Glossary Category: Project Management & Contracts
Project Management & Contracts is about:
Get familiar with the contract language and project management terms you’ll encounter during a home renovation. From scope of work and fixed-price contracts to change orders, allowances, punch lists, and substantial completion – these definitions help you understand every phase of your project and what each milestone means for your timeline and budget.
A budget placeholder in a construction contract for a specific material or product whose final cost cannot be determined until the homeowner makes a selection, such as cabinetry, tile, countertops, or plumbing fixtures.
A formal written amendment to a construction contract that documents a change in scope, materials, or site conditions, resulting in an adjustment to the contract price, timeline, or both, requiring signatures from both parties.
A construction agreement in which the total project cost is established in advance, based on a fully defined scope, with the contractor bearing responsibility for cost overruns not caused by homeowner-initiated scope changes.
The three primary building service systems, Mechanical (HVAC), Electrical, and Plumbing, that provide heating, cooling, ventilation, power distribution, water supply, and waste removal within a residential structure.
A documented list of incomplete or deficient items identified near project completion that must be corrected before the project is considered finished and the final payment is released.
The comprehensive written description of all work included in a construction contract, specifying what will be built, the materials and standards to which work will be performed, what is explicitly excluded, and the assumptions on which the price is based.
The contractual milestone in a construction project at which the work is sufficiently complete for the homeowner to use the space for its intended purpose, typically triggering the final payment structure, even while minor punch list items remain.
A structured review of a project’s specifications and scope that identifies cost-saving alternatives delivering equivalent function and quality, without reducing the project’s design intent or long-term performance.