10 Common Construction Terms to Understand and Avoid Confusion

Silhouette of workers on a roof

So, you’d like to renovate your home. How exciting! However, being thrown into an entirely new environment comes with its challenges: mainly, a ton of new technical terms. If your contractor isn’t explaining things correctly, it can sound like they’re speaking German and expecting you to follow along. No one likes to be confused about something that important. To combat this confusion, we’ve created a list of standard terms that you should know before starting your construction project. 

DESIGN-BUILD

If you’ve ever seen the front page of our website, you know that we call ourselves a design-build team. But what is that? Design-build means that we start from the beginning—where we start with designing every aspect of your renovation, creating plans, picking styles—all the way to the finishing touches. You don’t need to find a separate architect and construction crew; we manage all of it. 

SCOPE OF WORK 

In many of the contracts we make for a project, we have to specify precisely what work is being done. This section of a document is called the “scope of work”, and it keeps everyone on the same page, and prevents confusion on the field. 

SUBCONTRACTOR

When you hire a design-build company, we generally don’t employ someone for every single construction specialty. We use subcontractors (people specialized in one part of the construction process) and hire them for specific jobs. These may include building custom cabinets, fitting countertops, building fireplaces, running plumbing, or installing flooring. This allows us to work with other small businesses in our area, and only employ people when we need to, keeping our prices down. 

BID 

When working with subcontractors, there is a basic system in place to get prices for individual projects. When we know what we’re working on for a project, we send the scope of work over to the company. When they determine how much their work will cost, they send in a document called a “bid” that outlines their price. You can often have multiple bids on a single section of work, so then you choose the best one and work with them for the remainder of the project. If you are currently in the phase of getting your first estimate, then you may hear the phrase, “we’re waiting for our bids to come back”. This is the phase of the process when we’ve sent out our requests, and we must wait till they come back to us to get you that exact number. 

PERMIT

A permit is an official document that gives you permission to build on a property or make changes to a building. To get started on any project, it first has to be approved by the government and meet specific requirements of U.S building codes. The requirements for permits differ by your county, and what that local government requires from us. We handle permits ourselves, so you don’t have to worry about meeting those requirements yourself. 

CHANGE ORDER

When you are in the preconstruction phase of your project, you will most likely have to sign off on several documents called “Change Orders”. These documents specify the exact pricing and plan for a change of the original contract. These are used when unforeseen problems arise, or if you change your mind on an original design decision. Sometimes things cost more than originally budgeted for, and this is where these documents come in. It allows you to know exactly what is going into every change and signifies a mutual agreement between us about the change and how much work we’ll be doing.  

HVAC 

HVAC is an often-used term in construction: it stands for heating, ventilation, and air conditioning. These are grouped together because your heating and air systems tend to use the same ductwork inside your home, and they play off of each other to keep your house at the optimal temperature. HVAC is often redone during remodels because everything is already opened up, making the process less of a hassle, and it keeps everything in working order. 

PURCHASE ORDERS 

A purchase order is a document that shows our intention to purchase something from a buyer—things like flooring, windows, or tile. They’re contracts stating that a company will provide us a product for a specific price. This allows us to order things ahead of time without having to take more money upfront, and it makes sure that both parties are legally sure of what transaction is happening. We handle purchase orders ourselves, so you won't have to worry about them, but it is a good term to know.

SPECIFICATIONS

In the construction world, a specification is yet another document (I know, so many documents!), which describes the exact scope of work, what materials are being used, how something is installed/built, and the quality of the work. These specifications are separated by the type of work: demolition, electrical, flooring, etc. We use a system called CoConstruct that keeps all of the specifications in one place (along with all the other documents), so you can easily know what is going into every section of your project.

CUT SHEET 

A cut sheet is a form that provides all of the information for a specific piece of equipment or appliance. These sheets give you the piece's dimensions, color options, installation instructions, features, and the product’s materials. The most common types of cut sheets are for appliances, plumbing components, and lighting components. These sheets help builders know exactly what parts they're working with and measure/install accordingly. These can also be called spec sheets, but don’t confuse them with specifications! They are very similar ideas, but spec sheets are for one product, not one type of work. 

Are you looking for a contractor to renovate or add on to your home? Get a quote from us to jumpstart your process!