DEFINITIONS From : http://www.businessdictionary.com/definition/legal.html http://www.lawperationnel.com/EncyclopedieJur/Claim.html Claim, back charge (Rclamation, requte, plainte).

En construction industrielle, un claim dsigne une rclamation adresse par une entreprise son donneur dordre pour obtenir un supplment de prix ou de dlai. Ce terme nest pas utilis normalement pour les demandes du donneur dordre lgard de son cocontractant (on utilise souvent dans ce cas le terme de "charge" ou "back charge"). Ltablissement dun claim suppose la fois une connaissance prcise des circonstances techniques qui lentourent, une pleine perception des conditions contractuelles et un ensemble de justifications probantes. Cette tche est souvent confie un responsable comptence transversale, technique et juridique, le responsable contrat (contract manager). Dans la plupart des entreprises travaillant sur de grands projets lInternational, les dossiers claims et suivi de projet sont ouverts en mme temps et grs paralllement. Claim Legal demand or assertion by a claimant for compensation, payment, or reimbursement for a loss under a contract, or an injury due to negligence. Amount claimed by a claimant. Legal Allowable or enforceable by being in conformity with the law of the land and the public policy; not condemned as illegal. See also lawful and legitimate. Arbitration Settlement of a dispute (whether of fact, law, or procedure) between parties to a contract by a neutral third party (the Arbitrator) without resorting to court action. Arbitration is usually voluntary but sometimes it is required by law. If both sides agree to be bound by the arbitrator's decision (the 'award') it becomes a binding arbitration. The exact procedure to be followed (if not included in the contract

under dispute) is governed usually by a country's arbitration laws, or by the arbitration rules prescribed by the International Chamber Of Commerce (ICC). Liquidated damages Sum of money (agreed-to and written into a contract) specified as the total amount of compensation an aggrieved party should get, if the other party breaches certain part(s) of the contract. The contract also establishes what actions or failures to act constitute a breach. For the agreement to be legally enforceable, the nature of the contract should be such that it is difficult to determine actual damages, and the amount of damages should be reasonable under the circumstances. Otherwise law may regard the specified amount as a fine (included in the contract primarily to force its proper performance) and not a compensation for injury. In such cases, the damages are deemed 'unliquidated damages' and are assessed by a court according to the merits of the case. Cash flow management The management and analysis of a company's cash flows. Careful cash flow management allows a company to estimate the amount of cash that it will have on hand at any one time, project trends in cash inflow and cash outflow, and evaluate whether a shortfall or surplus in cash could potentially occur. Schedule Auxiliary, explanatory, or supplemental document that forms part of a principal document, such as a list of individual items (with their descriptions and values) covered by an insurance policy, or a depreciation schedule that provides supporting details to a financial statement. Timetable for a program or project showing how activities and milestone events are sequenced and phased over the allotted period. Written or printed catalog or list of charges, items, prices, etc., arranged or organized in alphabetical, chronological, magnitudinal, or any other classification or order. Litigation Ultimate legal method for settling controversies or disputes between and among persons, organizations, and the State. In litigation process, a case (called suit or lawsuit) is brought before a court of law suitably empowered (having the jurisdiction) to hear the case, by the parties involved (the litigants) for resolution (the judgment).

Planning Basic management function involving formulation of one or more detailed plans to achieve optimum balance of needs or demands with the available resources. The planning process (1) identifies the goals or objectives to be achieved, (2) formulates strategies to achieve them, (3) arranges or creates the means required, and (4) implements, directs, and monitors all steps in their proper sequence. Terms of payment Conditions of payment agreed between a buyer and a seller for goods sold or services rendered. Three basic terms of payment are (1) cash, (2) open account, (3) secured account. Cost control Application of (1) investigative procedures to detect variance of actual costs from budgeted costs, (2) diagnostic procedures to ascertain the cause(s) of variance, and (3) corrective procedures to effect realignment between actual and budgeted costs. Feasibility study Analysis and evaluation of a proposed project to determine if it (1) is technically feasible, (2) is feasible within the estimated cost, and (3) will be profitable. Feasibility studies are almost always conducted where large sums are at stake. Also called feasibility analysis. See also cost benefit analysis. Bid bond Written guaranty from a third party guarantor (usually a bank or an insurance company) submitted to a principal (client or customer) by a contractor (bidder) with a bid. Bid bond ensures that on acceptance of bid by the customer the contractor will proceed with the contract and will replace the bid bond with a performance-bond. Otherwise, the guarantor will pay the customer the difference between the contractor's bid and the next highest bidder. This difference is called liquidated damages which cannot exceed the amount of the bid bond. Unlike a fidelity bond, a bid bond is not an insurance policy, and (if cashed by the principal) the payment amount is recovered by the guarantor from the contractor. Also called bid guaranty or bid surety. Performance bond

Written guaranty from a third party guarantor (usually a bank or an insurance company) submitted to a principal (client or customer) by a contractor on winning the bid. Performance bond ensures payment of a sum (not exceeding a stated maximum) of money in case the contractor fails in the full performance of the contract. These bonds usually cover 100 percent of the contract price and replace the bid bonds on award of the contract. Unlike a fidelity bond, a performance bond is not an insurance policy and (if cashed by the principal) the payment amount is recovered by the guarantor from the contractor. Also called standby letter of credit. Contract management Administrative activities associated with handling of contracts, such as (1) invitation to bid, (2) bid evaluation, (3) award of contract, (4) contract implementation, (5) measurement of work completed, and (6) computation of payments. It also includes monitoring contract relationship, addressing related problems, incorporating necessary changes or modifications in the contract, ensuring both parties meet or exceed each other's expectations, and actively interacting with the contractor to achieve the contract's objective(s). Also called contract administration. Indirect cost Expenses (such as for advertising, computing, maintenance, security, supervision) incurred in joint usage and, therefore, difficult to assign to or identify with a specific cost object or cost center (department, function, program). Indirect costs are usually constant for a wide range of output, and are grouped under fixed costs. Indirect compensation Non-cash benefit (such as an office car) provided to an employee. In some jurisdictions a certain percentage of the indirect compensation is added to the beneficiary's income for taxing purposes. Liability General: Claim against the assets, or legal obligations of a person or organization, arising out of past or current transactions or actions. Liabilities require mandatory transfer of assets, or provision of services, at specified dates or in determinable future. Accounting: Accounts and wages payable, accrued rent and taxes, trade debt, and short and long-term loans. Owners' equity also is termed a liability because it is an

Obligation of the firm to its owners. Liabilities are entered on the right hand-side of the page in a double-entry bookkeeping system. Law: (1) Responsibility for the consequences of one's acts or omissions, enforceable by civil remedy (damages) or criminal punishment. (2) An obligation to do or refrain from doing Entitlement Distribution or exercise of an absolute privilege or right to an economic benefit (such as old age pension, social security, unemployment stipend) granted by contract or law, automatically upon meeting the required qualification. Claim or right defended by reference to a precedence or established procedure. Government scheme benefiting members of a particular group. Offer or an actual payment of cash or stock (shares) to the holder of a security.