Terminology - V
Validity Period
The number of days within which a tender is open for acceptance and after which it is subject to confirmation. (ACE)
Valuation
Measurement of completed work for payment purposes. (ACE)
or
The process of calculating or estimating current market value or worth. (ACE)
Value Engineering
Technique of ensuring completion at minimum cost, without loss of quality. (ACE)
or
A technique of pre-production study to ensure that materials purchased, manufactured or used in a product give the lowest cost for a function or service, without sacrifice of the essential quality desired. Value engineering is applied at the design stage, whereas value analysis is applied during the production stage. (ACE)
or
Is defined as the technique employed to achieve a function at the lowest cost without affecting quality, i.e. to get to the best value at the lowest cost. (EMS)
Value of Work Completed
See ACTUAL COST OF WORK PERFORMED. (ACE.)
Value Of Work Performed (V)
The value of completed work including that part of the work in process, which has been finished as related to the budget for the same period. This value is determined by summing up the planned cost for each completed work package. If a work package is in process, the part of its total budget, which applies to work, completed is approximately by application of the following formula:
V = (A)(B); V = (PC)(B); V = (CM)(B)
LRE 100% TM
(FLUOR)
Variable Cost
1. An expense which tends to vary directly with change in volume of output.
2. Those elements of manufacturing expenditure which vary in direct proportion to the volume of production, such as ingredients and utilities. Generally used in contrast to fixed costs, which do not vary with production but are constant with passage of time.
3. Raw material expenditure, by-product credits and those processing expenses, which vary with, plant output (such as utilities, catalyst and chemicals, packaging and labour for batch operations). (ACE)
or
Raw materials costs, by-product credits, and those processing costs, which vary with, plant output (such as utilities, catalysts and chemical, packaging, and labour for batch operations). (FLUOR)
Variance
Any actual or perceived deviation from project budget or schedule. (ACE)
or
The calculated difference between standard or budget expense and the actual amount recorded. (ACE)
or
Is defined as the difference between the ACTUAL COST and the ESTMATE or budget, or between any two cost items. (EMS)
Variance Analysis
Process of analysing reported variances. (ACE)
or
The resolution into component parts, and the explanation of differences between budget and actual results. (ACE)
Variance Of Earliest Occurrence (VEO)
A measure of the uncertainty of the earliest occurrence of an event. It is computed by summing the variances of expected time from the beginning of the network along the longest time path to the event in question. (FLUOR)
Variance Of Expected Time (VET)
The square of the standard deviation of expected time or: VET = (SET)2. (FLUOR)
Variance Of Latest Occurrence (VLO)
A measure of the uncertainty of the latest occurrence of an event. It is computed by summing the variances of expected times from the end of the network along the longest time path to the event in question. (FLUOR)
Variation
Change in scope of work or supply, subject to confirmation and approval. (ACE)
Variation Estimate
Any estimate prepared in respect of a VARIATION ORDER. (ACE)
Variation Order
Formal order varying scope of contracted work or supply. (ACE)
or
See CHANGE ORDER (EMS)
Variation Order Request
Formal request to vary scope of contracted work or supply. (ACE)
Venture Worth
A value today of a sum invested at compound interest for a number of years, to provide return of capital and interest (synonymous with PRESENT WORTH). (ACE)
Vertical Integration
Industrial organisation in which single firms control several distinct stages of manufacture. (ACE)
Volume Variance
The portion of the overhead expense which is due to the difference between the budgeted level of output and the actual level of output attained. (ICWA)
