The Ultimate Construction Management Glossary
Construction is one of the oldest professions. Over the years, construction management jargon has arisen. For novices entering the industry, construction language may be confusing. Check our construction management glossary and become an expert in industry jargon.
1. Addendum:
An addendum is an additional document the owner or project manager provides the contractor that clarifies or modifies the original contract or bidding documents.
2. All-in-rate:
This is the total cost of everything (materials, labor, equipment, etc.) necessary to complete the construction project.
3. Architect of Record:
This is the licensed architect (or firm) whose name appears on the building permits. This person/firm may or may not be the project designer.
4. Backlog:
Backlog refers to the future/uncompleted work, measured in dollars, that construction companies have contracts for.
5.& 6. Bid/Bid Documents:
A bid is the formal proposal a construction company/contractor submits to a potential client. The bid documents are various forms that project owners give contractors which provides details about the project the contractor is bidding on.
7. Bid-hit ratio:
The ratio at which contractor wins the job. It’s the number of successful versus unsuccessful bids.
8. Bill of Quantities (BOQ):
The BOQ document details all the materials, labor, and equipment required to complete a project. It’s helpful for pricing a project.
9. BIM (Building Information Modeling):
BIM is an example of construction technology. The cloud-based technology creates digital models and simulates the construction process.
10. Bottleneck:
A bottleneck occurs in construction when a project has a choke point. The next steps can’t be completed until the bottleneck is cleared.
11. Change order:
The formal written document about a modification to the original scope of work.
12. Closeout:
This is the last stage of a construction project. After confirming completion of everything, the asset is handed over to the owner.
13. Construction Management Software:
Project managers use construction management software technology to aid them in various tasks such as scheduling, budgeting, and oversight.
14. & 15. Contingency/Contingency Budget:
The contingency is money set aside to pay for unexpected costs. The contingency budget is the funds set aside ‘just in case.’ Projects are considered on budget even if they use contingency funds.
16. Critical Path Method (CPM):
A commonly used scheduling method, CPM is a project management method managers use to order all the construction project’s critical and non-critical activities.
17. Daily report:
Written at the end of each day by the foreman or site manager, the daily report is a record of events on a construction project.
18. Deliverables:
Deliverables are the tangible outcomes of a construction project, and they’re defined before construction.
19. Delivery Method:
The delivery method defines how an owner, contractor, and architect will interact during the five stages of construction. There are multiple types including Design-Bid-Build and Design-Build.
20. Drawings:
Drawings (digital blueprints) are the graphical representations of the facility’s layout, dimensions, and more.
21. Fast-Tracking:
Fast-tracking a project shortens the construction process. This is done by simultaneously working on multiple tasks, such as design and build.
22. Feasibility Study:
Conducted before projects get off the ground, feasibility studies determine viability.
23. Field Work Order:
The owner or construction manager gives the general contractor or subcontractor a field work order document. It notes the assigned tasks to complete that were not part of the original scope.
24. Forecasting:
Construction forecasting involves analyzing data from past projects to predict costs and other outcomes of a potential project.
25. General Contractor (GC):
Hired by the owner to oversee the project, the GC manages the subs and is responsible for maintaining the budget and schedule.
26. Guaranteed Maximum Price (GMP):
A GMP contract sets a price boundary. If the construction costs exceed the GMP, the contractor is responsible for paying.
27. Integrated Product Delivery (IPD):
IPD is a project delivery method where the key parties involved jointly manage/oversee the project during design and construction.
28. Invitation for bid IFB
An owner sends an IFB to contractors hey want to bid on a construction project.
29. Job Costing:
An accounting method that tracks costs and revenues of a construction project.
30. Kickoff Meeting:
The kickoff meeting is the first gathering of all the major players on a construction project. The project scope and timeline are established, and roles and responsibilities are clearly delineated.
31. Lean Construction:
An construction approach that emphasizes minimizing waste and resources by encouraging collaboration and efficient workflows.
32. Letter of Intent (LOI):
The LOI is a document that declares the intention of two entities into a contract in the future. It’s not binding.
33. Lien Waiver:
Lien waivers are legal documents that are developed by contractors, subs, suppliers, etc. It declares payment has been made and waves future property rights.
34. Low Bidder:
The contractor that submits the lowest bid (fee) to complete the project.
35. Master Schedule:
The master schedule is comprehensive and goes beyond key dates. The timeline includes milestones, activities, and deliverables.
36. Mechanic’s Lien:
A mechanic’s lien serves as a safeguard for contractors and subcontractors to ensure payment. It’s a legal claim they can make against the owner’s property.
37. MEP:
Mechanical, electrical, and plumbing, commonly referred to as MEP, are required systems for every facility.
38. Milestones:
Milestones in construction are essential activities or events along a project’s cycle. Meeting the milestones is critical to keeping a project on schedule.
39. Offsite Construction:
Construction, including planning, designing, and fabricating, occurs in a factory or another controlled setting rather than on-site.
40. Overrun:
Overrun refers to when the cost of a construction project exceeds the initial estimate of the final price.
41. Project Stakeholder:
The stakeholders have an interest and/or connection to the project. The list includes the owner, designer, general contractor, subs, area politicians, local business owners, and nearby residents.
42. Punch list:
A punch list is a document prepared by the owner’s side that notes the final items the contractor needs to complete to end the project.
43. Rework:
Rework is when some construction process or activity must be redone due to errors or design changes.
44. Risk Mitigation:
Risk mitigation is the process of identifying potential risks to the project. Once completed, a plan is developed for how to minimize or eliminate the risks.
45. RFP (request for proposal):
An owner produces an RFP document that includes project requirements and scope. The goal is to get qualified contractors details of a project so they can bid on it.
46. Schedule of Values:
The SOV is a list of the items/tasks that are part of the project and the cost of each item.
47. Scope of work (SOW):
The SOW is a document that notes all the work that team members must complete.
48. Subcontractor:
The general contractor hires a subcontractor to perform a specific task on a construction project.
49. Submittals:
Submittals are documents that the contractor presents to the owner, designer, or architect for approval of materials or equipment.
50. Virtual Design and Construction (VDC):
VDC uses technology to create digital models so key personnel can visualize the final product. It fosters a better construction process.
At RedTeam, we know all about construction. Contractors built our software, and it is for contractors. The technology fosters collaboration and enables real-time access to project information, keeping your team up to date no matter where you are.
Want to learn more? Reach out to us; we’re happy to chat.
