Construction Knowledge Center
Plain-English references on the quantities, costs and contracts side of construction — written for people who have to price and defend the numbers.
What Is a Bill of Quantities (BOQ)?
A Bill of Quantities is a contract document that lists a project’s work items with their descriptions, unitsWhat Is Quantity Surveying?
Quantity surveying is the engineering-commercial discipline that manages a project’s quantities, costsWhat Is Cost Estimation in Construction?
Cost estimation is the methodical forecasting of a project’s cost before and during execution, at accuracyWhat Is a Material Takeoff (MTO)?
A material takeoff extracts the raw material quantities from the drawings — steel, concrete, blocksWhat Is the Critical Path Method (CPM)?
The critical path method is a scheduling technique that identifies the longest chain of dependent activitiesWhat Is a Work Breakdown Structure (WBS)?
A WBS is a hierarchical decomposition of the project scope into work packages that can be estimated, assignedWhat Is Procurement in Construction?
Procurement is the cycle that secures materials, plant and subcontractors — from the request for quotationWhat Is a Variation Order (VO)?
A variation order is a formal change to the contract scope — an addition, an omission or a substitutionWhat Is Project Cash Flow?
Cash flow is the movement of money in — progress claims and advances — and out — materials, labourWhat Makes Up a Project’s Cost?
A project’s cost is direct plus indirect plus risk plus profit — and understanding that structureWhat Is Earned Value Management (EVM)?
Earned value measures cost and schedule performance together by comparing what was planned, what was earnedWhat Is Retention Money in Construction?
Retention is a percentage withheld from every progress payment (typically 5–10%) as security for the qualityWhat Is an Interim Payment Certificate?
A progress claim is the periodic document that measures the work executed and calculates what is dueWhat Is Float in a Construction Programme?
Float is how long an activity can slip without consequence: total float before the project end moves, freeWhat Is a Project Baseline?
The baseline is the approved, frozen version of the programme, the budget and the scope — the referenceBank Guarantees in Construction Contracts
A bank guarantee is a bank’s undertaking to pay the employer a sum if the contractor defaults — a bid bondWhat Is Value Engineering?
Value engineering improves function against cost: alternatives that serve the same purpose at equivalentWhat Is Delay Analysis?
Delay analysis is the set of methods for establishing why a project is late, what each cause actually didWhat Is Site Mobilisation?
Mobilisation is moving the contractor’s capability onto the site — offices, accommodation, hoarding, servicesWhat Is a Snag List (Punch List)?
A snag list is the schedule of defects and incomplete work recorded by the consultant before handoverWhat Is Building Information Modelling (BIM)?
BIM is an information-rich three-dimensional digital model of a building and its elements — the basisWhat Is a Project Final Account?
The final account is the comprehensive final settlement of the contract value after the actual quantitiesPreliminary vs Final Handover: What Is the Difference?
Preliminary handover certifies that the works are complete and starts the defects liability period; finalDelay Damages in Construction Contracts
Liquidated damages are a sum agreed in the contract, deducted for each period of non-excusable delay, upTypes of Construction Contract
Construction contracts differ in how they allocate risk: lump sum, remeasured, cost plus, design and buildWhat Is Unit Rate Build-up (Rate Analysis)?
Rate analysis breaks a unit rate down into materials, labour, plant, indirects and profit — the basisWhat Are Preliminaries?
Preliminaries are the costs of managing the project and running its site that belong to no particular workWhat Is Tender Analysis?
Tender analysis levels the offers onto one basis and then compares them technically and commerciallyContractor Classification in Saudi Arabia
Classification is a certificate stating the fields a contractor may work in and their grade in eachHow to Obtain a Building Permit in Saudi Arabia
A building permit is a municipal authorisation that precedes any construction work, issued electronicallyThe Saudi Building Code and Its Effect on Cost
The Saudi Building Code is a binding set of technical requirements covering structure, fire, energyVAT in Construction and Progress Claims
Value-added tax at 15% applies to contracting works, and needs compliant electronic invoicing, correct timingPrice Adjustment and Material Price Escalation
Price adjustment is a contractual mechanism that redistributes the risk of fluctuating material pricesProductivity Rates on Construction Sites and How to Measure Them
Productivity is the quantity of work one worker completes in a day — the link between quantities, durationsQuality Assurance and Quality Control (QA/QC) on Site
Quality assurance is a system of procedures that prevents an error before it happens; quality controlFeasibility Studies for Construction and Real-Estate Projects
A feasibility study compares the cost of developing a project against its expected return to decide
A Bill of Quantities is a contract document that lists a project’s work items with their descriptions, unitsWhat Is Quantity Surveying?
Quantity surveying is the engineering-commercial discipline that manages a project’s quantities, costsWhat Is Cost Estimation in Construction?
Cost estimation is the methodical forecasting of a project’s cost before and during execution, at accuracyWhat Is a Material Takeoff (MTO)?
A material takeoff extracts the raw material quantities from the drawings — steel, concrete, blocksWhat Is the Critical Path Method (CPM)?
The critical path method is a scheduling technique that identifies the longest chain of dependent activitiesWhat Is a Work Breakdown Structure (WBS)?
A WBS is a hierarchical decomposition of the project scope into work packages that can be estimated, assignedWhat Is Procurement in Construction?
Procurement is the cycle that secures materials, plant and subcontractors — from the request for quotationWhat Is a Variation Order (VO)?
A variation order is a formal change to the contract scope — an addition, an omission or a substitutionWhat Is Project Cash Flow?
Cash flow is the movement of money in — progress claims and advances — and out — materials, labourWhat Makes Up a Project’s Cost?
A project’s cost is direct plus indirect plus risk plus profit — and understanding that structureWhat Is Earned Value Management (EVM)?
Earned value measures cost and schedule performance together by comparing what was planned, what was earnedWhat Is Retention Money in Construction?
Retention is a percentage withheld from every progress payment (typically 5–10%) as security for the qualityWhat Is an Interim Payment Certificate?
A progress claim is the periodic document that measures the work executed and calculates what is dueWhat Is Float in a Construction Programme?
Float is how long an activity can slip without consequence: total float before the project end moves, freeWhat Is a Project Baseline?
The baseline is the approved, frozen version of the programme, the budget and the scope — the referenceBank Guarantees in Construction Contracts
A bank guarantee is a bank’s undertaking to pay the employer a sum if the contractor defaults — a bid bondWhat Is Value Engineering?
Value engineering improves function against cost: alternatives that serve the same purpose at equivalentWhat Is Delay Analysis?
Delay analysis is the set of methods for establishing why a project is late, what each cause actually didWhat Is Site Mobilisation?
Mobilisation is moving the contractor’s capability onto the site — offices, accommodation, hoarding, servicesWhat Is a Snag List (Punch List)?
A snag list is the schedule of defects and incomplete work recorded by the consultant before handoverWhat Is Building Information Modelling (BIM)?
BIM is an information-rich three-dimensional digital model of a building and its elements — the basisWhat Is a Project Final Account?
The final account is the comprehensive final settlement of the contract value after the actual quantitiesPreliminary vs Final Handover: What Is the Difference?
Preliminary handover certifies that the works are complete and starts the defects liability period; finalDelay Damages in Construction Contracts
Liquidated damages are a sum agreed in the contract, deducted for each period of non-excusable delay, upTypes of Construction Contract
Construction contracts differ in how they allocate risk: lump sum, remeasured, cost plus, design and buildWhat Is Unit Rate Build-up (Rate Analysis)?
Rate analysis breaks a unit rate down into materials, labour, plant, indirects and profit — the basisWhat Are Preliminaries?
Preliminaries are the costs of managing the project and running its site that belong to no particular workWhat Is Tender Analysis?
Tender analysis levels the offers onto one basis and then compares them technically and commerciallyContractor Classification in Saudi Arabia
Classification is a certificate stating the fields a contractor may work in and their grade in eachHow to Obtain a Building Permit in Saudi Arabia
A building permit is a municipal authorisation that precedes any construction work, issued electronicallyThe Saudi Building Code and Its Effect on Cost
The Saudi Building Code is a binding set of technical requirements covering structure, fire, energyVAT in Construction and Progress Claims
Value-added tax at 15% applies to contracting works, and needs compliant electronic invoicing, correct timingPrice Adjustment and Material Price Escalation
Price adjustment is a contractual mechanism that redistributes the risk of fluctuating material pricesProductivity Rates on Construction Sites and How to Measure Them
Productivity is the quantity of work one worker completes in a day — the link between quantities, durationsQuality Assurance and Quality Control (QA/QC) on Site
Quality assurance is a system of procedures that prevents an error before it happens; quality controlFeasibility Studies for Construction and Real-Estate Projects
A feasibility study compares the cost of developing a project against its expected return to decide
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