Glossary of Contractor Terms and Definitions

Glossary of Contractor Terms A-M

• Bid Proposal - A formal, written offer from a contractor to perform work on a property. Usually includes plans, specifications, material descriptions, milestone dates, and costs.
• Building Code - Municipal regulation that requires construction to meet safety guidelines. Generally applies to structural, electrical, mechanical or plumbing elements of new construction and remodeling.
• Building Contractor - A company or individual who manages and/or performs tasks required to construct a new structure. (see also General Contractor)
• Change Order - A document that modifies the original agreement detailing changes in specifications and/or price.
• Code Enforcement Officer - An authorized municipal officer who inspects construction and determines if it complies with building codes.
• Home Improvement Contractor - A company or individual who manages and/or performs tasks required to renovate, rehabilitate, improve or repair an existing structure. (see also General Contractor)
• General Contractor - A company or person hired to manage the construction process. (see Prime Contractor, Building Contractor, Home Improvement Contractor)
• Licensing Board - State agency which oversees professional licenses issued to home improvement and building contractors.
• Lien Waiver - A written statement by a contractor or supplier holding lien rights that relinquishes those rights. Most often used to process progress payments, and can be made with or without conditions.
• Mechanic's Lien - A restriction upon property that has been improved issued by a contractor, supplier, subcontractor or laborer who has not been paid. The lien is registered with the property title and could lead to foreclosure action if payment is not received.
• Modification - An alteration which improves, changes or limits a building's features or structure.