F

The process of planning, managing, maintaining and accounting for one or more of the facilities, whilst seeking to reduce the associated overall costs. Facilities management is primarily concerned with providing the optimum level of facilities for the least financial outlay.

An agreement between a bank and a company that grants the company a line of credit with the bank (can be committed or uncommitted) or between an issuer of short-term securities and underwriters who commit to buy a security.

The circumstances in which a contract is made, including the commercial background and the object(s) of the contract.

A delivery method which attempts to shorten the time required to complete a project by commencing construction before the Design and documentation of the Design is complete (which may necessitate managing increased risk associated with the project).

A streamlined Arbitration process which attempts to avoid delay and formalities associated with this form of Alternative Dispute Resolution. Some measures include allowing written statements in place of lengthy oral ones and placing strict time limits on various discussion.

A Front-End Engineering Design contract involves the preparation of a design basis prior to the main phase of works.

An acronym for furniture/fixtures, fittings and equipment.

The International Federation of Consulting Engineers, known by its French acronym, FIDIC. The organisation is best known for its range of standard form contracts used widely internationally for the construction, plant and design industries.

A person who is under an obligation to act in good faith for the benefit of another person at the exclusion of that person's own interest.

The certificate issued by the Superintendent or Certifier to the Contractor on Final Completion. Once issued, the certificate entitles the Contractor to receive its final payment. Also known as a Final Statement.

Within a period of time which is generally after the expiry of the last Defects Liability Period, the Contractor can provide the Superintendent or Certifier with a final Payment Claim which includes a claim for payment of Works performed and any claim for money which the Contractor considers to be due from the Principal in relation to a breach of Contract.

The stage where all Works have been executed and completed satisfactorily (and may require the rectification of any defects arising in the Defects Liability Period). Upon final completion, the Final Certificate is issued and generally all moneys due to the Contractor, including any Retention Monies or performance securities held, are released.

See Final Certificate - The certificate issued by the Superintendent or Certifier to the Contractor on Final Completion. Once issued, the certificate entitles the Contractor to receive final payment.

A sum of money or a loan obtained through a Financier with an undertaking that it will be repaid in the future.

The time where all documentation for a project has been executed by the relevant parties, and all Conditions Precedent have been satisfied or waived. At financial close, the borrower (generally the Principal) may obtain the finance for the project as negotiated with its Financier.

A bank, credit union, building society, mortgage broker or other financial institution.

A 'financing statement' supports the registration of a security interest under the PPSA. A 'financing statement' is defined in section 12 of the PPSA.

A certificate that a building has complied with all necessary requirements in relation to fire precautions and is therefore, fit for occupancy.

A performance requirement that the deliverables in a contract will be reasonably fit for the particular purpose for which they are required.  Compliance is measured against the use and performance and the final product, rather than on the adequacy of any design drawings or other inputs specified by the principal.  More specific requirements may be agreed between the parties or be the subject of legislation such as the requirement of fitness for purpose under the Australian Consumer Law for goods supplied to a consumer from 1 January 2011.

The finishing works required (such as putting up suspended ceilings, fixing prefabricated joinery, laying carpets) before a building is ready to be occupied.

A Contract where the price is determined in advance of the parties' obligations being performed and which contains no provision to compensate the Contractor for increases in labour and material costs.

A programming related term describing a period of time between completion of one activity and the start of a second activity which is consequential upon completion of the first. Also known as 'slack'.

The main working documents used on site for the actual construction of the project, including plans, sections and elevations. These may differ from drawings in the Tender or Contract Documents, for example due to design development.

An event which is beyond the reasonable control of the contracting parties and which prevents the Works from being carried out. This may include flooding, earthquakes, cyclones, war, industrial disputes, pandemics, secondary boycotts and temporary failure to obtain export approvals. In construction contracts force majeure events may sometimes provide a right to an Extension of Time or to terminate the contract.

The document executed by all parties to a Contract which records the agreement between them, such as the general terms and conditions of the Contract, technical specifications and other documents forming part of the Contract. It may also list the order of precedence of the contract documents.

A colloquial expression for non-contentious practice such as Contract drafting and review. (Contrast with Back End)

An unforeseen uncontrollable event (with no party at fault) which renders the parties under the Contract incapable of performing their obligations. Frustration occurs where the Contract is rendered pointless, is illegal or the foundation of the Contract no longer exist, in such circumstances, the frustrated party is entitled to terminate the Contract without being liable for damages.

The ratio of the total floor area of a building to the total area of a site. The maximum floor space ratio is usually regulated by town planning laws.

If  details of the claim are not given in accordance with the rules in the pleading or in a document accompanying the pleading, a party may request further and better particulars. Particulars are details of the material facts alleged including the claim or the defence which provides information to the other party in order to enable them to know what case they have to meet. If the other party refuses to furnish further and better particulars after being requested, an application may be made to the court.