ASSEMBLIES - A
group of building components. Ex., a door assembly would include
the basic door along with the door locks, handles and binges.
AWARD - The act of an owner formally accepting
a contractors proposal or bid.
CERTIFICATE OF INSPECTION - A legal document
certifying that specified installation, alteration or repair
work has been inspected and is approved by the appropriate
local government.
CERTIFICATE OF OCCUPANCY (C.O.) - A legal
document certifying that a structure meets all appropriate
ordinances and codes and is ready for occupancy or use.
CHANGE ORDER - A written authorization detailing
specific additional work or modifications that are to be done
on a particular job.
COMMITMENT LETTER - A letter stating that
a bank will issue a mortgage and guarantee payment for a construction
project.
COST KEEPING SYSTEM - A method for comparing
labor and material costs that enables a contractor to know
how actual costs compare with the estimated costs.
CUSTOM BUILDER - A contractor who builds
on order from individual customers.
DRY WALL CONSTRUCTION - A wall or ceiling
material in sheets or panels hat is applied dry, as opposed
to a plaster wall.
DUCT WORK - In a building, rectangular or
round sheet metal channels used for distributing air to or
from a furnace or air conditioner.
ESTIMATE - The total assembled cost of labor,
materials, overhead, and profit for a project. This is also
called a bid.
HARD COSTS - These costs include labor, material
and equipment-related costs.
INTERIM FINANCING - A short term loan issued
by a financial institution to pay subcontractors as various
phases of a project are completed.
JOINT VENTURE - In the construction industry,
a partnership formed by two or more contractors, usually to
bid on larger jobs that a single contractor may not be able
to bond.
JOIST - The space between the adjacent surfaces
of two members or components joined and held together by nails,
glue, cement, mortar, or other means
LETTER OF CREDIT - A credit document issued
by a lending institution as security for performance of contract
obligations.
LIEN WAIVER - A form of receipt that is
completed and signed by a subcontractor or distributor when
he is paid for his labor or materials.
LIQUIDATED DAMAGES - A sum, usually a fixed
amount per day, to be paid as damages to an owner by a contractor
due to the failure of the contractor to complete the specified
work within the time frame stipulated in the contract.
LOAD BEARING WALL - A wall that supports
a vertical load, such as joists beams, girders, or floor trusses.
MECHANICS LIEN - A type of lien issued on
behalf of persons supplying labor or materials for a job to
guarantee payment. Under it, clear title to the property cannot
be obtained until the claim is settled.
MILLWORK - Various finished and manufactured
wooden building components including doors, windows, kitchen
cabinet work, and molding, made at a millwork plant or planing
mill.
MULTIPLE CONTRACT - A project that has several
primary contractors without any one of them being in charge.
PAYMENT REQUISITIONS - A form that lists
the items of work completed during a given time frame. This
becomes the basis for payment to the contractor for the work
completed.
PITCH - The slope of a roof.
PLANS - Drawings for a project are called
plans, prints or blueprints. They are drawn to scale and include
construction details, specifications, and other critical information.
The contractor translates this information into a finished
structure.
PRIME CONTRACTOR - Any contractor who provides
a contract directly with an owner.
PROJECT MANAGER - A representative of a/the
project owner(s) responsible for the management of construction
activities.
RETAINAGE - The amount of money withheld
by an owner as security until the contractor completes a job.
ROUGH-IN - A term that refers to the installation
of basic plumbing, electrical venting, or similar systems
that can be completed prior to the installation of the fixtures.
SECTION - A cutaway drawing, as in a blueprint,
showing the heights, openings and thicknesses of the various
openings and materials.
SEGREGATED METHOD - A method of valuing
a structure in which each major construction assembly is priced
individually in developing the total replacement cost of a
building. This method allows users to identify all of the
cost components of each assembly, based on quantities and
types of materials found. Final estimates are a composite
of all of the assemblies that make up the structure
SOFT COSTS - These variable costs generally
include supervision, overhead and profit. Some of the less
obvious soft costs include architect's fees, and debris removal
and disposal.
SPAN - The distance between structural supports
such as walls, columns, piers, beams, girders, and trusses.
SPECS - A term that refers to the architect's
or draftsman's blueprints that specify how and with what materials
a building should be constructed; AKA plans.
SPECULATIVE BUILDER - A contractor who buys
a piece of land and builds a house or other building for sale
with his own or borrowed money without securing a buyer beforehand.
SQUARE FOOT METHOD - A valuation method
based upon the total area of the structure in square feet.
This method involves determining the ground floor area, taking
into account construction grade and quality, type of dwelling
(ranch, colonial, etc.), and the kind of construction material
in use. Once determined, the base replacement cost can be
calculated, additional features added, location modifiers
applied, and a final valuation determined.
SUBSTANTIAL COMPLETION - The point of completion
of a project at which the owner can occupy the structure.
The remaining items of work generally consist of minor finishing
work.
T.C.O. (Temporary Certificate of Occupancy)
- A legal document that allows for temporary occupancy of
a building pending the final inspection.
T & M (Time and Materials) - A method
of costing a job in which the work is agreed on between the
contractor and owner with payment based on the actual cost
to the contractor for equipment, labor and materials, plus
overhead and profit.
UNDERINSURANCE - Condition present whenever
there is insufficient insurance coverage on a structure that
is being built.
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