Commercial Construction Glossary

There are some terms that you may hear used in relation to commercial construction that may be unfamiliar. At Hunnicutt Construction we believe that an educated client is much more likely to be happy and satisfied with their project from start to finish, so we want to make sure you have a clear understanding of the terminology you may encounter during your build. Of course, we are always happy to answer questions directly as well!

Addendum (Addenda) : Written information adding to, clarifying or modifying the bidding documents. An addendum is generally issued during the bidding process; addenda are intended to become part of the contract documents when the construction contract is executed.

Bidding Documents: The published invitation to bid, along with any instructions to bidders, the bid form and the proposed contract documents, including any acknowledged addenda issued prior to receipt of bids.

Change Order: A written, legally binding contract addendum between the owner and the contractor typically authorizing a change in the scope of work or an adjustment in the contract sum or the contract time. A change order may be signed by the architect or engineer, also. After the execution of the construction contract, all changes to the scope, pricing, or timeline must be made by written change order to be legally binding.

Leadership in Energy and Environmental Design (LEED): Sustainable design through use of materials, construction practices, efficient building design, environmental impact studies, renewable energy & more. LEED certification is achieved on a points based system that is assessed after completion.

Punch List: A list of items to be corrected compiled by the project manager and owner during the final inspection of a project. “Punch out” is sometimes used to refer to the act of correcting Punch List items.

Request for Information (R.F.I.): A written request from a contractor to the owner or architect for clarification or information about the contract documents.

Request for Proposal (RFP): A request for proposal (RFP) is a solicitation made, often through a bidding process, by an agency or company interested in procurement of a commodity, service or valuable asset, to potential suppliers to submit business proposals. Interested parties then submit their bids for providing the requested commodities.

Schedule of Values: A statement breaking down contract sum into portions allotted for the various parts of the work, often used as the basis for reviewing applications for progress payments.

Specifications: A detailed, exact statement of particulars, especially the statements prescribing materials and methods; and quality of work for a project. Specs are commonly issued with plans or drawings and are created by the design team or architect on a project. Bids are based on drawings and specifications.

Time and Materials (T&M): A payment arrangement between the owner and the contractor wherein the price for the work is based on the contractor's actual costs for labor, equipment, materials, and services plus a fixed add-on amount to cover the contractor’s overhead and profit.

Value Engineering: Evaluation of construction methods and/or materials included in project plans and specifications to determine where changes can be made to reduce costs, while remaining compliant with specified performance, reliability, maintainability, aesthetic, safety, and security criteria.