Project Management Essentials Terms & Definitions

A single log that captures the four things most likely to derail a project before they do: Risks (might happen), Assumptions (believed true but unverified), Issues (already happening), and Dependencies (work relying on something outside your control). Reviewed weekly, it catches problems while they're still cheap to fix.

A matrix mapping every task or decision against the people involved, with exactly one Accountable owner per row. Prevents the two failure modes of team communication: work nobody owns, and decisions everybody thinks they own.

The project's scope broken into smaller pieces until each is small enough to assign, estimate, and measure. If a WBS line can't carry a number — quantity, duration, cost — it needs breaking down further.

The project's people and companies arranged by role and reporting line — who reports to whom, which subcontractor owns which package. Overlaid on the WBS, it answers who is accountable for each piece of work.

Risks grouped by source — technical, external, organizational, project management — instead of listed randomly. Grouping surfaces patterns a flat list hides.

A four-box exercise for sizing up a position — a bid decision, a project at kickoff, a new market. Strengths and weaknesses look inward; opportunities and threats look outward.

The team or function that sets how projects are run across an organization — templates, reporting standards, governance — so quality doesn't depend on which PM you happened to get.

PMI's reference guide describing standard processes and terminology across the profession. Useful as a common language — not a rulebook to follow literally on every project.

The document that formally authorizes a project to exist — states its purpose, high-level scope, and the PM's authority to spend budget and direct resources.

The three variables that trade off on every project: scope, time, and cost — quality is often added as a fourth. Push one and at least one other moves.

A method comparing what was planned, what was actually built, and what it cost — in the same currency — to measure schedule and cost performance independently. See PV, EV, AC and the metrics derived from them, below.

The value of work the schedule says should be complete by today, in contract money. Also called BCWS.

The value of work actually completed by today, priced at contract rates — not what was spent, what was built. Also called BCWP.

What it actually cost to produce the earned value — wages, materials, equipment, everything spent. Also called ACWP.

Zero is on schedule, negative is behind, positive is ahead. Measured in money rather than days — see SPI for the ratio form.

Positive means the work cost less than its earned value — under budget. Negative means over budget.

Above 1.0 is ahead of schedule, below 1.0 is behind. An SPI of 0.91 means 91 fils of scheduled work delivered for every riyal the plan expected.

Above 1.0 means every riyal spent produces more than a riyal of earned value. Widely considered the strongest single predictor of final cost overrun.

The forecast total cost of the project if current cost performance continues. Several formulas exist; this is the simplest and most used.

How much more money is expected to be needed to finish the project from today.

The forecast overrun or underrun at completion, in money. Negative means the project is heading over budget.

The cost efficiency the remaining work must achieve to finish on the original budget. Far above the CPI achieved so far is a sign the budget is no longer realistic.

The sequence of dependent tasks that determines the shortest possible project duration — any delay on it delays the whole project. Everything else has float.

The time an activity can slip without delaying the project (total float) or the next activity (free float). Zero float means the activity is on the critical path.

A cumulative progress chart that naturally forms an S-shape over time. Plotting planned and actual value on the same chart makes delay visible at a glance.

The original approved version of the schedule, budget, or scope, frozen as a reference point. Progress is measured against it, not against last month's report.

A zero-duration marker for a significant point in the project — design freeze, first pour, practical completion. It carries no work of its own.

A short rolling window — typically two to three weeks — pulled from the master programme and reviewed weekly for what's coming and what could block it.

Overlapping activities originally planned sequentially, to shorten the schedule. Faster, but increases rework risk.

Adding resources to a critical-path activity to shorten its duration. Costs more per day saved than the original plan; used when the deadline outweighs the budget.

Adjusting a schedule to smooth resource demand rather than swinging from 40 electricians one week to 8 the next — usually extends the schedule slightly in exchange for a deployable workforce.

A log of identified risks, each scored by likelihood and impact, with an assigned response and owner. Only useful if reviewed on a fixed rhythm.

Budget or time set aside for known-unknowns — risks already identified but not yet certain to land. Different from management reserve, which covers unknown-unknowns.

A formally instructed and priced change to the contracted scope — the document that turns "the client asked for an extra" into something invoiceable.

Small, unrecorded additions to scope that accumulate without a corresponding change in budget or schedule — usually because nobody raised a formal change request.

Contractually defined events outside either party's control — extreme weather, war, government action — that can excuse delay without penalty, as defined in the specific clause.

Raising an issue to a higher level of authority when it can't be resolved at the level where it was found — a defined path, not a last resort out of frustration.

Anyone who can affect, or is affected by, the project's outcome. Managing stakeholders well means understanding their interest and influence before you need something from them.

An itemized list of the works, with measured quantities and unit rates, forming the commercial backbone of most construction contracts.

Maps each construction activity to its required inspections, hold points, and acceptance criteria — agreed with the consultant before anyone argues about what "passed" means.

A formal record raised when completed work doesn't meet the specification — what was found, where, and the corrective action required before acceptance.

A formal question to the designer when drawings or specifications don't give enough information to proceed — with a due date, since unanswered RFIs are a common cause of avoidable delay.

A contractual claim for additional time, usually for an employer-caused or excusable delay, that moves the completion date without automatically implying additional cost.

The period after handover — commonly 12 months — during which the contractor remains responsible for fixing defects at their own cost. Also called the warranty period.

A pre-agreed daily or weekly deduction for late completion, stated in the contract so both sides know the cost of delay in advance.

A percentage of each payment certificate withheld as security against defects — commonly 5–10% — released partly at handover and partly at the end of the DLP.

Minor defects and incomplete items identified at practical completion that must be closed out before final handover.

A step-by-step document describing how an activity will be carried out safely and to specification — sequence, equipment, manpower, controls — submitted for approval before work starts.

The written record of what was discussed, decided, and assigned — issued promptly and treated as the official version unless formally disputed.

Material samples, shop drawings, or product data submitted for approval before procurement or installation — tracked by revision code (A, B, C) until approved.

QA prevents defects through procedures and ITPs; QC inspects and catches them if they happen anyway. One is proactive, the other a safety net.

The function covering worker safety, environmental compliance, and incident prevention on site — measured, among other things, by the LTI rate.

A structured review of a design to reduce cost or improve constructability without reducing function or quality — deliberate and early, unlike cutting corners under pressure later.

Two or more companies combining resources and sharing risk and profit under a separate agreement — usually because the project needs a scale neither company has alone.

The first formal meeting of a project team after award, aligning everyone on scope, roles, communication protocols, and early milestones.