Plain-language reference
Home Project and Contractor Glossary
Understand the words that affect price, responsibility, permits, payments, and final records. HomeScope still defines important terms where you use them; this page gives you one place to review them together.
Budget and bids
Terms to understand before you decide.
Allowance
A dollar amount included in a bid for an item you have not selected yet. The contract should explain what happens when the final selection costs more or less and whether markup applies.
Alternate
An optional price for adding, removing, or changing defined work. Alternates let you compare choices without mixing them into the base price.
Base price
The contractor’s price for the written work before approved changes, allowance adjustments, or separately listed alternates.
Contingency
Money the homeowner keeps outside the contractor’s base price for unexpected work. It is a planning reserve, not a prediction that the project will overrun.
Exclusion
Work, products, fees, or responsibilities that a bid specifically does not include.
Unit price
A price for one measurable unit, such as a sheet of roof decking or a linear foot of fence. State the unit, quantity rules, and approval process in writing.
Contract and payment
Terms to understand before you decide.
Change order
A written agreement to change the work, price, or schedule after the contract is signed. It should be approved before the changed work proceeds.
Deposit
Money paid before substantial work is completed. The contract should state what the deposit covers and when later payments become due.
Final holdback
Money intentionally left unpaid until agreed final conditions are met, such as inspections, punch-list work, warranties, lien documents, and final records.
Milestone
A visible stage of completed work that can trigger a payment or decision. A milestone should describe an outcome you can verify, not merely a calendar date.
Punch list
A written list of incomplete, damaged, or corrective items identified near the end of the project.
Substantial completion
The stage when the project can generally be used for its intended purpose, even though limited final work or records may remain. The contract should define it.
Permits and inspections
Terms to understand before you decide.
Enforcing agency
The city, township, county, or state office responsible for administering the applicable construction code for an address and type of work.
Jurisdiction
The governmental area and authority responsible for the property. Similar community names can refer to separate cities or townships with different permit offices.
Permit
Official authorization for defined work. A permit does not replace the contract, guarantee workmanship, or approve work that differs from the submitted scope.
Plan review
The authority’s review of submitted drawings or documents before approval. Review comments may require revisions before a permit is issued.
Rough inspection
An inspection performed while framing, wiring, plumbing, mechanical work, or other concealed components remain visible.
Final approval
The authority’s documented final inspection or approval for the permitted work. Ask what record will be issued and keep it with the property file.
Scope and project records
Terms to understand before you decide.
Scope of work
The written description of what the contractor will and will not provide, including quantities, products, responsibilities, protection, cleanup, permits, and final records.
Bid leveling
Making sure every bid prices the same written work before comparing totals. HomeScope usually says this plainly instead of asking homeowners to ‘normalize’ bids.
Concealed condition
A condition that cannot be fully evaluated before work opens or removes existing construction, such as hidden rot, wiring, plumbing, or structural damage.
Closeout
A contractor term for finishing the paperwork and handover. Before final payment, collect final approvals, warranties, manuals, lien documents, photos, and the completed punch list.
Lien waiver
A signed document addressing a contractor’s or supplier’s right to claim a construction lien for stated payment. Requirements and legal effect vary; obtain qualified advice when needed.
Warranty
A written promise covering defined products or workmanship for a stated period, subject to its terms, exclusions, registration rules, and claim process.
Put the definitions to work