To help owners and other team members tasked with the construction of manufacturing and process facilities, here's a glossary of the most common acronyms used during project planning and development. The Glossary of Construction Industry Acronyms Part II, continues with IoT through WELL. Part I covered AI through GMP.

IoT: Internet of Things

IoT is a network of physical devices/vehicles/equipment/wearables/etc. that are embedded with electronics/software/sensors/actuators and have network connectivity, enabling them to exchange data. Each item is uniquely identifiable through its embedded computing system but is able to inter-operate within the existing Internet infrastructure. IoT is quickly gaining traction in the construction industry for specific applications like remote equipment operation, tool and equipment tracking, safety management, supply replenishment, fleet operations and more. Even BIM models that were used during design and construction can be updated via sensors placed in buildings for facility operation and management. 

IPD: Integrated Project Delivery

IPD is a project delivery system that seeks to align interests, objectives and practices through a team-based approach. Typically, the primary team members include the architect, technical consultants, general contractor and key subcontractors. The IPD system is a process where all disciplines in a construction project work as one firm, creating faster delivery times, lower costs, no litigation and a more enjoyable process for the entire team – including the owner.

KPI: Key Performance Indicators

Once a construction firm has articulated its mission, identified all of its stakeholders and defined its goals, it needs a way to measure progress toward those goals. Key Performance Indicators are those measurements. They can be used for overall organizational goals or for individual projects. Common KPIs in construction include metrics related to safety, cost, quality, schedule, backlog, project performance, financial performance and customer satisfaction. KPIs are also used in reporting for Corporate Performance Management (CPM). Many construction firms are tracking KPIs via performance dashboards.

LEED®: Leadership in Energy and Environmental Design

LEED® is a set of rating systems for the design, construction, operation and maintenance of green buildings, homes and neighborhoods. The rating scales were developed by the United States Green Building Council (USGBC) to evaluate the environmental performance of buildings and encourage market transformation towards sustainable design. Buildings can be LEED certified and individuals can be LEED accredited. LEED is the most widely used green building rating system in the world.

OSHA: Occupational Safety and Health Administration

OSHA is an agency of the United States government under the Department of Labor whose mission is to prevent work-related injuries, illnesses and deaths. OSHA's construction industry standards apply "to every employment and place of employment of every employee engaged in construction work," according to the agency website, and are therefore a critical part of construction management.

PEP: Project Execution Plan

Because every project is unique, each requires a detailed Project Execution Plan (PEP). The PEP communicates and documents the project "map" and the overall strategic approach for the execution of the entire project for all stake holders. It also sets the tone for demonstrating effective leadership, project organization, progress measurement and teamwork. The PEP is not a "one size fits all" document. It must be specifically tailored to meet the size and specific phases of an individual project. Attributes that are common to all projects include safety, quality, cost and schedule, but each project combines differences in scope, scale, complexity, resources and many other factors to achieve its goals and objectives. A good PEP provides guidance over every applicable element of a project.

PPP or P3: Public-Private Partnership

A PPP is a contract between a public sector client and a private company or group of companies. These partners work together to finance, design, construct and maintain a project. PPPs are often used for large infrastructure projects such as roads or for community facilities.

PRECON: Preconstruction

Preconstruction services are used to plan a project before construction activity commences. The services grew out of construction cost estimating to encompass the other activities included in project planning with a goal of delivering a satisfactory project that meets the owner’s objectives. In addition to estimating, the preconstruction team participates in design decisions, evaluations, studies, value engineering, value analysis, scheduling, constructability reviews and more. Traditionally, preconstruction can be used to define the project scope, schedule and cost. Precon activities usually happen early in the process, typically beginning in the feasibility stage.

RFI: Request for Information

A request for information (RFI) is a standard business process for collecting written information. Typically, it is a written request from a contractor to the owner, architect or engineering firm for information or clarification. RFIs are typically less formal than requests for quotes (RFQs) and requests for proposals (RFPs). Many leading construction management software packages have electronic RFI management tools.

RFP: Request for Proposal

When a company is interested in procuring a specific service, they will generally issue an RFP to potential suppliers. RFPs contain the rules for procurement and have guidelines for content, timelines, scope of services and vendor responses. 

RFQ: Request for Quote or RFB: Request for Bid

RFQs are prepared by owners when they have defined specific requirements for a project. RFQs are designed to engage vendors and contractors around the specific requirement for completing a particular project. RFQs are typically a precursor to an RFP.

ROI: Return on Investment

ROI is a performance measure used to evaluate the financial impact of an investment or to compare the efficiency of a number of different investments. ROI can be calculated for new equipment, staff, or any initiative such as a marketing campaign. To calculate ROI, the benefit of an investment is divided by the cost of the investment; the result is expressed as a percentage or a ratio. The ROI ratio shows how profitable an investment is and some organizations set-up internal hurdles for ROI or Internal Rate of Return (IRR). Payback is the amount of time it takes to recover the investment. 

SWOT: Strengths, Weaknesses Opportunities, Threats

SWOT is a tool for analyzing a situation and aiding construction firms in the decision-making process. It helps firms align with their markets. Strengths and Weaknesses are internal to an organization and Opportunities and Threats are external to it. SWOT analysis helps develop a framework for building a business strategy and can be performed for an entire company, a particular business line, or a market. After identifying individual strengths, weaknesses, opportunities and threats, those items should be ranked (within each category) in terms of how they will impact business. Strategic priorities will emerge.

TRIR: Total Recordable Incident Rate

TRIR is a key safety performance indicator. It is a mathematical computation that takes into account how many OSHA recordable incidents a company has per number of hours worked and is often used with another term: DART (days away from work, days of restricted work activity and/or days of jobs transfer).

VDC: Virtual Design and Construction

VDC is the management of integrated multi-disciplinary performance models of design/construction projects (including the product (facilities), work processes and organization of the design/construction/operation team) in order to support business objectives. VDC is a visual management methodology using BIM as part of analysis and work processes.

VE: Value Engineering

VE is an approach to improve the value of the services or products provided. Value can be defined as the ratio of function to cost. For construction projects, value can be increased by reducing the costs or improving the value. Concentrating on the maximizing the project’s function while minimizing cost generates the optimum value for the owner. Typically, value engineering workshops are held very early in the process to perform a functional analysis of the facility, understand the owner’s value drivers, identify key project criteria and identify value engineering options for the project. 

WBS: Work Breakdown Structure

In project management and systems engineering, WBS is a deliverable-oriented method of breaking a project into smaller components. A WBS element may be a product, data, service, system, area or any combination of those. WBS also provides the necessary framework for detailed cost estimating and control along with providing guidance for schedule development and control.

WELL: Well Building

The WELL Building Standard® is a performance-based system for measuring, certifying and monitoring features of the built environment that impact human health and wellbeing through air, water, nourishment, light, fitness, comfort and mind (according to Green Business Certification Inc.). The WELL programs are managed and administered by the International WELL Building Institute (IWBI). WELL standards are grounded in medical research that explores the connection between the buildings where people spend more than 90 percent of their time and the health and wellness of its occupants. WELL Certified™ spaces and WELL Compliant™ core and shell developments can help create a built environment that improves the nutrition, fitness, mood and sleep patterns.