Remodeling Glossary
Understand contractor language and protect yourself with these essential construction terms.
Construction Phases
Finish Work
The final construction phase including trim, painting, flooring installation, fixture installation, and other visible details that complete a project.
Rough-In
The phase of construction when mechanical systems (plumbing, electrical, HVAC) are installed inside walls before drywall is hung. Rough-in work must pass inspection before covering.
Contract Terms
Change Order
A formal document that modifies the original contract after work has begun. Change orders typically add cost and time to a project when unforeseen conditions arise or the homeowner requests additional work.
Cost-Plus Contract
A contract where the homeowner pays actual costs for materials and labor, plus a markup percentage (typically 10-20%) for the contractor's overhead and profit.
Fixed-Price Contract
A contract with a set total price that won't change unless the scope of work changes. Fixed-price contracts provide cost certainty but may include a buffer for contractor risk.
Scope of Work
A detailed written description of all tasks, materials, and deliverables included in a construction project. The scope of work defines exactly what the contractor will do and what they won't do.
Contractors
General Contractor (GC)
The primary contractor responsible for overseeing a construction project. The GC hires and coordinates subcontractors, obtains permits, and is accountable for project completion.
Subcontractor
A specialist contractor hired by the general contractor to perform specific work like plumbing, electrical, or HVAC. Subcontractors are paid by the GC, not directly by the homeowner.
Legal Protection
Building Code
Regulations established by local or state government that set minimum standards for construction safety, structural integrity, and habitability.
COI (Certificate of Insurance)
A document proving a contractor carries liability insurance and workers' compensation coverage. Request a COI listing you as the certificate holder before work begins.
Lien Waiver
A legal document signed by contractors and subcontractors confirming they have been paid and waiving their right to place a mechanic's lien on the property. Always collect lien waivers with each payment.
Mechanic's Lien
A legal claim a contractor or supplier can place on your property if they aren't paid for work or materials. Mechanic's liens can affect your ability to sell or refinance your home.
Permit
Official approval from local government required before starting certain construction work. Permits ensure work meets building codes and trigger inspections at key milestones.
Warranty
A contractor's guarantee to repair defects in workmanship or materials for a specified period after project completion. Typical workmanship warranties are 1-2 years.
Payment Terms
Deposit
An upfront payment required before work begins. Reasonable deposits are typically 10-25% of the project total. Be wary of contractors requesting 50% or more upfront.
Progress Payments
Payments made at predetermined project milestones rather than all at once. Progress payments protect both parties by tying payments to completed work.
Retainage
A percentage of the contract amount (typically 5-10%) withheld until project completion. Retainage protects homeowners by ensuring contractors complete all work including punch list items.
Pricing
Allowances
A predetermined budget amount included in a contract for items not yet selected, such as fixtures, appliances, or finishes. If the actual cost exceeds the allowance, the homeowner pays the difference.
Bid
A formal price proposal from a contractor to complete a specified scope of work. Bids should detail labor costs, material costs, timeline, and payment terms.
Estimate
An approximation of project costs, typically less binding than a bid. Estimates often include ranges and may change once the contractor assesses the actual job conditions.
Square Footage (SF)
The area of a space measured in square feet. Many contractors price work on a per-square-foot basis, making SF a critical metric for comparing bids.
Time and Materials (T&M)
A billing method where the homeowner pays for actual hours worked plus materials used. T&M contracts are common for repairs where scope is uncertain upfront.
Unit Price
A fixed price per unit of work, such as price per window installed or per square foot of flooring. Unit pricing makes it easy to compare bids for similar work.
Project Completion
Punch List
A list of minor items that need to be completed or corrected before a project is considered finished. The punch list is created during the final walkthrough and must be resolved before final payment.
Structural
Load-Bearing Wall
A wall that supports weight from above, such as upper floors or the roof. Removing or modifying load-bearing walls requires structural engineering and permits.
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