Construction comes with its own language, and it is not always the same language from one project to the next. A commercial build-out and a custom home involve different contracts, different systems, and different terminology. This glossary breaks down the terms Hickory Construction clients hear most often, organized by alphabetical order, so homeowners and business owners alike can follow along with confidence from the first walkthrough to final turnover.
A
Accessibility Compliance (ADA)
Design and construction standards required by the Americans with Disabilities Act to ensure commercial buildings are accessible to people with disabilities.
Allowance
A budgeted amount set aside in a residential construction contract for items like fixtures or finishes that have not yet been selected.
B
Backfill
Soil or material used to fill in around a foundation after it has been poured, part of the early stages of home construction.
Base Building
The core structural and mechanical systems of a commercial property, including the foundation, structure, roof, exterior, and core mechanical, electrical, and plumbing systems, before tenant-specific finishes are added.
Building Envelope
The exterior components of a commercial structure, including walls, roof, windows, and doors, that separate the interior from outdoor conditions.
Building Permit
Official approval from a local jurisdiction required before residential construction can begin, confirming plans meet code requirements.
Build-Out
The construction work required to finish an interior commercial space to a tenant's specifications after the base building is complete.
C
CAM (Common Area Maintenance)
Shared operating costs for maintaining common areas in a commercial property, often billed to tenants under a lease agreement.
Certificate of Occupancy (CO)
Commercial: An official document issued by a local building authority confirming a commercial building meets code and is safe for occupancy.
Residential: Official approval issued by a local building department confirming a newly built home meets code and is safe to live in.
Residential: Official approval issued by a local building department confirming a newly built home meets code and is safe to live in.
Change Order
Commercial: A formal amendment to a construction contract that modifies the original scope, cost, or schedule of a commercial project.
Residential: A written modification to a residential construction contract reflecting a change in scope, materials, or cost after the original agreement is signed.
Residential: A written modification to a residential construction contract reflecting a change in scope, materials, or cost after the original agreement is signed.
Commissioning
The process of testing and verifying that a commercial building's systems, including HVAC, electrical, and life safety, operate as designed before turnover to the owner.
Construction Manager (CM)
A professional or firm hired to oversee scheduling, budgeting, and coordination of a commercial construction project on the owner's behalf.
Crawl Space
A shallow, unfinished area beneath a home, typically one and a half to three feet high, used for access to plumbing, wiring, and ductwork.
Curtain Wall
A non-structural exterior wall system, typically glass and metal, used on commercial buildings to enclose the structure without carrying building load.
Custom Home
A residence designed and built to a homeowner's specific requirements, typically on a lot the homeowner already owns, as opposed to a pre-designed spec home.
D
Design-Build
A project delivery method where a single entity handles both design and construction, streamlining communication between architect and contractor.
Draw Schedule
A payment schedule tied to construction milestones, used to release funds from a construction loan as a home is built.
Drywall (Sheetrock)
Panels of gypsum board installed over framing to form the interior walls and ceilings of a home.
E
Egress
Designated exit routes and doors required by code to allow safe evacuation from a commercial building in an emergency.
Egress Window
A window large enough to serve as an emergency exit, required by code in bedrooms and finished basements.
Elevation
An architectural drawing showing the exterior view of a home from a specific side, used to plan the home's appearance and design.
F
Fascia
The horizontal board that runs along the edge of a roofline, often used to support gutters and finish the roof's appearance.
Final Walkthrough
A homeowner's last inspection of a completed residence before closing, used to identify any remaining punch list items.
Fit-Out
The interior construction and finishing work completed to prepare a commercial space for a specific tenant's use.
Footing
The wide concrete base poured below a home's foundation walls to distribute the structure's weight into the soil.
Framing
The construction of a home's structural skeleton, including walls, floors, and roof, typically using wood or steel studs.
G
Gable
The triangular section of wall formed at the end of a pitched roof, between the two roof slopes.
General Conditions
Project costs not tied to specific construction tasks, such as site supervision, temporary facilities, and permits, typically itemized separately in a commercial contract.
GMP (Guaranteed Maximum Price)
A contract structure in which the contractor guarantees the total project cost will not exceed an agreed maximum, with savings often shared with the owner.
Grading
The process of shaping and sloping the soil around a home to direct water away from the foundation.
H
HOA (Homeowners Association)
An organization that governs a residential community's shared standards, amenities, and covenants, which can affect what a home may include.
HVAC (Heating, Ventilation, and Air Conditioning)
The mechanical systems responsible for climate control and air quality within a commercial building.
HVAC Rough-In
The installation of ductwork, vents, and equipment lines for a home's heating and cooling system before walls are closed up.
L
Lien Waiver
A document signed by a contractor or subcontractor confirming they have been paid, waiving their right to file a claim against the home.
Life Safety Systems
Fire alarms, sprinklers, emergency lighting, and other systems required by code to protect occupants of a commercial building.
Load-Bearing Wall
A wall that supports the structural weight of a home above it, as opposed to a wall that only divides space.
M
Mechanical, Electrical, and Plumbing (MEP)
The engineered building systems covering climate control, power distribution, and water and waste, coordinated closely throughout a commercial project.
O
Occupancy Classification
A code designation assigned to a commercial building based on its intended use, such as office, retail, or assembly, that determines applicable building requirements.
Owner's Representative
An individual or firm hired to act on behalf of a commercial property owner throughout design and construction, managing communication with the design and construction teams.
P
Preconstruction Services
Planning, budgeting, and scheduling work performed by a contractor before commercial construction begins, often including value engineering and constructability review.
Punch List
Commercial: A list of remaining items to be completed or corrected before a commercial project is considered fully finished and ready for turnover.
Residential: A final list of small repairs or finishing touches to be completed before a new home is considered done.
Residential: A final list of small repairs or finishing touches to be completed before a new home is considered done.
R
Request for Information (RFI)
A formal question submitted by a contractor to the design team seeking clarification on commercial project plans or specifications.
Request for Proposal (RFP)
A document issued by a commercial property owner inviting contractors to submit competitive proposals for a construction project.
Retention (Retainage)
A percentage of payment withheld from a contractor until a commercial project is substantially complete, used to ensure work meets contract requirements.
Rough-In
The stage of construction when plumbing, electrical, and HVAC lines are installed inside walls and floors before they are closed up.
R-Value
A measurement of insulation's resistance to heat flow. Higher R-values mean better insulating performance in a home's walls, attic, and floors.
S
Setback
The minimum distance required by local zoning between a home and the property line.
Sheathing
Structural panels applied to the exterior of a home's frame before siding or roofing materials are installed.
Shell Space
An unfinished commercial interior space, typically with only structural and core mechanical systems in place, ready for tenant build-out.
Site Plan
A drawing showing the layout of a commercial property, including building placement, parking, landscaping, and utility connections.
Slab Foundation
A single, flat concrete pad poured directly on the ground that serves as a home's foundation, common in warmer climates.
Soffit
The finished underside of a roof overhang, often ventilated to help regulate attic temperature and moisture.
Spec Home
A home built by a builder based on a standard design and speculatively sold, rather than custom designed for a specific buyer.
Structural Steel
Steel framing members used to form the load-bearing skeleton of many commercial buildings.
Subcontractor
A tradesperson or company, such as an electrician or plumber, hired by a general contractor to perform specialized work on a home.
Submittal
Documentation such as shop drawings, product data, or samples submitted by a contractor for architect or engineer approval on a commercial project.
Substantial Completion
Commercial: The stage at which a commercial project is complete enough for the owner to occupy or use it for its intended purpose, even if minor items remain.
Residential: The point at which a home is livable and essentially finished, even if minor punch list items remain outstanding.
Residential: The point at which a home is livable and essentially finished, even if minor punch list items remain outstanding.
T
Tenant Improvement (TI)
Custom construction and finishes made to a leased commercial space to suit a specific tenant's operational needs.
TI Allowance
A dollar amount a landlord agrees to contribute toward tenant improvement construction costs, typically outlined in a commercial lease.
Truss
A pre-engineered, triangular structural framework used to support a home's roof.
V
Value Engineering
A systematic review process used to reduce commercial construction costs or improve efficiency without compromising the project's function or quality.
Vapor Barrier
A material installed to prevent moisture from passing through walls, floors, or crawl spaces and causing damage inside a home.
W
Walkout Basement
A basement built into a sloped lot with a ground-level exterior door, allowing direct access to the yard.
Z
Zoning
Local regulations that govern how a commercial property can be used and developed, including building height, density, and permitted uses.
