Contractors Key Terms

Know the meaning of common terms used in the construction and contracting industry

By Casey Holley

When you meet with a potential client to bid or give an estimate for a building or remodeling project, you may find yourself speaking the standard industry jargon. However, most consumers don't know the jargon and may think that the project will be too complicated. Knowing how to explain the terms to your client can gain you a loyal client. Additionally, that client may recommend you to others who have projects pending, which can significantly increase your profit margin and job stability.

Codes, building codes

Building codes are in place throughout the United States to ensure that all buildings are safe for people to use. These rules govern the use of certain materials and provide contractors with guidelines to follow when planning a project.
Try: WiseGeek offers a detailed explanation of building codes, including some examples of what a building code will specify.

Permit

A permit is a written permission from a government agency that states a construction project is legal and meets all codes. It is usually issued by a building department or code enforcement office. Permits are usually issued according to the type of work being done. Plumbing, electrical and building are types of permits.
Try: Heimer offers valuable information concerning building permits. It includes information on the various steps from obtaining a building permit to getting a certificate of occupancy.

Certificate of occupancy

A certificate of occupancy is a written statement from a government agency that states a building has been inspected by a licensed inspector and is safe for habitation.
Try: The City of Minneapolis, Minnesota website offers information about certificates of occupancy, including information on when one is required.

Gentrification

Gentrification occurs when properties in a neighborhood are upgraded, which causes the property value to increase. This encourages stable businesses into the area. As a contractor, you may be asked to participate in gentrification projects for discounted fees as a way to help a neighborhood increase in value.
Try: The Centers for Disease Control and Prevention website provides information about various aspects of gentrification.

Bid bond

A bid bond is a way to ensure that a contractor will complete the work stipulated by a bid. For most bids on government projects, a bid bond is required. These are issued by a third party surety bond company.
Try: The Surety Information Office website offers an explanation about bid bonds. This website includes the purpose of the bonds in its explanation.

Green building

When you meet with a client, he may stipulate that he wants a green building. This means that he wants you to use products and materials that don't harm the earth and are safe for use around humans and animals. This limits your options and may result in a higher cost for the materials.
Try: You can find information about green building on the City of San Jose website.