152 of the most common terms working contractors encounter on commercial and residential projects. Estimating, contracts, project management, payments, codes, and more.
Also: Schedule Acceleration, Crashing
Compressing a construction schedule by adding labor, shifts, or overtime to recover delay or finish earlier than planned.
Construction requirements under the Americans with Disabilities Act ensuring buildings are accessible to people with disabilities.
A written modification to bid documents issued before the bid date to clarify drawings or change scope.
Also: AI Endorsement
A party added to another's liability insurance policy by endorsement, gaining coverage for claims arising from the named insured's work.
Also: Authority Having Jurisdiction
The local agency or official with the legal authority to interpret and enforce building, fire, and life-safety codes.
Also: Pay Application, Application for Payment
Standardized AIA forms for commercial progress billing. G702 is the summary; G703 is the line-item schedule of values.
A fixed budget line for an item not yet selected, reconciled against actual cost once the selection is made.
Also: Bid Alternates, Alternate Pricing
Optional pricing items in a bid that the owner may choose to add, deduct, or substitute after evaluating the base bid.
A private dispute-resolution process where a neutral arbitrator decides a construction claim outside the court system.
Also: Record Drawings, As-Builts
Drawings documenting what was actually constructed, including field changes from the original design. Required at closeout on most commercial projects.
A deduction from a subcontractor's payment for costs the GC incurred fixing the sub's work, cleanup, or contract violations.
A contractor's firm price for the core scope of work, separate from alternates. The foundation of a competitive bid.
The original approved project schedule used as the benchmark for measuring delay, acceleration, and progress.
The point at which the owner takes possession and uses the project for its intended purpose, often before final completion.
A contractor's formal price proposal to perform a defined scope of work, usually in response to a bid invitation.
Also: Performance Bond, Payment Bond, Surety Bond
A surety guarantee that a contractor will complete the work (performance bond) or pay subs and suppliers (payment bond).
Insurance covering property under construction against fire, theft, vandalism, weather, and similar perils during the build.
The set of regulations governing construction quality, safety, and accessibility, adopted at the state and local level.
Official authorization from the AHJ to begin construction. Required for most new builds, additions, and significant renovations.
Also: COI
A document proving a contractor carries required insurance coverage, typically required before work begins.
Also: CO, C of O
The AHJ-issued document confirming a building is safe and code-compliant for its intended use, allowing legal occupancy.
Also: CO
A written modification to a construction contract documenting added, deleted, or altered scope plus price and schedule impact.
Also: Project Closeout, Final Closeout
The final phase of a construction project: punch list, document handover, final inspections, and final payment with retainage release.
Also: CGL, General Liability
Insurance covering third-party bodily injury, property damage, and completed-operations claims arising from the contractor's work.
Two or more delay events affecting the schedule at the same time, with at least one caused by each party. A common claims defense.
A lien waiver that releases lien rights only if the corresponding payment actually clears. Used while payment is in transit.
Also: Indirect Damages
Indirect losses (lost profits, lost rent, lost business) caused by a contract breach, distinct from direct damages.
Also: CMAR, CM at Risk, CM/GC
A project delivery method where the construction manager joins early as a consultant, then converts to general contractor under a guaranteed maximum price.
A reserve fund within a project budget for unforeseen costs and scope clarifications, typically 5 to 15% of contract value.
The binding written agreement between owner and contractor defining scope, price, schedule, and terms of the project.
A contract paying actual costs plus a fixed fee or percentage. Owner carries overrun risk; contractor must document costs.
A unit of estimating productivity: one day of work by a defined crew producing a measured output.
The sequence of dependent tasks determining a project's minimum duration. Critical-path delays push the entire schedule.
The standard numbering system organizing construction specifications into 50 divisions and thousands of sections.
Also: Notice and Cure
The time given to a defaulting party to fix a contract breach before the other party can terminate or pursue remedies.
A contractor's daily record of weather, labor, work performed, deliveries, visitors, and incidents on the project.
Federal law requiring contractors on federal construction projects to pay prevailing wages and benefits to laborers and mechanics.
Also: Demob
Removing labor, equipment, and temporary facilities from a construction site at project end or between phases.
Also: DBB, Traditional Delivery
The traditional project delivery method where the owner contracts the architect first, then bids the completed drawings to GCs.
Also: D-B, DB Delivery
A project delivery method where the owner contracts a single entity to deliver both design and construction under one contract.
A legal right to use another's land for a specific purpose, often utilities, access, or drainage.
Also: Means of Egress, Exit
The path occupants use to exit a building safely in an emergency. Regulated by IBC for distance, capacity, separation, and signage.
A contractor's informational projection of project cost. Non-binding and revisable; differs from a firm bid.
A construction professional who prepares quantity takeoffs, prices labor and materials, and produces bids and budgets from drawings.
A project delay caused by events outside the contractor's control, entitling the contractor to a time extension.
Also: Fixtures, Furniture, and Equipment, FF&E
Fixtures, Furniture, and Equipment — non-permanent items in a commercial buildout, often owner-supplied or contractor-coordinated.
The AHJ for fire and life-safety code compliance, separate from the building department, with authority over plan review and inspection.
Also: Fire Resistance Rating, F-Rating
The time (in hours) a building assembly resists fire spread, tested per ASTM E119. Required for walls, floors, doors, and penetrations.
Also: Lump Sum Contract
A contract obligating the contractor to complete defined scope for a stated price. Contractor carries overrun risk.
Also: Slack, Schedule Float
The amount of time a task can be delayed without delaying the overall project. Critical-path tasks have zero float.
Also: Pass-Through Clause
A clause incorporating the prime contract's obligations into the subcontract, binding subs to upstream owner requirements.
Also: Acts of God, Superior Force
A contract clause excusing performance when extraordinary events outside either party's control prevent normal performance.
Overstating early-phase costs in a schedule of values to maximize early progress payments. Owners scrutinize it carefully.
A horizontal bar chart showing project activities over time. The most common visual format for construction schedules.
Indirect project costs: site office, supervision, dumpsters, temp utilities, safety, and similar project-level overhead.
Also: GC
The prime contractor responsible for delivering the complete project, coordinating subs, materials, and inspections.
Also: Sustainable Construction
Design and construction practices targeting energy efficiency, water conservation, low embodied carbon, and healthy indoor environments.
Also: Brick and Mortar Costs, Construction Costs
The direct construction costs of a project: labor, materials, equipment, and subcontractor pricing. Distinct from soft costs.
Also: HASP, Site Safety Plan, SSP
A written document outlining hazards, controls, training, and emergency procedures for a specific construction site.
A contract clause in which one party agrees to absorb liability for specified claims that would otherwise fall on the other.
Also: International Building Code
The model building code for commercial and high-rise residential construction in the United States, adopted in some form by all 50 states.
Also: International Energy Conservation Code
The model energy code governing building envelope, HVAC, lighting, and water heating efficiency in commercial and residential buildings.
A contract obligation where one party agrees to compensate another for specified losses, often including defense costs.
A regulatory review by the AHJ verifying completed work complies with code, required at multiple project milestones.
Also: IPD
A delivery method where owner, designer, and contractor share a single multi-party contract with shared risk and reward.
Also: AR Aging, Aged Receivables
The categorization of unpaid invoices by how long they have been outstanding (current, 30, 60, 90+ days).
Also: Job Costing
Tracking actual costs (labor, material, sub, equipment) against budget per job. The core construction profitability metric.
A payment made jointly to two or more parties requiring all named payees to endorse before deposit. Common in lien-risk situations.
A tradesperson who has completed an apprenticeship and is qualified to perform skilled trade work without supervision.
Also: Burdened Labor Rate, Fully Burdened Rate
The cost of an employee beyond base wages: payroll taxes, workers' comp, benefits, paid time off. Typically 25 to 45% of base wage.
Also: Hourly Rate, Wage Rate
The hourly cost of a worker used in estimating. Base rate is the wage; burdened rate adds taxes, insurance, and benefits.
Also: Procurement Lead Time
The elapsed time from purchase order to material delivery. Critical for scheduling long-lead items like generators, switchgear, custom millwork.
Also: Leadership in Energy and Environmental Design
The most widely used green building certification system in the US, run by the US Green Building Council, with four certification levels.
A signed document by which a contractor or sub releases the right to file a mechanic's lien in exchange for payment.
Also: LDs, LD
Pre-agreed daily damages payable by the contractor for failing to complete the project by the contract substantial completion date.
Material or equipment with procurement time long enough to drive the schedule. Examples: switchgear, generators, custom millwork.
Also: Two-Week Look-Ahead, Three-Week Look-Ahead
A short-term detailed schedule (typically 2-3 weeks) showing exactly what will happen on the project in the immediate future.
Markup adds a percentage to cost to set price. Margin is profit as a percentage of price. Different numbers, common confusion.
A legal claim filed against a property by a contractor, sub, or supplier when payment is not received as agreed.
A non-binding dispute resolution process where a neutral mediator helps the parties reach a voluntary settlement.
Also: Mechanical, Electrical, Plumbing
Mechanical, Electrical, and Plumbing — the three building systems trades that make up the bulk of TI scope on commercial work.
A significant event or completion point in a project schedule, often used to trigger billing or schedule reviews.
Also: Mob
Moving equipment, labor, and temporary facilities onto a construction site at project start. Often a separate billed line item.
A full-scale physical sample of a building component built on or near the project site to verify design intent before full installation.
Also: National Electrical Code, NFPA 70
The model electrical code (also NFPA 70) governing electrical installation in buildings, adopted in some form by all 50 states.
Also: National Fire Protection Association
The organization publishing fire and life-safety codes including NFPA 13 (sprinklers), NFPA 70 (NEC), and NFPA 101 (Life Safety Code).
Also: NOC
A recorded document declaring the project complete, which starts the lien-claim deadline countdown in many states.
A contractor's formal written notice to the owner that an event has caused or will cause project delay. Required to preserve time-extension claims.
Also: NTP
A written authorization from the owner allowing the contractor to begin work; typically starts the contract clock.
Also: Occupant Load
The maximum number of people allowed in a space, calculated per IBC. Drives egress capacity, exit count, and posted occupancy signs.
Also: Occupational Safety and Health Administration
The federal agency enforcing workplace safety regulations on construction sites. Standards in 29 CFR 1926 cover construction-specific risks.
Also: O&P, OH&P
The markup added to direct costs to cover the contractor's indirect business expenses and target profit margin.
Also: ODP, Owner-Furnished Equipment
When the owner buys materials or equipment directly to capture sales-tax exemption or pricing leverage, with the contractor installing.
Also: OCIP, Wrap-Up Insurance, Owner Wrap
A single insurance program purchased by the owner covering all enrolled contractors and subcontractors on a project, replacing their individual policies.
Also: PIP, Conditional Payment Clause
A clause making the GC's payment to the sub conditional on the GC actually receiving payment from the owner. Stricter than pay-when-paid.
Pay-when-paid delays sub payment until GC is paid. Pay-if-paid conditions sub payment on GC payment. Different legal effects.
A surety bond guaranteeing the contractor will pay subcontractors and suppliers. Required on most public works (Miller Act).
A surety bond guaranteeing the contractor will complete the project per contract. Required on most public works.
AHJ-issued authorization to perform specific work on a building. Required before construction begins.
A chunk of project work grouped by trade, location, or sequence (demo, framing, MEP rough, finish, etc.).
The AHJ's examination of construction drawings for code compliance before issuing a permit.
A recorded map of a parcel of land showing boundaries, lots, easements, streets, and other features. Required for subdivision and development.
Also: Pre-Bid Conference, Bidder Walkthrough
A walkthrough and Q&A session held during bidding so prospective bidders can inspect the site and ask questions about the bid documents.
Also: Precon
The phase before construction starts where the contractor consults on design, estimating, scheduling, constructability, and procurement.
Also: Pre-Lien Notice, 20-Day Notice
A pre-lien notification required in most states for contractors and suppliers to preserve mechanics lien and bond claim rights.
Minimum wage and benefit rate required on certain government-funded construction projects under Davis-Bacon and state laws.
A contractor holding a direct contract with the project owner. Distinct from subcontractors who contract with the prime, not the owner.
Splitting contract value across multiple invoices tied to milestones or percent-complete intervals.
A contractor's document offering to perform specified work for a stated price, with scope details and terms.
A written list of remaining items (typically minor) to complete or correct before a project is considered final.
Also: QA
The systematic process by which a contractor ensures construction work will meet specifications. Distinct from Quality Control (QC).
Also: QC
The inspection and testing of construction work to verify it meets specifications. The downstream complement to Quality Assurance.
Also: QTO
Measuring quantities (length, area, volume, count) from drawings to feed the estimate. The first step in pricing a job.
The architect's clean final set incorporating all field changes from the contractor's as-built redlines. A closeout deliverable.
A notice posted by an inspector ordering work to stop or be corrected because it violates code, lacks permits, or is unsafe.
A schedule technique that adjusts activity timing to smooth out crew, equipment, or material demand peaks and valleys.
A percentage (typically 5 to 10%) withheld from each progress payment, released at substantial or final completion.
Also: Request for Information
A formal written question from a contractor to the design team requesting clarification on drawings or specs.
A tracked list of project risks with likelihood, impact, ownership, and mitigation plans.
Also: SOV
A line-item breakdown of contract value used for progress billing, typically aligned with phases or trades.
Also: SOW
The written description of all tasks, materials, and deliverables the contractor agrees to perform on the project.
Construction work executed by the GC's own crews, rather than subcontracted out to specialty trades.
The minimum distance from a property line within which buildings may not be constructed, set by zoning code.
Detailed fabrication and installation drawings produced by subcontractors or fabricators showing exactly how work will be built.
Also: Site Plan, Logistics Plan
A drawing showing the temporary use of the site during construction: trailer, fencing, gates, parking, deliveries, crane, and material laydown.
Also: Superintendent, Super, Field Super
The GC's on-site leader running daily field operations: crew coordination, safety, quality, schedule, and inspections.
Indirect project costs not tied to physical construction: design fees, permits, financing, legal, FF&E, marketing, and contingency.
Also: $/SF, Cost per Square Foot
A high-level estimating metric expressing total construction cost per square foot of building area. Useful for budgeting and benchmarking.
Also: SWO
A formal directive halting all work until a deficiency or safety issue is resolved. Issued by the AHJ, owner, or safety authority.
Also: Sub
A contractor performing specific scope under contract with the prime contractor (typically the GC), not directly with the owner.
A contractor-prepared document (shop drawing, product data, sample) submitted for design-team review before fabrication.
The point at which the project is sufficiently complete for the owner to occupy or use the space as intended.
The insurance company issuing bonds (performance, payment, bid) that guarantee a contractor's obligations to an owner.
Also: Boundary Survey, Land Survey
A measured map of a property showing boundaries, easements, structures, and other features. Required before site planning.
Also: Stormwater Pollution Prevention Plan
The federally required plan for managing stormwater runoff and erosion control on construction sites disturbing one acre or more.
Also: Quantity Takeoff, QTO
The process of extracting quantities (sqft, linear ft, fixture counts) from drawings to feed an estimate.
Also: TI, Build-Out
Construction work that customizes commercial leased space for a specific tenant, often funded by a landlord allowance.
Also: Default Termination
The right to end a contract because the other party has materially breached. Requires notice, cure period, and documented breach.
Also: T for C, No-Fault Termination
The owner's right to end a contract without cause, paying the contractor for work completed plus a defined termination fee.
Also: T&M
A contract paying hourly rates for labor plus material cost with markup. Common for repairs and undefined-scope work.
Also: Construction Type, IBC Type
IBC classification of buildings by structural materials and fire resistance (Type I through V). Drives allowable height, area, and occupancy.
Also: Excess Liability
Excess liability coverage layered above the contractor's primary CGL, auto, and employers' liability limits.
A lien waiver that releases lien rights immediately, regardless of whether payment is received. Use only after funds clear.
Price per unit of measure (per sqft, per linear ft, per fixture) used to convert takeoff quantities into a priced estimate.
Also: VE
The process of identifying alternate scope, materials, or methods to reduce cost while preserving function and quality.
Also: Zoning Variance, Code Variance
A formal exception granted by the AHJ allowing a project to deviate from a specific code or zoning requirement when strict compliance is impractical.
A clause preventing an insurance carrier from pursuing recovery from a third party after paying a claim. Common in construction insurance.
A workday lost to inclement weather conditions exceeding the contract's threshold. Often grants a non-compensable time extension.
Also: WBS
A hierarchical decomposition of a project into deliverables and work packages used for estimating and scheduling.
Also: Workers' Comp, WC
Insurance covering medical and lost-wage benefits for employees injured on the job. Required by state law in most states.
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