Construction & CRM Glossary — 25+ Terms Defined
Plain-English definitions of the construction, builder, CRM, and construction accounting terms every contractor should know. AIA billing, retainage, change orders, selections schedules, commission splits, NPS for builders, and more.
CRM & Software
Construction CRM
Customer relationship management software purpose-built for contractors — leads, estimates, invoicing, job costing.
Construction Estimating
The process and tools used to predict the cost of a construction project before work begins.
Construction Project Management
Planning, coordinating, and executing a construction project from start to finish.
Contracts
Change Order
A formal amendment to a construction contract modifying scope, cost, or timeline.
Subcontractor Agreement
The written contract between a general contractor and a sub defining scope, payment, and insurance.
General Contractor (GC)
The primary party responsible for delivering a complete construction project to the owner.
Billing & Accounting
AIA Billing (G702/G703)
Standardized progress billing format used widely in commercial construction.
Progress Billing
Construction payment method based on percentage of work completed or milestones.
Schedule of Values (SOV)
Detailed breakdown of a contract price into individual line items for billing.
Retainage
A portion of a contractor payment withheld until project completion (typically 5-10%).
Job Costing
Tracking actual costs against estimated costs on a per-project basis.
Percentage-of-Completion Accounting
Revenue recognition method for long-term construction contracts.
Construction Payment Schedule
The agreed-upon timing and amounts for progress payments throughout a project.
Construction Draw
A scheduled disbursement of funds from a construction loan as the project progresses.
Lien Waiver
A legal document waiving a contractor right to file a mechanics lien after payment.
Project Execution
Punch List
A list of remaining items that must be completed before a project is considered finished.
RFI (Request for Information)
Formal written question seeking clarification about drawings or specifications.
Certificate of Insurance (COI)
Document proving a contractor carries required insurance coverage.
Home Building
Selections Schedule
Document listing every material and finish selection the homeowner must make.
Construction Allowance
Pre-specified dollar amount for a category of selections in a construction contract.
Spec Home vs Custom Home
A spec home is built without a buyer; a custom home is built for a specific buyer.
Home Builder Warranty Period
How long a builder is responsible for repairing defects after closing (1/2/10 years).