Terminology - B

Ballpark Estimate

See ORDER OF MAGNITUDE ESTIMATE. (ACE)

Bank Measure

Volume of earth prior to loosening. (ACE)

Bar Chart

A variation of the Ganti Chart which usually contains a provision for depicting progress to date. A simplified chart which lists activities whose execution period is indicated by a bar on a time grid. (FLUOR)

Bar Chart Schedule

Graphical representation of project activities or resources drawn as horizontal lines against a common time scale. (A.C.E.)

Base Case

The over-all situation which is expected to occur if no investment is made to change an existing condition such as a capacity or efficiency problem. The series of forecasts which expresses this alternative to an investment. (ICWA).

Base Cost

Any cost established as a basis for calculating escalation, changes, provisions or other related variance. (ACE)

Base Date

Any date established as a basis for calculating price variations, forward escalation, currency differentials or other time-based cost data. (ACE)

Base Estimate

Any estimate prepared against a defined scope of work and established as a basis for evaluating subsequent adjustments, modifications or changes. (ACE)
or
Is defined as the estimate of expected costs against which monitoring or control of costs can be exercised. This BASE ESTIMATE will vary during the life of the project and will follow the phases set out below
1. FACTORED ESTIMATE
2. ORDER OF MAGNITUDE ESTIMATE
3. PRELIMINARY ESTIMATE, or SEMI DEFINITIVE ESTIMATE
4. DEFINITIVE ESTIMATE (EMS)

Base Exchange Rate

Any currency exchange rate used in preparation of a cost estimate or budget and established as a basis for calculating subsequent actual currency differentials or variances. (ACE)

Base Rate

Any rate established as a basis for future evaluation or measurement. (ACE)

Basic Budget

An operating statement which is established for use unaltered over a long period of time. (ACE)

Basic Price

Standard rate or value adjustable by discount, escalation or variation to suit specific circumstances. (ACE)
or
A standard rate or value established over a long period of time, which can be adjusted by discount, escalation or variation to suit specified circumstances. (ACE)

Basic Standard

A rate, which is established for use, unaltered over a long period of time. (ICWA)

Batch Cost Unit

A group of identical products which maintains its identity throughout one or more stages of production. (ACE)

Battery Limit

Geographic boundaries, imaginary or real, enclosing a plant or unit being engineered and/or erected, established for the purpose of providing a means of specifically identifying certain portions of work. Generally refers to the process area only unless specified to the contrary. (FLUOR)
or
Line of demarcation defining the extent of project scope, on-site facilities or contractual responsibility. (ACE)
or
The line of demarcation surrounding work to be covered by a project used to define the division of responsibility between, say. an employer and contractor. (ACE)

Battery Limits Area

The geographical boundary of the on-site plant. Excluded are facilities for the provision of bulk storage, utilities and services commonly required by chemical plant. (ACE)

Beginning Event (BE)

An event which signifies the beginning of one or more activities in a network. An event with succeeding activities but without preceding activities. Synonymous with START EVENT. See PREDECESSOR EVENT. (FLUOR)

Bid Analysis

Activity of analysing vendor quotations or contractor tenders with reference to budget cost for scope as bid. (ACE)

Bid Bond

Sum provided by bidder, as guarantee that bid will be submitted. (ACE)

Bid Check

Review of vendor quotations or contractor tenders in order to ascertain conformity with bidding instructions. (ACE)

Bid Comparison

Documented comparison of vendors' quotations or contractors' tenders as required for selection purposes. (ACE)

Bid Estimate

see TENDER ESTIMATE. (ACE)
or
A forecast of capital expenditure with accuracy up to plus or minus 10%. Sometimes called: AUTHORISATION, PROJECT COST CONTROL, DEFINITIVE ESTIMATE, CLASS 2. (ACE)

Bid Evaluation

See BID ANALYSIS. (ACE)

Bid Quantities

Material or construction quantities issued to vendors or contractors for bidding purposes. (ACE)

Bid Tabulation

Process of summarising the results of BID ANALYSIS for comparison purposes. (ACE)

Bill of Materials

List of material quantities estimated or measured from drawings for procurement purposes. (ACE)

Bill of Quantities

List of construction quantities estimated or measured from drawings for Tender pricing and contract payment purposes. (ACE)

Bill of Quantities Contract

Contract let against a BILL OF QUANTITIES for which payment is made in accordance with the unit prices contained therein. (ACE)

Blackout

See COST BLACKOUT. (ACE)

Bonus

Additional incentive payment over and above agreed wage or contractual reimbursement, usually relating to achievement targets. (ACE)

Bonus Incentive Scheme

System agreed to increase output from work force by promised bonus payments in respect of identified and tabulated targets for achievement. (ACE)

Bonus-Penalty Contract

An arrangement wherein the contractor is guaranteed a bonus, usually a fixed sum of money, for each day the project is completed ahead of a certain date and agrees to pay a penalty for each day of delay after that date. Could also apply costs as well as time. (FLUOR)

Bonus/Penalty Clause

Contractual incentive placed on vendor or contractor to achieve certain completion targets for which a bonus payment is earned or a financial penalty incurred. (ACE)

Bonus/Penalty Contract

Contract containing a BONUS/PENALTY CLAUSE. (ACE)

Book Value

Asset value as recorded in the books of a business. (ACE)
or
Value of an asset as recorded in the books of a business. (ACE)

Book Value (NET)

Current investment value in the accounts, calculated as original value less depreciation accruals. NET asset value for accounting use. Also, the worth of an outstanding share of stock of a corporation at any one time, determined by adding the par (or stated) value of the stock outstanding to the surplus applicable to that class of stock and dividing by the number of shares of that class outstanding. (AACE)
or
Current investment value on the books calculated as original value less depreciation accruals. New asset value for accounting use. Also, the value of an outstanding share of stock of a corporation at any one time. (FLUOR)

Break-Down

The analysis of expenditure on a project into separate classified component or service expenses (sometimes known as SECTIONAL COSTS). (ACE)

Break-Even Chart

A diagram which shows the profitability or otherwise of an undertaking at various levels of activity and as a result indicates the point at which neither profit nor loss is made. (ACE)

Break-Even Point

The percentages of capacity at which incomes of a company or facility just cover all variable and fixed costs. Depreciation is normally included. The point at which neither profit or loss is made. It is the percentage of productive capacity at which value of product equals the sum of fixed and variable costs. (ACE)
BEP = Fixed Cost + Variable Cost x 100
(Productive Capacity)(Selling Price)

Break-even Point

The percentages of capacity at which incomes of a company or facility just cover all fixed and variable costs. Depreciation normally included. (FLUOR)

Break-even Price

The sales value, at 100% of capacity, at which incomes of a company or facility just cover all fixed and variable costs. Depreciation normally included. (A.ACE)

Budget

Authorised target for project achievement, usually expressed in terms of quantities, man-hours or costs. (ACE)
or
A financial and/or quantitative statement prepared prior to a defined period of time, of the policy to be pursued during that period for the purpose of attaining a given objective. (ICWA.)
Authorised expenditure for a defined project. (ACE)
or
The resources (measured in dollars, man-hours, or other definitive units) which are formally assigned for the accomplishment of a specified task or group of tasks. (FLUOR)
or
Is an amount defined as a quantity or a cost, which is based on specific knowledge at the time. (EMS)

Budget Breakdown Structure (BDS)

Budget Centre

Point of authority and responsibility for budget achievement. (ACE)
or
A section of the organisation of an undertaking defined for the purposes of cost control. (ICWA)

Budget Change

Authorised change to previously established budget or target. (ACE)

Budget Control Basis

The variability of a cost, i.e., fixed, semi-fixed or variable, which determines the manner in which the forecast cost allowance is calculated. (ICWA)

Budget Cost

Authorised target cost for completion. (ACE)

Budget Cost Allowance

The expense which a cost centre is expected to incur during a given period of time in relation to the level of activity attained. (ICWA)

Budget Cost for Work Performed (BCWP)

The sum of the budgets for completed work, plus the budgets for the completed portion of open but not yet completed work packages, plus the budgets for completed level of effort and apportioned effort work packages as the reporting cut-off date. (FLUOR)
or
Budget value of work actually completed or services actually rendered. (ACE)

Budget Cost Of Work Scheduled (BCWS)

Budget value of work planned or scheduled to have been completed or of services planned or scheduled to have been rendered. (ACE)

Budget Estimate

See CLASS II ESTIMATE. (ACE.)
or
A forecast or approximation giving the anticipated value of a project. The confidence limits should be plus-minus 10% or better. In some types of projects a closer tolerance may be demanded. (ACE)
or
An estimate prepared to assist client in appropriation of money for the project. (FLUOR)

Budget Man-hour

Are defined as the number of STANDARD MAN-HOURS required to perform a quantity of work on a particular construction site. (EMS)

Budget Man-hours

Authorised target man-hours for completion. (ACE)

Budget Manual

A document which sets out the responsibilities of the persons engaged in, the routine of and the forms and records required for financial and production control. (ACE)

Budget Overhead

Authorised annual target expenditure for overhead items. (ACE)
or
The on-cost that a cost centre is expected to incur during a given period of time in relation to the level of activity attained by the cost centre. (ACE)

Budget Period

An accounting time interval for a project. (ACE)

Budget Quantities

Authorised target design quantities for completion. (ACE))

Budget Shift

Budget Transfer

Authorised adjustment to allocate targets having no NET increase or decrease in total budget. (ACE)

Budget Unit Cost

Unit cost applied to budget quantities for determining total budget cost. (ACE)

Budget Variance

Recorded or forecast variance between budget and actual quantities, man-hours or costs. (ACE)

Budgetary Control

Any method of control utilising pre-determined budgets, or targets for completion. (ACE)
or
The establishment of forecasts relating the responsibilities of executives to the requirements of a policy, and the continuous comparison of actual with forecast results either to secure by individual action the objective of that policy or to provide a basis for its revision. (ICWA)

Building Services

Mechanical, electrical or other specialised service facilities existing or to be installed within a building. (ACE)
or
The equipment installed in a plant, such as heating. lighting, plumbing and drainage, which the main contractor normally sub-lets to specialist sub-contractors. (A.C.E.)

Bulk Factors

Multipliers used to raise manufactured equipment costs to erected plant or total installation costs, inclusive of associated bulk materials. (A.C.E.)
or
They are the multipliers used to connect the cost of general manufactured plant items, to erected
plant, installed plant, battery limits plant or total plant cost. (A.C.E.)

Bulk Materials

General term for any quantified material, commonly purchased in bulk. (A.C.E.)

Bulk Purchase

is defined as a quantity of equipment or material which, at the time of placing the order to purchase, cannot be allocated to a specific cost code. (E.M.S.)

Bulk Storage Area

Area allocated for storage of bulk materials. (A.CE)
or
An allotted space for raw materials and finished products and facilities for their transport to or from the battery limit and to or from bulk transport. (A.C.E.

Bulks

See BULK MATERIALS. (A.C.E.)

Burden

Overhead expenses distributed as an add-on cost to a direct cost item. (A.C.E.)
or
An alternative expression for an OVERHEAD EXPENSE. (A.C.E)
or
The percentage of payroll cost for FICA, etc. (FLUOR)

Burst Event

An event that has two or more succeeding activities. Contrast with MERGE EVENT. (FLUOR)

By-Product

A material of lesser amount or value which is extracted in the processing of the main finished materials. (A.C.E.)