Glossary of Terms
Every profession has its own unique terminology and "lingo", and the following glossary includes some of the more useful and important terms common to the home improvement contracting industry. Being familiar with these can help you to more easily understand home improvements and home improvement professionals as you undertake various projects related to the upgrading of your property.
Backer Board - A flat material used in the construction of walls and sometimes floors or other surfaces. Depending upon what the outer surface is made of, the backer board will be made of different ingredients including concrete, acoustic materials, wood, or a synthetic or composite.
Bid - A proposal to do a job for a price. Contractors submit bids that describe how and what they will do and how much they are willing to accept as financial compensation for that service.
Building Codes - Local regulations and ordinances pertaining to building design and construction to ensure health and safety.
Certificate of Occupancy - An official declaration document that states that a property meets the requirement of local codes, ordinances and regulations and is suitable and ready for occupancy.
Permits - Documents issued by a governing authority, to give permission to undertake home improvement projects that fall under official jurisdictions and guidelines. The permits need to be visibly posted on the premises of the project until removed by an authorized inspector.
Change Order - Written authorization to the home improvement contractor to make changes to previously agreed work that was stipulated in the contract but then altered.
Draw or Allowance - A disbursement of funds to pay for materials or labor as the project progresses. A draw schedule should be outlined in the original contract to ensure that materials are purchased in a timely manner but that the homeowner does not pay ahead of time and become financially vulnerable.
Lien Release Form - A document that cancels the legal rights of a contractor, subcontractor or supplier to place a lien against your property. The release verifies that the contractor has paid subcontractors and suppliers in full and that the homeowner is not liable for those payments. Homeowners should secure this form when a project ends and have it signed by all contractors or subcontractors.
Mechanic's Lien - An unpaid contractor, subcontractor, or supplier can got to court and obtain this legal document to attach a type of ownership rights to a homeowner's property. The homeowner may need to sell the house to settle the claim and remove the lien.