Before you nail down your next home improvement project, learn the lingo. These common terms and definitions may help you avoid miscommunications with your contractor.
Allowance
A specific dollar amount allocated by a contractor for specified items in a contract for which brand, model number, color, size or other detail is not yet known. A specific dollar amount allocated by a contractor for specified items in a contract for which brand, model number, color, size or other detail is not yet known.
Bid
A proposal to work for a certain amount of money, based on plans and specifications for the project. A proposal to work for a certain amount of money, based on plans and specifications for the project.
Building Permit
A document issued by a governing authority, such as a building department, granting permission to undertake a construction project. A document issued by a governing authority, such as a building department, granting permission to undertake a construction project.
Call Back
An informal term for a return visit made by a contractor to repair or replace items the home owner has found to be unsatisfactory or that require service under the warranty. An informal term for a return visit made by a contractor to repair or replace items the home owner has found to be unsatisfactory or that require service under the warranty.
CGR (Certified Graduate remodeler)
A professional certified program offered through the National Association of Home Builders (NAHB) Remodelors' Council. To attain the CGR designation, a remodeler must take a specified number of continuing education courses and must comply with a strict code of ethics. A professional certified program offered through the National Association of Home Builders (NAHB) Remodelors' Council. To attain the CGR designation, a remodeler must take a specified number of continuing education courses and must comply with a strict code of ethics.
Change Order
Written authorization to the contractor to make a change or addition to the work described in the original contract. The change order should reflect any changes in cost. Written authorization to the contractor to make a change or addition to the work described in the original contract. The change order should reflect any changes in cost.
Cost-plus Contract
A contract between a contractor and homeowner based on the accrued cost of labor and materials plus a percentage for profit and overhead. Also known as a time-and-materials contract. A contract between a contractor and homeowner based on the accrued cost of labor and materials plus a percentage for profit and overhead. Also known as a time-and-materials contract.
Draw
A designated payment that is "drawn" from the total project budget to pay for services completed to date. A draw schedule typically is established in the contract. A designated payment that is "drawn" from the total project budget to pay for services completed to date. A draw schedule typically is established in the contract.
Lien Release
A document that voids the legal right of a contractor, subcontractor or supplier to place a lien against your property. A lien release assures you that the remodeler has paid subcontractors and suppliers in full for labor and materials. A document that voids the legal right of a contractor, subcontractor or supplier to place a lien against your property. A lien release assures you that the remodeler has paid subcontractors and suppliers in full for labor and materials.
Mechanic's Lien
A lien obtained by an unpaid subcontractor or supplier through the courts. When enforced, real property-such as your home-can be sold to pay the subcontractor or supplier.
Plans and Specifications
Drawings for the project, and a detailed list or description of the known products, materials, quantities and finishes to be used in the project. Drawings for the project, and a detailed list or description of the known products, materials, quantities and finishes to be used in the project.
Punch List
A list of items of work to be completed or corrected by the contractor, typically near or at the end of a project. A list of items of work to be completed or corrected by the contractor, typically near or at the end of a project.
Subcontractor
A person or company hired directly by the contractor to perform specialized work at the job site. Sometimes referred to as a trade contractor. A person or company hired directly by the contractor to perform specialized work at the job site. Sometimes referred to as a trade contractor.
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