Glossary of Contractor Terms and Definitions

Glossary of Contractor Terms N-Z

• Performance Bond - A written security issued by a surety company that indemnifies (pays) the homeowner in the event the contractor does not perform according to the contract.
• Permit - A written municipal notification allowing construction to be performed.
• Prime Contractor - Same as General Contractor.
• Progress Payments - Periodic payments scheduled throughout the project. Typically includes a down payment, final payment and - depending on the project size - a few payments during construction.
• Punch-out - An industry term referring to the process of correcting deficiencies and making adjustments at the end of a project.
• Punch list - A series of minor tasks to be completed once a project is nearly complete.
• Quote - A written or verbal firm price given by a contractor for labor and materials.
• Rehabilitate - Comprehensive reconstruction or restoration of damaged or run-down buildings.
• Restoration - The act of improving a building to its original condition, appearance or function.
• Rough-in - An industry term referring to installations - such as wiring, heating ducts or pipes - within walls prior to installing the wall covering.
• Scale Drawing - A visual display of the project that shows exact images as they will appear. Typically includes measurements and distances.
• Section View - A drawing showing a cut-through view of a structure or object. Usually used to show hidden features.
• Site Conditions - A term used to describe the area to be worked on. Mostly used to describe exterior conditions; some examples include: dry, wet, rocky, sloping, etc.
• Site Work - A term describing preparation work done to the property prior to construction, such as excavating or tree-cutting.
• Soft Costs - Expenses not directly related to construction, such as inspection, legal and municipal fees.
• Subcontractor - An independent professional working for the general contractor, like a plumber or mason.
• Transient Builders - Contractors that operate in an area temporarily, such as following a natural disaster.
• Update - To modernize outdated or unusable conditions, such as replacing light fixtures.
• Variance - A right to perform work that is contrary to a code or regulation.
• Waiver - A provision which relinquishes rights or control over a rule or requirement related to construction. For example, a municipality may issue a waiver to the contractor allowing him to perform work prior to inspection.
• Warranty - A written condition assuring the homeowner that a contractor's performance (including materials) will remain in good condition following a period of time.