Terminology - D
Dangling Event
An event that has no preceding activities and has not been defined as a starting event or an event that has no succeeding activities and has not been defined as an ending event. See HANGING EVENT. (FLUOR)
Definitive Estimate
See DETAILED ESTIMATE
Demurrage
Charges payable for detention of a vessel. (ACE)
or
Charge for delay in loading or unloading vehicles, railway wagons, ships, etc. (ACE)
Departmentalisation
The division of an organisation into departments, cost centres or service units for budgetary cost control purposes. (ACE)
or
The division of a business organisation into departments, cost centres and service units in order to ascertain the costs of operation of such divisions and thereby control costs through the use of departmental expense budgets. (ACE)
Dependency
A relationship, which may be quantified, between activities or events. (FLUOR)
Depletion
A provision in the income tax regulations which allows a company to charge against current income a non-cash expense representing the portion of limited natural resources utilised in a product which is sold. (USA)
or
The allocation of the value of the quantity of natural resources extracted from a deposit (applying to resources not replaceable by human beings). A non-cash expense, but an allowed tax deduction. See DEPRECIATION. (AACE)
or
The allocation of the value of the quantity of natural resources extracted from a deposit (applying to resources not replaceable by human beings). A non-cash expense, but allowed tax deductions. See DEPRECIATION. (FLUOR)
Depreciation
Fall in value of a capital asset due to use and/or lapse of time. (ACE)
or
The diminution in the intrinsic value of an asset due to use and/or the lapse of time. The fall in value of a capital asset with passage of time. This may be calculated on different bases according purpose. It may be related to the maximum deduction allowed by the income tax regulations. It may be related to the anticipated useful working life of the asset. It must not be confused OBSOLESCENCE. (ACE)
or
The allocation of the cost of fixed capital assets less salvage (if any), over the estimated useful life of the unit, in systematic and rational manner (straight line, sum of the digits, double declining balance, etc.). A non-cash flow tabulation used in various profitability measures, depreciation is important only as an allowed deduction from income taxes. (FLUOR)
Depreciation Reserve
An account created to receive credits made to offset depreciation charges. (ACE)
Depreciation Revaluation Method
A system of providing for loss of value by means of periodic charges, each of which is equivalent to the difference between the values assigned to the asset at the beginning and the end of the period. (ICWA)
Depreciation, Accelerated Rate Of
A normal charge augmented to provide for additional loss of value sustained by the asset because of abnormally increased usage. (ACE)
Depreciation, Annuity Method Of
A system of providing for loss of value by means of periodic charges, each of which is a constant proportion of the aggregate of the cost of the asset and interest at a given rate per period on the written down values of the asset at the beginning of each period. (ICWA)
Depreciation, Endowment Policy Method Of
A system of providing for loss of value by means of periodic payments of premiums under an endowment policy, the proceeds of realisation of which at the end of the life of the asset are equal to the cost of the asset. (ICWA)
Depreciation, Group Rate
A composite loss of value which is calculated by reference to a group of assets. (ICWA)
Depreciation, Production Hour Rate
The method of providing for loss of value by means of periodic charges, each of, which is equivalent to the number of hours during the period for which the asset is operated, multiplied by a constant unit loss of value per hour. (ICWA)
Depreciation, Production Unit
The method of providing for loss of value by means of periodic charges, each of which is equivalent to the number of units of work produced during the period by the asset multiplied by a constant rate of loss of value per unit. (ICWA)
Depreciation, Reducing Balance Method
A system for providing for loss of value by means of periodic charges, each of which is a constant proportion of the balance remaining after deducting from the cost of the asset, the aggregate of the amounts provided previously. (ICWA)
Depreciation, Repair Reserve Method
A system of providing for the aggregate of loss of value and maintenance cost by means of periodic charges each of which is a constant proportion of the aggregate of the cost of the asset and the maintenance cost. (ICWA)
Depreciation, Single Rate
A loss of value which is calculated by reference to the estimated life of an individual asset. (ACE)
Depreciation, Sinking Fund Method
A system of providing for loss of value by means of periodic investments of the aggregate of a constant proportion of the cost of the asset and the interest received from the investment, the proceeds of realisation of the investment at the end of the life of the asset being equal to the cost of the asset. (ICWA)
Depreciation, Straight Line Method
A system of providing for loss of value by means of periodic charges, each of which is a constant proportion of the cost of the asset. (ICWA)
Design Allowance
Is defined as a sum of money added to a material or equipment estimate, usually as a percentage, to cover known costs of engineering, project management and construction management that are required but not included as part of a detailed estimate. (EMS)
Design Basis
Formal front-end document defining project scope of work and anticipated execution philosophy as required for engineering design activity, and upon which estimated costs for the project are based. (ACE)
Design Cost
Cost of preparing defined design, inclusive of all drawings, specifications, models, surveys, and all other documentation or services necessary to a completed package. (ACE)
Design Development Allowance
Nominal allowance included in an estimate or forecast to cover additional costs resulting from natural development of preliminary design data. (ACE)
Design Development Estimate
See BUDGET ESTIMATE
Design Phase
Period within the life of a project covering definition and design activity. (ACE)
Designed Quantities
As-designed drawing quantities. (ACE)
Detailed Estimate
See CLASS I ESTIMATE. (ACE)
or
See FIRM ESTIMATE and DEFINITIVE ESTIMATE. (ACE)
Deterministic Model
An analytical representation of a concept, system, or operation in which there is unique outcomes for a given set of inputs. Contrast with STOCHASTIC MODEL. (FLUOR)
Deterministic Network
A network structure containing paths all of which must be followed through. (FLUOR)
Development Cost
The cost of the process which begins with the implementation of the decision to produce a new or improved product or employ a new or improved method and ends with the commencement of commercial production of that product or application of that method. Market research expense may be included. (ACE)
or
Those costs specific to a project, either capital or expense items, which occur prior to commercial sales found necessary to evolve the potentialities of that project for consideration and eventual promotion. Major cost areas include process, product, and market research and development. (FLUOR)
Deviation
Any variance or departure from a previously defined base or basis. (ACE)
Deviation Scope
A determined limit of cost tolerance. (ACE)
Differential State Vector
The incremental change in state or status. See STATE VECTOR. (FLUOR)
Direct Cost
Any cost directly allocable to a productive account or cost centre. (ACE)
or
In construction direct costs include the costs of direct materials which will become a permanent part of the project and direct labour which is expended to install the direct material. Those costs incurred in the erection or installation of a permanent facility for material or labour. (FLUOR)
or
The expense of materials, labour and overheads, which can be directly identified and allocated to a specific centre. This centre may
1. A fixed investment or capital expense of an installation.
2. A manufacturing expense.
3. A product expense.
4. A process expense.
5. A service expense.
And any overhead expenses, which are included, would be of the direct controllable type. (ACE)
Direct Expense
1. Costs which can be allocated to cost centres or cost units.
2. An item of cost other than direct wages and materials which can be charged direct to the cost of specific products, production units or services.
3. In a capital investment, it is the cost of all material and labour involved in the actual installation of facilities.
4. In manufacturing costs, it is an expense within a cost centre, which is directly assignable to a product or a process area and therefore includes materials, labour and other expenses consumed directly in making the product. (ACE)
Direct Field Cost
The cost of all material and labour involved in the actual on-site fabrication, installation, and erection of permanent facilities. (FLUOR)
or
Is defined as the cost of CIVIL WORK EQUIPMENT COSTS and ANCILLARY COSTS incurred in the execution of a project, which can be identified as created only by reason of performing work directly on the project and are assignable to a cost code account. (EMS)
Direct Labour
1. Labour, which can be directly allocated to a productive account or cost centre, as opposed to indirect labour, which cannot be so, allocated.
2. Labour employed directly by owner or principal, as opposed to contract labour. (ACE)
Direct Man-hours
Man-hours, which can be directly allocated to a productive account or cost centre, as opposed to indirect man-hours, which cannot be so, allocated.
man-hours in respect of labour directly employed by owner or principal, as opposed to man-hours for contract labour. (ACE)
Direct Material
Purchased material, which can be directly allocated to a productive account or cost centre. (ACE)
Direct Material Cost
Expenses related to commodities, goods or equipment, which can be allocated to specific centres or units. (ACE)
Direct Materials
The commodities, goods and equipment" which are permanently built into a facility, including paint, insulation, foundations, bolts and installed spares. (ACE)
Direct Wages
Wage payments to direct labour. (ACE)
or
Payments to productive workers which can be allocated to specific centres or units. (ACE)
Directed Date
A date or time imposed by external authority on an activity or event, which is independent of network logic, and, possibly, time constraints. See IMPOSED DATE. (FLUOR)
Directed Finish (DIF)
The date or time, by which an activity must be completed, established by external authority and not necessarily influenced by any network constraints. (FLUOR)
Directed Occurrence (DO)
The date or time, on which an event must occur, established by external authority and not necessarily influenced by any network constraints. See IMPOSED DATE. (FLUOR)
Directed Start (DS)
The date or time on or after which an activity must start established by external authority and not necessarily influenced by any network constraints. (FLUOR)
Directed Time (DT)
The time within which an activity must be completed, established by external authority and not necessarily influenced by any network constraints. Contrast with ACTIVITY TIME ESTIMATE(S). (FLUOR)
Dirt Money
Additional payments to labour exposed to exceptionally bad working conditions. (ACE)
or
An allowance payable where a worker is brought into contact with flue deposits, mud, water or other forms of poor site conditions. Where these deposits are proved corrosive an additional allowance is payable. Protective clothing must be provided by the employer. (A.C.E)
Discipline
.
Discount
An allowance on a market price, made in respect of quantity, quality, trading concession or payment within a specified period. (A.C.E)
Discounted Cash Flow
Cash flow discounted to NET present value or annual equivalent. (A.C.E)
or
The rate of compound interest which will make the estimated project earnings equal to the cost of investment. taking into account the effect of taxation and the expected change of earnings over a period of years. See also PROFITABILITY INDEX. (A.C.E)
or
See PROFITABILITY INDEX. (FLUOR)
Discounting
Use of compound interest to determine sums earlier in time which are equivalent to a later, larger sum. (ACE)
or
Use of compound interest to determine sums earlier in time which are equivalent to a later, larger sum. USA. (A.C.E)
Disjunctive Paths
Two (or more) paths that branch from a DECISION Box are disjunctive if one or the other but not both is to be performed. Contrast with CONJUNCTIVE PATHS. (FLUOR)
Distributables
Term used to describe specific items for which the costs are to be distributed or apportioned over other cost items. (A.C.E)
Distribution Cost
The expense of the process which begins with making the packed product available for dispatch and ends with making the reconditioned returned empty package available for re-use. (ICWA.)
Dividend
Payments made by a borrower to a lender. (A.CE.)
Double Shift Work
Work involving two distinct labour teams operating in consecutive shifts. (A.C.E)
Down Time
Period where equipment or plant is non~operational, usually for maintenance or repair. (A.C.E.)
or
Period when a process plant is not operating. (A.CE.)
Drawing Measure
MKasure of construction or material quantities from drawings. (A.CE4
Drawing Quantities
Construction or material quantities as measured from drawings. (A.CE.)
Dummy
See DUMMY ACTIVITY. (FLUOR)
Dummy Activity
A logical constraint or dependency in the network which defines a relationship between activity rather than defining a time consuming task. (FLUOR)
Duration
The WORK DAY CALENDAR time required, to perform an activity. See WORK DAY CALENDAR. Contrast with STATIC MODEL. (FLUOR)
Duration of Activity
.
Dynamic Model
A model in which the (important) variables are functions of time. Contrast with STATIC MODEL. (FLUOR)
An event that has no preceding activities and has not been defined as a starting event or an event that has no succeeding activities and has not been defined as an ending event. See HANGING EVENT. (FLUOR)
Definitive Estimate
See DETAILED ESTIMATE
Demurrage
Charges payable for detention of a vessel. (ACE)
or
Charge for delay in loading or unloading vehicles, railway wagons, ships, etc. (ACE)
Departmentalisation
The division of an organisation into departments, cost centres or service units for budgetary cost control purposes. (ACE)
or
The division of a business organisation into departments, cost centres and service units in order to ascertain the costs of operation of such divisions and thereby control costs through the use of departmental expense budgets. (ACE)
Dependency
A relationship, which may be quantified, between activities or events. (FLUOR)
Depletion
A provision in the income tax regulations which allows a company to charge against current income a non-cash expense representing the portion of limited natural resources utilised in a product which is sold. (USA)
or
The allocation of the value of the quantity of natural resources extracted from a deposit (applying to resources not replaceable by human beings). A non-cash expense, but an allowed tax deduction. See DEPRECIATION. (AACE)
or
The allocation of the value of the quantity of natural resources extracted from a deposit (applying to resources not replaceable by human beings). A non-cash expense, but allowed tax deductions. See DEPRECIATION. (FLUOR)
Depreciation
Fall in value of a capital asset due to use and/or lapse of time. (ACE)
or
The diminution in the intrinsic value of an asset due to use and/or the lapse of time. The fall in value of a capital asset with passage of time. This may be calculated on different bases according purpose. It may be related to the maximum deduction allowed by the income tax regulations. It may be related to the anticipated useful working life of the asset. It must not be confused OBSOLESCENCE. (ACE)
or
The allocation of the cost of fixed capital assets less salvage (if any), over the estimated useful life of the unit, in systematic and rational manner (straight line, sum of the digits, double declining balance, etc.). A non-cash flow tabulation used in various profitability measures, depreciation is important only as an allowed deduction from income taxes. (FLUOR)
Depreciation Reserve
An account created to receive credits made to offset depreciation charges. (ACE)
Depreciation Revaluation Method
A system of providing for loss of value by means of periodic charges, each of which is equivalent to the difference between the values assigned to the asset at the beginning and the end of the period. (ICWA)
Depreciation, Accelerated Rate Of
A normal charge augmented to provide for additional loss of value sustained by the asset because of abnormally increased usage. (ACE)
Depreciation, Annuity Method Of
A system of providing for loss of value by means of periodic charges, each of which is a constant proportion of the aggregate of the cost of the asset and interest at a given rate per period on the written down values of the asset at the beginning of each period. (ICWA)
Depreciation, Endowment Policy Method Of
A system of providing for loss of value by means of periodic payments of premiums under an endowment policy, the proceeds of realisation of which at the end of the life of the asset are equal to the cost of the asset. (ICWA)
Depreciation, Group Rate
A composite loss of value which is calculated by reference to a group of assets. (ICWA)
Depreciation, Production Hour Rate
The method of providing for loss of value by means of periodic charges, each of, which is equivalent to the number of hours during the period for which the asset is operated, multiplied by a constant unit loss of value per hour. (ICWA)
Depreciation, Production Unit
The method of providing for loss of value by means of periodic charges, each of which is equivalent to the number of units of work produced during the period by the asset multiplied by a constant rate of loss of value per unit. (ICWA)
Depreciation, Reducing Balance Method
A system for providing for loss of value by means of periodic charges, each of which is a constant proportion of the balance remaining after deducting from the cost of the asset, the aggregate of the amounts provided previously. (ICWA)
Depreciation, Repair Reserve Method
A system of providing for the aggregate of loss of value and maintenance cost by means of periodic charges each of which is a constant proportion of the aggregate of the cost of the asset and the maintenance cost. (ICWA)
Depreciation, Single Rate
A loss of value which is calculated by reference to the estimated life of an individual asset. (ACE)
Depreciation, Sinking Fund Method
A system of providing for loss of value by means of periodic investments of the aggregate of a constant proportion of the cost of the asset and the interest received from the investment, the proceeds of realisation of the investment at the end of the life of the asset being equal to the cost of the asset. (ICWA)
Depreciation, Straight Line Method
A system of providing for loss of value by means of periodic charges, each of which is a constant proportion of the cost of the asset. (ICWA)
Design Allowance
Is defined as a sum of money added to a material or equipment estimate, usually as a percentage, to cover known costs of engineering, project management and construction management that are required but not included as part of a detailed estimate. (EMS)
Design Basis
Formal front-end document defining project scope of work and anticipated execution philosophy as required for engineering design activity, and upon which estimated costs for the project are based. (ACE)
Design Cost
Cost of preparing defined design, inclusive of all drawings, specifications, models, surveys, and all other documentation or services necessary to a completed package. (ACE)
Design Development Allowance
Nominal allowance included in an estimate or forecast to cover additional costs resulting from natural development of preliminary design data. (ACE)
Design Development Estimate
See BUDGET ESTIMATE
Design Phase
Period within the life of a project covering definition and design activity. (ACE)
Designed Quantities
As-designed drawing quantities. (ACE)
Detailed Estimate
See CLASS I ESTIMATE. (ACE)
or
See FIRM ESTIMATE and DEFINITIVE ESTIMATE. (ACE)
Deterministic Model
An analytical representation of a concept, system, or operation in which there is unique outcomes for a given set of inputs. Contrast with STOCHASTIC MODEL. (FLUOR)
Deterministic Network
A network structure containing paths all of which must be followed through. (FLUOR)
Development Cost
The cost of the process which begins with the implementation of the decision to produce a new or improved product or employ a new or improved method and ends with the commencement of commercial production of that product or application of that method. Market research expense may be included. (ACE)
or
Those costs specific to a project, either capital or expense items, which occur prior to commercial sales found necessary to evolve the potentialities of that project for consideration and eventual promotion. Major cost areas include process, product, and market research and development. (FLUOR)
Deviation
Any variance or departure from a previously defined base or basis. (ACE)
Deviation Scope
A determined limit of cost tolerance. (ACE)
Differential State Vector
The incremental change in state or status. See STATE VECTOR. (FLUOR)
Direct Cost
Any cost directly allocable to a productive account or cost centre. (ACE)
or
In construction direct costs include the costs of direct materials which will become a permanent part of the project and direct labour which is expended to install the direct material. Those costs incurred in the erection or installation of a permanent facility for material or labour. (FLUOR)
or
The expense of materials, labour and overheads, which can be directly identified and allocated to a specific centre. This centre may
1. A fixed investment or capital expense of an installation.
2. A manufacturing expense.
3. A product expense.
4. A process expense.
5. A service expense.
And any overhead expenses, which are included, would be of the direct controllable type. (ACE)
Direct Expense
1. Costs which can be allocated to cost centres or cost units.
2. An item of cost other than direct wages and materials which can be charged direct to the cost of specific products, production units or services.
3. In a capital investment, it is the cost of all material and labour involved in the actual installation of facilities.
4. In manufacturing costs, it is an expense within a cost centre, which is directly assignable to a product or a process area and therefore includes materials, labour and other expenses consumed directly in making the product. (ACE)
Direct Field Cost
The cost of all material and labour involved in the actual on-site fabrication, installation, and erection of permanent facilities. (FLUOR)
or
Is defined as the cost of CIVIL WORK EQUIPMENT COSTS and ANCILLARY COSTS incurred in the execution of a project, which can be identified as created only by reason of performing work directly on the project and are assignable to a cost code account. (EMS)
Direct Labour
1. Labour, which can be directly allocated to a productive account or cost centre, as opposed to indirect labour, which cannot be so, allocated.
2. Labour employed directly by owner or principal, as opposed to contract labour. (ACE)
Direct Man-hours
Man-hours, which can be directly allocated to a productive account or cost centre, as opposed to indirect man-hours, which cannot be so, allocated.
man-hours in respect of labour directly employed by owner or principal, as opposed to man-hours for contract labour. (ACE)
Direct Material
Purchased material, which can be directly allocated to a productive account or cost centre. (ACE)
Direct Material Cost
Expenses related to commodities, goods or equipment, which can be allocated to specific centres or units. (ACE)
Direct Materials
The commodities, goods and equipment" which are permanently built into a facility, including paint, insulation, foundations, bolts and installed spares. (ACE)
Direct Wages
Wage payments to direct labour. (ACE)
or
Payments to productive workers which can be allocated to specific centres or units. (ACE)
Directed Date
A date or time imposed by external authority on an activity or event, which is independent of network logic, and, possibly, time constraints. See IMPOSED DATE. (FLUOR)
Directed Finish (DIF)
The date or time, by which an activity must be completed, established by external authority and not necessarily influenced by any network constraints. (FLUOR)
Directed Occurrence (DO)
The date or time, on which an event must occur, established by external authority and not necessarily influenced by any network constraints. See IMPOSED DATE. (FLUOR)
Directed Start (DS)
The date or time on or after which an activity must start established by external authority and not necessarily influenced by any network constraints. (FLUOR)
Directed Time (DT)
The time within which an activity must be completed, established by external authority and not necessarily influenced by any network constraints. Contrast with ACTIVITY TIME ESTIMATE(S). (FLUOR)
Dirt Money
Additional payments to labour exposed to exceptionally bad working conditions. (ACE)
or
An allowance payable where a worker is brought into contact with flue deposits, mud, water or other forms of poor site conditions. Where these deposits are proved corrosive an additional allowance is payable. Protective clothing must be provided by the employer. (A.C.E)
Discipline
.
Discount
An allowance on a market price, made in respect of quantity, quality, trading concession or payment within a specified period. (A.C.E)
Discounted Cash Flow
Cash flow discounted to NET present value or annual equivalent. (A.C.E)
or
The rate of compound interest which will make the estimated project earnings equal to the cost of investment. taking into account the effect of taxation and the expected change of earnings over a period of years. See also PROFITABILITY INDEX. (A.C.E)
or
See PROFITABILITY INDEX. (FLUOR)
Discounting
Use of compound interest to determine sums earlier in time which are equivalent to a later, larger sum. (ACE)
or
Use of compound interest to determine sums earlier in time which are equivalent to a later, larger sum. USA. (A.C.E)
Disjunctive Paths
Two (or more) paths that branch from a DECISION Box are disjunctive if one or the other but not both is to be performed. Contrast with CONJUNCTIVE PATHS. (FLUOR)
Distributables
Term used to describe specific items for which the costs are to be distributed or apportioned over other cost items. (A.C.E)
Distribution Cost
The expense of the process which begins with making the packed product available for dispatch and ends with making the reconditioned returned empty package available for re-use. (ICWA.)
Dividend
Payments made by a borrower to a lender. (A.CE.)
Double Shift Work
Work involving two distinct labour teams operating in consecutive shifts. (A.C.E)
Down Time
Period where equipment or plant is non~operational, usually for maintenance or repair. (A.C.E.)
or
Period when a process plant is not operating. (A.CE.)
Drawing Measure
MKasure of construction or material quantities from drawings. (A.CE4
Drawing Quantities
Construction or material quantities as measured from drawings. (A.CE.)
Dummy
See DUMMY ACTIVITY. (FLUOR)
Dummy Activity
A logical constraint or dependency in the network which defines a relationship between activity rather than defining a time consuming task. (FLUOR)
Duration
The WORK DAY CALENDAR time required, to perform an activity. See WORK DAY CALENDAR. Contrast with STATIC MODEL. (FLUOR)
Duration of Activity
.
Dynamic Model
A model in which the (important) variables are functions of time. Contrast with STATIC MODEL. (FLUOR)
