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Construction & Public Works

Plain-language definitions of every Construction & Public Works term that shows up in government contracting work.


Construction & Public Works

Bid Bond

A bid bond is a surety instrument submitted with a construction bid that guarantees the bidder will enter into the contract if awarded, protecting the government from bidder withdrawal after bid opening.

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Construction & Public Works

Bonding Requirements

Bonding requirements in federal construction mandate that contractors obtain surety bonds, bid, performance, and payment bonds, to protect the government and subcontractors on contracts above $150,000.

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Construction & Public WorksCMAR

Construction Manager at Risk

Construction Manager at Risk (CMAR) is a delivery method where a construction manager provides pre-construction services and then commits to a Guaranteed Maximum Price for construction completion.

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Construction & Public Works

Construction Wage Rate Requirements

Construction Wage Rate Requirements refer to the Davis-Bacon Act obligations requiring federal construction contractors to pay workers prevailing wage rates and fringe benefits established by the Department of Labor.

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Construction & Public WorksDBB

Design-Bid-Build

Design-bid-build is the traditional federal construction delivery method where the government completes design separately before soliciting competitive bids from general contractors for construction.

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Construction & Public WorksDB

Design-Build

Design-build is a federal construction delivery method where a single contractor is responsible for both design and construction under one contract, enabling faster project delivery.

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Construction & Public Works

Miller Act

The Miller Act (40 U.S.C. § 3131) is the federal law requiring prime contractors on construction contracts over $150,000 to furnish performance and payment bonds to protect the government and subcontractors.

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Construction & Public Works

Payment Bond

A payment bond is a Miller Act surety requirement on federal construction contracts above $150,000 that guarantees subcontractors and suppliers will be paid for labor and materials they provide.

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Construction & Public Works

Performance Bond

A performance bond is a surety guarantee submitted after contract award ensuring the contractor will complete the construction project per contract terms, protecting the government if the contractor defaults.

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Construction & Public Works

Prevailing Wage

Prevailing wage in federal construction is the minimum wage and fringe benefit rate contractors must pay workers by trade and locality, as determined under the Davis-Bacon Act.

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Construction & Public Works

Progress Payment

A progress payment is a periodic payment made to a construction contractor based on the percentage of work completed, allowing contractors to recover costs as construction advances rather than waiting for final completion.

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Construction & Public Works

Punch List

A punch list is a documented inventory of incomplete or deficient construction items identified at substantial completion that the contractor must resolve before receiving final payment.

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Construction & Public Works

Retainage

Retainage is a percentage of earned contract payments withheld by the government during construction to ensure the contractor completes all work and punch list items before receiving full payment.

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Construction & Public WorksSOV

Schedule of Values

A Schedule of Values is a contractor-submitted breakdown allocating the total contract price across individual work items, used as the basis for measuring progress and processing monthly progress payments.

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Construction & Public Works

Substantial Completion

Substantial completion is the stage in federal construction when the work is sufficiently complete for the government to occupy and use the facility for its intended purpose, triggering key contract milestones.

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Construction & Public Works

Surety

A surety is a licensed insurance company that issues bonds guaranteeing a contractor's performance and payment obligations on federal construction contracts under the Miller Act.

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Construction & Public WorksUFGS

Unified Facilities Guide Specifications (UFGS)

Unified Facilities Guide Specifications (UFGS) are master construction specifications developed jointly by military agencies that serve as the technical basis for federal military construction projects.

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