This is the total actual cost of a project. For contractors, the cost includes all work performed by the company, including costs attributable to work added or deducted by change orders. For owners, it excludes the cost of land, and any site preparation cost.

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A new addition that ties in to an existing facility, often intended to expand capacity. Synonym: Expansion, Add-on.

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The original planned schedule approved at time of project sanction for owners and contract award for contractors. It should be updated to include any changes since change data are collected in a later section. For benchmarking purposes the baseline schedule does NOT change during project execution.

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A best practice is a process or method that, when executed effectively, leads to enhanced project performance. CII Best Practices have been proven through extensive industry use and/or validation.

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The expansion, redevelopment, or reuse of property or facility which may be complicated by the presence or potential presence of a hazardous substance, pollutant, or contaminant. Common examples are abandoned gas stations and dry cleaners, railroad properties, factories and closed military bases. Synonym: co-locate.

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Includes non-industrial facilities, such as a communications center, courthouse, dormitory, hotel, large apartment complex, embassy, office building, hospital, laboratory, maintenance facilities, movie theatre, parking garage, physical fitness center, prison, restaurant, nightclub, retail building, school, or warehouse.

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Refers to the rationale behind the capital investment, e.g. increase production capacity, or mandated by regulation.

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A change is any event that results in a modification of the project work, schedule or cost. Owners and designers frequently initiate changes during design development to reflect changes in project scope or preferences for equipment and materials other than those originally specified. Contractors often initiate changes when interferences are encountered, when designs are found to be not constructable, or other design errors are found.

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A delivery method which entails the construction manager to act as consultant to the owner in the development and design phases, but as the equivalent of a general contractor during the construction phase.

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All costs in contingency accounts including but not limited to normal contingency, allowances, reserves, indirect costs for schedule contingency, escalation, etc.

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The provision in a cost estimate for increases in the cost of equipment, material, labor, etc., due to continuing price changes over time.

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The cost of land includes the purchase price of the land obtained for project use. It does not include the cost of preparing the land for use, such as soil remediation, demolition of existing structures, site preparation, etc.

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The owner and contractor agree as to the price that will be charged per unit for the project. It is also called unit price. Its derivatives include cost plus fee, time and materials, and guaranteed maximum price.

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An incident which results in days away from work.

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The days away from work incidence rate (DA) is the number of DA cases occurring annually among 100 full-time workers (2,000 hours per worker per year).

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An incident which results in days away from work, restricted work activity, or job transfer.

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The days away, restricted, or job transfer case incidence rate (DART) is the number of DART cases occurring annually among 100 full-time workers (2,000 hours per worker per year).

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An integrated delivery process which combines architectural and engineering design services with construction performance under one contract agreement.

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Direct costs are those which are readily or directly attributable to, or become an identifiable part of, the final project (e.g., piping labor and material).

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The sum of those costs associated with actual performance of tasks involved in rework. Examples include labor, materials, equipment, supervisory personnel, and associated overhead cost.

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Direct work hours include work hours of engineers/technicians who produce engineering deliverables, including site investigations, meetings, planning, constructability, RFI, and rework. Also includes work hours of craft workers who install material or assist in installation.

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A new addition that ties in to an existing facility, often intended to expand capacity. Synonym: Addition.

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The fatality rate is the number of fatalities occurring annually among 100,000 full-time workers (2,000 hours per worker per year).

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Represents the number of participants and the percent of time each is allocated to the project. For example, if one team member responsible for procurement works half time on the project, then the procurement contribution to the FTE measure is 0.5. Likewise, if two project controls specialists work on the team full time, they contribute 2.0 FTE.

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A new facility from the foundations and up. A project requiring demolition of an existing facility before new construction begins is also classified as grass roots. Synonym: Greenfield.

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Includes chemical manufacturing, cogeneration, environmental remediation, gas distribution, metals refining/processing, mining, natural gas processing, oil exploration/production, oil refining, oil sands, power generation, and pulp and paper.

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Indirect costs are all costs that cannot be attributed readily to a part of the final product (e.g., cost of managing the project).

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Includes airport, electrical distribution, flood control, highway, marine facilities, navigation, pipeline, rail, tunneling, water/wastewater, telecom, and wide area network.

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Inside Battery Limits (ISBL) is defined as all equipment and associated components (piping, etc.) that act upon the primary feed stream of a process. ISBL is functional-based and refers to equipment and other components that are solely dedicated to a single process whether or not the equipment is physically located within the geographical boundaries of the unit.

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The quantity of work required in the project plans and specifications, which are issued for construction, and does not include rework.

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Includes automotive manufacturing, consumer products manufacturing, food and beverage, microelectronics manufacturing, office products manufacturing, pharmaceutical manufacturing, pharmaceutical labs, and clean room.

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The contractor agrees to provide a specified amount of work for a specific sum. It is also called single fixed price.

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Commonly used interchangeably with engineered equipment. It is generally defined as tagged/numbered process or mechanical equipment including drivers.

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The point in time when a plant is capable of being operated although some trim, insulation, and painting may still be needed. This occurs after completion of precommissioning. In some industries, mechanical completion may have the same general meaning as beneficial occupancy.

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Although not precisely defined, this term generally describes projects with capital budgets exceeding one billion dollars.

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A facility for which a substantial amount of the equipment, structure, or other components is replaced or modified, and which may expand capacity and/or improve the process or facility. Synonyms: Renovation, Upgrade.

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Non-Destructive Examination/Evaluation (NDE) and Non-Destructive Testing (NDT) are techniques of testing that do not destroy the test object.

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The practice of hiring an external organization or use of a foreign subsidiary to perform engineering functions in a developing country to gain a cost and/or schedule advantage.

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Outside Battery Limits (OSBL) is defined as utilities, common facilities, and other equipment and components not included in the ISBL definition. OSBL refers to systems (equipment pieces and associated components) that support several units. Typical OSBL equipment includes cooling towers, water treatment facilities, tanks farms, etc.

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Any hours above 40 work hours per week. For example, if working 55 hours in a week, the overtime is 15 hours and the percentage of overtime hours is calculated as 15 hours overtime/55 hours worked = 27.3% overtime.

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A consortium of process industry owners and engineering construction contractors that publishes practices reflecting common standards for many engineering disciplines across the companies.

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Refers to a grouping of goods or services produced by a facility.

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This is the estimated cost of the project at authorization to proceed (i.e., sanction, or final investment decision). For contracts, it only includes their scope of work. If a project had cost changes before authorization to proceed, then these changes should be included in the project budget. Does not include estimated costs for change orders received during project execution.

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A Front End Planning tool used to measure the level of scope definition. It helps project teams to communicate and identify risks related to project scope definition.

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A structured approach used to organize a project team so as to manage the delivery of a project.

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A structured process of evaluating and prioritizing owner’s objectives, reviewing and evaluating delivery methods and contract types, and then determining the appropriate delivery method and contract type for a project.

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Priority given to cost or schedule when making decisions during the execution of a project. Assumes safety is a given for all projects.

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Schematic diagrams which show the layout and relationship of piping and instrumentation.

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Quality Assurance (QA) and Quality Control (QC); Planned and systematic actions necessary to provide appropriate confidence that a product or service will satisfy the quality requirements.

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A recordable incident is a work-related illness and any injury which results in loss of consciousness, restriction of work or motion, transfer to another job, or requires medical treatment beyond first aid.

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The total recordable incidence rate (TRIR) is the number of recordable injuries occurring annually among 100 full-time workers (2,000 hours per worker per year).

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The lost workday case incidence rate (LWCIR) was replaced by the DART rate effective January 1, 2001. By definition, it was the equivalent to the DART rate.

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A process used to confirm the interpretation of a detail, specification or note on construction drawings or to secure a documented directive or clarification from the architect, engineer or owner that is needed to continue work.

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A facility for which a substantial amount of the equipment, structure, or other components is replaced or modified, and which may expand capacity and/or improve the process or facility. Synonyms: Modernization, Upgrade.

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Changes in the base scope of work or process basis. Examples include changes in feedstock, site location, throughput, or the addition of unrelated scope.

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The Technology Use and Integration practice addresses the level of automation and integration internally and externally for predefined tasks/work functions common to most projects.

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The period during which a process unit, boiler, generating unit, transmission line, or other facility is shut down and unable to perform its normal operations. The shutdown of a facility including for maintenance, inspection, testing, regulatory changes, or, in some cases, for refuelling is known as a planned shutdown. Turnaround is interchangeable with shutdown or outage depending on industry groups.

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Focused activities aimed at removing non-value-added investment from the project scope. Collectively, VIPs are an organized approach to minimizing life-cycle costs while optimizing the life of a facility.

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