20 Must-Know Construction Terms Everyone Should Master

Construction key terms

At Brandise Construction, clear communication is the secret sauce to a successful project. We’re all about getting everyone on the same page, so you feel confident and informed every step of the way. Knowing the right construction lingo can make a world of difference—cutting down on confusion, keeping the project on track, and making sure everyone’s speaking the same language. We’ve rounded up 20 essential terms that anyone involved in construction should know. Ready to test your knowledge? Let’s see how many you’ve got down!


1. Request for Proposal (RFP)

Definition: An Request for Proposal is a document issued by a client requesting proposals from contractors to complete a specific project.

Importance: RFPs help clients gather detailed proposals and select the best contractor for their project.

Example: A corporation might issue an RFP for the construction of a new headquarters, seeking detailed bids from multiple contractors.


2. Bid

Definition: A bid is a proposal submitted by a contractor outlining the cost to complete a project as specified in the project documents.

Importance: Bids are essential for selecting contractors and establishing project budgets.

Example: We submit competitive bids for commercial projects, detailing our costs and timeline to prospective clients.


3. General Contractor

Definition: A general contractor (GC) is responsible for overseeing the entire construction project, managing subcontractors, and ensuring all work complies with plans and regulations.

Importance: The GC is the primary point of contact, ensuring the project runs smoothly and on schedule.

Example: At Brandise Construction, we serve as the GC on commercial projects, coordinating everything from initial planning to final inspections.


4. Subcontractor

Definition: A subcontractor is a specialist hired by the general contractor to perform specific tasks, such as plumbing, electrical work, or HVAC installation.

Importance: Subcontractors bring specialized expertise to a project, ensuring high-quality work in specific areas.

Example: For a large office building project, we might hire an electrical subcontractor to handle all the wiring and lighting installations.


5. Scope of Work (SOW)

Definition: The scope of work is a detailed description of the work to be performed under a contract.

Importance: Clearly defining the SOW helps prevent misunderstandings and ensures that all parties are aware of their responsibilities.

Example: For a new hospital wing, the SOW would outline everything from site preparation to interior finishes.


6. Plans

Definition: Plans or Blueprints are a detailed plan or drawing that outlines the design, specifications, and dimensions of a building.

Importance: Plans are essential for visualizing the project and ensuring all stakeholders understand the design and construction requirements.

Example: Before breaking ground on a new commercial development, we review the plans with our clients to confirm every detail.


7. Building Permit

Definition: A building permit is an official approval issued by local authorities allowing construction to proceed on a project.

Importance: Permits ensure that construction complies with local building codes and regulations.

Example: Before starting any construction, we secure the necessary permits to ensure compliance with all legal requirements.


8. Zoning

Definition: Zoning refers to the regulations governing how land can be used in different areas, including building height, density, and usage.

Importance: Understanding zoning regulations is crucial for ensuring that a project complies with local laws and guidelines.

Example: We review zoning laws before beginning a new development to ensure the project aligns with local requirements.


9. Request for Information (RFI)

Definition: An RFI is a formal request for clarification on project details, submitted by a contractor to the project designer or owner.

Importance: RFIs help resolve ambiguities and ensure that all parties have a clear understanding of the project requirements.

Example: If there’s a discrepancy in the plan measurements, our team submits an RFI to the architect for clarification.


10. Shop Drawings

Definition: Shop drawings are detailed drawings submitted by contractors or suppliers, showing how specific components will be fabricated or installed.

Importance: They ensure that all materials and components meet the design specifications.

Example: For custom steel beams in a commercial building, shop drawings would detail the exact dimensions and installation process.


11. Schedule of Values

Definition: A schedule of values is a detailed statement of the work and corresponding costs, broken down by project components.

Importance: It helps track project costs and progress, ensuring transparency and accountability.

Example: We provide a schedule of values to clients at the beginning of a project to outline the cost of each phase, from excavation to finishing.


12. Change Order

Definition: A change order is a document that outlines modifications to the original construction plans, including changes in scope, cost, or schedule.

Importance: Change orders ensure that any adjustments are formally documented and agreed upon by all parties.

Example: If a client decides to add an extra conference room mid-project, a change order would be issued to cover the additional work and costs.


13. Building Information Modeling (BIM)

Definition: BIM is a digital representation of a building’s physical and functional characteristics, used to plan, design, construct, and manage buildings.

Importance: BIM enhances collaboration and coordination, reducing errors and improving project outcomes.

Example: We use BIM software to create 3D models of projects, allowing for better visualization and planning.


14. Value Engineering

Definition: Value engineering is the process of analyzing a project to identify cost-saving opportunities without compromising quality or functionality.

Importance: It helps maximize value for the client by optimizing project costs and performance.

Example: During the design phase, we might suggest alternative materials or construction methods to reduce costs while maintaining quality.


15. Responsibility Matrix

Definition: A responsibility matrix is a document that outlines the roles and responsibilities of each team member involved in the project.

Importance: It ensures clarity and accountability, helping to prevent overlaps and gaps in responsibilities.

Example: For a large commercial project, we use a responsibility matrix to detail which team members are responsible for specific tasks, from design to construction.


16. Punch List

Definition: A punch list is a document that outlines minor tasks or corrections that need to be completed before the project is considered finished.

Importance: Ensuring that all punch list items are completed is crucial for final project approval and client satisfaction.

Example: Our team conducts a final walk-through with the client to create a punch list of any remaining items that need attention before project closeout.


17. Retainage (Retention)

Definition: Retainage, also known as retention, is a percentage of the contract amount withheld until the project is substantially complete.

Importance: It ensures that contractors complete the work to the client's satisfaction.

Example: We might hold back 5% of a subcontractor’s payment until all punch list items are resolved and the project is fully complete.


18. Lien Waiver

Definition: A lien waiver is a document from a contractor or supplier waiving the right to place a lien on the property for amounts owed.

Importance: Lien waivers help protect property owners from potential claims for unpaid work or materials.

Example: We obtain lien waivers from all subcontractors before making final payments to ensure there are no outstanding claims.


19. Certificate of Occupancy (CO)

Definition: A certificate of occupancy is an official document issued by local authorities, certifying that a building complies with all codes and is safe for occupancy.

Importance: A CO is required before a building can be legally occupied or used.

Example: Once construction is complete, we obtain a CO for our clients to ensure their new building meets all regulatory requirements.


20. As-Built Drawings

Definition: As-built drawings are revised plans created after construction, reflecting any changes made during the building process.

Importance: They provide an accurate record of the completed project for future reference and maintenance.

Example: We deliver as-built drawings to clients at the end of a project, showing the exact placement of all systems and structures.


So, How many of these terms did you already know? Whether you nailed just a few or could teach a master class on all of them, getting familiar with these terms will boost your confidence and make communication a breeze throughout the construction process. At Brandise Construction, clear communication and transparency are the foundations of our successful projects. We hope this list leaves you feeling ready and excited to get going! If we missed a term, you have any questions, or you’re ready to start putting these terms into action on your next project, drop us a line! And don't forget to tell us which term you think is the most important!

Victoria Hoven

Victoria Hoven graduated from the University of San Diego in 2023 with a degree in Business Administration, emphasizing Leadership & Management. Since 2015, she has honed her skills in graphic design, bringing creativity and versatility to her work.

Hailing from a family deeply rooted in the McDonald's franchise business, Victoria gained extensive experience in people management, human resources, and marketing. This unique upbringing instilled in her a strong work ethic and a comprehensive understanding of the business landscape.

Currently, Victoria is leveraging her skills in marketing and business development at Brandise Construction. Her role allows her to integrate her diverse expertise to drive growth and innovation within the company.

Outside of work, Victoria enjoys camping, racing quads, and cooking, reflecting her dynamic and passionate nature.

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