Reference

Construction Terms

A plain-language glossary of the abbreviations and terms you'll encounter on this site and on real job sites.

50 of 50 terms

Allowance: A placeholder dollar amount included in a bid for items not yet selected (e.g., tile, fixtures). Actual cost may be higher or lower.
American Institute of ArchitectsAIA: Publisher of the most widely used standard contract forms in U.S. construction (e.g., AIA A101, A201).
Architect / EngineerA/E: The design professionals responsible for the drawings and specifications. Often a single team for smaller projects.
Architectural, Structural, MEPArch / Struct / MEP: The three primary disciplines on most drawing sets.
As-Builts: Drawings updated at project close-out to reflect what was actually built, including any field changes.
Bid: A contractor's priced proposal to perform a defined scope of work, usually based on plans and specifications.
Bid Leveling: Comparing competing bids line by line to ensure each contractor priced the same scope, so an apples-to-apples comparison is possible.
Building Information ModelingBIM: A 3D digital model of the building used for coordination, clash detection, and quantity takeoffs.
By Others: Work shown for reference but performed by a different party — flag these early to avoid scope gaps.
Certificate of OccupancyCO / C of O: A document from the local building authority certifying that the structure complies with codes and is safe to occupy.
Change OrderCO: A written modification to the original contract that adjusts scope, price, or schedule. Should be signed before the work proceeds.
Construction DocumentsCDs: The final, permit-ready set of drawings and specifications that contractors bid and build from.
Contingency: Money set aside in the budget to cover unforeseen conditions or changes during construction. Typically 5–15% of hard costs.
Cost-Plus: Owner reimburses actual costs plus an agreed fee or percentage. Transparent but uncapped without a GMP.
Critical Path: The sequence of dependent tasks that determines the shortest possible project duration. Delays on the critical path delay the whole job.
Dry-In: The point at which the building envelope is weather-tight (roof, wrap, windows) and interior work can proceed.
Final Completion: All punch list items closed, final paperwork delivered, and the contract fully performed.
Finish Work: The visible, final-stage trades — trim carpentry, paint, tile, flooring, cabinetry, fixtures.
General ContractorGC: The company that contracts to build the project — hires subs, schedules trades, pulls permits, and stands behind the workmanship.
Guaranteed Maximum PriceGMP: A contract type where the contractor agrees that costs won't exceed a stated cap; savings below the cap may be shared.
Hard Costs: Direct construction costs — labor, materials, equipment — for the physical building.
Heating, Ventilation, Air ConditioningHVAC: The systems that condition indoor air for comfort and air quality.
Lien Waiver: A signed document from a contractor or supplier waiving their right to file a mechanic's lien for work already paid for.
Linear FootLF: Unit of length used for pricing trim, framing lumber, and similar run-based items.
Lump Sum: A fixed-price contract for a defined scope. Risk of overrun shifts to the contractor.
Mechanical, Electrical, PlumbingMEP: The building systems that make a structure habitable — HVAC, power and lighting, water and waste.
Not In ContractNIC: Items shown on drawings or discussed but explicitly excluded from the contractor's scope.
Notice to ProceedNTP: Written authorization from the owner directing the contractor to start work on a defined date.
Occupational Safety and Health AdministrationOSHA: Federal agency that sets and enforces workplace safety standards, including for construction sites.
On CenterOC: The spacing between repeating elements measured center-to-center (e.g., studs at 16" OC).
Owner-Furnished, Contractor-InstalledOFCI: Items the owner buys directly but the contractor installs (e.g., appliances). Important to flag in the contract.
Owner's RepresentativeOR / Owner's Rep: An independent construction professional hired by the project owner to oversee, advise, and advocate on their behalf throughout the project.
Pay ApplicationPay App: The contractor's monthly invoice showing percent-complete by line item and the amount due that period.
Personal Protective EquipmentPPE: Hard hats, safety glasses, gloves, hi-vis vests, and similar gear required on most active job sites.
Plans & Specs: Shorthand for the drawings (plans) and the written specifications that together define the work.
Punch List: A list of small, often cosmetic items that must be completed or corrected by the contractor before the project is considered final.
Request for InformationRFI: A written question from a contractor to the design team asking for clarification on drawings, specs, or field conditions.
Request for ProposalRFP: A formal document soliciting bids from contractors, defining the scope, schedule, and submission requirements for a project.
Retainage: A percentage (often 5–10%) of each pay application withheld by the owner until the project is substantially complete.
Rough-In: The stage when MEP systems are run inside walls and floors before insulation and drywall close them up.
Schedule of ValuesSOV: A breakdown of the contract sum into line items used to track progress and process pay applications.
Scope of WorkSOW: The written description of exactly what work is — and is not — included in a contract.
Shop Drawings: Detailed fabrication drawings prepared by a sub or supplier showing how an item will actually be built and installed.
Soft Costs: Project costs not directly tied to construction — design fees, permits, insurance, financing, owner's rep fees.
Square FootSF / sq ft: Standard unit of area used for pricing, takeoffs, and reporting (e.g., $/SF).
SubcontractorSub: A specialty trade contractor hired by the GC to perform a defined scope of work (framing, electrical, plumbing, etc.).
Submittal: Product data, samples, and shop drawings the contractor sends to the design team for review before installation.
Substantial Completion: The point at which the project is sufficiently complete for the owner to occupy or use it for its intended purpose.
Time and MaterialsT&M: A pricing method where the owner pays actual labor hours plus material cost plus a markup. Common for unknown-scope work.
Walk-Through: A scheduled site visit where the owner, contractor, and (often) owner's rep review work in place — typically used for progress reviews, pre-drywall inspections, and final punch list creation.