The act of taking measures to prevent or reduce the likelihood of adverse events. Collaborative delivery contracts spell out, for each foreseeable adverse event, which party can most efficiently be responsible for taking loss-control measures.
Glossary
Materials Cost Escalation
Unforeseen increases in the cost of materials, which can be an issue, particularly in contracts that span several years. The materials escalation clause in a collaborative delivery contract may be premised on agreed-to cost components in the fixed price or GMP.
Owner Advisor (OA)
An individual or firm retained to provide technical and management resources to an owner and to serve as its representative and advisor during procurement, contracting, and/or management of a project.
Owner-Directed Changes
Changes within the scope of work that an owner is contractually entitled to request. Owner-directed changes may result in additional compensation owed to the design-builder or CMAR firm.
Performance-Based Requirements
Criteria in an RFP or FPDB procurement that focus on measurable plant-performance criteria and operational objectives, rather than on specific details. These criteria include technical requirements, standard construction specifications, and minimum quality standards....
Plant-Performance Warranty
An element in the contract between the design-builder and the owner that requires the firm to demonstrate that the project will operate as intended, consistent with the technical and operational criteria and project design. If the project does not meet the defined...
Prescriptive Requirements
Specific details within an RFP (typically in FPDB procurement) that may include design drawings and/or a description of specific design approaches. Proposing firms may be required to include their own designs - depending on the requirements stated in the RFP - in...
Process-Performance Criteria
Detailed operational and technical requirements on which the design of process systems and equipment is based. These requirements address all input (influent or raw water) and output material (NPDES permit or finished-water quality standards).
Progressive Design-Build (PDB)
Two-phase delivery method in which the project's design, cost-estimating, construction schedule, and final GMP or fixed price are developed during the first phase. If the owner and design-builder agree on the schedule and the GMP or fixed price during the first phase,...
Project Agreement
A legal arrangement in P3 project delivery that defines all the elements of any collaborative-delivery project. (In financing arrangements other than P3, the project agreement is usually referred to as a contract.) The project agreement also specifies risk allocation...