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.