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Backout

A portion of an area takeoff that is removed (erased, or 'backed out') and removed from the takeoff result.

Bid

1. The process of submitting a proposal (tender) to undertake or manage the undertaking of a construction project. The process generally starts with a cost estimate from blueprints or proposals. A bid may be private and only specific entities are allowed to participate or “open” to all interested parties.

2. An offer or proposal of a price

3. The amount offered or proposed. (see RFP)

Bid Bond

Bid Conversion

 When a project is moved from any pre-construction status to bidding status.

Bid Date / Time

 The due date and time set by the owner, architect or engineer for receiving bids. (Subcontractors usually submit bids to GCs; on public work, GCs submit bid to owner/architect/engineer).

Bid Form

A standard written form furnished to all bidders for the purpose of obtaining the requested information and required signatures from the authorized bidding representatives.

Bid Letting (aka Bid Opening)

The actual process of opening and tabulating bids submitted within the prescribed bid date/time and conforming with the bid procedures. A Bid Opening can be open (where the bidders are permitted to attend) or closed (where the bidders are not permitted to attend).

Bid List

 A list of general contractors bidding on a project. This may be an invited list of contractors pre-selected by the entity accepting bids or an open bid for all contractors who are interested.

Bid Management Tool

 Originally called the Private Construction Office (PCO), this is a core product that we sell primarily to General Contractors (GCs) to manage their subcontractor bid solicitation process.

Bid Price

The stipulated sum stated in the bidder’s bid.

Bid Results/Bid Tabulation/Bid Tab

 Bid results showing a list of bidders and their respective bid amounts.

Bid Shopper

A buyer or client who seeks to play one proposed supplier or subcontractor against the other for the purpose of reducing a purchase price.

Bid Tabulation

A summary sheet listing all bid prices for the purpose of analyzing the bid results. Bid tabulations include the required items of the invitation to bid and usually include bid amount, completion time, addenda's included, contract exclusions, bonding rate, etc. Often times, the apparent low bidder is not the low bidder. (see Bid Form )

Bidding Documents

The published advertisement or written invitation to bid, instructions to bidders, the bid form and the proposed contract documents including any acknowledged addenda issued prior to receipt of bids. Every document, plan, spec sheet, published for a project for the purpose of creating an estimate.

Bidding Period

The calendar period allowed from issuance of bidding requirements and contract documents to the prescribed bid date/time. ( see Bid Date/Time)

Bidding Requirements

The written minimum acceptable requirements set forth by the owner to the contractor during bidding process. The owner usually reserves the right to reject a bid if the Bidding Requirements are not met. (see Bidding Documents)

Bidding Stage

 The stage in the Construction Process when bids are requested from the GCs, who, in turn, request bids from subs. Bids are then tabulated and awarded. Typically, the bid with the lowest price wins.  

Bonds

• Bid Bond

 A bond purchased by a bidder in order to demonstrate that he/she has sufficient funding to complete the project if awarded. A written form of security executed by the bidder as principal and by a surety for the purpose of guaranteeing that the bidder will sign the contract, if awarded the contract, for the stated bid amount.

• Labor and Material Payment Bond

 A bond that covers payment for all equipment, labor, materials, and services.

• Performance Bond

 A bond issued by an insurance company or a bank to guarantee satisfactory completion of a project by an awarded contractor. The performance bonds will usually cover 100% of the contract price and replace the bid bonds on award of the contract.

Bonding Company

A properly licensed firm or corporation willing to execute a surety bond, or bonds, payable to the owner, securing the performance on a contract either in whole or in part; or securing payment for labor and materials.

Budget (Construction Budget)

1. An itemized summary of estimated or intended expenditures for a given period of time

2. The total sum of money allocated for a specific project.

Build-out/Tenant Improvements

 Shell of a building is existing; interior finish out for a new tenant.

Building

1. To form by combining materials or parts

2. A structure enclosed within a roof and within exterior walls housing, shelter, enclosure and support of individuals, animals, or real property of any kind.

Building Code

The legal requirements set up by the prevailing various governing agencies covering the minimum acceptable requirements for all types of construction. (See Codes)

Building Envelope (Sometimes referred to as Building Shell)

1. The waterproof elements of a building which enclose conditioned spaces through which thermal energy may be transferred to or from the exterior.

2. The outer structure of the building.

(See Tenant and Leasehold improvements for building interiors)

Building Inspector/Official

A qualified government representative authorized to inspect construction for compliance with applicable building codes, regulations and ordinances. Courts have ruled that building inspections are exempt from errors and omissions liabilities.

Building Permit

A written document issued by the appropriate governmental authority permitting construction to begin on a specific project in accordance with drawings and specifications approved by the governmental authority.

Building Process

A term used to express every step of a construction project from it’s conception to final acceptance and occupancy.

Building Project Manufacturer (BPM)

 A firm that provides materials for construction projects.

Burden

Additional costs added to Labor expenses to account for insurance, union, servicing, or other labor-related markup expenses.