [GMP (guaranteed maximum price)]() About 1 min read A contractual pricing arrangement setting a maximum for defined work, subject to its agreed adjustment rules and exceptions. ### H #### [Head office overheads]() About 1 min read The cost of running your business, such as offices and staff, that a delay can leave unrecovered. See [time, delay and financial loss](). ### I #### [Interim payment]() About 1 min read A payment on account during the job, usually monthly, for the work done so far. It is not the final value of the work: see [payment documents and deductions](). ### J #### [JCT]() About 1 min read The Joint Contracts Tribunal, which publishes a family of standard building contracts and subcontracts widely used in the UK. See [What is a JCT contract?](). ### L #### [Letter of intent]() About 1 min read A letter asking you to start work before the contract is signed, often with a cap on what you will be paid. See [understanding your agreement]() #### [Liquidated damages (LDs)]() About 1 min read An agreed contractual measure of damages for a specified breach, commonly delay, subject to the relevant conditions. See [time entitlement and delay costs](). #### [Loss and expense]() About 1 min read The money you lose when the job is delayed or disrupted by events your contract puts at the other side's risk. See [time, delay and financial loss](). ### M #### [Measured mile]() About 1 min read A method of assessing productivity loss by comparing affected work with a suitably comparable period or area of less affected work. #### [Mediation]() About 1 min read A meeting where an independent mediator helps both sides reach their own settlement. The mediator decides nothing: see [mediation](). ### N #### [NEC]() About 1 min read A family of contracts published by the Institution of Civil Engineers, first called the New Engineering Contract. The current edition is NEC4: see [What is an NEC contract?](). #### [Nominated subcontractor]() About 1 min read A subcontractor selected through an employer nomination mechanism under the relevant contract. Distinguish nomination from named, listed and directly selected subcontract arrangements. #### [Notice]() About 1 min read A communication given under a contractual or statutory procedure to tell another party about an event, claim or required action. Its timing, content, recipient and method of delivery depend on the applicable requirements. #### [Notice of adjudication]() About 1 min read The notice identifying the dispute to be adjudicated and the remedy sought, starting the applicable procedural timetable. See [the adjudication process](). #### [Notified sum]() About 1 min read The sum established through the applicable payment-notice mechanism, subject to any valid and timely pay less notice. See [payment documents and deductions](). ### O #### [OHP (overheads and profit)]() About 1 min read The amount added to the cost of work to cover running your business and a profit, usually as a percentage. It is part of pricing a variation or a claim. #### [Omission]() About 1 min read Taking work out of your contract by instruction. Taking work away to give to someone else is often not allowed: see [changes to your contract work](). ### P #### [Partial possession]() About 1 min read When the client takes over part of the works early, with the main contractor's agreement. On a JCT contract, that part is treated as practically complete: see [partial possession and sections](). #### [Pay less notice]() About 1 min read The notice the other party must send if it plans to pay you less than the notified sum. See [payment documents and deductions]() #### [Pay when paid]() About 1 min read A clause making your payment depend on the other party being paid. The Construction Act generally prohibits this, subject to its specified insolvency exception: see [the payment rules](). #### [Payment application]() About 1 min read Your claim for payment for a cycle, stating the sum you consider due and how you worked it out. See [payment documents and deductions]() #### [Payment notice]() About 1 min read A notice stating the sum considered due and its basis; your contract identifies whether the payer, a specified person or you must give it. See [your payment cycle and notices](). #### [PCSA (pre-construction services agreement)]() About 1 min read An agreement for pre-construction services, such as design or planning, before the construction contract is agreed. Check your scope, payment, responsibilities and what happens if no further work follows. #### [Practical completion]() About 1 min read A contractual milestone for sufficiently complete work, often shortened to PC; its meaning and financial effects depend on your contract. See [practical completion and your money](). #### [Pre-action protocol]() About 1 min read In England and Wales, the construction pre-action protocol sets steps normally expected before court proceedings. These include a claim letter, response and meeting: see [assessing and responding to a claim](). #### [Preliminaries]() About 2 min read The costs of running the site that do not belong to one item of work, such as supervision, welfare, access and site plant. Often called prelims: see [time, delay and financial loss](). #### [Prime cost sum]() About 1 min read In RICS NRM 2, an allowance within a unit rate for the supply of specified materials or goods, with other rate components dealt with separately. #### [Prolongation]() About 1 min read An extended period needed to carry out your work, distinct from the separate question of recoverable delay costs. See [time, delay and financial loss](). #### [Provisional sum]() About 1 min read An allowance for work not sufficiently defined for a firm price when the contract documents are prepared. Its adjustment follows the agreed valuation rules. ### Q #### [Quantity surveyor]() About 3 min read A quantity surveyor is a construction professional who advises on and manages the costs and commercial aspects of a project. Quantity surveying is the discipline covering that work. #### [Quantum]() About 1 min read The money side of a claim: how much is owed, rather than whether it is owed. See [supporting a claim calculation](). #### [Quantum meruit]() About 1 min read A reasonable payment for work or services where the applicable legal basis permits that form of recovery. See [understanding your agreement](). ### R #### [Referral notice]() About 1 min read The referring party’s case and evidence in an adjudication; if you are responding, check the timetable you receive and seek prompt advice. See [the adjudication process](). #### [Relevant Event]() About 1 min read In a JCT contract, an event that can give you more time, such as a variation. It gives time only, and money comes through a Relevant Matter: see [time entitlement and delay costs](). #### [Relevant Matter]() About 1 min read An event listed in the applicable JCT terms that may support your loss-and-expense entitlement, subject to conditions and amendments. Separate this from time entitlement in [delay and disruption](). #### [Resolution]() About 1 min read The stage at which a claim or dispute is addressed through agreement or an applicable decision-making process. Record what has been resolved, what remains outstanding and what must happen next. #### [Retention]() About 1 min read Money withheld under the agreed payment terms as security, with release governed by your contract’s events and conditions. See [completion, retention and your final account](). #### [Retention bond]() About 1 min read A separate security instrument that may replace cash retention on agreed terms. Its wording governs the amount, expiry and conditions for a demand. #### [ROM (rough order of magnitude)]() About 1 min read An early, rough estimate of cost, given before the design is developed enough to price properly. ### S #### [Schedule of rates (SOR)]() About 1 min read A list of rates for types of work, without firm quantities, used to price and value work as it is measured. #### [Scheme for Construction Contracts]() About 1 min read The default rules that fill the gaps where a construction contract does not meet the Construction Act. See [What is the Scheme for Construction Contracts?](). #### [Scott schedule]() About 1 min read A table that sets out disputed items one to a row, with each side's position and figure side by side. See [preparing your final account](). #### [Sectional completion]() About 1 min read A contractual arrangement dividing the works into defined sections with their own completion provisions. See [partial possession and sections](). #### [Set-off]() About 1 min read Deducting money one party says it is owed from money it owes the other. See [assessing and responding to a claim]() #### [Smash and grab adjudication]() About 1 min read An adjudication that asks only whether the notified sum was paid, not what the work is worth. See [the two payment adjudication routes](). #### [Suspension]() About 1 min read A temporary stopping of contractual performance under an applicable right, such as statutory suspension for qualifying non-payment after the required notice. See [payment and notices](). ### T #### [Tender]() About 1 min read An offer to carry out work on stated documents, pricing assumptions and qualifications, subject to the subsequent agreement. See [tender documents and agreed terms](). #### [Termination]() About 1 min read Ending a contract before the work is finished, under a clause in it or for a serious breach. See [termination and insolvency]() #### [Time bar]() About 1 min read A provision that can prevent an entitlement where a specified deadline or notice condition is not met, subject to its wording and applicable law. See [reading your contract documents](). #### [True value adjudication]() About 1 min read An adjudication about what the work was actually worth, rather than what a notice said. See [the two payment adjudication routes](). ### V #### [Variation (variation order)]() About 1 min read A change to the work in your contract that the other party instructs, such as extra, changed or omitted work. See [changes to your contract work]() ### Z #### [Z clauses]() About 1 min read Extra conditions added to an NEC contract under Option Z, often where risk moves to you. See [NEC secondary options and Z clauses](). Sources, updates and editorial approach Guidance focuses on England and Wales. Your contract, amendments, facts and jurisdiction can change the answer. Follow each resource's author, sources and revision date. Quantsurv provides claims consultancy. Comparisons explain criteria and trade-offs; they are not independent endorsements. AI assists with drafting and organising the library; publication under a named author does not mean independent expert verification.