Construction Industry Glossary

Preconstruction Glossary

Addendum – formal notification of a change in a construction project, part of the signed contract, and is a legal representation of the status of the project that is usually shown at the end of a contract

Architect – a person who designs buildings and advises on the construction of the designs

Authorized signer - An authorized signer is a person who has the right to sign legal documents on behalf of the authorizing entity. For example, an authorized signer for a payor in BuilderHelp Pay is the person (or company) who signed your company's transaction bank agreement.

CAD – Computer-Aided Design, a way to digitally create 2D drawings and 3D models of real-world products so they can be visualized before they are manufactured 

Contractor – or “general contractor” is a person who works under a contractual agreement to provide services, labor, or materials to complete a construction project 

Basic Services - Basic Services refer to the scope of services defined as customary in the original agreement between an Owner and a Construction Manager (CM). Basic Services can also refer to the Architects' Basic Services.

Blueprints – a design plan, architectural drawings 

BIM – Building Information Modeling, plan and visualize construction projects during preconstruction using space-use simulations and 3D visualizations 

Bid – A Bid is a firm offer submitted by a contractor to perform work for a client at a specified cost and in accordance with the terms and conditions defined in a proposal for a construction project.

Bid Bond - A Bid Bond is a type of construction bond issued and guaranteed by a surety carrier to provide financial coverage to a principal. In construction, a bid bond is often purchased by a contractor hired to perform the work for an Owner to act as insurance for the Owner in the event the contractor fails to honor the terms of the awarded bid.

Bid Documents - includes the required agreements, bid forms, charts, conditions, proposed contracts, drawings, plans, instructions, invitations, specifications, and other written details issued by an owner to the contractor(s) who bid on a project.

CSI Master Format – master list of numbers and titles classified by work results, primarily used to organize project manuals and detailed cost information 

Digital Plans – a digital version of a blueprint 

Dimension – a measure in one direction, one of three coordinates determining a position in space, or four coordinates determining a position in space and time 

Estimator – is a professional who calculates the total cost, time, materials, and labor required for a building project before it starts. They analyze blueprints, conduct quantity takeoffs, and solicit subcontractor bids to ensure projects are financially feasible, competitive, and profitable

Floorplan – a scale diagram of a room or suite of rooms viewed from above 

General Contractor – GC, construction manager responsible for daily management of the job site, all vendors, and subcontractors, and the primary communicator to everyone involved during a building project 

Owner – owns the construction job site; responsible for liability, contracts, and approvals 

Subcontractor – businesses or individuals that carry out work for a contractor as part of the larger contracted project 

Trade Contractor – a type of subcontractor that specializes in a specific type of skilled construction (I.e., concrete, painting, electrical) 

Zoning – the process of partitioning a city, town, or borough into zones reserved for different purposes 

Construction Glossary

As Builts – (or as-built drawings) are final, revised blueprints created at the end of a construction project that document exactly how a structure was built, rather than just how it was designed

Budget – the amount of money designated for a specific building or remodeling project 

Building Code – a collection of regulations adopted by a city to govern the construction of buildings 

Building Permit – is an official, government-issued authorization required before beginning most construction, renovations, or structural changes to a property. It ensures that projects adhere to local building codes, safety standards, and zoning laws, protecting the owner and the public from substandard, unsafe construction

Building Inspector – a government employee who reviews plans and visits construction sites to ensure all local and national building codes and regulations are being met 

Change Order – an amendment to a construction contract that changes the contractor’s scope of work 

Certificate of Occupancy – a document that’s issued by a local zoning or building department stating that a home or property is suitable for occupancy 

Concrete Contractor– specially trained and experienced people who can handle concrete in its different stages, starting from the unmixed combination to the hard-finished foundation 

Construction Management Software – a project management platform that helps companies with processes like budget management, communication, decision-making, and job scheduling 

Cost Code – a group of individual costs based on their nature or function 

Daily Construction Report – a record of field notes, including work completed, weather conditions, and materials delivered or used onsite 

Design-Bid-Build – A project delivery method where the project owner contracts two separate companies to design and build the project 

Design-Build – A project delivery method where the project owner hires one company to both design and build the project 

Document Control – is the systematic management, storage, and tracking of project documents—such as drawings, contracts, and RFIs—from creation to archiving. It ensures all stakeholders use the most up-to-date, approved information, reducing errors, costly rework, and risks while improving team collaboration

Egress – an unobstructed path to leave buildings, structures, and spaces 

Elevation – the height of something 

Engineer – professionals who invent, design, analyze, build, and test machines, complex systems, structures, gadgets and materials to fulfill functional objectives and requirements while considering the limitations imposed by practicality, regulation, safety and cost 

Fabrication – item that is manufactured by a fabricator for installation on a building site as part of an ongoing construction project 

Footprint – the perimeter of a building at the outer edge of the outside walls of the building, including cantilevered portions of a building 

General Conditions – the costs incurred during a project that generally don’t involve swinging a hammer or installing something permanently in your home 

HVAC – HVAC stands for Heating, Ventilation, and Air Conditioning; HVAC refers to the different systems used for moving air between indoor and outdoor areas, along with heating and cooling, both residential and commercial buildings 

Integrated Project Delivery (IPD) – a type of project delivery method where there is a contract between the project stakeholders that outlines project risks and responsibilities of each part 

Interior Finish – the final part of an interior construction process, forming the final surface of an interior wall, ceiling, or floor 

Job Costing – an accounting method designed to track individual projects 

Lean Construction – a method of production aimed at reducing costs, materials, time, and effort 

Low Bid – a contract awarded to the lowest-priced, most responsive bid 

Lump Sum Contract – (or stipulated sum contract) is a construction agreement where the contractor completes a defined project for a single, fixed price, regardless of actual costs, labor, or time spent. It covers all expenses, providing owners with budget certainty, while shifting financial risk to the contractor.

Masonry – the building of structures from individual units, which are often laid in and bound together by mortar 

Meeting Notes – current status and track of entire project including important discussions, resolved issues and the people who attended the meeting can give a better view of your project 

MEP (Mechanical, Electrical, and Plumbing) – MEP engineering is the science and art of planning, designing and managing the MEP systems of a building 

OSHA – Occupational Safety and Health Administration (OSHA) to ensure safe and healthful working conditions for workers by setting and enforcing standards and by providing training, outreach, education and assistance 

Plumbing – the system of pipes, tanks, fittings, and other apparatus required for the water supply, heating, and sanitation in a building 

Potential Change Order – an informal change order to track a work condition that has potential to be over the contract 

Private-Public Partnership (P3) – is a long-term contractual agreement between a public authority (government) and a private company to design, build, finance, operate, and maintain public infrastructure like roads, hospitals, or schools

Project Management – directing and organizing each part of a construction project's life cycle 

Punch List – a document showing work still needed to be completed on a construction project 

RFI (Request for Information) – a formal written process in which parties clarify information gaps in construction documents 

Roofer – a person who constructs or repairs roofs 

Sitework – the process in which a construction site is prepared for the construction job 

Submittals – refers to a document provided by a contractor to the architect for approval of use 

Transmittal – a document or proof of what was sent, when it was sent, and to whom it was sent to, documenting the flow of information in a project 

Workers’ Compensation – a form of insurance providing wage replacement and medical benefits to employees injured in the course of employment; expressed as a percentage of labor cost 

Construction Takeoffs Glossary

Area – surface included within a set of lines (ex: a flooring) 

Linear – a straight line, single dimension (ex: lumber stud) 

Count – the number of units (ex: switches) 

OC (On Center) – the distance between the center of one framing member to the center of the next member 

Pitched Area – degree of slope in an area (ex: a sloped roof) 

Pitched Linear – degree of slope in a pitched line (ex: a hip on a sloped roof) 

Surface Area – the amount of space covering the outside of a three-dimensional shape (ex: drywall) 

Takeoff – the process where contractors determine how much of each material they will need to complete a project 

Volume 2D – the amount of space occupied by the object or shape, which is in two-dimensional space (ex: a parking lot) 

Volume 3D – the amount of space occupied by the object or shape, which is in three-dimensional space (ex: a concrete footer) 

Construction Estimating Glossary

Assemblies – a prebuilt group of items for a takeoff

Bid Leveling – is the process of comparing subcontractor or vendor bids side-by-side to ensure an "apples-to-apples" evaluation. It involves aligning, organizing, and analyzing project scopes to identify discrepancies, omissions, or errors in pricing. This allows contractors to select the best value bid, rather than just the lowest

Invitation to Bid (ITB) – a solicitation for contractors to submit a proposal for a specific service to complete a project 

Items – a specific material, equipment, labor, or subcontracting cost

Net Profit – Selling price, less extended cost and overhead markup 

Non-Measured Costs – frequently referred to as soft costs or indirect costs, are expenditures that are not directly tied to the physical, tangible construction of a building (such as materials, labor, or heavy equipment). They are often intangible, administrative, or pre-development in nature, making them harder to quantify accurately than direct "hard" costs

Markup – The percentage difference between the cost and the sale price for the material and labor required for construction  

Overhead – The ongoing cost of running your business that can’t be easily traced back to a project, for example, office space rent or payroll services 

Profit – The income generated for the business owner over and above the project cost, expressed as a percentage of the total project cost after adding overhead and markup  

Proposal – a written offer from a bidder to the owner to perform the work and to furnish all labor, materials, equipment, and/or services for the prices and terms quoted 

RSMeans Data – is North America's leading construction cost database and estimating resource, providing localized, up-to-date prices for materials, labor, and equipment

Tax – Mandatory charges imposed by the government 

Waste – a predicted percentage of materials added to a takeoff to cover unexpected issues 

AI-Driven Construction and Automation Glossary

Artificial Intelligence (AI) – computer systems designed to perform tasks that typically require human intelligence, such as learning, reasoning, or problem-solving. AI powers tools that automatically detect walls, doors, and fixtures on drawings to generate takeoffs, helping estimators complete more bids with greater accuracy.  AI has successfully been integrated within BuilderHelp’s software for gained efficiencies for the GC.

Automation – the use of machines, software, or technology to perform tasks with minimal human input, improving efficiency and consistency.

Computer Vision – a branch of AI that enables machines to interpret and understand visual information from photos or videos

Deep Learning – a more advanced form of machine learning that uses layered neural networks to analyze complex data like images or video

Descriptive Analytics - interprets historical data to identify patterns, trends, and performance, answering "what happened" in a business. Using techniques like data aggregation and mining, it transforms complex data into insights via reports and dashboards (e.g., sales reports) to guide decisions

Digital Twin – a virtual replica of a physical structure or system that uses real-time data to monitor performance and predict issues

Generative AI – a form of AI that can create new content, such as designs, text, or images, based on patterns learned from existing data

Internet of Things (IoT) – a network of connected devices and sensors that collect and share data to improve monitoring and decision-making on the jobsite

Machine Learning (ML) – a type of AI that allows systems to automatically learn from data and improve performance without explicit programming

Predictive Analytics – the use of data, AI, and statistical models to forecast outcomes such as project delays, equipment failures, or cost overruns

Prescriptive Analytics - is the final stage of data analysis, focusing on recommending specific actions to achieve desired outcomes. By combining AI, machine learning, and optimization algorithms, it determines the best course of action from various scenarios, rather than just predicting future events. Key goals include optimizing business operations, increasing efficiency, and mitigating risks.

Robotics – the use of programmable machines or autonomous equipment to perform repetitive or hazardous construction tasks