Terminology - I
I-J Number
The I-J number is the address of an activity. The I number is the node designation of the beginning of an activity while the J number is the node designation at the end of the same activity. (FLUOR)
Ideal Standard
Measured performance, which can be attained under the most favourable conditions possible. (See also ECONOMIC OPTIMUM.) (ACE)
Idle Facilities Cost
The expense of abnormal idleness of fixed assets or available services. (ICWA)
Impersonal Cost Centre
Consists of a department or item of equipment (or group of these), to which related expenditure can be charged or controlled. (ACE)
Importation of Labour
The cost of transport, radius and lodging allowances, etc., necessary when local labour is not available in the trades required on construction or erection work. (ACE)
Imposed Date
A date (or a point in time) determined by authority or circumstances outside the network. See DIRECTED DATE. (FLUOR)
In-House
Term used to indicate a company's internal operation or availability of information. (ACE)
In-House Estimate
Estimate prepared entirely from in-house information, with no vendor or contractor quotations, etc. (ACE)
In-Place Sub-contracts
Term occasionally used by major contractors to describe design, supply and erection sub-contracts. (ACE)
Incentive Cost
Cost of bonus incentive payments. (ACE)
or
The expense of paying a bonus for performance. (ACE)
Incentive Payments
Additional payments to labour for incentive purposes.
(ACE)
Income
The cash payments or revenue received from the sale of products and services or the dividends received from investments. (ACE).
Income Statement
A profit and loss summary prepared by an accountant, to indicate the eamings of a business during a specified trading period. It does not take into consideration the current position of liabilities and assets and is therefore not equal to a balance sheet. (ACE)
Inconsistent Network
A network containing at least one path in which one event occurs more than once. Contrast with CONSISTENT NETWORK. (FLUOR)
Incremental Approach
The cost-estimating philosophy based on changes in cash flows which can actually be foreseen, rather than on accounting conventions to approximate overheads, etc. Requires comparison of two alternatives or sets of conditions - PROPOSED CASE and BASE CASE. (ACE)
Incremental Costs (Revenues)
The cost and revenue differences between two alternate courses of action. These should be based on changes which can actually be foreseen as occurring rather than having accounting conventions to approximate overheads, etc. Costs refer both to investment and annual operating costs. In narrower sense, the cost of the last unit produced at a given level of production. (FLUOR)
or
The expenditure revenue differences between alternative courses of action. These should be based on changes which can actually be foreseen, rather than on accounting conventions to approximate overheads, etc. Costs refer both to investment and annual operating costs. In a narrower sense, the cost of the last unit produced at a given level of production. See also MARGINAL COST. (ACE)
Incurred Cost
Actual cost to date of services rendered, work performed or materials supplied. (ACE.)
Independent Float
Spare time available when all preceding activities occur at the latest possible times and all succeeding activities occur at the earliest possible time. (FLUOR)
Indices
See COST INDICES. (ACE)
Indirect
General term commonly used to describe all labour, material, tools, supplies, services, etc. which cannot be directly allocated to a productive account or cost centre. (ACE)
Indirect Cost
An expense which cannot be directly allocated, but which can be apportioned to or absorbed by direct cost centres or units. (ACE)
or
In a construction project, all costs other than direct costs which do become a final part of the installation, but which are required for the orderly completion of the installation and may include, but not limited to, starting costs, contractors fees, insurance, taxes, etc. (FLUOR)
Indirect Costs
Costs which cannot be directly allocated to a productive account or cost centre. (ACE.)
Indirect Expense
1. Cost which cannot be allocated but which can be apportioned to or absorbed by cost centres or cost units.
2. The engineering, construction costs, taxes and insurance, start-up costs and contractors ees associated with a fixed investment which cannot be charged to end-code process items. At job close-out, all indirect expenses are allocated on some reasonable basis to direct code items.
3. The continuing costs associated with manufacture but not directly assignable to cost centres or products. These include plant overheads, materials handling and maintenance charges. (ACE)
Indirect Field Cost
Is defined as the cost incurred in constructing the plant which cannot be charged directly to an item of equipment or operation, but which is necessary for the completion of the work. These costs include Construction Equipment, Subcontractors Site Supervision, Site Facilities. (EMS)
or
The cost of all temporary materials, labour burdens, and overhead allocated to DIRECT FIELD COSTS. (FLOUR)
Indirect Labour
Labour which cannot be directly allocated to a productive account or cost centre. (ACE)
Indirect Man-hours
Man-hours which cannot be directly allocated to a productive account or cost centre. (ACE)
Indirect Material
Purchased material which cannot be directly allocated to a productive account or cost centre. (ACE)
Indirect Material Cost
Expenditure which cannot be directly allocated to goods or commodities but which can be apportioned to or absorbed by cost centres or cost units. (ACE)
Indirect Materials
The commodities, goods and temporary equipment which are used in the construction of a facility but do not become a permanent part of the facility. (ACE)
Indirect Wages
Wage payments for INDIRECT LABOUR. (ACE)
or
Earnings by employees which cannot be directly allocated to a cost centre, but can be apportioned as overhead expenses. (ACE)
Inflated Cost
Any cost artificially uplifted or increased for an unspecified reason. (ACE)
Inflated Price
Any price quoted for goods or services inclusive of an artificial or unspecified uplift. (ACE)
or
A quoted value for goods or services which includes a charge designed to cover the cost of contingencies or related costs. (ACE)
Inflation
See ESCALATION. (ACE)
or
An expansion in spending, not associated with an expansion in goods available, thus causing market price to rise. (ACE)
Inflation Index
1. A series of numbers recording change in prices relative to some past date, when the index was 100.
2. Historical time series maintained by the Government and others which approximate the change (usually loss) in value of money in a particular segment of the economy, usually based on an index of 100 for a base period of time. (ACE)
or
A statistical time series which approximates the change in value of the dollar in a particular segment of the economy, usually bases on an index of 100 for a given time. See COST INDEX. (FLUOR)
Information Processing Language
A generic class of list-processing languages suitable for certain classes of simulation models. (FLUOR)
Ingredients
Raw materials which appear in the final product. (ACE)
Initial Approved Cost
Term commonly refers to original base cost as approved and against which subsequent cost movements are measured and reported. (ACE)
Initial Engineering Schedule
A milestone type schedule (by prime account) showing the required timing on the major engineering task force activities. This serves as a guide to task force manning and training. (FLUOR)
Inquiry For Quotations
A written request (in emergency may be verbal via telephone, or telex) for a vendor to furnish a final quotation i.e. prices, terms, delivery, description, etc., on the items requested. The inquiry describes the item and required conditions (specifications, shipping instructions, closing date, date required, etc.) and is normally sent to three or more prospective vendors. (FLUOR)
Installation
Putting equipment in place on foundations and connecting to utilities other process units, etc. Installation cost is an important cost element to be added to the purchase price of most items. (ACE)
Installed Cost
Final cost of installed equipment, materials or facilities, inclusive of design, procurement and construction. (ACE)
or
The value of capital equipment plus the expense of erecting and fixing it to permanent foundations. (ACE)
Installed Quantities
Quantities installed as measured from design drawings. (ACE)
Instantaneous Compounding
A continuous and accumulating interest on an investment. (ACE)
Insurance
The cost of obtaining financial protection to replace the value of equipment, etc., in case of loss. (ACE)
Intangibles
Cost items other than physical, tangible commodities such as labour, services, etc. (ACE)
or
Elements which have an effect on the forecasts or project under consideration, but are not readily measurable in value and therefore can only be described in non-economic terms. (ACE)
or
Elements which affect the forecasts or project under consideration but which are not readily measurable in dollars. (FLUOR)
Integrated Network
One logical network constructed from a collection of two or more networks, subnets or fragnets. (FLUOR)
Integrated Work Measurement
Method of measuring construction work whereby measurement for estimating, budgeting, tendering, progressing and payment purposes are fully integrated into a single system. (ACE)
Interest
The payment made by a borrower to a lender in consideration of a loan of capital funds.
I = PRT
Where I = Interest
P = Principle sum of loan
R = Rate of Interest per centum
T = Time in years (ACE)
Interest Rate of Return
Calculated cash flow at which the average outstanding investment is repaid by revenue from the project. (ACE)
Interest Rate of Return
The calculated cash flow at which the company's average outstanding investment is repaid by proceeds of the project. Also, the evaluation technique which judges the profitability of a proposed investment by this calculation. Also called INVESTOR'S METHODs. PROFITABILITY INDEX. INTERNAL RATE OF RETURN. (ACE)
or
See PROFITABILITY INDEX. (FLUOR)
Interest, Compound
The rate earned by money expressed as a constant percentage of the unpaid balance at the end of the previous accounting period. Typical time periods are yearly, semi-annually, monthly, and instantaneous. (FLUOR)
Interface
A node linking networks or subnets. (FLUOR)
Internal Change
Term used to describe a change in contractor's budget but for which no corresponding change in reimbursement is due. (ACE)
Internal Transfer
Transfer of quantities, man-hours or costs from one account to another, without affecting existing totals. (ACE)
Interruptive Float (INTF)
Identical to the slack of the activity's successor event, but sometimes used when dealing with activity oriented networks. Also defined at total float minus free float. Also referred to as INTERFERING FLOAT. (FLUOR)
Inventory
The valuation and recording of materials, finished products, work-in-progress, stock and consumable stores, for the purpose of declaration of value of assets on a given date. (ACE)
or
The value of raw materials, products in process, and finished products required for plant operation. Also, other supplies, ie., for maintenance, catalyst, chemicals, spare parts. (FLUOR)
or
The loan of capital funds, or the purchase of stock holdings or capital shares, with the object of profiting by interest earnings, which may be at an agreed fixed rate, or at a rate depending on the degree of successful trading. (ACE)
Investor's Method
A specified formula adopted to calculate the return rate of interest on an investment. (ACE)
Invoiced Costs
Are defined as the amount of money claimed by suppliers or subcontractors, in terms of their contracts, for the successful execution of their commitments, for which payment may or may not have been effected. (EMS)
ITB
Invitation to Bid. (ACE)
ITT
Invitation to Tender. (ACE)
The I-J number is the address of an activity. The I number is the node designation of the beginning of an activity while the J number is the node designation at the end of the same activity. (FLUOR)
Ideal Standard
Measured performance, which can be attained under the most favourable conditions possible. (See also ECONOMIC OPTIMUM.) (ACE)
Idle Facilities Cost
The expense of abnormal idleness of fixed assets or available services. (ICWA)
Impersonal Cost Centre
Consists of a department or item of equipment (or group of these), to which related expenditure can be charged or controlled. (ACE)
Importation of Labour
The cost of transport, radius and lodging allowances, etc., necessary when local labour is not available in the trades required on construction or erection work. (ACE)
Imposed Date
A date (or a point in time) determined by authority or circumstances outside the network. See DIRECTED DATE. (FLUOR)
In-House
Term used to indicate a company's internal operation or availability of information. (ACE)
In-House Estimate
Estimate prepared entirely from in-house information, with no vendor or contractor quotations, etc. (ACE)
In-Place Sub-contracts
Term occasionally used by major contractors to describe design, supply and erection sub-contracts. (ACE)
Incentive Cost
Cost of bonus incentive payments. (ACE)
or
The expense of paying a bonus for performance. (ACE)
Incentive Payments
Additional payments to labour for incentive purposes.
(ACE)
Income
The cash payments or revenue received from the sale of products and services or the dividends received from investments. (ACE).
Income Statement
A profit and loss summary prepared by an accountant, to indicate the eamings of a business during a specified trading period. It does not take into consideration the current position of liabilities and assets and is therefore not equal to a balance sheet. (ACE)
Inconsistent Network
A network containing at least one path in which one event occurs more than once. Contrast with CONSISTENT NETWORK. (FLUOR)
Incremental Approach
The cost-estimating philosophy based on changes in cash flows which can actually be foreseen, rather than on accounting conventions to approximate overheads, etc. Requires comparison of two alternatives or sets of conditions - PROPOSED CASE and BASE CASE. (ACE)
Incremental Costs (Revenues)
The cost and revenue differences between two alternate courses of action. These should be based on changes which can actually be foreseen as occurring rather than having accounting conventions to approximate overheads, etc. Costs refer both to investment and annual operating costs. In narrower sense, the cost of the last unit produced at a given level of production. (FLUOR)
or
The expenditure revenue differences between alternative courses of action. These should be based on changes which can actually be foreseen, rather than on accounting conventions to approximate overheads, etc. Costs refer both to investment and annual operating costs. In a narrower sense, the cost of the last unit produced at a given level of production. See also MARGINAL COST. (ACE)
Incurred Cost
Actual cost to date of services rendered, work performed or materials supplied. (ACE.)
Independent Float
Spare time available when all preceding activities occur at the latest possible times and all succeeding activities occur at the earliest possible time. (FLUOR)
Indices
See COST INDICES. (ACE)
Indirect
General term commonly used to describe all labour, material, tools, supplies, services, etc. which cannot be directly allocated to a productive account or cost centre. (ACE)
Indirect Cost
An expense which cannot be directly allocated, but which can be apportioned to or absorbed by direct cost centres or units. (ACE)
or
In a construction project, all costs other than direct costs which do become a final part of the installation, but which are required for the orderly completion of the installation and may include, but not limited to, starting costs, contractors fees, insurance, taxes, etc. (FLUOR)
Indirect Costs
Costs which cannot be directly allocated to a productive account or cost centre. (ACE.)
Indirect Expense
1. Cost which cannot be allocated but which can be apportioned to or absorbed by cost centres or cost units.
2. The engineering, construction costs, taxes and insurance, start-up costs and contractors ees associated with a fixed investment which cannot be charged to end-code process items. At job close-out, all indirect expenses are allocated on some reasonable basis to direct code items.
3. The continuing costs associated with manufacture but not directly assignable to cost centres or products. These include plant overheads, materials handling and maintenance charges. (ACE)
Indirect Field Cost
Is defined as the cost incurred in constructing the plant which cannot be charged directly to an item of equipment or operation, but which is necessary for the completion of the work. These costs include Construction Equipment, Subcontractors Site Supervision, Site Facilities. (EMS)
or
The cost of all temporary materials, labour burdens, and overhead allocated to DIRECT FIELD COSTS. (FLOUR)
Indirect Labour
Labour which cannot be directly allocated to a productive account or cost centre. (ACE)
Indirect Man-hours
Man-hours which cannot be directly allocated to a productive account or cost centre. (ACE)
Indirect Material
Purchased material which cannot be directly allocated to a productive account or cost centre. (ACE)
Indirect Material Cost
Expenditure which cannot be directly allocated to goods or commodities but which can be apportioned to or absorbed by cost centres or cost units. (ACE)
Indirect Materials
The commodities, goods and temporary equipment which are used in the construction of a facility but do not become a permanent part of the facility. (ACE)
Indirect Wages
Wage payments for INDIRECT LABOUR. (ACE)
or
Earnings by employees which cannot be directly allocated to a cost centre, but can be apportioned as overhead expenses. (ACE)
Inflated Cost
Any cost artificially uplifted or increased for an unspecified reason. (ACE)
Inflated Price
Any price quoted for goods or services inclusive of an artificial or unspecified uplift. (ACE)
or
A quoted value for goods or services which includes a charge designed to cover the cost of contingencies or related costs. (ACE)
Inflation
See ESCALATION. (ACE)
or
An expansion in spending, not associated with an expansion in goods available, thus causing market price to rise. (ACE)
Inflation Index
1. A series of numbers recording change in prices relative to some past date, when the index was 100.
2. Historical time series maintained by the Government and others which approximate the change (usually loss) in value of money in a particular segment of the economy, usually based on an index of 100 for a base period of time. (ACE)
or
A statistical time series which approximates the change in value of the dollar in a particular segment of the economy, usually bases on an index of 100 for a given time. See COST INDEX. (FLUOR)
Information Processing Language
A generic class of list-processing languages suitable for certain classes of simulation models. (FLUOR)
Ingredients
Raw materials which appear in the final product. (ACE)
Initial Approved Cost
Term commonly refers to original base cost as approved and against which subsequent cost movements are measured and reported. (ACE)
Initial Engineering Schedule
A milestone type schedule (by prime account) showing the required timing on the major engineering task force activities. This serves as a guide to task force manning and training. (FLUOR)
Inquiry For Quotations
A written request (in emergency may be verbal via telephone, or telex) for a vendor to furnish a final quotation i.e. prices, terms, delivery, description, etc., on the items requested. The inquiry describes the item and required conditions (specifications, shipping instructions, closing date, date required, etc.) and is normally sent to three or more prospective vendors. (FLUOR)
Installation
Putting equipment in place on foundations and connecting to utilities other process units, etc. Installation cost is an important cost element to be added to the purchase price of most items. (ACE)
Installed Cost
Final cost of installed equipment, materials or facilities, inclusive of design, procurement and construction. (ACE)
or
The value of capital equipment plus the expense of erecting and fixing it to permanent foundations. (ACE)
Installed Quantities
Quantities installed as measured from design drawings. (ACE)
Instantaneous Compounding
A continuous and accumulating interest on an investment. (ACE)
Insurance
The cost of obtaining financial protection to replace the value of equipment, etc., in case of loss. (ACE)
Intangibles
Cost items other than physical, tangible commodities such as labour, services, etc. (ACE)
or
Elements which have an effect on the forecasts or project under consideration, but are not readily measurable in value and therefore can only be described in non-economic terms. (ACE)
or
Elements which affect the forecasts or project under consideration but which are not readily measurable in dollars. (FLUOR)
Integrated Network
One logical network constructed from a collection of two or more networks, subnets or fragnets. (FLUOR)
Integrated Work Measurement
Method of measuring construction work whereby measurement for estimating, budgeting, tendering, progressing and payment purposes are fully integrated into a single system. (ACE)
Interest
The payment made by a borrower to a lender in consideration of a loan of capital funds.
I = PRT
Where I = Interest
P = Principle sum of loan
R = Rate of Interest per centum
T = Time in years (ACE)
Interest Rate of Return
Calculated cash flow at which the average outstanding investment is repaid by revenue from the project. (ACE)
Interest Rate of Return
The calculated cash flow at which the company's average outstanding investment is repaid by proceeds of the project. Also, the evaluation technique which judges the profitability of a proposed investment by this calculation. Also called INVESTOR'S METHODs. PROFITABILITY INDEX. INTERNAL RATE OF RETURN. (ACE)
or
See PROFITABILITY INDEX. (FLUOR)
Interest, Compound
The rate earned by money expressed as a constant percentage of the unpaid balance at the end of the previous accounting period. Typical time periods are yearly, semi-annually, monthly, and instantaneous. (FLUOR)
Interface
A node linking networks or subnets. (FLUOR)
Internal Change
Term used to describe a change in contractor's budget but for which no corresponding change in reimbursement is due. (ACE)
Internal Transfer
Transfer of quantities, man-hours or costs from one account to another, without affecting existing totals. (ACE)
Interruptive Float (INTF)
Identical to the slack of the activity's successor event, but sometimes used when dealing with activity oriented networks. Also defined at total float minus free float. Also referred to as INTERFERING FLOAT. (FLUOR)
Inventory
The valuation and recording of materials, finished products, work-in-progress, stock and consumable stores, for the purpose of declaration of value of assets on a given date. (ACE)
or
The value of raw materials, products in process, and finished products required for plant operation. Also, other supplies, ie., for maintenance, catalyst, chemicals, spare parts. (FLUOR)
or
The loan of capital funds, or the purchase of stock holdings or capital shares, with the object of profiting by interest earnings, which may be at an agreed fixed rate, or at a rate depending on the degree of successful trading. (ACE)
Investor's Method
A specified formula adopted to calculate the return rate of interest on an investment. (ACE)
Invoiced Costs
Are defined as the amount of money claimed by suppliers or subcontractors, in terms of their contracts, for the successful execution of their commitments, for which payment may or may not have been effected. (EMS)
ITB
Invitation to Bid. (ACE)
ITT
Invitation to Tender. (ACE)
