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See Advance Payment Bond: A bond issued to the Principal by a Financier at the request of a Contractor to secure any Advance Payment made by the Principal.

A bond issued to the Principal by a financier at the request of a Contractor to secure any advance payment made by the Principal. Aslon known as an Advance Payment Bond.

A punishment imposed for an infraction or breach of a rule, law or a performance condition in a contract. For example, parties may agree that penalties apply for late payment or for delays in the completion of work.

Precommissioning refers to any testing, checking and other works specified in the Contract to be carried out by the contractor in preparation for commissioning.

A written guarantee or pledge by a person to guarantee the performance obligation of another (eg to properly complete construction or comply with the terms of a Contract). If there is a failure to perform then the bonding party will make good up to the amount of the bond. (See Insurance Bond, Guarantee, Performance Guarantee and Bank Guarantee)

The bidder or tenderer selected by the principal following a tender process. The preferred bidder is invited to enter into a contract for the Works or Services the subject of the Tender.

A form of security provided by a party (typically the parent company of the Contractor) in favour of the Principal to guarantee the contractor's performance under the contract if the Contractor defaults.  (See also Deed of Guarantee, Undertaking and Substitution and Bank Guarantee).

These are the steps required for work to go ahead or be properly completed but do not form part of the work. The costs of preliminaries include temporary works, utilities, setting-out, testing materials, supervision, cleaning, removal of rubbish, handover and repairs during the defects liability period.

Contractual performance criteria, especially in relation to projects for the supply or delivery of Infrastructure, plant or equipment. Such criteria are useful for determining whether Works produced by a Contractor conform with the terms of the Contract.

Prior to an Arbitration the parties are entitled to meet with the Arbitrator to discuss preliminary or interlocutory issues. Challenges to the appointment of the particular Arbitrator can be brought during these conferences.