Planning, Contracts, and Permits

An allowance is a budget placeholder for an item you have not selected yet, like tile or fixtures.

As-built documents show what was actually installed and where, after changes during construction.

A certificate of insurance is a document that shows the builder has active insurance, usually general liability and workers comp.

A change order is a written agreement that changes the scope, cost, or schedule after work starts.

Change order markup is the percentage the builder adds to cover overhead and profit on change work.

Contingency is extra money and time set aside for unknowns, especially in remodels.

A cost-plus contract means you pay actual costs plus a fee or percentage for the builder.

A data plate is the label on equipment that shows model number, serial number, manufacture date, and specifications.

A draw schedule is the plan for when payments happen, usually tied to milestones.

An easement is a legal right that allows someone other than the property owner to use a specific portion of the property.

Exclusions are items and tasks the contract says the builder will not provide.

A final walkthrough is an inspection near the end of a project to identify punch list items before you accept the work as complete.

A fixed price contract is a contract where the builder agrees to deliver the defined scope for a set price.

A GMP is a contract structure that sets a maximum price, with rules for what happens if costs go above or below.

Inclusions are items and tasks the contract says the builder will provide.

An inspection is a checkpoint where an inspector verifies work meets code before it gets covered up.

A lien waiver is a document that says a contractor or supplier has been paid and will not file a lien for that payment.

A packaging or installation certificate is the document included with an appliance that records the installation date and is needed to activate the warranty.

A permit is official approval to do certain work, usually tied to safety rules and inspections.

A pre-drywall walkthrough is a scheduled visit to inspect framing, wiring, plumbing, and insulation before drywall covers everything up.

A punch list is a final list of small fixes and finish details before you call the job complete.

Retainage is money held back from each payment until the end of the job.

An RFI is a formal question used to clarify plans and details before work continues.

A schedule of values is a list that breaks the contract price into line items like framing, plumbing, electrical, and finishes.

Scope of work is the written list of what the builder will do and what the builder will deliver.

A warranty is the builder’s promise to fix certain issues for a set time after completion.