Definitions - O

The way project sponsors spend money, typically by putting their project under contract for construction. For the PRP program approval of PS&E by the FLH division engineer constitutes obligation of funds. Funding programs often require project sponsors to obligate funds in a timely manner or lose the funds.

O&M Costs - Operation and Maintenance Costs

O&M Manuals - Operation and Maintenance Manuals

Operation and Maintenance (O&M) Costs
Funds for day-to-day costs of running transportation systems. For transit, costs include fuel, salaries and replacement parts; for roads, operating costs involve maintaining pavement, filling potholes and paying workers' salaries.

Operation and Maintenance (O&M) Manuals
A compilation of manufacturers' information, literature, and operational and maintenance data; includes warranties/guarantees and extended warranties.

Operational Permits
Mostly administrative-discretionary in nature, are not needed for the construction process, but are needed to run or operate all or part of a facility. Operational Permits are similar to Technical Permits in that criteria for the final product needs to be considered in design, but differ in that there may or may not be technical requirements for that design. Also, because the National Park Service (NPS) often operates on solely federal land, NPS often does not need a permit, while another agency would need an operational permit. However, it should be noted that while NPS may not technically need an Operational Permit, if NPS needs the cooperation and coordination of another agency it may wish to obtain the permit to facilitate this inter-agency cooperation. Therefore, it is recommended that these permits be identified and analyzed during permitting scoping. Examples include:

  • waste disposal and transfer station operation permits
  • hazardous materials storage
  • elevator operating permit

A bid item or series of bid items that may be added to the contract during the award phase or after award (within a time frame specified in the contract). This may take the form of new work or alternative materials from those covered in the base bid.

Organic Act (NPS)
The 1916 law (and subsequent amendments) that created the National Park Service and assigned it responsibility to manage the national parks.

Outline Specifications
Based on definitions from the AIA Handbook and the CSI Manual of Practice, an outline specification is an itemized list, using brief, concise statements, of significant materials, systems, and equipment and their criteria and levels of quality. Also, any criteria having a special cost impact would be indicated.

Overhead & Profit
Overhead is the cost that a contractor has for staying in business. A general contractor has expenses not directly related to the construction of a project, but vital to the contractor's business operations. These include fixed overhead (Federal and State Unemployment costs, Social Security Tax, Builder's Risk Insurance and Public Liability Costs) and variable overhead (Worker's Compensation Insurance, Main Office Overhead, etc.).
Profit is the just reward for the effort and risk a contractor undertakes to produce a project. The amount varies depending on the size of the job and yearly in a contractor's annual billing. Typically, construction contractors take more profit on a smaller job and consideration should be given to the fact that the installing contractor(s) (sub-contractors) will also charge both overhead and profit on a project.

Overlaying Course (Overlay)
An asphalt surface course, either plant mixed or road mixed.


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