Glossary

Subrogation

A legal right, which an insurance carrier frequently reserves, to pursue a third party that caused an insurance loss to the insured as a means of recovering the amount of the claim the carrier paid to the insured. Collaborative delivery contracts generally include...

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Surety Bond

A performance security, issued by a third party called a surety, that protects the owner by guaranteeing that the design-builder will perform its contractual obligations in designing and constructing the project, or that the CMAR firm will perform its obligations in...

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Turnover

Milestone at which an operating facility is "handed back" to a public owner at the end of a private operations and maintenance contract term. May also apply to the transition from one operator to another. Typically associated with pre-defined facility condition or...

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Uncontrollable Circumstances

Those acts, omissions, conditions, events, or circumstances that are beyond the control of the collaborative delivery firm and are not the fault of either the firm or others for whom the firm is responsible. Examples of uncontrollable circumstances include: acts or...

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Value for Money

The result of a calculation to determine whether the potentially higher cost of private financing in a P3 project will be offset by potential benefits that the owner has identified as valuable (such as risk transfer, innovation, or schedule savings).

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Waiver of Consequential Damages

A standard contract term incorporated in collaborative delivery contracts in which each party - the owner and the design-builder or CMAR firm - agrees not to hold the other party responsible for incidental, indirect, special, punitive, or consequential damages...

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