Contractor Terms Glossary
Every important contractor and construction term explained. From estimates to invoicing, learn the language of the trades.
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Jump into related terms and resource guides by business area.
Quebec contractors
RBQ licensing, CCQ, CNESST, GST/QST, and legal hypothecs.
- RBQ (Régie du bâtiment du Québec)
- Building Act (Loi sur le bâtiment)
- RBQ Licensed Respondent (répondant)
- CCQ (Commission de la Construction du Québec)
Texas contractors
TDLR licensing, mechanic's liens, prompt payment, and RCLA.
- TDLR (Texas Department of Licensing and Regulation)
- Texas Mechanic's Lien
- Texas Prompt Payment Act
- Texas Residential Construction Liability Act (RCLA)
California contractors
CSLB licensing, mechanic's liens, prompt payment, and prevailing wage.
- CSLB (Contractors State License Board)
- California Mechanic's Lien
- California Prompt Payment Act
- California Prevailing Wage
British Columbia contractors
Builder's liens, BC Housing licensing, WorkSafeBC, and Technical Safety BC.
Non-payment without a contract →Manitoba contractors
Builder's liens, WCB, new home warranty, and prompt payment.
- Manitoba Builder's Lien
- WCB Manitoba
- Manitoba New Home Warranty Program
- Manitoba Prompt Payment (Construction)
Alberta contractors
Builder's liens, WCB, new home warranty, and prepaid contracting.
- Alberta Builder's Lien
- WCB Alberta
- Alberta New Home Warranty Program
- Alberta Prepaid Contractor Licence
Ontario contractors
Construction Act liens, WSIB, HCRA warranty, and prompt payment.
- Ontario Construction Act
- WSIB Ontario
- Ontario New Home Warranty (HCRA)
- Ontario Prompt Payment (Construction)
Florida contractors
DBPR licensing, construction liens, prompt payment, and workers' comp.
- Florida DBPR Contractor License
- Florida Construction Lien Law
- Florida Prompt Payment (Construction)
- Florida Workers' Compensation
New York contractors
Mechanic's liens, prompt payment, workers' comp, and home improvement licensing.
- New York Mechanic's Lien
- New York Prompt Payment Act
- New York Workers' Compensation Board
- New York Home Improvement Contractor License
Saskatchewan contractors
Builder's liens, WCB, new home warranty, and prepaid contracting.
- Saskatchewan Builder's Lien
- WCB Saskatchewan
- Saskatchewan New Home Warranty
- Saskatchewan Prepaid Contracting
Estimating and pricing
Quotes, scope, change orders, markup, and overhead.
Contractor estimate templates →Invoicing and payment
Invoices, progress billing, retainers, and liens.
Contractor invoicing software →Commercial contracts
Fixed-price deals, payment terms, indemnity, and delay clauses.
Contractor estimate templates →Job management
RFIs, job costing, general conditions, and punch lists.
Stay organized as a contractor →Contracts and legal
Agreements, bonds, waivers, and payment protection.
Non-payment without a contract →Permits and compliance
Building permits, inspections, zoning, and licensing.
Stay organized as a contractor →A
ABN (Australian Business Number)
An Australian Business Number (ABN) is an 11-digit identifier that Australian contractors need to operate legally, invoice clients, and manage GST obligations.
ACH (Air Changes Per Hour)
ACH is a standard measurement for how many times the entire volume of air in a room is completely replaced with fresh air per hour.
Alberta Builder's Lien
An Alberta builder's lien secures unpaid construction work under the Builder's Lien Act. Ten percent holdback, registration, and strict deadlines apply.
Alberta New Home Warranty Program
Alberta's new home warranty program requires mandatory warranty coverage on most new homes built for consumers. Builders must enroll and meet technical standards.
Alberta Prepaid Contractor Licence
Alberta prepaid contractor licensing applies to residential contractors who take deposits before work is done. Registration and trust account rules protect homeowners.
Allowance
An allowance in construction is a predetermined budget amount included in a contract for specific materials or fixtures. Learn how to use allowances effectively in your estimates.
B
Backcharge
A backcharge is a cost one contractor or project owner bills to another party for work they failed to complete correctly, on time, or at all.
BC Builder's Lien
A BC builder's lien secures unpaid construction work against property in British Columbia under the Builder's Lien Act. Holdback, notice, and filing deadlines are strict.
BC Housing Licensed Residential Builder
In BC, licensed residential builders must register with BC Housing under the Homeowner Protection Act before building new homes or performing certain residential work.
Bid
A formal proposal submitted by a contractor to compete for a construction project, including pricing, timeline, and scope of work.
Board Foot
A board foot is a unit of lumber measurement equal to a piece 1 inch thick, 12 inches wide, and 12 inches long, used for pricing hardwood lumber.
BTU (British Thermal Unit)
A BTU measures how much heat energy an air conditioner or heater can move; in cooling, BTU/hr indicates the capacity needed to keep a space comfortable.
Building Act (Loi sur le bâtiment)
The Building Act is Quebec's main construction law. It sets licensing rules enforced by the RBQ, owner-builder obligations, and frameworks for legal hypothecs.
C
California Mechanic's Lien
A California mechanic's lien secures unpaid construction work against property. Strict preliminary notice and filing deadlines apply under California Civil Code.
California Prevailing Wage
California prevailing wage laws require specified pay rates on public works projects. DIR publishes rates; contractors must classify workers correctly and submit certified payroll.
California Prompt Payment Act
California's Prompt Payment Act sets billing and payment timelines on private construction projects. Late pay can trigger interest and attorney fees.
Cash Flow
The movement of money in and out of a contractor's business, tracking when payments are received from clients and when expenses are paid out.
CCQ (Commission de la Construction du Québec)
The CCQ administers labour rules on Quebec construction sites, including collective agreements, levies, and worker competency certificates.
CFM (Cubic Feet Per Minute)
CFM is a measurement of airflow volume in HVAC systems, indicating how many cubic feet of air a system moves per minute.
Change Order
A change order is a written agreement that modifies the original contract terms, scope, or price of a construction project. Used to manage project changes in writing.
CIS (Construction Industry Scheme)
The Construction Industry Scheme (CIS) is a UK tax deduction system where contractors deduct money from subcontractor payments and pass it to HMRC.
Closeout
Closeout is the final phase of a construction project where the contractor completes punch list items, turns over documents, and formally wraps up the job.
CNESST
The CNESST is Quebec's workplace health, safety, and labour standards body. Contractors must know its rules for prevention, accidents, and compliance on job sites.
Contingency
A contingency is a budget reserve set aside to cover unexpected costs, changes, or unforeseen conditions that arise during a construction project.
Contract
A contract is a legally binding agreement between a contractor and client that outlines the scope, terms, and conditions of a construction project.
Coping
Coping is the capstone or covering material placed on top of a wall, pool edge, or parapet to protect the structure below and provide a finished appearance.
Cost-Plus Contract
A cost-plus contract is an agreement where the client pays the actual project costs plus a markup or fee for the contractor's profit and overhead.
Crew Management
The process of organizing, scheduling, and supervising construction workers and teams to ensure efficient project completion and workplace safety.
CSLB (Contractors State License Board)
The CSLB licenses and regulates contractors in California. Most construction work over $500 requires an active CSLB license with the correct classification.
Customer Relationship Management (CRM)
How contractors track clients, past jobs, follow-ups, and repeat work. For most small trades it is organized client history, not enterprise software.
Cut-in
Cut-in is a painting technique using a brush to create clean, precise edges along trim, corners, and detailed areas before or after rolling larger surfaces.
D
Davis-Bacon Act
Federal law requiring prevailing wages on federally funded construction projects. Understand how it affects pay, compliance, and bidding.
Dead Load
Dead load is the permanent weight of fixed building materials and structural components that a structure must support at all times.
Demobilization
Demobilization is the process of removing crews, equipment, temporary protections, and site facilities after project work is complete.
Digital Marketing
Online ways contractors get found and win work: search, reviews, social posts, and paid ads. Most homeowners start on Google before they call anyone.
Downspout
A downspout is a vertical pipe that carries rainwater from gutters down to ground level and away from the building foundation.
Draw Schedule
A predetermined payment schedule that outlines when and how much contractors will be paid throughout a construction project.
Drop Cloth
A drop cloth is a protective covering used to shield floors, furniture, and other surfaces from paint drips, spills, and overspray during painting projects.
F
Fascia
Fascia is the horizontal board that runs along the lower edge of a roof, serving as the mounting surface for gutters and providing a finished appearance to the roofline.
Finish Carpentry
Finish carpentry is the detailed woodworking phase that installs visible trim, molding, doors, and other final interior wood components.
Fixed-Price Contract
A fixed-price contract sets a lump sum for defined scope. The contractor bears most cost overrun risk unless change orders adjust the price.
Flashing
Flashing is waterproof material installed to direct water away from critical areas of a roof or building envelope, preventing water damage and leaks.
Florida Construction Lien Law
Florida's Construction Lien Law (Chapter 713) secures unpaid construction work. Notice requirements, deadlines, and owner protections are strict.
Florida DBPR Contractor License
Florida contractors are licensed through the DBPR. Certificate of competency, insurance, and financial requirements vary by trade and license type.
Florida Prompt Payment (Construction)
Florida prompt payment statutes set deadlines for paying contractors and subcontractors on private and public construction projects when invoices are undisputed.
Florida Workers' Compensation
Florida requires most construction employers to carry workers' compensation insurance. Coverage, exemptions, and subcontractor rules are strictly enforced.
Footing
A footing is the widened base of a foundation that spreads structural loads safely into the soil.
G
Gallon
A gallon is a unit of liquid measurement equal to 4 quarts or 128 fluid ounces, commonly used for paint, stains, sealers, and other liquid construction materials.
General Conditions
General conditions are the indirect project costs required to manage and deliver work: supervision, temp facilities, cleanup, and site overhead.
Google My Business
A free Google platform that allows contractors to manage their business information, interact with customers, and appear in local search results and Google Maps.
GST and QST (Quebec Sales Taxes)
GST and QST are the sales taxes Quebec contractors collect and remit on taxable work. Learn registration, invoicing, and common mistakes for English speakers in Quebec.
Gunite
Gunite is a dry concrete mixture that is pneumatically applied at high velocity, commonly used for building swimming pool shells and structural applications.
I
Indemnification
Indemnification clauses shift financial responsibility for certain losses between parties. Contractors should read hold harmless language before signing.
Inspection
An inspection is an official examination of construction work by a building inspector to verify compliance with building codes and permit requirements.
Invoice
A bill sent to clients requesting payment for completed work, materials, or services provided during a construction project.
J
J-Channel
J-channel is a siding trim piece that creates a finished edge around windows, doors, and other openings, allowing siding to terminate cleanly and professionally.
Job Costing
Job costing tracks labor, materials, and overhead against each project. It shows whether quoted work actually made money.
Joist
A joist is a horizontal structural member that supports floors and ceilings, typically spanning between beams, walls, or other support structures.
L
Lead Generation
Finding people who might hire you and turning that interest into a booked estimate. Referrals, Google, ads, and repeat clients are the usual sources for trades.
Ledger Board
A ledger board is a horizontal framing member attached to a structure to support one end of joists, commonly used for decks and similar framed assemblies.
Legal Hypothec (Construction, Quebec)
A legal hypothec is Quebec's civil-law security that lets contractors and suppliers claim unpaid construction amounts against the property where work was done.
Lien
A lien is a legal claim against property that allows contractors and suppliers to secure payment for work performed or materials provided.
Lien Waiver
A legal document that waives a contractor's right to file a lien against a property in exchange for payment.
Linear Foot
A linear foot is a measurement of length in a straight line, commonly used for pricing trim, lumber, pipe, and other materials sold by length.
Liquidated Damages
Liquidated damages are contract penalties for missing schedule milestones. They pre-set delay costs instead of fighting over actual damages later.
Live Load
Live load is the temporary or movable weight a structure must support, such as people, furniture, storage, vehicles, or snow.
Load-Bearing Wall
A load-bearing wall is a wall that supports structural weight from above and transfers that load down to the foundation or other supports.
Local SEO
Getting your contracting business to show up in local Google results and Maps when homeowners search for your trade in your area.
M
Manitoba Builder's Lien
A Manitoba builder's lien secures unpaid construction work under The Builders' Liens Act. Statutory holdback, registration, and strict deadlines apply.
Manitoba New Home Warranty Program
Manitoba's new home warranty framework requires registered builders and mandatory warranty coverage on most new homes sold to consumers in the province.
Manitoba Prompt Payment (Construction)
Manitoba's prompt payment rules set invoice and payment timelines on construction projects and allow adjudication for payment disputes.
Markup
Markup is the percentage added to the cost of materials and labor to determine the selling price and ensure profitability.
Material Takeoff
A material takeoff is the process of calculating and listing all materials needed for a construction project based on plans and specifications.
Mil Thickness
Mil thickness is a measurement of paint film thickness, where one mil equals one thousandth of an inch (0.001 inches), used to specify and verify proper coating application.
Mobilization
Mobilization is the process and cost of getting labor, equipment, materials, and site setup ready before productive work begins on a project.
N
NEQ (Quebec Enterprise Number)
The NEQ is Quebec's 10-digit business identification number. Contractors need it for registration, invoicing, and dealing with Revenu Québec and the REQ.
New York Home Improvement Contractor License
New York regulates home improvement contractors through state and local licensing, contract content rules, and consumer protection requirements.
New York Mechanic's Lien
A New York mechanic's lien secures unpaid construction work under Lien Law Article 2. Filing deadlines and priority rules are strict.
New York Prompt Payment Act
New York's Prompt Payment Act sets billing and payment timelines on private and public construction contracts when work is approved and undisputed.
New York Workers' Compensation Board
The NY Workers' Compensation Board oversees mandatory workers' comp coverage for most employers. Construction employers face strict insurance and posting rules.
O
Online Presence
Every place your business shows up online: website, Google listing, reviews, directories, and social profiles. Homeowners check these before they call.
Online Reviews
Customer feedback and ratings posted on digital platforms about a contractor's services, which significantly impact business reputation and local search rankings.
Ontario Construction Act
Ontario's Construction Act governs liens, holdback, trust funds, and prompt payment on construction projects. Deadlines and registration rules are strict.
Ontario New Home Warranty (HCRA)
Ontario requires mandatory new home warranty on qualifying residential projects. The HCRA licenses builders and administers warranty coverage rules.
Ontario Prompt Payment (Construction)
Ontario prompt payment rules under the Construction Act set invoice deadlines, payment timelines, and adjudication for construction payment disputes.
Overhead
Overhead refers to ongoing business expenses that cannot be directly attributed to specific construction projects but are necessary for business operations.
Overlay
An overlay is a thin layer of new material applied over an existing surface to restore appearance, provide protection, or add functionality without full replacement.
P
Pay-When-Paid
A pay-when-paid clause ties subcontractor payment to the prime receiving owner funds. Enforcement and timing vary by jurisdiction and contract.
Payment Terms
Payment terms define when invoices are due, how clients pay, and what happens when payment is late. Clear terms protect contractor cash flow.
Permit
A permit is official authorization from local government required before beginning most construction, renovation, or building work.
Preliminary Notice
A preliminary notice tells property owners and lenders that a party is contributing work to a project. Many lien laws require it to preserve payment rights.
Price Book
A catalog of materials, labor, and services with standardized pricing that contractors use to create consistent estimates and invoices quickly.
Prime Contractor
The prime contractor holds the main contract with the project owner. They coordinate subs, permits, billing, and overall job delivery.
Primer
Primer is a preparatory coating applied before paint to improve adhesion, enhance durability, and ensure uniform color coverage.
Profit and Loss Statement
A financial report that summarizes a contractor's revenues, costs, and expenses during a specific period to determine overall profitability.
Progress Payment
Progress payments are partial payments made to contractors based on completed work milestones or percentage of project completion.
Project Management
The process of planning, organizing, and overseeing construction projects from start to finish to ensure they're completed on time, within budget, and to quality standards.
Punch List
A final checklist of incomplete or defective work items that need to be addressed before a construction project can be considered complete.
Purchase Order
A purchase order is a formal document authorizing a supplier to provide materials or services at agreed prices. It controls job spending and accounts payable.
R
R-Value
R-value measures how well an insulation material resists heat flow, with higher numbers indicating greater insulating performance.
RBQ (Régie du bâtiment du Québec)
The RBQ is Quebec's building board. It issues and oversees mandatory contractor licences for construction work in the province.
RBQ Licensed Respondent (répondant)
The licensed respondent is the person who proves an RBQ licence applicant has the skills to run a construction business safely. Required for most Quebec contractor licences.
Rebar
Rebar (reinforcing bar) is steel bar used to strengthen concrete structures by providing tensile strength that concrete lacks on its own.
Request for Information (RFI)
An RFI is a formal question during construction to clarify drawings, specs, or scope. RFIs create a paper trail for changes and delays.
Request for Proposal (RFP)
An RFP solicits detailed proposals including approach, qualifications, schedule, and price. Common on design-build and complex commercial work.
Request for Quote (RFQ)
An RFQ asks vendors or subcontractors for pricing on defined scope. It helps contractors compare bids and buy out trade packages.
Retainage
Retainage is a portion of each progress payment withheld until project completion. It protects owners but affects contractor cash flow.
Retainer
An upfront payment made by a client to secure a contractor's services and cover initial project costs before work begins.
Rough-In
Rough-in is the construction phase where core systems like plumbing, electrical, and HVAC are installed before insulation, drywall, and finish materials.
S
Saskatchewan Builder's Lien
A Saskatchewan builder's lien secures unpaid construction work under The Builders' Lien Act. Holdback, registration, and strict deadlines apply.
Saskatchewan New Home Warranty
Saskatchewan requires new home warranty insurance on qualifying residential construction. Builders must enroll projects and meet licensing standards.
Saskatchewan Prepaid Contracting
Saskatchewan regulates prepaid contracting under consumer protection rules. Deposits, registration, and trust requirements apply to many residential sales.
Schedule of Values
A schedule of values breaks a contract sum into line items for progress billing. It drives pay applications and retainage on many commercial jobs.
Scope of Work
A detailed description of all tasks, materials, and deliverables included in a construction project contract.
Shim
A shim is a thin piece of material used to level, align, space, or support building components during installation.
Snagging List
A snagging list is a detailed record of minor defects, unfinished work, and imperfections that need to be corrected before a construction project is considered complete.
Soffit
Soffit is the finished surface beneath the eaves and roof overhangs, providing ventilation and weather protection while completing the exterior appearance.
Spalling
Spalling is the breaking, flaking, or chipping of concrete, brick, or masonry surfaces caused by moisture, corrosion, freeze-thaw cycles, or other deterioration.
Square
A square in roofing is a unit of measurement equal to 100 square feet, commonly used for pricing roofing materials and labor.
Square Foot
A square foot is a unit of area measurement equal to 12 inches × 12 inches, commonly used in construction for pricing and material calculations.
Subcontractor
A subcontractor is a specialized contractor hired by a general contractor to perform specific portions of a construction project.
Subfloor
A subfloor is the structural layer beneath finished flooring that provides a stable base across the floor framing system.
Substantial Completion
Substantial completion is the point when a construction project is usable for its intended purpose, even if minor punch list items remain.
Surety Bond
A surety bond is a three-party agreement that guarantees a contractor will fulfill their contractual obligations, protecting the project owner from financial loss.
T
TDLR (Texas Department of Licensing and Regulation)
TDLR is Texas's state licensing agency for many skilled trades. HVAC, electrical, plumbing, and other contractors may need a TDLR licence even though Texas has no statewide GC licence.
Technical Safety BC
Technical Safety BC regulates electrical, gas, boiler, and elevating device work in British Columbia. Contractors need permits and qualified credentials for regulated scopes.
Texas Mechanic's Lien
A Texas mechanic's lien is a property claim under Chapter 53 of the Texas Property Code. Contractors, subs, and suppliers use it to secure payment when a client will not pay.
Texas Prompt Payment Act
The Texas Prompt Payment Act (Property Code Chapter 28) sets payment deadlines and interest penalties on private commercial construction projects in Texas.
Texas Residential Construction Liability Act (RCLA)
The RCLA is Texas law (Property Code Chapter 27) that sets defect claim procedures for residential construction. Contractors must know its notice and inspection rules.
Time and Materials (T&M)
Time and materials is a contract method where the client pays for actual labor hours at agreed rates plus the cost of materials used on the project.
Ton
A ton is a unit of weight measurement equal to 2,000 pounds, commonly used for ordering bulk construction materials like gravel, asphalt, and concrete.
U
Underlayment
Underlayment is a layer of material installed beneath a finish surface, such as roofing or flooring, to provide support, protection, or moisture control.
Unit
A unit is a single item or piece used in construction pricing and material ordering, such as individual fixtures, doors, windows, or appliances.
V
Vapor Barrier
A vapor barrier is a material designed to slow or prevent moisture vapor from moving through walls, floors, ceilings, or building assemblies.
Variation
A variation is a formal change to the original scope, specifications, or contract terms of a construction project, commonly used in Australian construction contracts.
W
Warranty
A warranty is a contractor's guarantee to repair or replace defective work or materials for a specified period after project completion.
WCB Alberta
WCB Alberta (Workers' Compensation Board) provides mandatory workers' compensation coverage and workplace injury claims for most Alberta employers, including contractors.
WCB Manitoba
WCB Manitoba (Workers Compensation Board of Manitoba) provides workers' compensation insurance and workplace safety oversight for Manitoba employers, including contractors.
WCB Saskatchewan
WCB Saskatchewan provides mandatory workers' compensation for most Saskatchewan employers. Construction businesses must register, report payroll, and pay premiums.
Weep Screed
A weep screed is a metal or plastic trim installed at the base of stucco walls to allow trapped moisture to drain out of the wall assembly.
Work Order
A formal document that authorizes and describes specific work to be performed, including scope, materials, timeline, and costs for a construction project or service.
WorkSafeBC
WorkSafeBC is British Columbia's workers' compensation and workplace safety regulator. BC employers must register, pay premiums, and follow OHS rules on job sites.
WSIB Ontario
WSIB is Ontario's workers' compensation system. Most construction employers must register, report payroll, and pay premiums for workplace injury coverage.
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