While working on your building project or conversing with a commercial contractor, you might have heard construction terms that are too technical to comprehend. Commercial construction terminology can be confusing at times. Every industry has its own slang and jargon that may be foreign to newcomers. As part of our commitment to being the best partner for our clients, we take the time to ensure everyone on board understands the ins and outs, processes, and technical terms.
From the construction basics and designing, to budgeting and project management terms, we have ensembled an extensive construction glossary of terms and their respective definitions. Use the following lexicon to increase your commercial construction vocabulary and gain a better understanding of your building project.
We hope that this short construction dictionary serves as a reminder of the meanings of some common and other infrequent construction phrases.
Construction Basics
Build-Out/ Fit-Out
A project that involves the process of constructing or expanding a building or a facility, to meet the specific requirements and specifications of a client.
Tenant Improvement (TI)
Also known as leasehold improvements, TIs are customized adjustments that a building owner makes to rental space as part of a lease agreement, in order to build out the space for the requirements of that particular tenant.
Major & Minor Capital Improvement Project
A Major Capital Improvement Project is any project using financing over $632,000. All projects valued under $632,000 qualify as Minor Capital Improvement Projects.
New Construction
Constructing a new building or structure from the ground up.
Renovation
Projects where the primary goal is to restore or repair a structure. Renovations are somewhat synonymous with remodeling, however, the goal of a remodel is to change the structure, while the goal of a renovation is to repair the structure.
Remodeling
A remodeling project is a process of improving or renovating an existing structure, by making changes or additions to its current design and layout.
Light Commercial Construction
Refers to the construction or renovation of small to medium-scale commercial buildings, such as offices, retail stores, restaurants, small medical facilities, banks, etc.
Retrofitting
A type of construction project wherein additions are made to the original building or structure to enhance the functionality of the building. E.g., by adding new technology, building systems, material, or equipment.
Gray Shell/ Cold Shell
An unfinished structure with an open floor plan that lacks restrooms, ceilings, lighting, flooring, HVAC ductwork, and has little to no plumbing and electrical systems.
White Shell/ Warm Shell/ White Box
A structure with basic finishings such as drywall, a finished ADA restroom, ceilings, lighting, flooring, and HVAC ductwork. White box space is either ready to paint or already painted.
Assignable Square Footage (ASF)
Usable square footage within a building space (measured from one finished wall to another finished wall).
Gross Square Footage (GSF)
Unusable square footage within a building space.
For example, corridors, inside walls, custodian closets, utility spaces, etc.
Construction Job Titles and Roles
General Contractor (GC)
The main contractor who is responsible for project oversight, including scheduling, budgeting, and managing subcontractors.
Subcontractor
Hired and contracted by the general contractor, they are specialized skilled workers who have expertise in different aspects of projects such as drywall, painting, plumbing, electricity, and other areas.
Foreman
The lead supervisor in charge of the crew on a job site.
Project Manager
A representative who manages all components of the construction process including timelines, budget, and communications.
Project Architect
The person, firm, or corporation appointed by the owner to provide detailed designs according to the client’s specifications, building laws, and local regulations.
Building Manager
The person responsible for monitoring the buildings to which they are assigned.
Construction Manager
This person will typically serve as the owner’s representative, managing and assessing the quality of planning, design, construction, and closeout of a project.
Architect-in-Record
This refers to the architectural company listed on all required permits for the project and who oversees the completion of a construction project and handles its paperwork.
Construction Planning Terms
Addendum (Addenda)
An addendum is generally issued by the owner to the contractor during the bidding process that adds, clarifies, or modifies information in an existing bid document.
Feasibility Study
A study evaluating a project’s budget, schedule, and requirements. This process usually involves designing, examining the site, estimating the cost, and reviewing utility infrastructure.
Performance Specifications
These typically refer to the minimum acceptable standards and results.
Project Programming
These are all the physical requirements involved with a Capital Improvement Project, including occupancy, infrastructure, and basis for a design.
Baselines
In project planning and management, baselines are referred to the approved starting dates of a construction project.
Construction Drawings
Construction drawings provide visual representations of the proposed designs of buildings.
Submittals
These are documents that a construction project planner submits to the project architect and engineer for approval before construction begins. Submittals may include requests for equipment and materials, technical drawings, and instructions for the construction team.
Construction Design Terms
CSI Master Format
CSI (Construction Specifications Institute) Master Format is a system of numbers and titles for formatting and organizing construction information into a regular, standard order or sequence.
Schematic Design (SD Phase)
Conceptual plan showing rough study drawings that illustrate the basic concepts of the design such as drawings of a site plan, floor plans, elevations, and computer renderings.
Preliminary Design (PD Phase)
Further developed plans showing high-level design features such as doors, windows, walls, etc.
Design Development
Designs from the schematic design phase get refined during the design development phase to finally prepare for construction documents.
Construction Documents (CD Phase)
Detailed plans indicating all drawings, specifications, and addenda associated with a specific construction project used to obtain building permits.
As-builts/Red-line drawings/ Record Drawings
Due to errors found in construction drawings, the building is not constructed exactly as designed. As-builts are a complete record of drawings of the final building, specifications, and work completed.
Constructability Review
Review of plans and specifications either by a contractor or third-party reviewer to ensure accuracy and proper detail of the construction plans.
Floorplan
Floorplans are documents showing the layout of a building when viewed from above.
Leadership in Energy and Environmental Design (LEED)
A global green building certification and rating system that provides a sustainable design framework through efficient use of materials, construction practices, building design, etc.
Construction Process Terms
Building Envelope (Building Shell)
The outer structure of the building.
Campus Master Plan
The document that encompasses the reference policies, guidelines, and development standards set for the campus.
Guaranteed Maximum Price (GMP)
The GMP contract is the highest or maximum price you agree to with your contractor to build your projects according to specs and drawings.
Rough-In
The initial stage of the wall framing, HVAC, electrical, and plumbing installation.
Notice of Completion (NOC)
A written document issued by you or your representative notifying applicable parties of the official date when a construction project is considered complete.
Punch List
A document made at the end of the final inspection, listing construction work that does not meet the client’s specifications.
Daily Report
A report that documents all materials installed, safety incidents, crew details, and work completed. It’s typically prepared by the foreman and delivered to the project manager at the end of each day.
Change Order
Written documents that change the original agreed-upon project plans, price, or other specifications in the construction contracts.
Change Request
A contractor’s request of the owner to compensate for a modification in the design plan or other aspects of the project. For instance, the contractor issues a Change Request for additional windows that the owner is considering.
RFP (Request for Proposal)
This document is created by a property owner to describe their project’s specific requirements and solicit cost proposals from qualified contractors.
RFQ (Request for Quote)
Also referred to as an invitation for bid (IFB), it is a document through which project owners request contractors to submit price bids and quotes for exact project specifications.
RFI (Request for Information)
A means to clarify ambiguities or fill in gaps in information that appear in the project plans or specifications.
Value Engineering
Evaluation of construction methods and/or materials to determine which have the net result of reducing costs, consistent with specified performance criteria.
Fenestration
How the windows, skylights, and doors are designed and arranged in a building.
HVAC
Abbreviation for Heating, Ventilation, and Air Conditioning systems.
MEP
Abbreviation for Mechanical, Electrical, and Plumbing systems.
Construction Material Terms
Reinforced Concrete
Reinforced concrete is a composite construction material that is strengthened by adding reinforcements (steel bars) or mesh within the concrete.
Precast Concrete
Concrete elements poured into a reusable mold and cured in a controlled environment are transported to the construction site for final assembly.
Aggregate
Aggregate is a construction material mix made with sand, gravel and other granular materials, which is used to combine with other adhesives to develop concrete or mortar.
Drywall
Drywall is a type of panel used to construct flat surfaces of walls and ceilings. Drywall in construction is also called sheetrock, plasterboard, and gypsum board.
Insulation
Insulation materials like foam, cellulose, fiberglass and foils are interposed between walls to keep sound or thermal energy from transporting from one area of a building to another.
Veneer
A very thin sheet of wood used as a decorative cover for lower-quality wood.
Plywood
A panel of wood manufactured from multiple thin layers or ‘plies’ of veneer compressed together.
PVC
Polyvinyl chloride or PVC is a type of thermoplastic widely used for making water pipes and sometimes flooring.
Caulk
A sealant used to prevent water and moisture from seeping through cracks found in pipes, windows and doors.
Construction Project Delivery Models
Design-Bid-Build
A traditional project delivery method where the owner hires two or more separate firms to design and construct the building.
Design-Build
A project delivery method where the owner hires a single firm or company to perform both the design and construction of the building under a single contract.
Construction Manager at Risk (CM@R)
A project delivery method where the construction manager commits to delivering the project within the guaranteed maximum price.
Integrated Project Delivery
The IPD model involves a single, multi-party agreement between the owner, the builder, and the architect with all stakeholders sharing risks and rewards under one integrated contract.
Integrated Labor Delivery
The ILD construction model brings labor during the design phase. Subcontractors play a critical role and perform nearly 80%-100% of the labor.
Job Order Contracting (JOC)
This refers to the project delivery method used by commercial construction companies to get multiple projects done quickly, through multi-year contracts for a wide variety of renovation, repair, and minor construction projects.
Lean Construction
A construction methodology where all stakeholders share common goals to emphasize maximizing value for the client while minimizing waste.
Target Value Design
All the stakeholders (owner, designer, contractors, engineers, etc) design to the target budget and goals of the owner, instead of designing first and then re-designing to prevent cost overruns.
Virtual Design and Construction (VDC)
Management of the multi-disciplinary models of the design-construction projects which can include the analysis model, visualizations, cost models, business metrics, and engineering modeling.
Construction Software Terms
Computer-Aided Design (CAD)
CAD is an architectural software that produces 2D drawings and 3D virtual models of buildings, machines and parts.
AutoCAD
AutoCAD is a computer-aided design (CAD) software application for creating 2D and 3D technical drawings, designs, and models.
ArcMap
ArcMap is a program mainly used to view, edit, create, and analyze geospatial data.
Building Information Modeling (BIM)
A collaborative process among construction professionals for creating and managing 3D representations of building design and construction.
Geographic Information System (GIS)
A computer system designed to capture, store, manipulate, analyze, manage, and present all types of geographical data.
ESRI
Environmental Systems Research Institute (ESRI) is an international supplier of Geographic Information System (GIS) software, web GIS and geodatabase management applications.
Construction Budget and Accounting Terms
Bid
A price proposal put forward by the contractor covering the scope of construction project work generally based on design documents and specifications.
Contingency Fund
Money, often a percentage of the total project cost, reserved to cover unexpected project costs that arise during a construction project.
Allowance
Funds granted as a reimbursement or bounty for particular expenses.
Consequential Damages
Damages that arise when a party to a construction contract breaches terms under their contract, and the other party’s business is damaged consequentially.
Liquidated Damages
A sum of money applicable to the contractor failing to finish construction works by the completion date set out in the contract.
Cash Flow
Cash flow is the incoming and outgoing of cash amount and cash equivalents in a business during a specific time period.
Purchase Order (PO)
A document that specifies the types, quantities, and prices of products and services to be purchased from external vendors and suppliers.
Purchase Order Amendment (POA)
The form required when the final invoice amount differs from the original Purchase Order (PO) amount.
Construction Contract Terms
Construction Contract Agreement
An agreement is established between the project owner and the main contractor that contains a set of clauses defining the project scope, schedule dates, terms and conditions.
Fixed-Price
A contractual agreement with a predetermined price or lump-sum fee for all services provided by the Contractor, including labor and materials.
Unit Pricing
A contract that outlines the cost per unit, such as the cost per square foot or another measurement unit.
Time and Materials (T&M)
A written agreement between the owner and the contractor that pays the contractor based on actual labor, equipment, materials, and service costs plus a fixed add-on amount to cover the contractor’s overhead and profit.
Cost-plus
A contract that requires the client to pay all costs incurred by the contractor (including actual cost for the labor, materials, etc.) plus a fixed fee or percentage of the total costs as an additional amount for profit.
Statement of Work
Also referred to as scope of work, this document clearly states all the construction activities that will be performed to complete the project. It informs the owner about who will be responsible for certain tasks, how those tasks will be completed, and which materials will be used.
Cost Estimate
This document presents a breakdown of all items required for project completion and their associated costs.
Insurance Coverage
This document guarantees the owner that the contractor is financially capable of completing the work, under the terms and conditions mentioned in the contract.
Construction Management Terms
OAC Meeting
A meeting held at a scheduled time between the Owner, the Architect, and the General Contractor that covers general project management topics.
Critical Path Method (CPM)
A scheduling method that calculates the minimum time needed to complete a construction project alongside the possible start and end times for the different activities.
Field Work Order
The fieldwork order is a document passed on by the general contractor to the subcontractors listing their assigned tasks and noting directions to complete the work.
Project Portfolio Management (PPM)
In construction, project portfolio management (PPM) is the strategic approach that lets construction companies assess and optimize their performance, ROI, resources, and processes.
Agile Project Management
This project delivery approach focuses on breaking down the project into small cycles, known as ‘iterations’ which are prioritized in terms of urgency or importance.
Construction Management Software
Computer software that includes features like CAD diagrams, dashboards, mobile time-tracking, charts, templates, and many others to improve project efficiency.
Conclusion
By learning the above building terminologies and definitions, you can better understand the significance of certain construction methods, project delivery models, software, and contracts. Whenever you take steps to bring your next commercial construction project to life, keep this guide of construction words handy. While this list is not exhaustive, it’s a starting point for strengthening communication between you and your general contractor. When in doubt, don’t hesitate to ask questions and request detailed information from anyone involved in your project.
And when you are ready to work with a commercial construction company with years of experience and a proven track record of success, contact Constructive Solutions, Inc. today to see how we can help you with your next project.
FAQs
What is a Bill of Quantity (BOQ) in the construction process?
A document used in construction tendering to define the quality and quantity of materials, equipment and labor, as well as their associated costs.
What do you mean by Reinstatement of commercial buildings?
Reinstatement involves renovations, repairs and fit-outs undertaken to an existing commercial building to restore it to its previous state.
What is a Load-bearing wall in a structure?
Load-bearing walls support the weight of the structural elements above it, by transferring the weight to the foundation below it.
Relevant Resources:
- What You Need To Know About All Types Of Construction Contracts?
- Construction Budgeting: How To Stay on Track and Under Budget
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