If you’ve ever felt like contractors are speaking a different language, you’re not alone. Construction comes with its own vocabulary, and understanding the key terms can save you time, money, and plenty of confusion. Below is a plain-English glossary of the words you’re most likely to hear during a remodel—organized roughly in the order they pop up during a project.
TERM
WHAT IT MEANS
WHY IT MATTERS
BID
A contractor’s price to do the work, based on info they have at the time. Usually less detailed than a proposal.
Use bids only for ballpark comparisons—they’re often revised once the scope is fully defined.
ESTIMATE
A contractor’s best guess at final cost, with allowances for items not yet selected. Accuracy depends on how complete the plans are.
Ensure your estimates between contractors are apples to apples, or account for the differences before you commit.
PROPOSAL
A line-item offer that spells out scope, specs, price, payment terms, and warranty. Once signed, it becomes part of the contract.
Scrutinize the proposal—it’s your chance to confirm the fine print before committing funds.
SCOPE OF WORK (SOW)
The written list of everything that is and isn’t included—labor, materials, permits, cleanup.
A clear SOW prevents “I thought that was included” disputes later.
ALLOWANCE
A placeholder dollar amount for finishes you’ll pick later (tile at $12 / sf, faucets at $350 ea, etc.).
If your taste exceeds the allowance, you pay the difference—so realistic numbers up front = fewer budget shocks.
LEAD TIME
The time between ordering an item and its arrival on-site. Custom windows may have a 14-week lead time.
Long lead times drive the project schedule. Order critical items early to avoid delays.
ROUGH IN
The behind-the-walls phase when plumbing, electrical, and HVAC lines are installed—before insulation and drywall.
Rough-in is the last easy moment to add outlets or move a shower valve without costly re-work.
CHANGE ORDER (C/O)
A written document that adds, deletes, or alters the contract after work has started—always with a price and schedule impact.
Insist on signed COs before extra work begins; handshake changes invite billing surprises.
SUBSTANTIAL COMPLETION
The point when the space can be used for its intended purpose, even if minor items remain.
Warranties often start here, and final payments may be tied to this milestone.
PUNCH LIST
A checklist of minor fixes (paint touch-ups, missing outlet covers) created during the final walkthrough.
By documenting the “final-minute” items in one place, the punch list keeps nothing from slipping through the cracks and provides a clear standard for project completion.
SELECTION
The specific products and finishes you choose—tile, paint colors, fixtures, hardware, flooring—during design.
Final price and lead-time depend on timely selections; late picks can stall ordering and push back the schedule.
SPECIFICATION
A written set of standards detailing the exact products, installation methods, and performance requirements for each line item.
Clear specs give trades a common target, prevent quality disputes, and let inspectors verify materials meet code.
WARRANTY
The contractor’s written promise to fix defects within a set time (e.g., one- or two-year workmanship warranty) plus any manufacturer warranties.
Get warranty terms in writing and know how to file a claim—peace of mind starts here.
READY FOR A
JARGON FREE PROPOSAL?
At Corry Contracting Company we lay out every allowance, payment schedule, selection, specification, and warranty terms in plain English—no surprises, no fine-print traps. If you’re planning a remodel and want a proposal you can actually understand, schedule a discovery call today. Let’s build something great—minus the confusion.
