Construction Glossary
Document Type: Reference
Version: 1.0
Last Updated: February 2026
Distribute To: All Employees, New Hires
A
Addendum - Written change to bid documents issued before bid opening
AIA - American Institute of Architects; publishes standard contract forms
Allowance - Amount in contract for specific item not yet determined
Alternate - Optional scope item priced separately in bid
As-Built Drawings - Drawings updated to show actual constructed conditions
ASI - Architect's Supplemental Instructions
B
Back-Charge - Deduction from subcontractor payment for work performed on their behalf
Base Bid - Primary bid amount before alternates
Bid Bond - Guarantees contractor will enter contract if awarded
Bid Leveling - Comparing subcontractor quotes to ensure same scope
Bid Shopping - Unethical practice of sharing bids to get lower prices
Bonding Capacity - Maximum amount of work contractor can bond
Builder's Risk - Insurance covering work in progress
Buy-Out - Process of awarding subcontracts after winning project
C
Cardinal Change - Change so significant it's outside contract scope
Certificate of Occupancy (CO/C of O) - Permit allowing building use
Certificate of Substantial Completion - Document certifying work substantially complete
Change Order (CO) - Written modification to contract
CGL - Commercial General Liability insurance
Claim - Demand for additional compensation or time
Completion Date - Contractual deadline for project completion
Constructive Change - Action by owner that changes work without formal change order
Contingency - Reserve for unknown conditions or risks
Cost Code - Accounting classification for job costs
CPM - Critical Path Method (scheduling)
CSI - Construction Specifications Institute
D
Daily Report - Document recording daily project activities
Davis-Bacon - Federal law requiring prevailing wages on federal projects
Deficiency - Work not meeting contract requirements
Demobilization - Removing equipment and personnel from site
Design-Build - Delivery method where one entity designs and builds
Differing Site Conditions - Subsurface conditions different than anticipated
Direct Costs - Costs directly attributable to specific work
Division - Major category in specifications (CSI MasterFormat)
Draw - Progress payment request
E
EMR - Experience Modification Rate (workers' comp safety metric)
Extra Work - Work beyond original contract scope
F
Fast Track - Overlapping design and construction to compress schedule
FF&E - Furniture, Fixtures, and Equipment
Field Order - Minor change directive from architect
Final Completion - When all work including punch list is done
Float - Schedule flexibility between activities
Force Account - T&M work where owner reimburses actual costs
Force Majeure - Unforeseeable circumstances preventing contract fulfillment
G
GC - General Contractor
General Conditions - Division 1; also site overhead costs
GMP - Guaranteed Maximum Price contract
Gross Profit - Revenue minus direct costs
H
Hard Costs - Direct construction costs
Hold Harmless - Indemnification clause
Holdback - See Retention
I
Indirect Costs - Costs not directly attributable to specific work
Indemnification - Agreement to protect another from loss
J
JHA - Job Hazard Analysis
Job Cost Report - Report showing budget vs. actual by cost code
L
Latent Defect - Hidden defect not apparent at completion
Lien - Legal claim against property for unpaid work
Lien Waiver - Document releasing lien rights upon payment
Liquidated Damages (LDs) - Pre-set damages for late completion
Long Lead Items - Materials requiring extended procurement time
LOTO - Lockout/Tagout
Lump Sum - Fixed price contract
M
Markup - Addition to costs for overhead and profit
Material Safety Data Sheet (MSDS/SDS) - Chemical hazard information
Mechanics Lien - Lien filed by unpaid contractor/supplier
Milestone - Key project date
Mobilization - Moving equipment and personnel to site
Mockup - Sample assembly for approval
N
NCCCO - National Commission for Certification of Crane Operators
NIC - Not In Contract
Notice to Proceed (NTP) - Authorization to start work
O
O&M Manual - Operations and Maintenance Manual
OCIP - Owner Controlled Insurance Program
Overhead - Indirect costs of doing business
Owner - Party contracting for construction
P
Pay Application - Request for progress payment
Payment Bond - Guarantees contractor pays subs/suppliers
Percent Complete - Portion of work finished
Performance Bond - Guarantees contractor completes work
Permit - Government authorization to build
Preliminary Notice - Notice preserving lien rights
Prevailing Wage - Minimum wage rate for public work
Prime Contractor - Direct contract with owner
Procurement - Process of purchasing materials/services
Progress Payment - Partial payment during construction
Project Manual - Volume containing specifications
Punch List - List of items to complete/correct
Purchase Order (PO) - Document authorizing purchase
Q
Qualified Person - Person with training, knowledge, ability for task
Quality Control (QC) - Inspection to ensure quality
R
Rebar - Reinforcing steel bars
Retention/Retainage - Percentage withheld from payments
RFI - Request for Information
RFP - Request for Proposal
RFQ - Request for Quotation
ROPS - Rollover Protective Structure
S
Schedule of Values (SOV) - Breakdown of contract by line item
Scope of Work - Description of work to be performed
Shop Drawing - Detailed fabrication drawing
Soft Costs - Non-construction costs (design, permits, fees)
SOV - Schedule of Values
Specifications - Written requirements for work
Stop Notice - Notice to owner/lender to withhold funds
Subcontractor - Contractor working under prime/GC
Submittal - Document submitted for approval
Substantial Completion - Work sufficiently complete for intended use
Superintendent - Field supervisor
Surety - Company providing bonds
T
T&M - Time and Materials pricing
Take-Off - Quantity measurement from drawings
Toolbox Talk - Short safety meeting
U
Unit Price - Price per unit of work
V
Value Engineering - Process to reduce cost without reducing function
Variance - Difference between budget and actual
W
Warranty - Guarantee work is free from defects
WBS - Work Breakdown Structure
WIP - Work in Progress
Workers' Compensation - Insurance for employee injuries
Numbers/Acronyms
3-Week Look-Ahead - Short-term schedule
811 - Call before you dig (utility locates)
ADA - Americans with Disabilities Act
ANSI - American National Standards Institute
ASTM - American Society for Testing and Materials
AWG - American Wire Gauge
CFMA - Construction Financial Management Association
COR - Change Order Request
DIR - California Department of Industrial Relations
DOL - Department of Labor
GCs - General Conditions (costs)
IBC - International Building Code
NFPA - National Fire Protection Association
OSHA - Occupational Safety and Health Administration
PCO - Potential Change Order
PO - Purchase Order
QA/QC - Quality Assurance/Quality Control
SF - Square Feet
SWPPP - Stormwater Pollution Prevention Plan
Template provided by support.construction. Continually updated reference.