Construction & Evaluation Key Terms
Master these terms for the CE division.
Bidding and Procurement
Invitation to Bid
A private solicitation sent to selected contractors, inviting them to submit a bid. Used in private projects where the owner wants to pre-qualify bidders.
Advertisement for Bids
A public notice inviting all qualified contractors to submit bids. Required for public projects and government-funded work.
Bid Bond
A guarantee that the bidder will enter into the contract if awarded the project. Typically 5-10% of the bid amount. Protects the owner from bidders who withdraw after bidding.
Performance Bond
A surety bond guaranteeing that the contractor will complete the work according to the contract documents. Typically 100% of the contract amount.
Payment Bond
A surety bond guaranteeing that the contractor will pay subcontractors, suppliers, and laborers. Protects the owner from mechanic's liens.
Stipulated Sum (Lump Sum)
A fixed contract price agreed upon before construction begins. The contractor assumes the risk of cost overruns.
Guaranteed Maximum Price (GMP)
A contract type where the contractor guarantees the total cost will not exceed a specified maximum. Savings below the GMP may be shared between owner and contractor.
Construction Administration
Submittal
A document, sample, or mock-up submitted by the contractor to the architect for review. Includes shop drawings, product data, and samples. The architect reviews for general conformance with design intent. See our construction administration guide for the full submittal workflow.
Shop Drawing
A detailed drawing prepared by the contractor, subcontractor, or supplier showing how a specific component will be fabricated and installed. Not part of the contract documents.
Request for Information (RFI)
A formal written request from the contractor to the architect seeking clarification of the contract documents. The architect must respond in a timely manner. Learn more about the RFI process and CA responsibilities.
Field Report
A written record of the architect's site visit observations, including construction progress, weather conditions, and any issues observed.
Certificate for Payment
A document issued by the architect certifying the amount due to the contractor based on the architect's review of the pay application. The architect certifies; the owner approves payment.
Retainage
A percentage (typically 5-10%) withheld from each payment to the contractor as security for project completion. May be reduced or released at substantial completion.
Changes
Change Order (CO)
A formal written agreement signed by the owner, architect, and contractor that modifies the contract sum, contract time, or both. All three parties must sign. Understanding change order procedures is essential for the CE exam.
Construction Change Directive (CCD)
A written order signed by the owner and architect directing a change in the work before agreement on cost or time adjustment. Does NOT require the contractor's signature. Work proceeds while price is negotiated.
Minor Change in the Work
A change that does not affect the contract sum or contract time. Can be ordered by the architect alone without a change order or CCD.
Project Closeout
Substantial Completion
The stage when the work is sufficiently complete that the owner can use the project for its intended purpose. The architect issues a Certificate of Substantial Completion. Warranty periods typically begin at this point.
Final Completion
The stage when all punch list items are resolved, all documentation is submitted, and all contractual obligations are fulfilled. The architect issues a final Certificate for Payment.
Punch List
A list of incomplete or deficient items identified by the architect and owner during the substantial completion inspection. The contractor must complete all punch list items before final payment.
Warranty Period
The period (typically one year from substantial completion) during which the contractor is obligated to correct defective work at no cost to the owner.
As-Built Drawings
Drawings maintained by the contractor during construction showing changes from the original contract documents. Submitted to the architect at project closeout for preparation of record drawings.
Record Drawings
Final drawings prepared by the architect incorporating the contractor's as-built markups. Show the project as actually constructed.
See the construction admin cheat sheet for quick reference. Practice with CE flashcards and CE mini exams.
Related Resources
- CE Study Guide - comprehensive overview of Construction & Evaluation
- Construction Administration Deep Dive
- Construction Admin Cheat Sheet
- CE Exam Tips
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