Terms & Definitions

Here are 50 phrases commonly used in construction contracting:

1. Construction Contract - A construction contract is a legal agreement between two or more parties, such as a contractor and a homeowner, for the purpose of completing a construction project. The contract typically includes details about what materials will be used, when the work needs to be finished, how much money the contractor will receive in payment, and any other related information.
2. Drawings and Specifications - In a construction project, drawings and specifications are documents that provide information about the building design, materials to be used, quality of construction, and other relevant details. Drawings usually include blueprints, sketches, and diagrams that show the layout of the building and how it should look when complete. Specifications outline the exact type of materials used in the construction process along with their dimensions and installation instructions.
3. Scope of Work/Services - The scope of work for a construction company that focuses on kitchen and bathroom remodels typically includes designing, planning and executing the renovation project. This may include measuring existing rooms, preparing blueprints or drawings, gathering materials and supplies, installing new features, making any necessary changes to plumbing and electrical systems, painting walls and ceilings, tiling floors and countertops, applying grout and sealants, as well as any other related tasks needed to complete the project.
4. Bid Documents - Bid documents in construction are documents submitted by contractors that outline the scope of work, cost of materials and labor, timeline, terms and conditions, and other important information related to a construction project. These documents provide detailed information about the project so potential contractors can have a clear understanding of what is expected of them should they choose to take on the job. Bid documents typically include the Request for Proposal (RFP), drawings, specifications, general conditions and instructions, schedule of events, bid bonds and forms, as well as any other requirements or requests from the client.
5. Change Order - Change orders in construction refer to revisions that are made to the scope of work or project timeline after a contract has been signed. These changes can be requested by either the owner/client or contractor, and must be approved by both parties before they can take effect. Change orders typically involve additional costs associated with the extra work, which must be agreed upon by both the owner and contractor before any extra work is done.
6. Notice to Proceed - A Notice to Proceed (NTP) is a document sent by the owner/client to a contractor, detailing the start date of a construction project. This document outlines the project timeline and any associated timelines for various stages of the project, as well as providing important information about payment schedules and other details related to the job. Once received, contractors have the green light to begin work on the project according to the terms laid out in the NTP.
7. Subcontractor Agreements - A Subcontractor Agreement is a document between a contractor and subcontractor that defines the terms of their relationship and outlines the scope of work to be completed. This agreement outlines the responsibilities and duties of each party, as well as expectations for payment schedules, quality of work, and other key details regarding the completion of the project. It also establishes communication protocols, conflict resolution methods, and dispute resolution procedures.
8. Financial Contingencies - Financial contingencies are a type of risk management tool used in construction projects. They help protect contractors from potential financial losses due to unforeseen circumstances. These contingencies may include clauses related to market conditions, budget constraints, labor disputes, and delays in materials delivery. Financial contingencies also address other issues that can affect the completion of a project, such as additional costs for permits and inspections or changes in regulations.
9. Warranty Periods - Warranty periods in construction refer to the length of time that a contractor guarantees the quality of their work. This period begins once the project is finished and typically ranges from one to five years, depending on the type of work being done. During this time, any issues that arise due to faulty construction will be addressed by the contractor at no extra cost to the customer. Warranty periods are an important part of any construction project, as they offer protection against costly repairs down the road.
10. Payment Terms -
11. Bonds & Insurance Requirements
12. Dispute Resolution
13. Liquidated Damages
14. Contract Extension
15. Termination Provisions
16. Stipulated Sum Contracts
17. Unit Price Contracts
18. Cost Plus Contracts
19. Performance Bonds
20. Maintenance Bonds
21. Excavating & Site Prep/Clearing
22. Earthwork/Grading
23. Concrete Foundations & Structures
24. Steel Fabrication/Installation
25. Roofing Systems
26. Masonry & Exterior Finishes
27. Interior Finishes
28. Carpentry
29. Electrical Systems
30. HVAC Systems
31. Mechanical Piping
32. Plumbing
33. Landscaping
34. Painting
35. Sitework
36. Safety Protocols
37. Code Compliance
38. Initial Occupancy
39. Final Walkthrough
40. As-built Documentation
41. Punch List
42. Claims Procedure
43. Closeout Procedures
44. Leed Compliance - LEED (Leadership in Energy and Environmental Design) compliance is a certification program developed by the U.S. Green Building Council (USGBC). It is based on a rating system that assesses a building’s environmental impact, including its energy efficiency, water conservation, indoor air quality, and materials used. LEED certified buildings are those that have achieved a certain level of performance according to this rating system.
45. Disaster Preparedness
46. Utility Connections
47. Permit Applications
48. Certification & Testing
49. Delivery Schedules
50. Post-Contract Services