“Engineers working in

construction projects
should be familiar with
abbreviations,
descriptions, and key
details related to
Commercial, Planning,
Cost Control, and Finance
"
1
BOQ

Bill Of Quantities

“List of materials,
parts, and labor needed
for a project ”
2
BOM

Bill Of Materials

“List of materials and

components required
for a project ”
3
CO

Change Order

“An official change to

contract terms ”
4
VO

Variation Order

“Alteration to the scope

of work ”
5
PC

Provisional Cost

“Estimated cost subject

to change ”
6
PS

Provisional Sum

“Budget allowance for

undefined costs ”
7
LS

Lump Sum

“A fixed -price contract ”

8
NTE

Not-to Exceed

“Budget cap for a

contract ”
10
CPIF

Cost Plus Incentive

Fee

“Reimbursement plus
performance -based
bonus. ”
11
CPFF

Cost Plus Fixed Fee

“Reimbursement plus a
fixed fee ”
12
GMP

Guaranteed
Maximum Price

“Contractor cannot
exceed this price ”
13
D&B

Design Build

“A contract where one

entity handles both
design and
construction. ”
14
EPC

Engineering,
Procurement &
Construction

“A contract covering
engineering,
procurement, and
construction. ”
15
PPP

Public-Private
Partnership

“Collaboration between
government and private
sector for public
projects ”
16
BOT

Build/Operate
Transfer

“A contract where the

contractor builds,
operates, and then
transfers the project ”
17
DBO

Design-Build-
Operate

“A contract covering
design, build, and
operation ”
18
NTP

Notice to Proceed

“A formal notice
authorizing the
contractor to begin
work”
19
FC

Final Cost

“The total cost incurred

at project completion ”
20
ICE

Independent Cost
Estimate

“An unbiased estimate

of project costs ”
21
RFI

Request for
Information

“A formal request for

clarification or
information ”
22
RFB

Request for
Proposal

“A formal request for

proposals from
contractors ”
23
RFQ

Request for
Quotation

“A formal request for

price quotations ”
24
PMT

Payment Schedule

“A schedule of payments
for a project ”
25
IPA
Interim Payment
Application

“A interim payment
application request for
completed work ”
26
IPC
Interim Payment
Certificate

“A certificate for
interim payments ”
27
PAC
Provisional
Acceptance
Certificate

“A certificate for
provisional acceptance
of work ”
28
FAC
Final Acceptance
Certificate

“A certificate for final

acceptance of work ”
29
PCO
Pending Change
Order

“A change order that is

pending approval ”
30
MPR

Monthly Billing
Report

“A report of monthly
project billing ”
31
LOU

Letter of
Undertaking

“A document
committing to perform
certain tasks ”
32
LOA

Letter of Award

“A document awarding a
contract to a
contractor ”
33
PBS

Payment
Breakdown
Structure

“A breakdown of
payments for a project. ”
34
CBC

Cost Plus Contract

“A contract where the

contractor is reimbursed
for costs plus a fee ”
35
E&R

Error & Omission

“Errors or omissions in
project documentation ”
36
UOM

Unit of Measure

“The unit used to

measure quantities ”
37
RFC

Request for Change

“A request to change
project scope or terms ”
38
TQM

Total Quality
Managemente

“A management
approach to improve
quality ”
39
COQ

Cost of Quality

“The cost of ensuring

quality in a project ”
40
CCD

Contract
Completion Date

“Original project end

date ”
41
CRD

Contractual
Required Date

“The date by which a

task must be completed
as per the contract ”
42
POB

Proof of Burden

“Evidence required to
support a claim for
additional time or cost ”
43
CN

Contractual Notice

“A formal notice related

to the contract ”
44
NOD

Notice of Delay

“A formal notice of
project delay ”
45
NOI

Notice of Intention
(to claim)

“A formal notice of
intent to claim ”
46
NOC

Notice of Claim

“A formal notice of
claim ”
47
RFV

Request for
Variation

“A request for a change

in project scope or
terms ”
48
VOR

Variation Order
Request

“A request for a
variation order ”
49
PCD

Prolongation Cost
Due

“Costs incurred due to

project delays ”
50
TCC

Time-Related Cost
Claim

“A claim for additional

costs due to delay ”
51
FIDIC

Fédération
Internationale des
Ingénieurs-
Conseils

“International standards
for construction
contracts ”
52
NEC

New Engineering
Contract

“A family of
construction contracts ”
53
DRB

Dispute Resolution
Board

“A board to resolve
disputes in construction
projects ”
54
DAB

Dispute
Adjudication
Board

“A board to adjudicate
disputes in construction
projects ”
55
ADR

Alternative
Dispute Resolution

“Methods to resolve
disputes without
litigation ”
56
LOI

Letter of Intent

“A document expressing
intent to enter into a
contract ”
57
LOD

Level of Detail

“The degree of detail in

project documentation ”
58
CCM

Contract & Claims

Management

“Management of
contracts and claims ”
59
DCMA

Defense Contract
Management
Agency

“A U.S. government
agency overseeing
defense contracts ”
60
SSA

Software-Specific
Abbreviations

“Abbreviations specific
to software tools ”
61
VE

Value Engineering

“A method to improve
the value of a project ”
62
ITP

Inspection Test
Plan

“A plan for inspecting

and testing project
deliverables ”
63
MTO

Material Takeoff

“A list of materials
required for a project ”
64
FM

Force Majeure

“Unforeseen events that

excuse delays or non -
performance ”
65
RETENTION

Retention

“A portion of payment
withheld until project
completion ”
66
LAD

Liquidated and
Ascertained
Damages

“Pre -agreed damages for

delays ”
67
FWA

Force Majeure
Work Adjustment

“Adjustments due to
unforeseen events ”
67
FWA

Force Majeure
Work Adjustment

“Adjustments due to
unforeseen events ”
68
WBS

Work Breakdown
Structure

“Hierarchical
decomposition of
project tasks ”
69
CBS

Cost Breakdown
Structure

“Categorization of
project costs ”
70
RBS

Resourec
Breakdown
Structure

“Categorization of
project costs with
resource ”
71
EAC

Estimate at
Completion

“Expected total project

cost, EAC = AC + ETC ”
72
BAC

Budget at
Completion

“Total planned budget

for a project ”
73
ETC

Estimate to
Complete

“Forecasted cost to
complete the remaining
work, ETC = EAC - AC”
74
EV

Earned Value

“Work performed in
terms of budgeted cost,
EV = % Work Completed
× BAC ”
75
AC

Actual Cost

“Real expenditure
incurred ”
76
CV

Cost Variance

“Difference between
Earned Value and Actual
Cost, CV = EV - AC”
77
SV

Schedule Variance

“Difference between
Earned Value and
Planned Value,
SV = EV - PV”
78
CPI

Cost Performance
Index

“Cost efficiency ratio,

CPI = EV / AC ”
79
SPI

Schedule
Performance Index

“Schedule efficiency
ratio,
SPI = EV / PV”
80
TCPI

To-Complete
Performance Index

“Efficiency needed to
achieve BAC,
TCPI = (BAC - EV) /
(BAC - AC) ”
81
ABC

Activity Based
Costing

“Costing method based

on activities ”
82
TCO

Total Cost of
Ownership

“Total cost of owning

and operating an asset ”
83
LCC

Life Cycle Costing

“Total cost of an asset

over its life cyclet ”
84
S-Curve

Progress vs Time
graph

“Graphical
representation of
project progress over
time ”
85
AGC

Actual Gross Cost

“The total cost incurred

for a project ”
86
PCC

Performance Cost
Control

“Control of costs based

on performance ”
87
CTD

Cost to Date

“The total cost incurred

to date ”
88
ATC

Allowance to
Complete

“The budget remaining

to complete the projec ”
89
EMV

Expected Monetary
Value
“The expected value of a
decision, EMV =
Probability × Impact ”
90
CR

Contingency
Reserve

“A reserve for
unforeseen risk ”
91
SR

Schedule Reserve

“A reserve for schedule

contingencies ”
92
CM

Contingency
Management

“Management of
contingency reserves ”
93
PRA

Probabilistic Risk
Analysis

“Analysis of risks using

probability ”
94
ARA

Alternative Risk
Analysis

“Analysis of risks using

alternative methods ”
Alternate Risk Analysis Methods:
Scenario Analysis: Examines potential future events by creating and analyzing multiple scenarios to understand their
impact on objectives.
Sensitivity Analysis: Assesses how changes in key variables affect outcomes, helping to identify critical risk drivers.
Monte Carlo Simulations: Uses probability distributions to model and analyze the impact of risk and uncertainty in
decision-making.
Stress Testing: Evaluates how systems, processes, or organizations perform under extreme conditions.
Expert Judgment: Leverages the insights and experience of subject matter experts to assess risks that are difficult to
quantify.
Delphi Method: Uses a structured communication technique to gather and refine expert opinions on risks.
System Dynamics Modeling: Analyzes complex systems and their interactions to understand risk behavior over time.
95
CVA

Cost Variance
Analysis

“Analysis of cost
variances ”
96
CCA

Cost Control
Analysis
“Analysis of cost control
measures ”
Key Differences Cost Variance Analysis Cost Control Analysis

Identifies deviations between Monitors and manages costs to prevent

Focus
budgeted and actual costs. overruns.
Typically performed after a task or Ongoing process throughout the project
Timeframe
phase is completed. lifecycle.
Purpose Diagnose the cause of cost overruns. Proactively prevent future cost overruns.
Variance calculations, Earned Value Budget tracking, forecasting, and trend
Tools Used
Management (EVM). analysis.
97
PCS

Project Cost
Summary

“A summary of project
costs ”
98
PBA

Project Budget
Allocation

“Allocation of the
project budget ”
99
BOMC

Bill of Material
Cost

“The cost of materials

listed in the BOM ”
100
WACC

Weighted Average
Cost of Capital
“The average cost of capital,

WA C C = ( We i g h t o f E q u i t y C o s t o f

E q u i t y ) + ( We i g h t o f D e b t × A f t e r -

Ta x C o s t o f D e b t ) + ( We i g h t o f

Preferred Stock Cost of Preferred

Stock)”
101
OBS

Organizational
Breakdown
Structure

“A hierarchical
breakdown of project
organization ”
102
RBS

Risk Breakdown
Structure

“A hierarchical
breakdown of project
risk”
103
PMP

Project
Management Plan

“A formal document
outlining how the
project will be
executed ”
104
RMP

Risk Management
Plan

“The Risk Management Plan

(RMP) focuses on identifying,
assessing, and mitigating risks
throughout the project
lifecycle”
105
HSE Plan

Health, Safety, and

Environment
(HSE) Plan

“The HSE Plan ensures the

safety of personnel and
compliance with
environmental regulations”
106
QMP

Quality
Management Plan

“The Quality Management Plan

(QMP) ensures that the project
meets the required quality
standards”
107
PRMP

Procurement
Management Plan

“The Procurement Management

Plan outlines how materials,
equipment, and services will
be procured”
108
CMP

Communication
Management Plan

“The Communication
Management Plan outlines how
effective communication to be
keep among stakeholders in the
project”
109
CHMP

Change
Management Plan

“The Change Management Plan

outlines how changes to the
project scope, schedule, or
budget will be managed”
110
CHP

Commissioning
and Handover Plan

“The Commissioning and

Handover Plan outlines how
commissioning and hand over
to be manage in the project”
111
STMP

Stakeholder
Management Plan

“The Stakeholder Management

Plan identifies stakeholders
and outlines strategies for
engaging them”
112
SMP
Schedule
Management Plan
“A Schedule Management Plan
(SMP) is a document that
outlines the policies,
procedures, and methodologies
for developing, managing, and
controlling the project
schedule. lifecycle”
113
CMP
Cost Management
Plan
“A Cost Management Plan
(CMP) is a document that
outlines the policies,
procedures, and methodologies
for developing, managing, and
controlling the project”
114
RSMP
Resource
Management Plan
“ A Re s o u r c e M a n a g e m e n t P l a n
(RSMP) is a document that
outlines the policies,
procedures, and methodologies
for managing and controlling
the resource in the project”
115
IMP
Interation
Management Plan
“An Integration Management Plan

outlines how different project

elements—scope, schedule, cost,

q u a l i t y, r i s k , r e s o u r c e s , a n d

communication—are coordinated

to ensure successful project

e xe c u t i o n ”
116
CNMP
Contingency
Management Plan
“The Contingency Management

Plan outlines how unforeseen

events to be manage in the

p r o j e c t e xe c u t i o n ”
117
CEMP
Construction
Environment
Management Plan
“CEMP is a critical document that

outlines the strategies and

measures to manage and mitigate

the environmental impacts of a

construction project”
118
PMO
Project
Management Office

“A department that standardizes

project management processes”

119
SDA

Scheduling &
Delay Analysis

“Analysis of delays in project

schedules”
120
PERT
Program Evaluation and
Re v i e w Te c h n i q u e
“A statistical tool for project scheduling,

Three-Point Estimation,

Optimistic Time (O):

Most Likely Time (M):

Pessimistic Time (P):

Expected Duration (TE):(𝑂+4𝑀+𝑃)/6

. ”
121
EOT
Extension of Time

“Time
extension due to project
delays ”
122
CPM
Critical Path
Method
“ T h e C r i t i c a l Pa t h i s t h e l o n g e s t

sequence of dependent activities in a

project that determines the shortest

possible project duration. Any delay

in critical path activities will

directly impact the project’s

completion date”
123
TF
Total Float
“ To t a l F l o a t ( T F ) i s t h e a m o u n t o f t i m e

an activity can be delayed without

delaying the project’s completion date

To t a l F l o a t = L a t e s t F i n i s h ( L F ) − E a r l i e s t

Finish (EF)

To t a l F l o a t = L a t e s t S t a r t ( L S ) − E a r l i e s t

Start (ES)”
124
FF
Free Float

“The time an activity can be

delayed without delaying the
next activity”
125
EVM

Earned Value
Management

“A project management
technique to measure
performance ”
126
PV

Planned Value

“Budgeted cost of work

scheduled, PV =
Planned % Complete ×
BAC ”
127
VAC

Variance at
Completion

“Difference between
BAC and EAC,
VAC = BAC - EAC ”
128
RCM

Risk & Cost

Management

“Integration of risk and

cost management
processes ”
129
QURA
Qualitative Risk
Analysis
“ Qualitative risk analysis is a
subjective approach that
focuses on identifying and
prioritizing risks based on
their likelihood and impact.
uses descriptive scales (e.g.,
high, medium, low”
130
QRA
Quantitative Risk
Analysis
“ Quantitative risk analysis is
a numerical approach that
uses data and statistical
methods to estimate the
probability and impact of
risks.
131
SRA

Schedule Risk
Analysis

“Analysis of risks
impacting the project
schedule ”
132
CE

Compensable
Event

“An event that entitles

the contractor to
additional time or cost ”
133
NE

Non-Excusable
Delay

“Contractor -caused
delay ”
134
ED

Excusable Delay

“Client -approved delay ”

135
AED

Adjusted End Date

“Revised completion
date post delay ”
136
CA

Concurrent
Analysis

“Analysis of overlapping
activities or delays ”
137
DIA

Delay Impact
Analysis

“Method to determine
project delay causes ”
138
DAE

Delay Analysis
Expert

“An expert who analyzes

project delays ”
139
PPR

Preliminary
Program Review

“An early review of

project plans ”
140
P6

Oracle Primavera
P6

“A project management
software tool ”
141
MSP

Microsoft Project

“A project management
software tool ”
142
TILOS

Time Location
System

“A system for managing

linear projects ”
143
EPPM

Enterprise Project
Portfolio
Management

“Management of
multiple projects across
an organization ”
144
PMS
Progress
Measurement
System
“A Progress Measurement System

(PMS) is a structured approach used

in project management to track and

measure the progress of a project

against its planned objectives,

schedule, and budget”

145
MR

Management
Reserve

“A budget reserve for

unforeseen risks ”
146
CF

Cash Flow

“The movement of
money in and out of a
project ”
147
SCR

Ceashing

“A term related to
project delays or
stoppages ”
148
SFT

Fast-Tracking

“A technique to
compress the project
schedule by re
sequencing ”
149
TSQ

Trade Sequence

“The sequence of trades

or activities in a
project ”
150
SLP

Site Logistics Plan

“A plan for managing

site operations ”
151
HS

Handover Schedule

“A schedule for handing

over project
deliverables ”
152
DP

Decommissioning
Plan

“A plan for
decommissioning a
project ”
153
RR

Risk Register

“A document listing
project risks ”
154
BT

Buffer Time

“Extra time added to

the schedule for
contingencies ”
155
CP

Contingency Plan

“A plan for responding

to unforeseen events ”
156
CB

Cost Baseline

“The approved budget

for the project ”
157
PT

Progress Tracking

“Monitoring project
progress ”
158
DU

Duration

“The time required to

complete an activity ”
159
SCH

Schedule

“A timeline for project

activities.
”
160
BLS

Baseline Schedule

“The original approved

project schedule.
”
161
RB

Recovery Plan

“A plan to recover from

project delays.
”
162
AON

Activity-on-Node

“A project scheduling
method.
”
163
%C

Percent Complete

“The percentage of work

completed.
”
164
RWP
Rolling Wave Plan
“ A Ro l l i n g Wa v e P l a n ( RW P ) i s
a project management
technique that involves
progressive elaboration and
iterative planning, where the
full scope, requirements, or
deliverables are not fully
known at the outset”
165
ES

Earned Schedule

“A schedule
performance
measurement technique.
”
166
MS

Milestone

“A significant event in
the project schedule.
”
167
STC

Stakeholder

“Individuals or groups
involve in the project.
”
168
SC

Scope Creep

“Uncontrolled changes
to project scope ”
169
RM

Risk Management

“The process of
identifying and
managing risks ”
170
CC

Change Control

“The process of
managing changes to the
project ”
171
LL

Lessons Learned

“Knowledge gained from

project experiences ”
172
TIA

Lessons Learned

“Knowledge gained from

project experiences ”
173
FIA

Forensic Impact
Analysis

“Detailed analysis of
project delays or issues ”
174
TIA vs FIA
Aspect Time Impact Analysis (TIA) Forensic Impact Analysis (FIA)

A prospective (forward-looking) delay

A retrospective (backward-looking) delay
analysis method used to assess the
Definition analysis method used to determine the
impact of delays on project
actual cause and responsibility of delays.
completion.
To evaluate potential delays and their To analyze past delays and establish
Purpose impact on project completion before responsibility for claims, disputes, or legal
they occur or during execution. proceedings.

Conducted during the project when a Conducted after the project or when a
Timing
delay event occurs. dispute arises.
Hypothetical insertion of delay events Actual project records, as-built schedules,
Basis of Analysis
into the current project schedule. and historical data.

- Updates the schedule with the delay - Compares as-planned vs. as-built
Methodology
event. schedules.
- Compares before and after delay - Uses forensic schedule analysis
impact. techniques.
- Identifies delay causation and
- Uses "what-if" scenarios.
responsibility.
Typical Use - Evaluating EOT claims during the
- Settling disputes and claims.
Cases project.
- Managing risks proactively. - Legal arbitration and litigation support.
- Contractual delay analysis after project
- Supporting ongoing negotiations.
completion.
Primavera P6, MS Project, As-Built vs. As-
Primavera P6, MS Project, Critical Path
Key Tools Used Planned Analysis, Windows Analysis,
Method (CPM)
Collapsed As-Built Analysis
Identifies potential time extension
Determines actual delays, their causes, and
Outcome (EOT) entitlement based on
who is responsible for them.
forecasted impacts.
175
CAPEX

Capital
Expenditure

“Long -term investment

costs for acquiring or
maintaining fixed
assets ”
176
OPEX

Operational
Expenditure

“Long -term investment

costs for acquiring or
maintaining fixed
assets ”
177
ROI

Return on
Investment

“A measure of
profitability, ROI = (Net
Profit / Investment Cost)
× 100”
178
ROI

Return on
Investment

“A measure of
profitability, ROI = (Net
Profit / Investment Cost)
× 100”
179
NPV

Net Present Value

“Evaluates profitability
by considering the time
value of money, NPV = Σ
[Cash Flow / (1 +
Discount Rate)^t] -
Initial Investment ”
180
NPV
181
IRR

Internal Rate of
Return

“The discount rate that

makes NPV”
182
DLOM

Discount for Lack

of Marketability

“A discount applied to
illiquid assets ”
183
DCF

Discounted Cash
Flow

“Used to assess an
investment's value ”
184
CAPM

Capital Asset
Pricing Model

“A model to determine
the required return on
an asset, C APM = Rf +
β(Rm - Rf)”
185
P/E

Price-to-Earnings
Ratio

“A valuation ratio, P/E

= Price per Share /
Earnings per Share ”
185
P/E

Price-to-Earnings
Ratio
186
MARR

Minimum
Acceptable Rate of
Return

“The minimum return

required on an
investment ”
186
MARR
187
BCR

Benefit-Cost Ratio

“A ratio of benefits to
costs, BCR = Benefits /
Costs ”
188
BCR

Benefit-Cost Ratio

“A ratio of benefits to
costs, BCR = Benefits /
Costs ”
189
PP
Payback Period
“The time required to
recover an investment ”
190
BEP

Break-Even Point

“The point where

revenue equals costs,
BEP = Fixed Costs /
(Price per Unit -
Variable Cost per Unit) ”
191
LD

Liquidated
Damages

“Compensation for
delay ”
192
LD

Liquidated
Damages

“Compensation for
delay ”
192
AFF

Authorization for
Expenditure

“Approval for project

expenditures ”
193
P&L

Profit & Loss

“A financial statement
showing revenues and
expenses ”
194
FAR

Financial
Adjustment
Request

“A request for financial

adjustments ”
195
ROQ

Return on Equity

“Profitability ratio
indicating financial
performance, ROE =
(Net Income /
Shareholder's Equity) ×
100”
195
BI

Business
Intelligence

“Tools for analyzing

business data ”
196
QA

Quality Assurance

“A proactive process
that ensures quality in
processes, preventing
defects before they
occur ”
197
QC

Quality Control

“A reactive process that

involves inspecting and
testing to identify
defects in products or
services ”
198
QMS

Quality
Management
System

“A reactive process that

involves inspecting and
testing to identify
defects in products or
199
ISO
International
Organization for
Standardization

“Develops and publishes

international quality
standards (e.g., ISO 9001 for
quality management
systems”
200
ISO
International
Organization for
Standardization

“Develops and publishes

international quality
standards (e.g., ISO 9001 for
quality management
systems”