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

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Cost Reimbursable Contract - to - Criterion

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Definition     Editor's Choice
Cost Reimbursable Contract
A contract that provides for payment of allowable incurred costs, to the extent prescribed in the contract. These contracts establish an estimate of total cost for the purpose of obligating funds and establishing a ceiling that the contractor may not exceed (except at its own risk) without the approval of the Contracting Officer. [D03490]

Cost Reimbursement
Payment of direct costs and directly associated overhead costs, but without any allowance for profit. [D02585]

Cost Reimbursement Type Contracts
A category of contracts based on payments to a contractor for allowable estimated costs, normally requiring only a "best efforts" performance standard from the contractor. Risk for all growth over the estimated value rests with the project owner. [D00422]

Cost Reviews
Planned, systematic and rigorous reassessments of the estimated cost at completion of the scope of work in a cost class. Every design review should be accompanied by a reforecast of cost. See also Estimate to Complete. [D00423]

Cost Savings
An action that will result in a smaller than projected level of costs to achieve a specified objective. [D02300]

Cost Sharing Contract
A contract that provides payment for only a share of allowable costs. Cost sharing contracts are often awarded to motivate development of new technologies. [D04058]

Cost Status
See content under Scope Reporting. [D00425]

Cost to Complete
The projected cost to complete the project from its present state. [D04057]

Cost to Complete Forecast
A forecast by time periods for the completion of contractual tasks. Synonymous with "Estimate to Completion." [D04629]

Cost Types
Four different cost types are typically associated with the scope of work in a cost class. They reflect whether a cost is authorized, contractually committed, spent or forecast for spending. These types are:
  1. Authorized Appropriation
  2. Committed Cost
  3. Expenditure (or Actual)
  4. Estimate To Complete, or Forecast to Complete, or Uncommitted.
Types 1 and 4 contain contingencies. The sum of type 2 and type 4 is the estimated cost at completion. Before any commitments are made within a cost class, the type 4 cost contains a component called the anticipated award cost, which in turn may contain an allowance for escalation. Type 3 costs are further sub-divided into payments and retentions (holdbacks). [D00426]

Cost Variance ("CV")
The difference between the budgeted and actual cost of work performed. [D00427]

  1. Any difference between the estimated cost of an activity and the actual cost of that activity, or
  2. In earned value, BCWP less ACWP.

The difference between BCWP and ACWP and shows how actual expenditure compares with the budget. This can be shown as a numeric difference, where positive values indicate costs running under budget and negative values indicate cost overruns. Can also be expressed by a percentage value such as: CV(%) = (BCWP-ACWP) x 100 / BCWP. [D02248]

A criterion for comparing programs, projects and alternatives when benefits can be valued in dollars. [D02295]

Cost/Schedule Control System Criteria ("C/SCSC")
A planning and control reporting system devised by the Department of Defense for its contractors to use, intended to foster greater uniformity as well as provide early insight into impending schedule or budget overruns. [D00429]

 SPM 304-9
Thirty five defined standards which have been applied against private contractor management control systems since 1967 in order to insure the government that cost reimbursable and incentive type contracts are managed properly. [D00430]

Cost/Schedule Status Report ("C/SSR")
The low-end cost and schedule report generally imposed on smaller value contracts, not warranting full C/SCSC. [D04628]

Cost-Benefit Analysis
An analysis, often stated as a ratio, used to evaluate a proposed course of action. [D00431]

 OTOB 271-4
Costed Work Breakdown Structure
A work breakdown structure in which the costs corresponding to major elements of the WBS are also shown. [D00432]

 SPM 304-9
A systematic quantitative method for comparing the costs of alternative means of achieving the same stream of benefits or a given objective. [D03485]

The process of determining actual costs from actual expenditures. The way costs are estimated and the way money is spent are rarely the same, making it necessary to analyze and redistribute actual costs to arrive at costs for estimating purposes. [D02586]

Costing Systems
Systems established to determine current costs and their trends up or down so that appropriate management action can be taken. Usually requires the setting of reference standards, often the first point of controversy. [D03054]

Cost-Time Resource Sheet ("CTR")
A document that describes each major element in the WBS, including a Statement of Work describing the work content, resources required, the time frame of the work element and a cost estimate. [D04418]

The process of advising or assisting an individual concerning career plans, work requirements, or the quality of work performed. [D00434]

Preventive actions that are chosen by the project team to reduce either scope or schedule risk. [D02191]

See Cost Plus Fixed Fee Contract

See Cost Performance Index

See Cost Performance Indicator

See Cost Plus Incentive Fee Contract

See Cost Plus Incentive Fee Contract

See Critical Path Method

See Critical Path Network

See Cost Plus Percentage of Cost Contract

See Cost Performance Ratio

See Cost Performance Report

See Central Processing Unit

See Change Request

The manual dexterity that is required for certain types of skilled work [D02587]

Crash Costs
The cost of reducing an Activity to its Crash Duration. [D03823]

Crash Duration
If there is an urgent need to shorten the Critical Path of a Network, activities may be "Crashed". This represents drastic action to reduce the duration of a critical activity ands should only taken in exceptional circumstances due to a dramatic increase in resource consumption. [D03824]

Action to decrease the duration of an activity or project by increasing the expenditure of resources. [D00437]

In project planning, an activity can be conducted at a normal pace or at an accelerated pace, known as •crashingê the activity of the project. Crashing is completed at a greater cost than a normal-paced project. [D00435]

 OTOB 271-4
Taking action to decrease the total project duration by analyzing a number of alternatives to determine how to get the maximum duration compression for the least cost. [D00436]

The process of reducing the time it takes to complete an activity by adding resources. [D00438]

The ability to bring new perspectives, new ideas and new solutions to a situation. This capability is frequently enhanced by group work such as brain storming. [D02588]

Deferred payment for goods and/or services purchased. Also, recognition of above average performance. [D02589]

Credited Resource
Resource that is created by an activity or event and can then be used by the project. [D04419]

An adverse situation in which urgent decisions are required to prevent the situation from deteriorating further. [D02590]

A statement that provides objectives, guidelines. procedures, and standards that are to be used to execute the development, design, and/or implementation portions of a project. [D00439]

A standard by which a correct judgment may be made. See plural, Criteria. [D02591]

Definitions for page C12: 50

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