Z94.4 - Cost Engineering & Project Management

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REAL DOLLARS. (See CONSTANT DOLLARS.)

REAL ESTATE. This reefers to the physical land and appurtenances, including structures affixed thereto. In some states, by statute, this term is synonymous with real property.

REAL PROPERTY. Refers to the interests, benefits, and rights inherent in the ownership of physical real estate. It  is the bundle of rights with which the ownership of real estate is endowed.

REASONABLENESS STANDARD. Costs that do not exceed the amount incurred by a prudent contractor or those costs which are generally accepted. Some factors on which reasonableness is based are recognition of the costs as ordinary and necessary and restraints imposed by law, contract terms, or sound business practices.

REBASING. Conversion of a price index from one time base to another.

REMAINING AVAILABLE RESOURCES. The difference between the resource availability pool and the level schedule resource requirements. Its computed from the resource allocation process.

REMAINING DURATION. The estimated work units needed to complete an activity as of the data date.

REMAINING FLOAT (RF). The difference between the early finish and the late finish.

RENTAL (LEASED) EQUIPMENT COST. The amount which the owner of the equipment (lessor) charges to a lessee for use of the equipment. The best evidence of such costs are rental invoices that indicate the amount paid for leasing such equipment.

REPLACEMENT. A facility proposed to take the place of an existing facility, without increasing its capacity, caused either by obsolescence or physical deterioration.

REPLACEMENT COST.  (l) the cost of replacing the productive capacity of existing property by another property of any type, to achieve the most economical service, at prices as of the date specified; (2) facility  component replacement and related costs, included in the capital budget, that are expected to be incurred during the study period.

REPLACEMENT VALUE. That value of an item determined by re-pricing the item on the basis of replacing it, in new condition, with another item that gives the same ability to serve, or the game productive capacity, but which applies current economic design, adjusted for the existing property’s physical deterioration.

REPRODUCTION COST. The cost of reproducing substantially the identical item or facility at a price level as of the date specified.

REPROGRAMMING. A comprehensive re-planning of the efforts remaining in the contract resulting in a revised total allocated budget which exceeds the contract budget base.

REPUDIATION. (See ANTICIPATORY BREACH.)

REQUIRED COMPLETION DATE. The required date of completion assigned to a specific activity or project.

REQUIRED RETURN. The minimum return or profit necessary to justify an investment. It is often termed interest, expected return or profit, or charge for the use of capital.

REQUIREMENT. An established requisite characteristic of a product, process, or service. A characteristic is a physical or chemical property, a dimension, a temperature, a pressure, or any other specification used to define the nature of a product, process, or service.

RESALE VALUE. The monetary sum expected from the disposal of an asset at the end of its economic life, its useful life, or at the end of the study period.

RESCHEDULE. (1) in construction, the process of changing the duration and/or dates of an existing schedule in response to externally imposed conditions or progress. (2) in manufacturing, the process of changing order or operation due dates, usually as a result of their being out of phase with when they are needed.

RESEARCH EXPENSE. Those continuing expenses required to provide and maintain the facilities to

develop new products and improve present products.

RESERVE STOCK. (See SAFETY STOCK.)

RESIDENT ENGINEER. The authorized representative of the engineer who is assigned to the site or any part thereof whose duties are ordinarily set forth in the contract document and/or the engineers agreement with the owner.

RESOURCE. Any consumable, except time, required to accomplish an activity.

RESOURCE ALLOCATION PROCESS (RAP). The scheduling of activities in a network with the knowledge of certain resource constraints and requirements. This process adjusts activity level start and finish dates to conform to resource availability and use.

RESOURCE AVAILABILITY DATE. The calendar date when a resource level becomes available to be allocated to project activity.

RESOURCE AVAILABILITY POOL. The amount of resource availability for any given allocation period.

RESOURCE CODE. The code for a particular labor skill, material, equipment type; the code used to identify a given resource.

RESOURCE DESCRIPTION. The actual name or identification associated with a resource code.

RESOURCE HISTOGRAM. A graphic display of the amount of resource required as a function of time on a graph. Individual, summary, incremental, and cumulative resource curve levels can be shown. Syn.: Resource Plot.

RESOURCE LIMITED SCHEDULING. A schedule of activities so that a pre-imposed resource availability level (constant or variable) is not exceeded in any given project time unit.

RESOURCE PLOT. (See RESOURCE HISTOGRAM.)

RESPONSIBLE ORGANIZATION. The organization responsible for management of a work package.

RESPONSIBILITY. Originates when one accepts the assignment to perform assigned duties and activities. The acceptance creates a liability for which the assignee ig held answerable for and to the assignor. It constitutes an obligation or accountability for performance.

RESTRAINT. In externally imposed factor affecting the scheduling of an activity. The external factor may be a resource, such as labor, cost or equipment, or, it can be a physical event that must be completed prior to the activity being restrained. Syn.: Constraint.

RETENTION. Usually refers to a percent of contract value (usually 5 or 10 percent) retained by the purchaser until work is finished and testing of equipment is satisfactorily completed.

RETIREMENT OF DEBT. The termination of a debt obligation by appropriate settlement with the lender. It is understood to be in full amount unless partial settlement is specified.

REVISION. In the context of scheduling, a change in the network logic, activity duration, resources availability or resources demand which requires network recalculation and drawing correction(s).

RISK. The degree of dispersion or variability around the expected or “best” value which is estimated to exist for the economic variable in question, eg, a quantitative measure of the upper and lower limits which are considered reasonable for the factor being estimated.

ROYALTIES. Payments a company receives to allow others to use a design or concept the company has researched and developed to commercialization. Generally, one of two types: (1) paid-up royalties where a lump sum payment is made, and (2) running royalties where continuous payments are made, usually based on actual production or revenues .

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