Construction Terminology

Construction has its own vocabulary, and a lot of it gets used loosely in everyday conversation. Here is a plain-language glossary of the terms that come up most often when you are planning or living through a commercial construction project.

Planning and design terms

Pre-construction is the planning phase before any physical work starts: budgeting, scope definition, and a review of the design for buildability. Constructability review is the process of checking a design for field conflicts and sequencing problems while it is still on paper, before a crew discovers them on site. Value engineering means finding options that protect the intent of a design while keeping the cost and schedule realistic, not simply cutting scope to hit a number. Design-build describes a delivery method where design and construction are coordinated under one contract, rather than an owner hiring an architect and a contractor separately.

Budget and cost terms

An allowance is a placeholder budget amount for a selection that has not been finalized yet, such as a finish or a fixture. A change order is a documented change to the scope, cost or schedule after a contract is signed, usually triggered by a field condition or a decision made once construction is underway. Cost per square foot is a shorthand way of comparing project costs, but it varies enormously with scope, finish level and site conditions, so it is a starting point for a conversation, not a firm number on its own.

Site and schedule terms

Self-performing means a contractor's own crew does a trade directly, rather than subcontracting it out. The critical path is the sequence of tasks that determines the shortest possible schedule; a delay on the critical path delays the whole project, while a delay elsewhere may not. Punch list refers to the final list of small items to correct or complete before a project is considered finished. Closeout is the final phase of a project: punch list work, final inspections, and handing over the completed space.

Contract and delivery terms

A general contractor holds the contracts with the trades and is accountable for delivering the finished project. A construction manager provides the same oversight of schedule, cost and quality on an owner's behalf, whether the crews involved are the manager's own or subcontractors the owner has already engaged. A tenant improvement, often shortened to TI, is the build-out work that turns a shell or previously-occupied space into a finished space matching a specific tenant's spec. A PIP, or Property Improvement Plan, is the renovation scope a hotel brand requires of a property to keep it compliant with the brand standard.

If a term comes up in a proposal or a conversation that is not covered here, ask. A contractor who explains a term clearly, rather than talking past it, is telling you something real about how the rest of the project will go.