The language of building
Know the terms.
Ask better questions.
A practical reference for conversations with builders, designers and lenders. These general descriptions help you identify what to ask; the exact meaning in your project depends on its documents, local requirements and signed agreements.
Allowance
- An amount reserved in the contract for an item not yet fully selected or priced.
Architectural review
- A review of design under a city or private community’s applicable requirements.
As-built drawing
- A drawing recording the work as constructed, including documented changes.
Base price
- The starting price for a defined plan and specification; exclusions and options matter.
Blower-door test
- A test that uses controlled pressure to measure air leakage through a building enclosure.
Building envelope
- The parts separating conditioned indoor space from outdoors or unconditioned space.
Building permit
- Authorization from the responsible jurisdiction for a specified construction scope.
Change order
- A documented change to agreed work, cost, timing or specifications.
Closing costs
- Transaction expenses beyond the purchase price, as itemized for the transaction.
Construction loan
- Financing intended to fund construction, usually through staged disbursements.
Contingency
- Money reserved for identified uncertainty or unforeseen work in a project budget.
Cost-plus contract
- A pricing arrangement based on defined reimbursable costs plus an agreed fee.
Covenants
- Recorded private restrictions that may govern use or construction on a property.
Custom home
- A home whose design is developed for a particular client and site.
Design-build
- An arrangement coordinating design and construction through one delivery team or agreement.
Draw schedule
- The agreed stages at which construction financing or progress payments are released.
Easement
- A documented right affecting use of part of a property; its terms need review.
Elevation
- A drawing showing one exterior face of a building, or a stated vertical height.
Energy model
- A calculation predicting energy use or performance under stated design assumptions.
Engineered lumber
- Manufactured wood structural products designed for specified loads and spans.
Escalation clause
- A contract provision describing how particular cost increases may be handled.
Final inspection
- A jurisdiction’s inspection near completion; its scope is defined by local procedures.
Finish schedule
- A list of selected materials, colors, fixtures and finishes by location.
Fixed-price contract
- An agreement with a defined price for a specified scope, subject to its terms.
Footing
- A foundation component that transfers a structure’s loads into supporting soil.
Foundation
- The structural system connecting a building to the ground.
Framing
- The structural members that establish a building’s walls, floors and roof.
General contractor
- The company responsible for coordinating the construction scope under its agreement.
Geotechnical report
- An assessment of ground conditions with project-specific engineering recommendations.
Grading
- Shaping ground elevations and slopes as part of site development.
Homeowners association
- An organization administering responsibilities and restrictions for a defined community.
HVAC
- Heating, ventilation and air-conditioning equipment and distribution systems.
Infill
- New development within an area already containing buildings or infrastructure.
Insulated concrete forms
- Insulating forms that remain around poured concrete walls after construction.
Lien waiver
- A document addressing specified lien rights in connection with payment; wording matters.
Lot premium
- An additional price associated with a particular homesite within an offering.
Mechanical rough-in
- Installation of major service pathways before finishes conceal them.
Millwork
- Fabricated wood components such as trim, doors, paneling and built-in cabinetry.
Occupancy approval
- Local authorization to occupy a building, sometimes issued with conditions.
Performance specification
- A requirement stated as a measurable result rather than only a product choice.
Plot plan
- A drawing locating proposed work and relevant site features on a parcel.
Production home
- A home delivered from a repeatable plan and selection system, often in a community.
Punch list
- A documented list of incomplete or corrective items identified near completion.
Retainage
- An agreed portion of payment held until specified conditions are satisfied.
Semi-custom home
- A home based on an existing plan with defined opportunities for modification.
Setback
- The required distance between specified construction and a boundary or reference line.
Site work
- Work preparing the property, including applicable grading, access and utility tasks.
Soft costs
- Project expenses outside direct construction, such as design, permits and financing.
Specification
- A written description of materials, products, workmanship or required performance.
Teardown-rebuild
- A project replacing an existing structure with a newly built one.
Thermal bridge
- A path through an assembly that transfers heat more readily than adjacent materials.
Warranty
- A defined promise to address certain conditions under stated terms and time limits.