The BuildBook Construction Glossary

An all-in rate refers to a comprehensive cost estimate that includes all expenses associated with a particular project.

An allowance is an amount of money set aside in a construction project to cover the cost of materials and services that have yet to be determined.

An assembly is a cost item that may include the labor, material, and equipment needed to construct a project component.

A bid is a formalized proposal that a contractor submits to a potential client for a construction project.

A bid package is a set of documents that provides potential bidders all the necessary information about a project.

Bid selection is the process of evaluating and choosing the most suitable bid from potential contractors for a construction project.

Bid solicitation is the process of requesting bids or proposals from potential contractors or suppliers for a specific construction project.

A bid-hit ratio is the number of bids submitted compared to the number of projects won by a contractor.

A bill of materials (BOM) is a list of all components, materials and other items required to complete a construction project.

A Change Order in residential construction is a legal document that can be used to alter or modify an already existing contract between two parties.

A conceptual estimate is an early, approximate calculation of the cost and/or time required to complete a construction project.

A construction agent (CA) is an individual or organization that acts as an intermediary between the client and the contractors during a construction project.

Construction communication software is an application designed to facilitate collaboration and communication between participants within construction projects.

A construction estimate is a document prepared by a contractor or estimator that provides a potential client with an estimated cost for their proposed construction project.

Construction estimating software is an application designed to help streamline and improve the estimating process for construction projects.

Construction management is the comprehensive planning, coordination, execution, and control of all processes involved in the development and completion of a construction project.

Construction management at risk (CMAR) is a project delivery method where the construction manager assumes the risk of a project.

Construction management software is an application that assists in the creation and implementation of construction projects.

A construction manager is an individual with specialized expertise and knowledge in managing various aspects of construction projects.

Construction scheduling software is an application used to create, manage, and optimize working timelines for construction projects.

Construction task management software is an application designed to assist in effectively managing various tasks involved in a construction project.

A construction timeline is a visual representation of the schedule and sequence of tasks involved in a construction project.

Contingencies are the potential risks and uncertainties associated with a project's completion that must be accounted for in order to ensure a successful outcome.

A cost category is an individual division that allows you to organize your cost codes with numeric alignment.

A cost code is a classification used to map individual project costs for accounting as well as financial reporting.

A cost library or price book is a list of standard construction costs for items, products, and services that are offered.

A cost-plus fee contract is an agreement whereby the client agrees to pay all of the project costs plus a set fee to the contractor for managing the project.

A daily log is a written record of the progress and activities of a construction project on any particular day.

Dependencies are items within a construction project where one item is dependent on the completion of another item in order for it to begin.

Design-build is a process whereby a single entity, such as an architect, builder, or contractor, is responsible for both the design and the construction of a project.

Direct costs refer to the material and labor costs associated with the execution of a construction project.

Draw Schedule is a payment structure that outlines how and when the contractor will be paid during the construction process.

A field work order is a document that outlines the specifications of a specific task to be completed on a residential construction project.

A fixed-fee contract is an agreement between a homeowner and a contractor to complete a project for agreed-upon set amount.

A Gantt chart is a type of bar chart used in project management to illustrate the timeline and progress of residential construction projects.

A general contractor is an individual or company responsible for managing the overall process of a residential construction project.

Indirect costs refer to any additional expenditures incurred during the construction project that are not related to direct labor or materials.

Job costing is a method of accounting used to track all the costs associated with a specific construction job or project.

Labor burden is the total cost incurred by a contractor for providing wages, benefits, and payroll taxes for its workers.

Lean construction is a method of optimizing the building process to eliminate or minimize waste and maximize efficiency.

A lien waiver is a legally-binding document which relinquishes one parties right to enforce a lien against another party for services rendered or goods provided.

Low bid procurement is the process of selecting a contractor through competitive bidding, based on their lowest proposed price.

A lump sum contract is a contract where a fixed amount is agreed upon between the client and the contractor for completion of a project.

Markup is the additional percentage of cost added to materials and labor to cover overhead, profits, and any other associated costs.

Material selections describe the choices and decisions a homeowner makes in regard to the way the home will look when it’s finished.

Non-productive time is the amount of time spent within a construction project that does not result in project progression.

Overhead expenses are additional costs associated with completing a project that are not directly related to the cost of materials or labor.

A payment schedule is a document that outlines the terms and timeline of payments on a construction project.

Permitting is the process of obtaining the necessary approvals and permits from local authorities and government agencies before beginning a construction project.

A phase in a construction project is a series of distinct steps taken to complete the entire construction process.

A production builder is an individual or company that specializes in constructing a large numbers of homes in a housing development.

Profit margin is the ratio of profit made to the amount charged, expressed as a percentage.

A project stakeholder is any individual or group who has a direct or indirect interest or involvement in a construction project.

A punch list is an itemized list of tasks that need to be completed in a construction project before it can be declared as complete.

Purchase orders are a formal request between two parties for the purchase of specific materials and supplies needed for the completion of the project.

A Quantity Surveyor is an individual who specializes in calculating and managing the costs of a construction project from design to completion.

A request for information (RFI) is a document to ask specific questions about essential aspects of a particular construction project.

A Request for Proposal (RFP) is a document used by construction project owners that outlines all of the specifications and details necessary to secure bids for a project.

Retention is a practice where a portion of a contractor's payment is held back until all work is completed to the satisfaction of the client.

Scope creep is when changes or additions are made to an existing project, which have not been included in the initial agreement between the contractor and client.

A Scope of Work (SOW) is an agreement between a contractor and a homeowner, specifying the details of the work to be performed.

A spec home is a term that refers to an unoccupied house built by a builder or developer before the sale of the home has been arranged.

A subcontractor is a person or business hired by a general contractor to provide some of the labor, materials, or services required for the overall completion of a construction project.

A submittal is a document or package of documents intended to provide detailed information about the products and materials being supplied for a construction job.

A supplier in residential construction refers to a company or individual that provides the materials and equipment needed for completing projects.

A construction takeoff is the process of accurately determining and calculating all materials, products, services, and labor required to complete a construction project.

Tasks are the individual items within each phase of a construction project that need to be completed in order to continue progress.

A trade school is a specialized educational institution that focuses on equipping students with the skills, knowledge, and hands-on training required for various professional trades.

Unit costs refer to the cost for each individual unit of a deliverable (e.g., 1 hour of labor, 1 sq foot of materials, etc.) needed within a project.

Value engineering is the systematic process of assessing and optimizing the cost-effectiveness of project designs, materials, and labor to maximize efficiencies and reduce costs.

A work breakdown structure (WBS) is a hierarchical decomposition of the tasks and subtasks necessary to complete a construction project.