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📚 Construction Glossary

Comprehensive glossary of construction terms, definitions, and industry jargon.

A​

Addendum - A written modification to contract documents issued before bids are received.

As-Built - Drawings showing the project as actually constructed, differing from original plans.

ASI (Architect's Supplemental Instruction) - Written instruction from architect modifying work.

B​

Backcharge - Charge to subcontractor for corrective work or damages.

Bid - Offer to perform work at specified price.

Bond - Financial guarantee ensuring performance or payment.

Break-Even - Revenue level where profit equals zero.

C​

Change Order - Written modification to contract changing scope, price, or time.

COI (Certificate of Insurance) - Document proving insurance coverage.

Contingency - Budget reserve for unforeseen costs.

Cost Code - Numbering system for tracking costs by category.

D​

Daily Report - Daily documentation of work performed, weather, manpower.

Draw - Payment request based on work completed.

Drywall - Interior wall finish material (gypsum board).

E​

EMR (Experience Modification Rate) - Workers' comp insurance modifier based on safety record.

Estimate - Projected cost of work.

Excavation - Removal of earth for construction.

F​

Foreman - Field supervisor overseeing crew.

Foundation - Structural base supporting building.

Framing - Structural skeleton of building.

G​

GC (General Contractor) - Prime contractor managing entire project.

GFCI (Ground Fault Circuit Interrupter) - Electrical safety device.

Grout - Mortar used to fill joints between tiles or blocks.

H​

Hard Bid - Fixed-price competitive bid.

HVAC - Heating, Ventilation, and Air Conditioning.

I​

Invoice - Bill for work performed or materials supplied.

J​

Job Costing - Tracking costs by project or job.

Joint - Connection between two materials.

L​

Lien - Legal claim against property for unpaid work.

Lien Waiver - Document waiving lien rights, usually in exchange for payment.

Load-Bearing - Structural element supporting weight.

M​

Markup - Percentage added to cost to determine selling price.

Mechanic's Lien - Lien for construction work or materials.

Mortar - Binding material for masonry.

N​

NTP (Notice to Proceed) - Authorization to begin work.

O​

OSHA - Occupational Safety and Health Administration.

Overhead - Indirect costs not attributable to specific project.

P​

Pay Application - Request for payment based on work completed.

Preliminary Notice - Notice preserving lien rights.

Prevailing Wage - Minimum wage required on public works projects.

Punch List - List of items to be completed or corrected.

R​

RFI (Request for Information) - Written question about plans or specifications.

Retainage - Percentage of payment withheld until project completion.

Rough-In - Installation of systems before finishes (electrical, plumbing).

S​

Schedule of Values - Breakdown of contract amount by line item.

Submittal - Documentation submitted for approval before installation.

Substantial Completion - Project is functionally complete.

T​

T&M (Time & Material) - Billing method based on actual time and materials.

Takeoff - Quantifying materials from plans.

W​

Warranty - Guarantee of workmanship or materials.

WIP (Work in Progress) - Unbilled work completed.

Know Your Terms

Understanding construction terminology helps you communicate effectively and avoid misunderstandings.