Reference

    Construction Glossary

    53+ essential construction, estimating, and legal terms — from BIM to WSIB.

    A

    Addendum

    A document issued during the bidding process that modifies or clarifies the original contract documents.

    As-Built Drawings

    Revised drawings produced after construction showing the exact dimensions, geometry, and location of all elements as actually built.

    B

    BIM (Building Information Modeling)

    A digital representation of the physical and functional characteristics of a facility, used for design, construction, and operations. BIM enables clash detection, quantity takeoffs, and lifecycle management.

    Bid Bond

    A guarantee submitted with a bid that assures the project owner the bidder will enter into the contract at the bid price if selected.

    Bill of Quantities (BOQ)

    A document listing all materials, parts, and labor (with quantities) needed for a construction project, organized by trade.

    C

    CAD (Computer-Aided Design)

    Software used to create precision 2D and 3D drawings. AutoCAD and Revit are common in construction.

    CCA (Capital Cost Allowance)

    The Canadian tax depreciation system that allows businesses to deduct the cost of capital assets over time (e.g., equipment, vehicles).

    Change Order

    A written document that modifies the original contract scope, price, or schedule after the contract has been signed.

    Clerk of the Works

    An independent professional who supervises construction on behalf of the client to ensure quality and compliance.

    Commissioning

    The process of verifying that all building systems (HVAC, electrical, plumbing, fire) perform according to design intent.

    Contingency

    A budget reserve (typically 5-15%) set aside for unforeseen conditions, design changes, or price fluctuations.

    CSI MasterFormat

    A standard numbering system (Divisions 00-49) published by the Construction Specifications Institute for organizing construction specifications, cost estimates, and project manuals. Division 03 = Concrete, 06 = Wood, 09 = Finishes, 26 = Electrical, etc.

    Critical Path Method (CPM)

    A project scheduling technique that identifies the longest sequence of dependent tasks, determining the minimum project duration.

    Curtain Wall

    A non-structural exterior wall system, typically glass and aluminum, that is attached to the building structure.

    D

    Daily Log / Daily Report

    A daily record of construction activity including weather, labor, equipment, materials received, work completed, and issues encountered.

    Deficiency List (Punch List)

    A list of items that do not conform to the contract specifications and must be corrected before final payment.

    Demobilization

    The process of removing equipment, temporary structures, and personnel from a construction site after work is complete.

    Design-Build (DB)

    A project delivery method where a single entity provides both design and construction services under one contract.

    Division of Work

    The breakdown of a construction project into trade-specific work packages (e.g., mechanical, electrical, structural).

    E

    Earned Value Management (EVM)

    A project management methodology that integrates scope, schedule, and cost data to assess project performance and progress.

    Egress

    A means of exiting a building. Building codes require specific egress requirements including window sizes for bedrooms.

    F

    Fast-Track Construction

    A method where construction begins before design is fully complete, with overlapping phases to reduce total project time.

    Force Majeure

    Unforeseeable circumstances (natural disasters, pandemics, war) that prevent a party from fulfilling contractual obligations.

    G

    General Conditions

    Non-trade-specific costs required to manage and support a construction project, including supervision, site office, temporary utilities, and insurance.

    GMP (Guaranteed Maximum Price)

    A contract type where the contractor guarantees the project won't exceed a specified maximum price, with savings shared or retained.

    H

    Holdback / Retainage

    A percentage of each progress payment (typically 10%) withheld by the owner as security for completion. In Ontario, the holdback period is 60 days.

    I

    IBC (International Building Code)

    A model building code adopted (with amendments) by most US states. Sets minimum requirements for structural, fire, accessibility, and energy performance.

    IPD (Integrated Project Delivery)

    A collaborative project delivery approach where owner, architect, and contractor share risk and reward under a single multi-party agreement.

    L

    Lean Construction

    A production management approach adapted from manufacturing (Toyota Production System) to minimize waste and maximize value in construction.

    LEED (Leadership in Energy and Environmental Design)

    A green building certification system that rates buildings on sustainability, energy efficiency, water conservation, and indoor environmental quality.

    Lien (Construction / Mechanic's)

    A legal claim against a property by a contractor, subcontractor, or supplier who has not been paid for work or materials provided.

    Lien Waiver

    A document where a contractor waives their right to file a lien against a property, typically provided upon receipt of payment.

    Liquidated Damages

    A pre-determined amount of money that a contractor must pay for each day of delay beyond the contractual completion date.

    M

    Mobilization

    The process of assembling and transporting equipment, personnel, and materials to a job site to begin construction.

    N

    NBC (National Building Code of Canada)

    The model building code for Canada, adopted and amended by each province/territory. Updated on a 5-year cycle.

    NTO (Notice to Owner)

    In Florida, a preliminary notice that subcontractors and suppliers must serve within 45 days of first furnishing to preserve lien rights.

    O

    OBC (Ontario Building Code)

    Ontario's provincial building code based on the NBC, with Ontario-specific amendments for energy efficiency, accessibility, and structural requirements.

    OSHA (Occupational Safety and Health Administration)

    The US federal agency responsible for workplace safety regulations, including construction site safety standards (29 CFR 1926).

    Owner's Representative (Owner's Rep)

    A professional hired by the owner to oversee a construction project, manage contractors, and protect the owner's interests.

    P

    Performance Bond

    A surety bond guaranteeing that a contractor will complete a project according to the contract terms.

    PLM (Project Lifecycle Management)

    The management of a construction project through its entire lifecycle: planning, design, procurement, construction, commissioning, and operations.

    Prequalification

    A process where contractors submit financial, safety, and experience information to demonstrate their ability to perform specific work.

    Progress Payment / Draw

    Periodic payments made to a contractor based on the percentage of work completed, typically monthly.

    R

    RFI (Request for Information)

    A formal question submitted by a contractor to the designer/architect seeking clarification on drawings or specifications.

    RFP (Request for Proposal)

    A document issued by a project owner inviting contractors to submit proposals for a defined scope of work.

    RS Means

    A widely-used construction cost database (now Gordian) providing localized material, labor, and equipment cost data for estimating.

    S

    Scope Creep

    The gradual expansion of a project's scope beyond the original agreement, often without corresponding budget or schedule adjustments.

    Shop Drawings

    Detailed drawings produced by contractors or manufacturers showing how specific elements will be fabricated and installed.

    Submittal

    Documents (product data, shop drawings, samples) submitted by the contractor for the architect's review and approval before installation.

    Substantial Completion

    The stage when a project is sufficiently complete for the owner to occupy or use it for its intended purpose. Triggers holdback and lien deadlines.

    T

    Takeoff (Quantity Takeoff)

    The process of measuring and listing all materials and labor quantities needed for a construction project from the blueprints.

    V

    Value Engineering (VE)

    A systematic method to improve the value of a project by analyzing functions and reducing costs without sacrificing quality or performance.

    W

    WSIB / WCB

    Workplace Safety and Insurance Board (Ontario) / Workers' Compensation Board (other provinces). Mandatory workplace injury insurance for construction employers.