Wideman Comparative Glossary of Common Project Management Terms v3.1 is copyright by R. Max Wideman, March 2002.

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Contract Dispute - to - Contractual Conditions

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Definition     Editor's Choice
Contract Dispute
Disagreement between the parties. This may occur during contract execution or at completion and may include misinterpretation of technical requirements and any terms and conditions or due to changes not anticipated at the time of contract award. [D00328]

Contract Document System
The system in place to store, retrieve, reference and update contract documentation. [D02543]

Contract Documentation
All formal documents directly associated with a contract such as the signed agreement and its terms; general conditions, specifications, special conditions and specifications, etc.; all illustrative materials such as explanatory drawings, sketches schematics, flow diagrams, production schedule, etc.; the records of any modifying terms as a result of contract negotiations; and any other documentation that serves to clarify the intent between the parties at the time of contract signing.
Editor's Note: Contract documents should NOT include the original invitation to bid, tender conditions, and similar instructions which are of historic interest only once the contract is let and may serve to be in conflict with the final negotiated contract. [D02544]

Contract Documents
The set of documents which form the contract. [D00329]

Contract Elements
To be legally enforceable, a contract must include the following: an offer, an acceptance, consideration, execution by competent parties, legality of purpose, and clear terms and conditions. [D03477]

Contract Financial Control
Exercise of control over contract costs. [D00330]

Contract Form
The formal legal cover sheet that is signed by the parties that gives effect to the contract. [D02545]

Contract Funds Status Report
A financial report that provides forecasted contract funding requirements. [D04619]

A report normally required on cost or incentive type contracts to inform the buyer of funds used and status of remaining funds. [D04047]

Contract Guarantee
A legally enforceable assurance of performance of a contract by a contractor. [D00331]

Contract Integrity
The adherence and compliance to contractual and legal policies, regulations, and other guidance. [D05170]

Contract Law
The law governing the contract, usually the law of the land in which the work of the contract takes place. Where the work of a project takes place in different locations, different law may apply. This is particularly true where the work takes place in different countries. [D02546]

Contract Line Item Numbers
An identifier used in Request for Proposals to describe deliverables under the contract. [D04048]

Contract Manager
The manager responsible for overseeing all aspects of contract preparation and administration. [D04049]

Contract Negotiation
Method of procurement where a contract results from a bid which may be changed through bargaining. [D00332]

Contract Negotiations
The process of buyer and seller discussion and position modification until mutual agreement is reached on contract content. [D04050]

Contract Order Modifications
Changes in a contract during its execution to incorporate new requirements or to handle contingencies that develop after contract placement. Changes may include price adjustments or changes in scope. [D00333]

Contract Package
See Contract Breakdown. [D02547]

Contract Performance Control
Control of work during contract execution. [D00334]

Contract Plan
The conditions, methods, schedule, etc. for carrying out the work of the contract as agreed between the parties at the time of signing the contract. [D02548]

Contract Pre-award Meetings
Meetings with prospective suppliers before final award determination to aid ranking and/or finalize terms of agreement between parties. [D00335]

Contract Quality Requirements
The technical requirements in the contract relating to the quality of the product or service and those contract clauses prescribing inspection, and other quality controls incumbent on the contractor, to assure that the product or service conforms to the contractual requirements. [D00336]

 FAR 46.101
Contract Requirements
In addition to specified performance requirements, contract requirements include those defined in the statement of work; specifications, standards and related documents; the contract data requirements list; management systems; and contract terms and conditions. [D02293]

Contract Risk
The potential and consideration of risk in procurement actions. Generally the forces of supply and demand determine who should have the maximum risk of contract performance but the objective is to place on the supplier the maximum performance risk while maintaining an incentive for efficient performance. In a fixed price contract, the supplier accepts a higher risk than in a cost type contract in which supplier's risk is lowest. [D00337]

Contract Risk Analysis
Analysis of the consequences and probabilities that certain undesirable events will occur and their impact on attaining the contract/procurement objectives. [D00338]

Contract Signing
The formal meeting, sometimes conducted with ceremony, at which the duly authorized members of each party put their signatures to the contract document. [D02549]

Contract Strategy
A macro view of the philosophy and approach for carrying out the work of the contract. See also Procurement Strategy. [D02550]

Contract Target Cost ("CTC")
The negotiated costs for the original definitized contract and all contractual changes that have been definitized, but excluding the estimated cost of any authorized, unpriced changes. The CTC equals the value of the BAC plus management or contingency reserve. [D00339]

Contract Target Price ("CTP")
The negotiated estimated costs plus profit or fee. [D00340]

Contract Terms and Conditions
The stated legal, financial, and administrative aspects of a contract. [D05171]

Contract Type
Categories of contracts that are differentiated according to:
  1. The degree and timing of the responsibility assumed by the contractor for the costs of performance; and
  2. The amount and nature of the profit incentive offered to the contractor for achieving or exceeding specified standards or goals.

Contract Types
The various forms of contracts by which goods/services can be acquired. See "Cost plus fixed fee", "Cost plus incentive fee", "Cost plus percentage of cost", "Firm fixed price", "Fixed price plus incentive fee", and "Unit price contracts". [D00341]

Contract Work Breakdown Structure ("CWBS")
A WBS applied within a contract. [D00343]

A customer-prepared breakout or subdivision of a project typically down to level three which subdivides the project into all its major hardware, software, and service elements, integrates the customer and contractor effort, provides a framework for the planning, control, and reporting. [D00342]

Contract/Procurement Management
The function through which resources are acquired for the project in order to produce the end requirements. Contract/procurement includes both internal (informal) commitments and external (formal) contracts for people, services, materials and equipment. [D00344]

The function through which resources (including people, plant, equipment and materials) are acquired for the project (usually through some form of formal contract) in order to produce the end product. It includes the processes of establishing strategy, instituting information systems, identifying sources, selection, conducting proposal or tender invitation and award, and administering the resulting contract. [D00348]

The business of entering into and/or undertaking contracts. [D02552]

Purchasing, renting, leasing, or otherwise obtaining supplies or services from vendors. Contracting includes description (but not determination) of supplies and services required, selection and solicitation of sources, preparation and award of contracts, and all phases of contract administration. It does not include making grants or cooperative agreements. [D03480]

A person or organization that undertakes responsibility for the performance of a contract. [D00345]

A person, company or firm who holds a contract for carrying out the works and/or the supply of goods in connection with the Project. [D04411]

The entity delivering the product or performing the service being acquired, even if that entity is part of the acquiring organization. [D05172]

Contractor Claims Release
Certificate to release and hold harmless from future claims by the contractor. [D00346]

Contractor Cost Data Report ("CCDR")
A US Department of Defense report developed to provide contract cost and related data in a standard format. [D04620]

Contractor Evaluation
The collection of background, experience, past performance and current capabilities of potential contractors for purposes of soliciting bids from qualified contractors. [D02553]

Contractor Furnished Equipment
Contractor equipment that is committed to be used to satisfy a contract. [D04051]

Contractor Project Office
The contractor's project manager and associated immediate staff. [D04052]

Contractor Short Listing
A process whereby a short list of contractors is assembled and designated for receipt of an invitation to bid. This process has the effect of avoiding unnecessary tendering work by contractors who do not qualify for some reason, as well as reducing the amount of work in evaluating the competing submissions. [D02554]

Contractor's Performance Evaluation
A comprehensive review of contractor's technical and cost performance and work delivery schedules. [D00347]

See Contractual Conditions. [D02556]

Contractual Conditions
Conditions that bind parties to a performance in exchange for payment (lawful consideration.) [D02555]

Definitions for page C08: 50

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