Glossary of Terms for Public Works Contracts in Chile

• Additions: Documents by which the SERVIU may deliver additional information or amend the original proposal, provided that in the second case the elements are not altered.

• Available Economic Capacity: Working capital required by the contractor to fulfill a contract, whose value should be determined in accordance with the rates and rules in this regulation.

• Competition Offer: Quote, in which the entrepreneurial team should propose, based on predefined conditions for SERVIU, the best solutions in design, quality, materials and rationalization of the construction.

• Contract Manager: The contractor or his representative recognized by the Technical Inspection of the Work, hereinafter ITO, which is responsible for developing the contract, and that must be addressed in order to comply with the agreed agenda.

• Contractor: The natural or legal person under the respective contract incurs an obligation to perform a work material under the terms of this Decree.

• Corporate Team: Team of designers associated with a construction company to participate in a tender offer contest.

• Delegated Administration: The procurement system under which a natural or legal person, registered in the National Register of Contractors, in RENAC later, the Ministry of Housing and Urban Development, hereinafter MINVU, take charge of the construction of a work prior to being reimbursed, upon verification by the SERVIU, the cost invested in it, plus an amount sufficient to compensate the administrative expenses and cover the fees. According to the provisions of this regulation.

• Director of Project: The professional staff of the construction area which is designated by the Director of SERVIU to lead the Technical Inspection of the Work and shall ensure that the contract is fulfilled according to agreed technical and administrative conditions, preparing and attending the states to pay under the procedures set forth in the Manual of Technical Inspection of the Work.

• Economic Capacity: Minimum capital found that the contractor must prove to qualify for enrollment in a given category.

• Economic Offer: Quote price submitted by the offeror and is part of its proposal.

• Extraordinary Works: Works that are incorporated or added to the project, whose characteristics are different than those specified or contained in the record underlying the contract.

• General Administrative Rules: Also known as General Regulatory Basis or Bases Generales, is the set of provisions of this decree on the procedures and deadlines required of the development of a contract and the relationship between the SERVIU and the contractor, including stages before the signing and subsequent to its liquidation. These rules shall be supplemented, for the purposes of concluding the contract, the special administrative rules call for proposal, attachments, clarifications and additions, as appropriate.

• General Expenses: Those direct costs of work not attributable to specific items of construction.

• General Plan: Joint designs indicating location, shapes and sizes at an appropriate scale, allowing a general view of the work to be done, represented in a standard graphical language that facilitates the correct interpretation of the project.

• Increase or Decrease of Works: Changing the project that is produced by altering the amount of work under the respective contract.

• Institution: The SERVIU.

• Itemized Departure: Also known as itemized, is the list of items, and units of measurement, the SERVIU delivered between the history of the bidding, when submitting the project whose implementation is contracted.

• Map Detail: Design an appropriate scale for the construction of parts or parts of the project contained in the shots. The detailed plans are delivered after the acceptance of a proposal will only serve to clarify and in better shape works consulted on the bases.

• Notes: The answers given by the SERVIU to inquiries by bidders in connection with the proposal and to settle doubts presented.

• Official Budget Estimate: Cost resulting from detailed study, conducted by the SERVIU of takeoffs, unit prices and total estimated price for a work, representing the official opinion of its value.

• Offset Budget:

• a) In the case of lump sum proposed that the SERVIU deliver the project whose implementation is contracted, the budget will offset the change resulting from global prices of items in the official budget estimate on the percentage of difference exists between the approved proposal and the official budget. A consideration of the quantities of work specified by the contractor in its bid, and offset unit prices are determined by dividing the global prices of the items offset by the amount of work identified by the contractor in its detailed budget. The budget of the contractor must comply with the itemized to be delivered.
• b) In the case of the proposed lump sum that the bidder submit the project whose implementation is contracted, the balanced budget shall be that of changing the contractor’s detailed budget according to how the opinion that SERVIU must pay the total contract value.
• c) In the case of the proposed series of unit prices, the budget will be offset to the result of modifying the unit prices of items in the official budget estimate on the percentage of difference that exists between the approved proposal and the official budget. A consideration of the quantities of work indicated by SERVIU in the bidding documents.

The SERVIU may, in the three situations discussed above, introducing adjustment items to the balanced budget total value matches the total value of the contract budget.

Among the history of the bidding SERVIU must indicate the maximum percentage of contract value that is willing to pay for an item, group of items or type of work, the contractor to prepare detailed budget.

• Private Proposal: Recruitment System consisting of request made by the SERVIU prices, three or more contractors specialize in the type of work that it is run, preferably operating in the area where it will be creating a work must respect the equality of the participating contractors and bases governing the pricing request.

• Project: A set of administrative rules, technical basis, technical specifications, general drawings, detail and specification, budgets and/or quantity of works, officers, delivering the SERVIU to perform any work prepared by him or by others.

• Proposal: Offer technical and economic proponent must comply with the record provided for tendering.

• Proposed Unit Prices Series: Availability of fixed unit prices applied to temporary works takeoffs provided by the SERVIU and whose value is the sum of products between these prices and those takeoffs. The takeoffs are works in line with those actually performed and approved by the SERVIU, according to the special administrative bases.

• Public Proposal: Recruitment system consisting of competitive bidding must publicly request SERVIU, must respect to convene and to award the work, equality of bidders and the bases that govern the respective call. The call for tender are published in Internet portal “www.chilecompra.cl” and for once at least, acknowledged in a newspaper circulating in the region or, failing this, of acknowledged service in the country.

• Readjustment: The update of the amount of a payment in a contract, in order to express the variation in the value of the contract payment unit, from the filing date of the respective budget to date of cancellation.

• Resident Professional: A professional civil engineer, architect, construction engineer or civil engineer, to stay on the ground, which is responsible for the supervision of works under procurement.

• Special Administrative Rules: The set of measures, both technical and administrative, to complement the General Administrative Rules contained in this Act and determine the conditions and characteristics of each particular tender.

• Specifications: A set of technical requirements established for each project must meet the purpose of the contract works, including standards on characteristics of the materials, processing procedures, performance and requirements are subject to the materials tested with control tests should overcome the different stages of manufacture, including criteria for acceptance or rejection.

• Technical Basis: A set of requirements and technical requirements established for each proposal, which must meet the supply.

• Technical Committee: Group of professional staff appointed by the SERVIU to rate the various offerings of a proposal.

• Technical Inspection Manual Works: Document management and quality control in the execution of works, approved by Supreme Decree No. 137 (V. and U.), 1998, published in the Official Journal on 26 November 1999.

• Technical Inspection of the Work: The professional staff or construction area designated by the Director of SERVIU to supervise the faithful performance of contract work.

• Tender: Competition of bidders allowed to quote the construction of a work material according to administrative rules, technical basis, technical specifications and general plans and/or approved by the SERVIU detail for that object, according to the rules laid down in this regulation.

• The Appropriate Authority or Authority: The person who regulation or the Director of SERVIU designated to hear a matter.

• Work Program: Management chronological within the contract, the development of the various stages or after the execution of the work, whether they be carried out simultaneously or in succession.

• Administrative Order to the Contract Fee: Advance of the contract term, determined by the Director of SERVIU, due to reasons specified in these regulations and upon written notice to the contractor, which shall indicate the basis of the measure and the date that will be effective.

• Deal Direct: Exceptional recruitment system being agreed upon price and other conditions governing the execution of works in accordance with the standards contained in these rules, without necessarily immediate background a call for proposals.

• Lump Sum Proposed: Fixed-price offer, in which takeoffs works means immovable, unless the special administrative bases include one or more items at the unit price series.

• Pro Forma Value: The amount that marks the SERVIU to meet payments to third parties which by its nature and/or provenance, can not be established exactly when the proposal is requested or agreed the deal. These amounts should be considered by the contractor in its bid, without modification of any kind, for purposes of the bid or agreement with the SERVIU, notwithstanding which, it will pay the amounts actually arising during the development of the contract.