General Contractors, Builders, Housebuilders Industry Terminology

ADA (Americans with Disabilities Act)

US civil rights law requiring accessible design, construction, and alterations for people with disabilities. Governs clearances, slopes, signage, and fixtures in public accommodations and certain housing.

Verify door hardware clearances meet ADA; Provide ADA-compliant ramp slope 1:12; Inspect restroom grab bar locations per ADA.

Addendum

A written or graphic document issued during bidding that modifies, clarifies, or adds to the contract documents before award. Addenda become part of the contract if the project is awarded.

Addendum 3 revises the roof details; Acknowledgement of addenda required on bid form; Plumbing fixture schedule updated by addendum.

Allowance

A budget placeholder in the contract for a defined category of work or material not fully specified at award; reconciled to actual cost via change orders or credits.

Include a $25,000 landscaping allowance; Appliance allowance to be selected by owner; Credit back unused tile allowance at closeout.

Alternate (Bid Alternate)

A priced option in the bid that offers an alternative scope, material, or method, accepted or rejected by the owner at award.

Alternate No. 2 for metal roof upgrade; Provide pricing alternate for prefinished doors; Owner accepted the deduct alternate for LVP instead of hardwood.

As-Built Drawings (As-Builts)

Record drawings that document the final installed conditions, dimensions, and locations after construction, incorporating all changes from the contract documents.

Update as-builts after rerouting the duct; Submit redlined as-builts with closeout; GPS coordinates of utilities added to civil as-builts.

Backcharge

A cost transferred to a subcontractor or vendor for corrective work, cleanup, damages, or services the GC performed due to that party's failure to perform.

Issue a backcharge for daily site cleanup; Backcharge the painter for protecting finished floors; Equipment standby time backcharged to the steel sub.

Bid Bond

A surety instrument submitted with a bid guaranteeing the bidder will enter into the contract and provide required bonds; typically 5–10% of bid value.

Include a 10% bid bond with proposal; Bid deemed nonresponsive without a bid bond; Surety confirmed bid bond coverage.

BIM (Building Information Modeling)

A digital, data-rich 3D model and process enabling coordination, clash detection, quantity extraction, and lifecycle management across disciplines.

Run BIM clash detection on MEP systems; Extract quantities from the BIM for procurement; Use the model for 4D schedule simulations.

Building Envelope

The physical separator between interior and exterior environments, including walls, windows, doors, roofs, air and vapor barriers, and waterproofing.

Perform envelope air leakage testing; Coordinate window flashing with WRB; Investigate envelope thermal bridging at balconies.

Change Order (CO)

A formal modification to the contract that adjusts scope, price, and/or schedule; requires documentation and approval by authorized parties.

CO-014 adds site lighting; Submit pricing for owner-driven design change; Update schedule for CO impacts.

Closeout

The process to finalize construction and hand over the project, including punch list completion, O&M manuals, warranties, as-builts, training, and final pay apps.

Prepare closeout log and status; Schedule owner training sessions; Collect warranties prior to substantial completion.

Commissioning (Cx)

A systematic, documented process to verify building systems are planned, installed, tested, and capable of being operated and maintained per the owner's project requirements.

Develop Cx plan and pre-functional checklists; Execute functional performance tests for HVAC; Track deficiencies in the Cx issues log.

Contingency

A budget reserve for unknowns or risk: owner contingency for scope decisions; contractor contingency for means, methods, and estimating uncertainty.

Draw from contingency for unforeseen rock; Track contingency usage in cost reports; Return unused contingency at project end.

Cost Plus Contract

A contract where the owner reimburses actual allowable costs plus an agreed fee (fixed or percentage), sometimes with a GMP cap.

Use cost plus with open-book reporting; Fee is 4% on cost plus; GMP established after design development.

Critical Path Method (CPM)

A scheduling technique that identifies the sequence of activities with zero total float determining project duration; focuses management on critical tasks.

Update CPM schedule monthly; Concrete cure drives the critical path; Add crews to recover lost float.

Design-Bid-Build (DBB)

Traditional delivery where design is completed before soliciting competitive bids and awarding a separate construction contract.

Issue 100% CDs then bid DBB; GC has no design responsibility in DBB; Longer overall duration compared to DB alternatives.

Design-Build (DB)

A project delivery method in which a single entity holds design and construction responsibilities, enabling overlap of phases and single-point accountability.

Shortlist design-build teams; Use bridging documents for DB; Execute progressive DB with early GMP.

Earned Value Management (EVM)

An integrated cost-schedule performance measurement method comparing planned value, earned value, and actual cost to derive CPI and SPI.

EVM shows CPI 0.95 and SPI 1.03; Plot EV curves in monthly report; Forecast EAC using CPI trend.

Escalation

Anticipated cost increases over time due to inflation, demand, or supply constraints; included via allowances, indices, or escalation clauses.

Carry 6% annual escalation for steel; Use PPI index for material escalation; Include escalation clause for long-lead equipment.

FF&E (Furniture, Fixtures and Equipment)

Movable items not typically part of the construction contract's permanent work; may be procured by owner or GC.

Coordinate FF&E delivery with turnover; Verify power for owner-furnished appliances; Install builder-provided mirrors and blinds per FF&E list.

General Conditions

Contract terms and project overhead costs covering site supervision, temp utilities, safety, cleanup, insurance, and admin; often Division 01 specifications.

Charge superintendent time to general conditions; Include dumpster and porta-johns in GCs; Follow general conditions article on submittals.

Guaranteed Maximum Price (GMP)

A contract cap where the contractor is paid actual costs plus fee up to an agreed maximum; savings often shared per agreement.

Execute GMP amendment at 60% CDs; Establish shared savings at 70/30; Track buyout savings against the GMP.

IBC (International Building Code)

A model building code governing life safety, structural, fire, and egress provisions, adopted by many jurisdictions with amendments.

Confirm occupancy classification per IBC; Verify stair geometry meets IBC; Apply Type IIIA construction requirements.

IFC (Issued for Construction)

Document status indicating drawings/specs are complete and authorized for construction; supersedes prior review sets.

Build only from IFC drawings; Replace all previous Issued for Review sheets; Submittals must reference IFC details.

Job Hazard Analysis (JHA)

A task-level safety assessment that breaks down steps, identifies hazards, and sets controls before work begins; also called JSA.

Complete JHA before hot work; Review JHA at the morning toolbox talk; Update JHA for new equipment.

Lean Construction

Application of lean principles to reduce waste, improve flow, and maximize value using practices like Last Planner, pull planning, and 5S.

Hold weekly pull planning sessions; Implement 5S in the gang box; Track percent plan complete (PPC).

Lien Waiver

A document by which a contractor or supplier waives rights to file a mechanic's lien upon receipt of payment; conditional or unconditional, progress or final.

Submit conditional waiver with pay app; Exchange unconditional waivers at funding; Verify lower-tier waivers from subs.

Long-Lead Items

Materials or equipment with extended design, approval, fabrication, or shipping durations that can drive schedule if not procured early.

Release switchgear as a long-lead; Track window lead times in procurement log; Preapprove finishes to avoid long-lead delays.

Milestone

A key event or date in the schedule marking major achievements or constraints, often contractually significant.

Foundation complete milestone 3/15; Tie substantial completion to milestone M-20; Owner move-in is a hard milestone.

Notice to Proceed (NTP)

Formal written authorization to start work, establishing the contract time start date.

NTP effective May 1 starts the 300-day duration; Mobilize within 10 days of NTP; Preconstruction services occur before NTP.

O&M Manuals (Operations and Maintenance Manuals)

Documentation for installed systems and equipment including product data, warranties, maintenance procedures, and contact info.

Submit digital O&M manuals via closeout portal; Include preventative maintenance schedules; Coordinate owner training per O&M content.

Owner's Representative (Owner's Rep)

A professional engaged by the owner to manage scope, budget, schedule, procurement, and quality, and to coordinate design and construction teams.

Route RFIs through the owner's rep; Owner's rep to approve pay apps; Weekly OAC meetings led by owner's rep.

Pay Application (Pay App)

The contractor's formal request for progress payment, typically based on the schedule of values and percent complete, including waivers.

Submit Pay App No. 6 by the 25th; Architect certifies pay apps per AIA G702; Include updated lien waivers with pay app.

Performance Bond

A surety bond guaranteeing the contractor will perform the contract; if default occurs, the surety remedies or pays per bond terms.

Provide 100% performance bond at award; Surety investigating performance bond claim; Bond premium included in general conditions.

Permit

Official approval from authorities having jurisdiction to perform construction activities; may include building, grading, electrical, plumbing, and occupancy permits.

Secure building permit before mobilization; Post permits on site; Request temporary certificate of occupancy.

Punch List

A documented list of remaining defects, incomplete items, and touch-ups to be corrected before or shortly after substantial completion.

Walk units to build punch lists; Track punch completion in Procore; Hold back retainage for open punch items.

QA/QC (Quality Assurance/Quality Control)

Planned processes and inspections to ensure work meets specified standards; QA is the system, QC is the verification.

Implement a QA plan and ITPs; Perform QC checks on rebar placement; Log nonconforming work and corrective actions.

Request for Information (RFI)

A formal question used to clarify design intent, resolve conflicts, or request missing details; responses may affect scope or schedule.

Issue RFI to resolve duct clash with beam; RFI response directs alternate waterproofing; Track RFI aging in weekly report.

Request for Proposal (RFP)

A solicitation inviting detailed proposals outlining approach, price, schedule, team, and qualifications, often used in negotiated work.

Respond to GC RFP for townhomes; RFP addendum clarified scope; Evaluate RFPs using weighted criteria.

Retainage

A contractually withheld portion of progress payments to ensure performance and completion of work, released upon milestones or closeout.

Retainage set at 10% until substantial completion; Release half retainage at punchlist start; Subcontract retainage mirrors prime.

Schedule of Values (SOV)

An itemized breakdown of the contract sum by work components used to evaluate progress and pay applications.

Submit SOV for architect approval; Tie SOV line items to cost codes; Use SOV to track percent complete.

Shop Drawings

Detailed drawings and fabrication diagrams prepared by trades or vendors showing dimensions, connections, and product data for approval.

Review shop drawings for steel embeds; Coordinate cabinet shop drawings with appliances; Mark shop drawings approved as noted.

Site Logistics Plan

A plan showing site layout and operations including access, fencing, laydown, crane locations, deliveries, parking, and safety zones.

Update logistics plan for tower crane swing; Coordinate delivery routes to avoid school hours; Relocate dumpsters per logistics plan.

Submittal

Documentation such as product data, samples, and mockups submitted for design team review to verify conformance with the contract documents.

Submit roofing submittal for approval; Track submittals in the log by spec section; Provide brick sample mockup for selection.

Substantial Completion

The stage when the work is sufficiently complete for the owner to occupy or use it for its intended purpose, triggering warranties and retainage reductions.

Achieve substantial completion by 9/30; Issue certificate of substantial completion; Start warranty period at substantial completion.

Takeoff (Quantity Takeoff, QTO)

The process of measuring and quantifying materials and labor from drawings to develop estimates, buyout, and production plans.

Perform digital takeoff of siding; Reconcile QTO to subcontractor bids; Use assemblies for rapid QTO in precon.

Value Engineering (VE)

A structured approach to improving value by optimizing function relative to cost, often via material substitutions or design changes.

Propose VE to change to TPO roof; Conduct VE workshop at 50% CDs; Track accepted VE savings separately.

Variance

A deviation from plan or baseline; in scheduling, difference between planned and actual completion; in cost, difference between budget and actuals.

Report a 10-day schedule variance; Cost variance on concrete is favorable; City granted a zoning variance for setback.

Work Breakdown Structure (WBS)

A hierarchical decomposition of project scope into manageable packages used for planning, estimating, scheduling, and cost control.

Build WBS to level 3 for trades; Align cost codes to WBS; Use WBS IDs in the SOV and schedule.

Zoning

Local land-use regulations governing allowable uses, density, height, setbacks, parking, and coverage; affects feasibility and permitting.

Verify zoning allows multifamily; Seek variance for height limit; Conform site plan to zoning setbacks.