92 construction terms everyone should understand

Here at Bolster, we work with contractors, tradespeople, and other construction professionals every single day. Because our platform helps streamline cost estimating, budgeting, and overall project planning, we’re immersed in the language of construction from morning ‘til night.

We’ve been in the business long enough to see that even seasoned pros occasionally come across unfamiliar terms, and for newcomers, it can feel like learning a whole new language. That’s why we put together this list of construction vocabulary essentials—to help bridge the knowledge gap and ensure that everyone on your team speaks the same language.

These definitions will serve as a handy reference, whether you're an industry veteran refreshing your memory or a novice trying to distinguish load-bearing walls from non-bearing ones. And if you’re looking to take your estimating process to the next level, Bolster can help with that, too. Our software simplifies material takeoffs, automates your pricing updates, and keeps your project finances transparent, so you can stay focused on delivering quality work—not juggling spreadsheets.

Ready to learn some of those construction terms? Here are some of the key terms you should know.

Regulations, Permits, and Compliance

1. ADA (Americans with Disabilities Act)
   Governs accessibility requirements for buildings and properties.
2. Building code
   A documented set of regulations for building design and construction.
3. Zoning
   Dictates the permitted use for properties (residential, commercial, etc.).
4. Building permit
   Formal written permission from local authorities to start construction.
5. Building line
   The boundary within which construction must take place (sometimes requires special permission to build closer).
6. Certificate of occupation
   Legal document allowing a building to be occupied after meeting codes and inspections.

Contracts, Legal, and Financial Terms

1. Bid
   An offer to perform specified work at a specified price.
2. Alternative quote or bid
   A separate solution or approach proposed by a contractor in addition to the main bid.
3. Bid bond
   A financial guarantee ensuring a bid won’t be withdrawn before the award date.
4. Allowances
   Contracts includedmonetary amounts to cover uncertain or indeterminate costs.
5. Alteration (in contract context)
   Changes made to a contract without increasing the project footprint.
6. Back charge
   Extra charge for work not included in the original bid or quote.
7. Contract over-run
   When the actual cost exceeds what was budgeted or contracted.
8. Contract under-run
   When the actual cost is lower than what was budgeted or contracted.
9. Cost-plus agreement
   Client pays actual cost of materials, labor, etc. plus a set markup.
10. Fixed fee (lump sum quote)
    A single price for all specified work.
11. GMP contracts (Guaranteed Maximum Price)
    Sets a maximum cost cap for the owner.
12. Holdback
    A percentage of each payment is withheld until all final work and documentation is complete.
13. Lien
    A legal claim against a property by someone owed money for work or materials.
14. Lump sum bid
    One total price for all specified work (another term for fixed fee).
15. Payment application
    A formal request from a contractor for progress payments.
16. Penalty clause
    Allows a client to charge the contractor for not completing work by a specified date.
17. Performance bond
    A guarantee that the contractor will perform the work as agreed, with financial implications for default.
18. Time and materials
    A billing method where the owner pays actual labor and material costs.
19. Unit rate bid
    Pricing each unit of work (e.g., per square foot or per cubic yard), then summing for total cost.

Insurance and Risk Management

1. Builder's risk insurance
   Specialized insurance that covers construction projects, protecting both the contractor and the public from loss or injury.

Project Management, Administration, and Documentation

1. Appraisal
   Valuation of a property, often for financing or insurance purposes.
2. Construction budget
   Written budget covering all project costs (materials, labor, equipment, etc.).
3. Construction documents
   All documents required for and produced during a project (plans, specs, contracts, etc.).
4. Daily progress report
   Records work completed, deliveries, and important events on a given day.
5. Design-build construction
   A contractor is responsible for both design and construction under one contract.
6. Draw
   Progress payment (another term for payment application).
7. Estimate
   Calculation of expected costs for labor, materials, equipment, etc. forms the basis of a bid.
8. Field work order
   An on-site instruction for additional (often low-value) work outside the main contract.
9. Final completion
   Point when a project is 100% finished; no punch list items remain.
10. Invoice
    A formal bill from a contractor to a client for work completed to date.
11. Milestone
    Major project checkpoint (e.g., completing a foundation).
12. Punch list
    A list of minor or corrective tasks needed before final completion.
13. Quantity take off
    The process of determining material quantities from project drawings and specs.
14. RFI (Request for Information)
    A formal request by a contractor for clarification on drawings, specs, or contract terms.
15. RFP (Request for Proposal)
    Used for larger projects; invites detailed proposals from contractors or designers.
16. RFQ (Request for Quotation)
    Often used for smaller projects; requests a price quote for a defined scope.
17. Scope creep
    Changes or additional work introduced without official change orders or added budget.
18. Scope of work (SOW)
    Formal written description of the project tasks and deliverables.
19. Specifications
    Written details of materials, techniques, quality standards, and execution.
20. Standing time
    Time when workers are on site but unable to work (can lead to additional costs).
21. Substantial completion
    Stage where a building can be used for its intended purpose, though minor tasks (punch list) may remain.
22. Duration
    The length of time for a project or specific task.

Design, Drawings, and Visualization

1. As-built drawings
   “Record” drawings completed post-construction to show how work was actually done.
2. BIM (Building Information Management)
   Software/process involving 3D models and data for design and construction.
3. Blueprints
   Traditional name for construction drawings (historically printed on blue paper).
4. BOQ (Bill of Quantities)
   A line-item list of work sections with associated quantities and rates.
5. CAD (Computer Aided Drawings)
   Technical drawings are created using software like AutoCAD.
6. Drawings
   The general term for all project plans: architectural, structural, MEP, etc.
7. Elevation
   A 2D view of a vertical face or side of a structure.
8. Plan view
   A 2D view from above (overhead layout).
9. Section drawing
   A cut-through “slice” showing internal details of a structure.

Site Work, Earthwork, and Foundations

1. Bedrock
   Solid rock beneath soil layers.
2. Backfill
   Filling an excavation with soil or material, often compacted for stability.
3. Cut and fill
   Adjusting site elevation by excavating in one area and filling in another.
4. Excavation
   Any hole or trench dug on a construction site.
5. Grade
   The level of the ground can be “below grade” (underground) or “above grade” (above ground).
6. Staking
   Marking the corners and boundaries of a construction project on site.
7. Foundation
   The structural base of a building, commonly poured concrete footings and walls.

Structural Elements and Concrete Work

1. Aggregate
   Sand (fine aggregate) and stone/gravel (coarse aggregate) are used in concrete.
2. Beam
   A structural member that carries and distributes loads.
3. Bearing capacity
   The load a structural element (like a beam) can safely support.
4. Bearing wall (load-bearing wall)
   A wall supporting the structural load of a building.
5. Non-bearing wall
   An interior partition that does not support structural loads.
6. Cement
   The gray powder that binds aggregate into concrete or mortar.
7. Concrete
   A mix of cement, sand, stone, and water, which hardens over time.
8. Cure (concrete)
   The chemical process of concrete hardening continues long after the initial set.
9. Formwork
   Temporary molds into which concrete is poured to form slabs, beams, and walls.
10. Falsework
    Temporary frameworks for supporting structures during construction until they become self-supporting.
11. Masonry
    Building with brick, stone, or cinder block (and mortar).
12. Voids
    Unfilled spaces or gaps (either intentional or unintentional) in soil or concrete.

Structural Loads and Framing Concepts

1. Dead load
   A permanent, static load (e.g., weight of structural elements).
2. Live load
   A load that can move or change (people, furniture, vehicles, snow, etc.).
3. Cantilever
   A projecting structure (floor, beam, balcony) supported only at one end.
4. On center (O/C)
   Measurement taken from the center of one framing member to the center of the next.

Mechanical, Electrical, and Specialty Systems

1. A/C (Air Conditioning)
   Refers to air conditioners or air conditioning systems; includes parts like condensers.
2. Acoustics
   The science and treatment of sound, particularly damping or soundproofing in buildings.
3. HVAC (Heating, Ventilation, and Air Conditioning)
   The system is responsible for a building’s thermal comfort and air quality.
4. CFM (Cubic Feet per Minute)
   A measure of volumetric flow rate (e.g., for air movement or concrete pumping).
5. Rough-in
   Preliminary stage of plumbing/electrical, with services brought to approximate final points.

Scheduling and Acceleration

1. Fast-tracking
   Accelerating a project schedule, often by overlapping tasks to recover lost time.

Roles and Responsibilities

1. Architect
   A trained professional responsible for building design and sometimes oversight.
2. Architect-Engineer
   An individual or firm offering both architectural and engineering services.
3. Project manager
   Oversees the project scope, schedule, budget, and coordinates the project team.

Hopefully, these definitions will help you make a little more sense of the construction process. But if you’re looking for help streamlining your construction estimating process, we’d love to chat more and explain how Bolster’s construction estimating software can make things a little easier for your business.

At Bolster, we recognize that precise and efficient estimating is central to your project’s success. Our construction estimating software is designed to help contractors and project managers cut down on manual tasks—letting you focus on growing your business instead of juggling spreadsheets.

With Bolster, you can generate comprehensive material take-offs, compare real-time pricing from preferred suppliers, and easily monitor project costs. By simplifying collaboration among stakeholders and automatically updating your budget when designs or specs change, Bolster helps you avoid surprises and confidently manage your bottom line.

Interested in learning more? We’re here to discuss how our software can streamline your current workflow, reduce the risk of cost overruns, and help you deliver projects on time—and on budget. Please feel free to contact us at any time; our team is eager to assist you in eliminating uncertainty from construction estimating and ensuring consistent project success.