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
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.
C
Calculation
The financial blueprint of a project. Not just a price tag, but a strategic tool for risk management and margin control.
CAR Insurance
Construction All Risk. The financial safety net covering damage to the work, existing property, and third-party assets during construction.
Construction Contract
The legal foundation of any construction project. More than a formality, this document defines risk allocation, strict deadlines, and protects the client against surprise variations.
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.
F
H
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)
Most Economically Advantageous Tender. An award methodology where not only the price, but also quality criteria are considered in the final assessment.
O
Omissions (Less Work)
Work removed from the contract. Beware: often a 'loss of profit' fee (approx. 10%) is charged on the cancelled amount.
Open Budget
A financial model where the contractor provides full access to actual costs (labor, material, overheads) and works with a pre-agreed profit margin.
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
Performance Bond
An irrevocable commitment from a bank to immediately pay a sum of money to the client if the contractor fails to fulfill obligations, ideally 'on first demand'.
Predictive Costing
A strategic methodology that leverages historical data and algorithms to generate precise top-down cost predictions, rather than calculating bottom-up.
Program of Requirements (PoR)
The project constitution that dictates functional performance and shifts risk from client to contractor.
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
Quality Assurance Act (Wkb)
The Quality Assurance for Construction Act (Wkb) represents a paradigm shift where contractors bear the burden of proof for defects after completion, enforcing a strictly documented process.
Quotation
A quotation is a formal, binding legal proposal from a contractor to a client, strictly defining the work, price, and conditions.
R
S
Specification
A specification (or 'Bestek') is the detailed legal and technical description of a construction project, serving as the fundamental contract document to ensure quality and prevent additional work.
STABU
The legal and technical standard for specifications in Dutch residential and utility construction.
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 standard for integrated contracts that legally enforces proactive collaboration and risk dialogue.
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