ISO 6707-2:2014

INTERNATIONAL ISO
STANDARD 6707-2
Second edition
2014-03-15
Buildings and civil engineering
works — Vocabulary —
Part 2:
Contract terms
Bâtiments et ouvrages de génie civil — Vocabulaire —
Partie 2: Termes relatifs aux marchés
Reference number
ISO 6707-2:2014(E)
©
ISO 2014

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ISO 6707-2:2014(E)

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ISO 6707-2:2014(E)

Contents Page
Foreword .iv
Introduction .v
1 Scope . 1
2 Vocabulary structure. 1
3 Base terms . 1
4 Project information . 2
5 Design stage . 3
6 Tendering . 3
7 Contracts . 5
8 Financial terms. 8
9 Construction stage .12
10 Parties involved in projects .14
11 Miscellaneous terms .17
Annex A (informative) Alphabetical index of US synonyms .18
Bibliography .20
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ISO 6707-2:2014(E)

Foreword
ISO (the International Organization for Standardization) is a worldwide federation of national standards
bodies (ISO member bodies). The work of preparing International Standards is normally carried out
through ISO technical committees. Each member body interested in a subject for which a technical
committee has been established has the right to be represented on that committee. International
organizations, governmental and non-governmental, in liaison with ISO, also take part in the work.
ISO collaborates closely with the International Electrotechnical Commission (IEC) on all matters of
electrotechnical standardization.
The procedures used to develop this document and those intended for its further maintenance are
described in the ISO/IEC Directives, Part 1. In particular the different approval criteria needed for the
different types of ISO documents should be noted. This document was drafted in accordance with the
editorial rules of the ISO/IEC Directives, Part 2 (see www.iso.org/directives).
Attention is drawn to the possibility that some of the elements of this document may be the subject of
patent rights. ISO shall not be held responsible for identifying any or all such patent rights. Details of
any patent rights identified during the development of the document will be in the Introduction and/or
on the ISO list of patent declarations received (see www.iso.org/patents).
Any trade name used in this document is information given for the convenience of users and does not
constitute an endorsement.
For an explanation on the meaning of ISO specific terms and expressions related to conformity
assessment, as well as information about ISO’s adherence to the WTO principles in the Technical Barriers
to Trade (TBT) see the following URL: Foreword - Supplementary information
The committee responsible for this document is ISO/TC 59, Buildings and civil engineering works,
Subcommittee SC 2, Terminology and harmonization of languages.
This second edition cancels and replaces the first edition (ISO 6707-2:1993), which has been technically
revised.
ISO 6707 consists of the following parts, under the general title Buildings and civil engineering works —
Vocabulary:
— Part 1: General terms
— Part 2: Contract terms
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ISO 6707-2:2014(E)

Introduction
With the growth in the number of international construction projects and the development of the
international market in construction products, there is an increasing need for agreement on a common
language.
ISO 6707-1 defines general terms related to buildings and civil engineering works. This part of ISO 6707
defines terms related to contracts for buildings and other types of construction works. This part will
make the preparation of contracts between contractors and clients easier.
The terms in this part of ISO 6707 are
— fundamental concepts, which can be the starting point for more specific definitions,
— more specific concepts used in several areas of contracts such as project information, financial
information, and life cycle stages,
— concepts from related concept fields used additionally in building and civil engineering and
designated by borrowed terms.
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INTERNATIONAL STANDARD ISO 6707-2:2014(E)
Buildings and civil engineering works — Vocabulary —
Part 2:
Contract terms
1 Scope
This part of ISO 6707 defines terms applicable to contracts related to buildings and civil engineering
works.
2 Vocabulary structure
The terms are arranged within categories to allow ready comparison of related concepts.
Where a preferred term designates more than one concept, each concept has been treated in a separate
entry with a note to entry included to acknowledge the homonymy created, and a reference included to
the other term entry.
Where a preferred or admitted term is specific to a particular English-speaking country, e.g. the United
States of America, etc.; this has been given in bold type following the international preferred term and
annotated by the respective country code. Where no preferred terms are listed indicating usage in
specific geographical location, this signifies that the international preferred term is the accepted term
in the English-speaking countries. A term following the preferred term not given in boldface type is an
admitted (non-preferred) synonym. Country codes are also assigned to these terms.
In most countries, synonyms and alternative spellings exist for the preferred terms used in this part of
ISO 6707. To facilitate a ready comparison with US synonyms and alternative spellings, these are given
in Annex A.
Where terms in definitions are defined in this standard, the relevant terms are in italics, and the term
number is given after the relevant term. Where terms in definitions are defined in ISO 6707-1, the terms
are also in italics but no term number is given.
3 Base terms
3.1
brief
program, US
document that states the requirements for a project (3.8)
3.2
feasibility study
evaluation of a proposed project (3.8), the practicability of its achievement and the design, financial,
economic, social, and environmental implications
3.3
plan of work
staging plan, US
project plan, US
document that details principal stages (3.4) in the design, construction work and maintenance of a project
(3.8) and that identifies the main tasks and people
[SOURCE: ISO 6707-1:2014, 7.2.7]
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3.4
stage
phase, US
distinct period in a project (3.8) used as a management tool
Note 1 to entry: The situation in which some stages are designated as phases is not consistent in English-speaking
countries and between countries, see more specific terms, e.g. design development stage US (5.3), design
development phase US (5.1).
3.5
phase
stage, US
portion of work that arises from splitting up a project (3.8) in accordance with a definite programme
(9.5) or agreement
Note 1 to entry: The situation in which some phases are designated as stages is not consistent in English-speaking
countries and between countries, see more specific terms, e.g. design development stage US (5.3), design
development phase US (5.1).
[SOURCE: ISO 6707-1:2014, 7.2.6, modified – “Note 1 to entry” added]
3.6
tender
bid, US
written offer to execute (9.1) at a stated price (8.5) or rate an order for the supply of goods or services, or
the execution of works under given conditions
3.7
contract
legally enforceable agreement to supply goods, execute (9.1) work, or provide services
3.8
project
contractual means by which a construction works or part of it is executed (9.1)
4 Project information
4.1
project specification
specifications, US
specification (4.2) for a specific project (3.8) that prescribes the construction work and the materials to
be used
[SOURCE: ISO 6707-1:2014, 7.2.8]
4.2
specification
document that sets out detailed requirements to be satisfied by a product, material, process or system,
and the procedures for checking conformity to these requirements; or that sets out the properties of a
product
4.3
schedule
document in the form of a table, or that gives details of items or tasks to be performed
4.4
completed phase
phase (3.5) that the parties agree has been completed (9.6)
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4.5
conditional phase
extra work, US
supplementary phase (3.5) carried out only if the client (10.1) approves
5 Design stage
5.1
pre-contract stage
design development phase, US
stage (3.4) covering events up to the point when a contract (3.7) is placed
5.2
sketch plan stage
schematic design phase, US
conceptual stage, US
stage (3.4) at which alternative outline proposals are evaluated and a preferred solution produced
sufficiently to obtain client (10.1), user and statutory approval, and then developed into a design solution
fully integrated with constructional, structural, and service requirements
Note 1 to entry: In the UK, it is usual to divide this stage into two: outline design stage, and final sketch or scheme
design stage.
5.3
detail design stage
design development stage, US
stage (3.4) at which the architect (10.23) or engineer (10.24) moves from approved scheme designs to the
detailed documents, preparatory to contract (3.7) preparation
5.4
drawing
technical information given to information carrier; graphically presented, usually to scale, in accordance
with agreed rules
[SOURCE: ISO 6707-1:2014, 7.2.10]
5.5
model
three-dimensional representation, often simplified, of a project (3.8) or part of a project
6 Tendering
6.1
tendering
bidding, US
process of obtaining tenders (3.6), with the intention of forming a contract (3.7) with one or more of the
tenderers (10.31)
6.2
invitation to tender
invitation to bid, US
process of making a formal request to firms, publicly or formally to submit a tender (3.6)
6.3
competitive tendering
competitive bidding, US
tendering (6.1) in which the contract (3.7) is normally awarded to the contractor (10.5) who submits the
tender (3.6) that is most advantageous to the client (10.1), assessed using pre-determined criteria
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6.4
open tendering
open bidding, US
competitive tendering (6.3) when any suitable person or firm can submit a tender (3.6)
Note 1 to entry: In the US, open bidding can also be to a select group of bidders (pre-qualified) and the award
(opening) of the actual bids (3.6) can be open to the public.
6.5
selective tendering
selective bidding, US
competitive tendering (6.3) when a limited number of persons or firms are invited to submit a tender
(3.6)
6.6
two-stage tendering
two-stage bidding, US
tendering (6.1) in which contractors (10.5) submit two tenders (3.6) in sequence, with the final selection
taking place after negotiation or design input
6.7
sequential tendering
sequential bidding, US
tendering (6.1) in which only pre-planned elements are priced in detail so that construction work on site
can start before the design is complete
6.8
serial tendering
serial bidding, US
tendering (6.1) in which contractors (10.5) are asked to state terms and conditions under which they
would agree to undertake a series of projects (3.8) over a period of time
6.9
alternative method tender
alternate bid, US
tender (3.6) to carry out work in a different way or to substitute materials different from that proposed
in the tender documents to effect the same result
6.10
tender sum
contract amount, US
sum stated in a tender (3.6)
Note 1 to entry: In the US, there is a homograph for the term “contract amount”. See 8.16.
6.11
bill of quantities
bill of materials, US
document for tendering (6.1), usually prepared in a standard form, comprising both a descriptive list of
quantities of works and descriptions of the materials, workmanship and other matters required for a
construction works
[SOURCE: ISO 6707-1:2014, 7.2.9]
6.12
priced bill of quantities
schedule of values, US
bill of quantities (6.11) that contains a contractor’s (10.5) rates extended and totalled to provide the
tender (3.6)
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6.13
provisional item
checking, US
item in a bill of quantities (6.11) for which the quantities are subject to re-measurement
6.14
preamble
statement concerning materials and workmanship that precedes either the measured items in a bill of
quantities (6.11) or the separate descriptions of workmanship in a project specification (4.1)
6.15
preliminaries
part of a bill of quantities (6.11) or project specification (4.1) referring to the contractor’s (10.5) general
obligations rather than to the construction work
Note 1 to entry: Among the subjects referred to are site use, facilities, and security.
6.16
acceptance
act of agreeing to a contractor’s (10.5) offer or tender (3.6) thereby creating a binding contract (3.7)
6.17
letter of intent
communication from the client (10.1) to the tenderer (10.31) stating that they propose to enter into an
agreement with the tenderer
7 Contracts
7.1
design and construct contract
design/build, US CA
package deal, US
contract (3.7) based on a brief (3.1) provided by the client (10.1) under which the contractor (10.5)
designs a project (3.8) and constructs it
7.2
develop and construct contract
fast track contract, US
contract (3.7) based on a scheme design prepared by the client (10.1) under which a contractor (10.5)
produces production drawings (5.4) and constructs
7.3
negotiated contract
contract (3.7) based on financial and other terms that have been discussed and agreed between a client
(10.1) and a contractor (10.5)
7.4
management contract
management fee contract, US
contract (3.7) under which a contractor (10.5) provides consultation during and after the design stage
(3.4), being responsible for planning and managing all post-contract activities on site and for the
performance of the whole contract
7.5
professional service contract
contract (3.7) for professional services, typically those related to design and consultancy services
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7.6
labour-only contract
labor-only contract, US
contract (3.7) for the supply of labour (10.22)
7.7
public works contract
contract (3.7) between a public body and a contractor (10.5) to carry out construction work
7.8
serial contract
contract (3.7) that is one of a series planned for execution (8.1) over a stipulated period
7.9
initial phase contract
contract (3.7) for the execution (9.1) of the first phase (3.5) of a project (3.8) in which, if further phases
proceed, the same contractor (10.5) will be required to carry them out
7.10
cost reimbursement contract
contract (3.7) based on cost (8.1) expended
7.11
cost plus contract
cost reimbursement contract (7.10) under which the contractor (10.5) is paid for his actual expenditure
plus a percentage or other sum as previously agreed
7.12
target cost contract
estimated cost contract, US
percentage contract, US
cost reimbursement contract (7.10) under which a preliminary target cost (8.1) is estimated and, on
completion (9.6) of the work, the difference between the target cost and the actual cost is apportioned
between client (10.1) and contractor (10.5) on an agreed basis
7.13
firm price contract
GMP contract, US
contract (3.7) under which the price (8.5) cannot be amended despite changes in economic conditions
7.14
variation of price contract
escalation contract, US
contract (3.7) under which the price (8.5) is amended to reflect changes in economic conditions
7.15
formula variation of price contract
unit cost contract, US
variation of price contract (7.14) in which the price (8.5) is amended by the application of a previously
agreed formula
7.16
fixed price contract
lump sum contract, US
contract (3.7) under which the contract sum (8.16) is given in a tender (3.6) or is based on a schedule of
rates (7.28)
Note 1 to entry: The final sum (8.14) can be amended due to changes in economic conditions.
Note 2 to entry: In the US, there is a homograph for the term “lump sum contract”. See 7.17.
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7.17
lump sum contract
fixed price contract (7.16) based on a single tendered amount
Note 1 to entry: In the US, there is a homograph for the term “lump sum contract”. See 7.16.
7.18
term contract
contract (3.7) that enables the client (10.1) to order work during a prescribed period at agreed rates
7.19
measured term contract
term contract (7.18) based on a schedule of rates (7.28); the construction work is measured subsequently
7.20
measurement contract
payment contract, US
contract (3.7) in which the contract sum (8.16) is ascertained on completion (9.6) by measuring the
construction work done and valuing it on the basis of an agreed schedule of rates (7.28)
7.21
sub-contract
subordinate contract (3.7) under which construction work is carried out by someone other than a party
to the main contract
7.22
contract document
document that forms part of a contract (3.7)
7.23
condition of contract
requirement, US
one of the detailed provisions incorporated in a contract (3.7) laying down the rights and duties of the
parties or the functions of the people connected with the contract or the procedures for administering
the contract
7.24
conditions of contract
document that contains the detailed provisions incorporated in a contract (3.7), laying down the rights
and duties of the parties, the functions of the people connected with the contract and the procedures for
administering the contract
7.25
abstract of particulars
general conditions, US
supplemental general conditions, US
supplement to the conditions of contract (7.24) that provides information on people involved, periods of
construction, and maintenance
7.26
articles of agreement
client-contractor agreement, US
preliminary section of a contract (3.7) setting out the basic elements on which the parties have agreed
Note 1 to entry: Examples of basic elements are the names of parties, location, scope, sums payable.
7.27
contract period
period stipulated in a contract (3.7) for the execution (9.1) of construction work or during which a service
will be provided
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7.28
schedule of rates
contractual basis for valuing construction work, consisting of a series of des
...