What term refers to the total value of construction work under contract?

• A. Job price
• B. Contract value
• C. Project cost
• D. Budget total

Answer: (B)

The term that refers to the total value of construction work under contract is the contract value. This is a critical figure in construction management, as it encompasses all work that the contractor is obliged to complete according to the provisions of the contract. The contract value includes not only the agreed-upon costs for materials and labor but also any additional items stipulated by the contract, such as contingencies and allowances for unexpected changes.

Understanding contract value is essential for stakeholders, including contractors, owners, and project managers, as it serves as the baseline for assessing project financials, tracking expenses, and managing overall budgets throughout the life cycle of the project. When a project goes over budget or is underfunded, meticulous awareness of the contract value allows project teams to make informed decisions and adjustments to maintain fiscal responsibility.

The other terms, while related to construction and project finance, do not precisely denote the total contractual obligation in the same way as contract value does. Job price typically refers to the price agreed upon for a specific task or project but may not encompass the entirety of contractual agreements or possible additional costs. Project cost can refer to total expenses incurred throughout the project, including overruns and additional expenses that may go beyond the agreed contract value. Budget total generally suggests the planned allocation