Pmbok 5, Ch 12 - Definitions

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Accepted Deliverables

Back 1

Products, results, or capabilities produced by a project and validated by the project customer or sponsors as meeting their specified acceptance criteria.

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Activity Cost Estimates

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The projected cost of the schedule activity that includes the cost for all resources required to perform and complete the activity, including all cost types and cost components.

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Activity Resource Requirements

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The types and quantities of resources required for each activity in a work package.

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Agent

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One who acts for, or in the place of, another, by authority from him; one entrusted with the business of another.

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Agreements

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Any document or communication that defines the initial intentions of a project. This can take the form of a contract, memorandum of understanding (MOU), letters of agreement, verbal agreements, email, etc.

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Approved Change Request

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A change request that has been processed through the integrated change control process and approved.

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Assignment

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A legal term in the law of contracts that encompasses the transfer of rights held by one party—the assignor—to another party—the assignee.

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Budget

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The approved estimate for the project or any work breakdown structure component or any schedule activity.

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Cancellation For Cause

Back 9

A contract provision that permits a party completely or partially to terminate performance of the contract for material breach or other stated causes.

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Cancellation For Convenience

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A contract clause which gives the buyer the right to unilaterally terminate the contract at any time with or without giving any reason.

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Change Request

Back 11

A formal proposal to modify any document, deliverable, or baseline.

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Claim

Back 12

A request, demand, or assertion of rights by a seller against a buyer, or vice versa, for consideration, compensation, or payment under the terms of a legally binding contract, such as for a disputed change.

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Conduct Procurements

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The process of obtaining seller responses, selecting a seller, and awarding a contract.

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Confidentiality Agreement

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A legal contract between at least two parties that outlines confidential material, knowledge, or information that the parties wish to share with one another for certain purposes, but wish to restrict access to or by third parties. It's a contract through which the parties agree not to disclose information covered by the agreement

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Constraint

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A limiting factor that affects the execution of a project, program, portfolio, or process.

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Contract

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A mutually binding agreement that obligates the seller to provide the specified product or service or result and obligates the buyer to pay for it.

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Cost Baseline

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The approved version of the time-phased project budget, excluding any management reserves, which can be changed only through formal change control procedures and is used as a basis for comparison to actual results.

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Criteria

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Standards, rules, or tests on which a judgment or decision can be based or by which a product, service, result, or process can be evaluated.

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Deliverable

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Any unique and verifiable product, result, or capability to perform a service that is required to be produced to complete a process, phase, or project.

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Enterprise Environmental Factors

Back 20

Conditions, not under the immediate control of the team, that influence, constrain, or direct the project, program, or portfolio.

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Escrow

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An arrangement made under contractual provisions between transacting parties, whereby an independent trusted third party receives and disburses money or documents for the transacting parties, with the timing of such disbursement by the third party dependent on the fulfillment of contractually agreed conditions by the transacting parties,

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Estimate

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A quantitative assessment of the likely amount or outcome. Usually applied to project costs, resources, effort, and durations and is usually preceded by a modifier (i.e., preliminary, conceptual, feasibility, order-of-magnitude, definitive). It should always include some indication of accuracy (e.g., ± x percent). Related term: Budget and Cost.

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Expert Judgment

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Judgment provided based upon expertise in an application area, knowledge area, discipline, industry, etc., as appropriate for the activity being performed. Such expertise may be provided by any group or person with specialized education, knowledge, skill, experience, or training.

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Fee

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Represents profit as a component of compensation to a seller.

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Firm-Fixed-Price Contract (FFP)

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A type of fixed price contract where the buyer pays the seller a set amount (as defined by the contract), regardless of the seller's costs.

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Fixed Price Incentive Fee Contract (FPIF)

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A type of contract where the buyer pays the seller a set amount (as defined by the contract), and the seller can earn an additional amount if the seller meets defined performance criteria.

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Fixed Price with Economic Price Adjustment Contracts (FP-EPA)

Back 27

A fixed-price contract, but with a special provision allowing for predefined final adjustments to the contract price due to changed conditions, such as inflation changes, or cost increases (or decreases) for specific commodities.

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Fixed-Price Contracts

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An agreement that sets the fee that will be paid for a defined scope of work regardless of the cost or effort to deliver it.

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Force majeure

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A common clause in contracts that essentially frees both parties from liability or obligation when an extraordinary event or circumstance beyond the control of the parties, such as a war, strike, riot, crime, or an event described by the legal term act of God (such as hurricane, flooding, earthquake, volcanic eruption, etc.), prevents one or both parties from fulfilling their obligations under the contract.

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Free on Board (FOB) (in Contracts)

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A term commonly used when shipping goods to indicate who pays loading and transportation costs, and/or the point at which the responsibility of the goods transfers from shipper to buyer; whether it be the origin or destination. Typically, title passes with the risk of loss.

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Incentive Fee

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A set of financial incentives related to cost, schedule, or technical performance of the seller.

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Independent Estimates

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A process of using a third party to obtain and analyze information to support prediction of cost, schedule, or other items.

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Inspection

Back 33

Examining or measuring to verify whether an activity, component, product, result, or service conforms to specified requirements.

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Inspections and Audits

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A process to observe performance of contracted work or a promised product against agreed-upon requirements.

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Intellectual Property

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A legal concept which refers to creations of the mind for which exclusive rights are recognized. These rights may refer to a variety of intangible assets, such as musical, literary, and artistic works; discoveries and inventions; and words, phrases, symbols, and designs. Common types include copyright, trademarks, patents, industrial design rights, trade dress, and in some jurisdictions trade secrets.

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Interpersonal Skills

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Ability to establish and maintain relationships with other people.

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Invitation for Bid (IFB)

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Generally, this term is equivalent to request for proposal (RFP). However, in some application areas, it may have a narrower or more specific meaning.

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Joint Venture

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A legal organization that takes the form of a short term partnership in which the persons jointly undertake a transaction for mutual profit. Generally each person contributes assets and share risks. Like a partnership, this arrangement can involve any type of business transaction and the "persons" involved can be individuals, groups of individuals, companies, or corporations.

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Letter of Intent

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A non-binding statement that a buyer intends to hire a seller.

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Make-or-Buy Analysis

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The process of gathering and organizing data about product requirements and analyzing them against available alternatives including the purchase or internal manufacture of the product.

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Make-or-Buy Decisions

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Decisions made regarding the external purchase or internal manufacture of a product.

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Manage Stakeholder Engagement

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The process of communicating and working with stakeholders to meet their needs/expectations, address issues as they occur, and foster appropriate stakeholder engagement in project activities throughout the project life cycle.

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Market Research

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The process of gathering information at conferences, online reviews, and a variety of sources to identify market capabilities.

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Negotiated Settlements

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The process of reaching final equitable settlement of all outstanding issues, claims, and disputes through negotiation.

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Negotiation

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The process and activities to resolving disputes through consultations between involved parties.

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Non-Disclosure Agreement (NDA)

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A legal contract between at least two parties that outlines confidential material, knowledge, or information that the parties wish to share with one another for certain purposes, but wish to restrict access to or by third parties. It's a contract through which the parties agree not to disclose information covered by the agreement.

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Payment Systems

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The system used to provide and track supplier's invoices and payments for services and products.

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Work Performance Reports

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The physical or electronic representation of work performance information compiled in project documents, intended to generate decisions, actions, or awareness.

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Performing Organization

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An enterprise whose personnel are most directly involved in doing the work of the project or program. Also referred to as Sellers.

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Plan Procurement Management

Back 50

The process of documenting project procurement decisions, specifying the approach, and identifying potential sellers.

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Privity

Back 51

A doctrine in the common law of contract that provides that a contract cannot confer rights or impose obligations arising under it on any person or agent except the parties to it.

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Procurement Audits

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The review of contracts and contracting processes for completeness, accuracy, and effectiveness.

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Procurement Documents

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The documents utilized in bid and proposal activities, which include the buyer's invitation for Bid, Invitation for Negotiations, Request for Information, Request for Quotation, Request for Proposal, and seller's responses.

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Procurement Management Plan

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A component of the project or program management plan that describes how a project team will acquire goods and services from outside the performing organization.

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Procurement Performance Reviews

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A structured review of the seller's progress to deliver project scope and quality, within cost and on schedule, as compared to the contract.

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Procurement Statement of Work

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Describes the procurement item in sufficient detail to allow prospective sellers to determine if they are capable of providing the products, services, or results.

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Product

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An artifact that is produced, is quantifiable, and can be either an end item in itself or a component item. It might also be referred to as materials, goods, or deliverable. Related term: Deliverable.

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Project Procurement Management

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Project Procurement Management includes the processes necessary to purchase or acquire products, services, or results needed from outside the project team.

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Proposal Evaluation Techniques

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The process of reviewing proposals provided by suppliers to support contract award decisions.

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Records Management System

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A specific set of processes, related control functions, and tools that are consolidated and combined to record and retain information about the project.

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Regulation

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Requirements imposed by a governmental body. These requirements can establish product, process, or service characteristics, including applicable administrative provisions that have government-mandated compliance.

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Request for Information (RFI)

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A type of procurement document whereby the buyer requests a potential seller to provide various pieces of information related to a product or service or seller capability.

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Request for Proposal (RFP)

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A type of procurement document used to request proposals from prospective sellers of products or services. In some application areas, it may have a narrower or more specific meaning.

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Request for Quotation (RFQ)

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A type of procurement document used to request price quotations from prospective sellers of common or standard products or services. Sometimes used in place of request for proposal and, in some application areas, it may have a narrower or more specific meaning.

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Requirements Documentation

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A description of how individual requirements meet the business need for the project.

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Result

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An output from performing project management processes and activities. Results include outcomes (e.g., integrated systems, revised process, restructured organization, tests, trained personnel, etc.) and documents (e.g., policies, plans, studies, procedures, specifications, reports, etc.). Related term: Deliverable.

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Retainage

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A portion of the agreed upon contract price deliberately withheld until the work is substantially complete to assure that contractor or subcontractor will satisfy its obligations and complete a construction project.[

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Selected Sellers

Back 68

The sellers which have been selected to provide a contracted set of services or products.

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Seller

Back 69

A provider or supplier of products, services, or results to an organization.

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Seller Proposals

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Formal responses from sellers to a request for proposal or other procurement document specifying the price, commercial terms of sale, and technical specifications or capabilities the seller will do for the requesting organization that, if accepted, would bind the seller to perform the resulting agreement.

Front 71

Single Source Procurement

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A non-competitive form of procurement used when an organization chooses to use one source for the purchase of goods and services, in light of there being other qualified sellers.

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Sole Source

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A contract for the purchase of supplies or services that is entered into or proposed to be entered into after soliciting and negotiating with only one source. Typically used in government contracting where there is an ususual and compelling urgency, industrial mobilization, international agreement, requirement or authorization by statute, national security, or compelling public interest.

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Source Selection Criteria

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A set of attributes desired by the buyer which a seller is required to meet or exceed to be selected for a contract.

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Specification

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A document that specifies, in a complete, precise, verifiable manner, the requirements, design, behavior, or other characteristics of a system, component, product, result, or service and the procedures for determining whether these provisions have been satisfied. Examples are: requirement specification, design specification, product specification, and test specification.

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Standard

Back 75

A document that provides, for common and repeated use, rules, guidelines, or characteristics for activities or their results, aimed at the achievement of the optimum degree of order in a given context.

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Statement of Work (SOW)

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A narrative description of products, services, or results to be delivered by the project.

Front 77

Time and Material Contract (T&M)

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A type of contract that is a hybrid contractual arrangement containing aspects of both cost-reimbursable and fixed-price contracts. Time and material contracts resemble cost-reimbursable type arrangements in that they have no definitive end, because the full value of the arrangement is not defined at the time of the award. Thus, time and material contracts can grow in contract value as if they were cost-reimbursable type arrangements. Conversely, time and material arrangements can also resemble fixed-price arrangements. For example, the unit rates are preset by the buyer and seller, when both parties agree on the rates for the category of senior engineers.

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WBS Dictionary

Back 78

A document that provides detailed deliverable, activity, and scheduling information about each component in the work breakdown structure.

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MSquare Center

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