Glossary
Understand all terms and concepts regarding quotes, tenders, and construction projects.
A
Additional Work / Variations
Work that falls outside the original contract scope and results in an increase in the contract price. Often a strategic revenue stream in construction.
AI Quote Analysis
The strategic application of artificial intelligence to normalize quote data (Bid Leveling), detect risks in fine print, and eliminate 'apples to oranges' comparisons.
Award Criteria
The decisive quality and price factors upon which a contracting authority evaluates tenders and awards points.
B
Bank Guarantee
A bank guarantee is a written undertaking by a bank to pay an agreed amount to the client if the contractor fails to meet its contractual obligations.
Bid / Tender submission
A tender is the formal offer that a company submits in a tender or request for quotation.
BIM (Building Information Model)
A process of digital prototyping where all physical and functional data of a building is linked to a central model to minimize risks.
Building Quality Assurance Act
The Building Quality Assurance Act (Wkb) is a Dutch law improving construction quality by involving independent quality guardians for checks before, during, and after building, shifting from municipal oversight.
Building Quality Assurance Act (Wkb)
The Dutch Building Quality Assurance Act (Wkb) is legislation designed to make construction quality more demonstrable. For certain building works, an independent quality assurer assesses whether the work meets technical building rules, while contractors carry stronger liability for defects after handover.
C
CAR Insurance
Construction All Risk. The financial safety net covering damage to the work, existing property, and third-party assets during construction.
Construction Contract
A construction contract is the building agreement that states what work the contractor will perform, at what price, within what timeframe and under which conditions for variations, completion and liability.
Construction Specification
A construction specification, or Dutch 'bestek', is a contract document that states which works, materials, quality requirements, conditions and responsibilities apply to a construction project.
Consumer file
The consumer file is a mandatory document that contractors must hand over to the client upon completion of a construction project under the Client-side Quality Assurance for the Built Environment Act (Wkb). It contains crucial information about the realized work, such as drawings, calculations, materials used, and maintenance instructions, demonstrating compliance with the agreement.
Contract sum
The total amount (including sales tax) for which the contractor commits to complete the work.
Cost Calculation
The financial basis of a construction project. A cost calculation determines not only the price, but also the risk, margin and feasibility of the work.
F
H
Handover
The legal tipping point where risk and liability transfer from contractor to client.
Hourly Rate / Time and Materials
The rate per worked hour that a contractor or tradesperson charges for labor, including wages, social security contributions, insurance, overhead, tools, risk and margin.
I
M
MEAT
MEAT stands for Most Economically Advantageous Tender, a procurement method where both price and quality aspects are considered to select the tender with the best value.
MEAT (Best Value)
MEAT stands for Most Economically Advantageous Tender. In Dutch procurement practice, this usually refers to BPKV: an award method where price and quality together determine which tender offers the best value.
O
Omissions (Less Work)
Omissions are agreed works that are not performed, reduced or simplified. Their value is deducted from the contract price.
Open Budget
An open budget is a transparent cost breakdown in which the contractor shows exactly where labor, materials, equipment, subcontractors, risk and margin sit.
Overhead & Profit (Tail Costs)
The indirect costs (General Costs) and profit margins (P&R) calculated on top of direct construction costs. Often 10-25% of the budget.
P
Predictive Costing
A data-driven method for forecasting construction costs early using historical project data, design characteristics, and current market information.
Program of Requirements (PoR)
A Program of Requirements is the document in which a client records the goals, performance levels, constraints and assessment criteria a project must meet.
Provisional Sum
A budgetary allowance in a construction contract for work or materials not fully specified at the time of tendering, placing the price risk on the client.
Q
R
S
T
Tender
More than just a form to fill: it's your entry ticket to the biggest government contracts.
The 5% Retention Rule
The **5% Rule** (Article 7:768 of the Dutch Civil Code) serves as a critical legal lever for private buyers of new-build properties. It grants the buyer the statutory right to withhold 5% of the total contract price at the moment of completion. Instead of a direct transfer to the contractor, this amount is placed in escrow with a notary. **Why does this matter?** It functions as strategic financial security—a "performance bond" of sorts—ensuring that any defects identified during or after delivery are rectified promptly. This deposit remains held for three months post-completion, shifting the balance of power back to the homeowner and providing the necessary friction to ensure the contractor fulfills every last detail of the agreement.
U
UAV 2012 (Dutch Construction Conditions)
Uniform Administrative Conditions 2012. The standard contractual framework for traditional construction projects in the Netherlands.
UAV-GC 2005
The contract form where design and execution lie with the contractor (Design & Build).
UAV-GC 2025
The renewed set of conditions for integrated contracts in which collaboration, information duties, assumptions and liability are defined more sharply.
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