Glossary of Terms

The IAEA publishes a number of glossaries that define specific terminology related to nuclear safety, safeguards and radioactive waste management. The terms listed below are supplementary to these glossaries and are used to help explain specific terminology related to this nuclear contracting toolkit. Where sourced from an external document, the original source is identified.

Contents: A B C D E F G L M N O P R S T

A


Alignment: The condition where appropriate project participants are working within acceptable tolerances to develop and meet a uniformly defined and understood set of project objectives (from CII web site).

B


Best practice: A process or method, which when applied to a project will lead to improved project performance in terms of cost, schedule or quality (from CII web site).

Bid compliance matrix: A tool (often in the form of a spreadsheet) designed to cross-reference owner project and contract requirements to assess the extent to which they are addressed by a proposed supplier in their project / contract proposal. The tool itself may form part of the project bid invitation specification / request for proposal.

Bid evaluation: An appraisal to determine whether or not an invited bid is capable of producing the desired product or service of a stated quality and what rank may be assigned to it relative to other invited bids offered at the same time (from IAEA TRS-396).

Bid invitation specification (BIS): A detailed description of equipment, components and services for a project, provided by the buyer to the prospective suppliers which are invited to bid. The information should be as complete as possible so that the suppliers obtain a clear understanding of what the buyer wishes to purchase, what its requirements are and what the conditions and circumstances are under which the suppliers’ tasks are expected to be performed. Furthermore, the specification is intended to present to the bidders the buyer’s request for information in a manner that will facilitate the buyer’s bid evaluation. Finally, the specification is intended to serve as the basis for the contract documents, which are drawn up with the successful bidder (adapted from IAEA TRS-396).
Build-own-operate (BOO) contract: A contract model in which a supplier has responsibility for designing the facility, procuring related materials, and construction. BOO is like BOT, except the original entity owns the project outright and retains the revenue and associated risk in perpetuity (adapted from IAEA NG-T-4.2).

Build-own-operate-transfer (BOOT) contract: See BOT build own transfer (term often used and equivalent to BOT).

Build-own-transfer (BOT) contract: A contract model in which a private or non-private entity is granted the right by the public sector to develop, finance, build, own, operate, and maintain a facility for a specified period during which the entity owns the project and retains the revenue and associated risk. At the end of the period, ownership of the facility is transferred to the public sector. (from IAEA NG-T-4.2).

C


Consultant: A person or organization providing specific advice or service on certain aspects of a project (from ISO 6707-1 (EN)).

Contingency: Specific provision for unforeseeable elements of cost within the defined project scope (from IAEA TRS-396).

Contract: An agreement between the buyer and the contractor(s), incorporating by reference the BIS and including modifications thereto as agreed from time to time by the parties to the agreement (from IAEA TRS-396).

Contract Owner: The senior individual within the owner organization with overall accountability for successful completion of a contract. The individual is normally accountable for ensuring that the owner organization achieves value for money throughout all the stages of the contract management process, including warranty provisions, which may extend beyond the execution of the contract.

Contractor: A bidder whose bid has been accepted by the buyer, with or without modifications, and which enters into a contract with the buyer (from IAEA TRS-396).

Counterfeit: Products that are intentionally manufactured, refurbished or altered to imitate original products or services without authorization in order to pass themselves off as genuine. (from IAEA NP-T-3.21).

D


Design-build-finance (DBF): A contract model similar to BOT where the private or non-private entity performs design and construction activities, and assumes the risk of financing till the end of the contract period. The owner assumes responsibility for maintenance and operation.

E


Engineer-procure-construct (EPC) contract: Contract in which a supplier has responsibility for designing the facility, procuring related materials, and construction.

F


Firm price: A price or quotation in the bid that is binding on the bidder if it is accepted during the validity period of the bid and which is subject to the conditions specified in the BIS. A firm price may be increased only as a result of increases in labour and materials costs, in accordance with formulas agreed upon before the award of the contract (from IAEA TRS-396).

Fixed price: A price or quotation in the bid that is binding on the bidder if it is accepted during the validity period of the bid. It is based on delivery consistent with the commercial operation date and implies that there will be no price increase because of escalation or for any other reason (from IAEA TRS-396).

Force majeure: A clause in a contract providing for a party to the contract to be excused from fulfilling the terms of the contract in the event of war, strikes and other such events beyond the party’s control (from IAEA TRS-396).

Fraudulent: Products that are intentionally misrepresented with intent to deceive. Fraudulent items include items provided with incorrect identification or falsified and/or inaccurate certification. They may also include items sold by entities that have acquired the legal right to manufacture a specified quantity of an item but produce a larger quantity than authorized and sell the excess as legitimate inventory. (from IAEA NP-T-3.21).

Front-end planning: The essential process of developing sufficient strategic information with which owners can address risk and make decisions to commit resources in order to maximize the potential for a successful project. FEP is often perceived as synonymous with front-end engineering design (FEED), front end loading (FEL), pre-project planning (PPP), feasibility analysis, programming and conceptual planning. (from CII web site).

Fuel costs (fuel cycle costs): Those charges that must be recovered in order to meet all expenses associated with owning fuel and consuming it in the power plant (from IAEA TRS-396).

G


Go / no-go criteria: See ‘Show stopper’.

L


Levelized–unit-energy-cost (LUEC): A standard technique for comparing different types of power plants with different relative cost components (represents the price of electricity produced, to be charged to recover all costs during operating lifetime of a plant. It includes capital costs, operation and maintenance costs, and fuel costs.

M


Management system: A set of interrelated or interacting elements (system) for establishing policies and objectives and enabling the objectives to be achieved in an efficient and effective manner (from IAEA Safety glossary without notes).

Master service agreement (MSA): A contract reached between parties, in which they agree to most of the terms that will govern future transactions or future agreements. An MSA allows for faster negotiation of future transactions or agreements, so that the same contract terms need not be repetitively negotiated, and to negotiate only the deal-specific items.

Member State (MS): A Member State of the International Atomic Energy Agency (see IAEA web page on Member States).

Multi-contract approach: The customer, or more usually an architect-engineer, invites bids for a NSSS and turbine generator and fuel, selects the preferred bids, places contracts and then designs the balance of-plant around this equipment. The A/E will provide experienced and readily available staff, which acts on the orders of the owner. The owner or its A/E will produce a very large part of the safety report and supervise construction, usually erecting the plant themselves (adapted from IAEA TRS-204).

N


Normal turnkey contract: This term is used to describe a contract placed for a nuclear facility where the owner supplies all peripheral items of the plant (10—20% of the plant costs). It is usual for owners with nuclear experience or greater competence in conventional power stations to wish to influence and approve the design of the plant to a greater extent than for the super turnkey contracts, as well as taking full responsibility for the owner’s scope themselves. The owner’s scope can, however, differ substantially depending on the engineering capability within the utility. This approach means a closer involvement of the owner in the detailed engineering of the station and possibly increased local participation coming under the owner’s scope (adapted from IAEA TRS-204).

Nuclear steam supply system (NSSS): That part of an NPP which incorporates the nuclear heat source, the heat transfer equipment, the heat transport system and other systems directly connected to the NSSS. It may also include some I&C equipment and reactor protection systems (from IAEA TRS-396).

O


Operation and maintenance (O&M) costs: All non-fuel costs, such as the direct and indirect costs of labour and supervisory personnel, consumable supplies and equipment, outside support services, and (if applicable) moderator and coolant make-up and nuclear liability insurance. O&M costs are made up of two components: fixed costs (those costs which are invariant with the electrical output of the plant) and variable costs (those non-fuel costs which are incurred as a consequence of plant operation, e.g. waste disposal costs) ) (from IAEA TRS-396).

Organization: Company, firm, enterprise, association or other legal entity, whether incorporated or not, or a public body (from ISO 10845-1:2010 (E)).

Overnight costs: Construction costs at a particular point in time, i.e. assuming instantaneous construction (from IAEA TRS-396).

Owner: The party who awards a contract for a project and undertakes to pay the contractor (can also called contract owner, purchaser, facility client or project buyer). Owners require various objectives to be satisified by a project and define the project’s overall scope. They can include both public and private entities.

Owner costs: All of the costs borne by the owner which are associated with construction of a nuclear facility but which are not a part of the base construction, supplementary or financing costs, e.g. land, project oversight, operator training, system turnover activities, licence fees, taxes, etc. Owner’s costs are a part of the total capital investment costs (TCIC) (adapted from IAEA TRS-396).

Owner’s requirements: All requirements defined by a proposed facility owner that are needed from the vendor for the complete scope of the project. They include typical base or standard deliverables from the vendor, plus those that may be in addition to or supplemental to the vendor standard proposal.

P


Process: Succession of logically related actions occurring or performed in a definite manner which culminates in the completion of a major deliverable or the attainment of a milestone (from ISO 10845-1:2010 (E)).

Procurement: Process which creates, manages and fulfills contracts relating to the provision of goods, services and engineering and construction works or disposals, or any combination thereof (from ISO 10845-1:2010 (E)).

Procurement document: Documentation used to initiate or conclude (or both) a contract (from ISO 10845-1:2010 (E)).

Procurement strategy: Selected packaging, contracting, pricing and targeting strategy, and procurement procedure for a particular procurement (from ISO 10845-1:2010 (E)).

Project charter: A document that formally authorizes the work of a project to begin (or continue) and gives the project manager authority to do his or her job. It may also be referred to as project initiation or project authorization form or document. Project charters include a description of the business need the project will meet, a description of the final product resulting from the project, and the key objectives and goals of the project. Key assumptions, constraints, and/or target performance metrics for the project are often also included. In particular, any assumption or constraint affecting the project’s schedule, budget, or quality are listed.

Project manager: The person assigned by the performing organization to achieve the project objectives (from PM Glossary web site).

Project sponsor: The senior leader within an organization accountable for a project’s success. The sponsor usually has financial responsibility for the project, and is placed high enough in the organization to be able to resolve inter-department disputes and to facilitate stakeholder alignment. The sponsor champions the project within the organization to secure buy-in and support for project activities.

R


Risk: The effect of uncertainty on objectives (from ISO 73:2009).

Risk management: Coordinated activities to direct and control an organization with regard to risk (from ISO 73:2009).

Risk management plan: Scheme within the risk management framework specifying the approach, the management components and resources to be applied to the management of risk (from ISO 73:2009).

Risk register: A record of information about identified risks (from ISO 73:2009).

S


Scope of work: Document that specifies and describes the goods, services, or engineering and construction works which are to be provided, and any other requirements and constraints relating to the manner in which the contract work is to be performed (from ISO 10845-1:2010 (E)).

Secondary procurement policy: Procurement policy that promotes objectives additional to those associated with the immediate objective of the procurement itself (from ISO 10845-1:2010 (E)).

Show stopper: A contract item that would cause one of the contracting parties to walk away from the contract negotiations if they are not able to get them included in the agreed contract. Also called ‘go/no-go’ criteria.

Split package contract: Contracts where a number of contractors take the overall responsibility for the design, supply, construction and setting to work of different functionally complete parts of a nuclear facility. Split package approaches can be either two-package approaches (nuclear and conventional island), three packages (nuclear and conventional island and civil work), or five package approach (reduced scope nuclear and conventional island and separate contracts for remaining for civil, mechanical and electrical work) (adapted from IAEA TRS-204).

Subject matter expert: A person who is an authority or particularly knowledgeable in a particular area or topic.

Super turnkey contract: This term is used when a single contract is placed covering the whole nuclear power station. It also usually implies that the prime responsibility for the success of the project and, therefore, also for the design of the plant, is placed upon the contractor. This approach is particularly suitable for utilities with limitations in manpower resources and/or experience in the nuclear field. The degree of utility involvement and approval rights is negotiable and should be written into technical bid specifications and the contract. Experience in developed countries shows that a high degree of utility involvement is negotiated, as utility expertise and manpower resources increase (adapted from IAEA TRS-204).

Supplier: Person or organization supplying materials or products (from ISO 6707-1 (EN))

T


Total capital investment costs (TCIC): The total costs incurred throughout a project schedule, including escalation and interest charges up to commercial operation of the power generation facility (from IAEA TRS-396).

Total plant costs: Costs which include the TCIC, the O&M costs, the fuel cycle costs and the technology transfer costs during the economic life of the plant (from IAEA TRS-396).