Plain-language explanations of key terms — for engineers and project managers, not lawyers.
The process of measuring the actual quantities of work executed on site and valuing them at the contract rates in a bill of quantities. Under a remeasurable contract (such as FIDIC Red Book), the Contract Price is not fixed at tender but is determined by multiplying actual quantities by contracted rates. The right to remeasure protects the contractor if quantities are less than estimated and the employer if quantities are more.
A percentage of each payment certificate withheld by the employer as security against the contractor's completion and performance during the Defects Notification Period. Under FIDIC, the standard retention rate is 5-10% of interim certificates, up to a maximum retention. Half is released on Taking Over; the balance on issue of the Performance Certificate. Retention represents a significant financing burden for contractors and is increasingly questioned.
A document that systematically identifies, assesses, and allocates the risks associated with a construction project. A well-maintained risk register is a key project management tool. In contract terms, risk allocation — who bears which risks — is one of the most fundamental features of any construction contract. Misallocation of risk (placing risks on the party least able to control or manage them) is a major contributor to cost overruns and disputes.