Renovation projects come with their own language. When homeowners are unfamiliar with the terms, miscommunication happens fast.
This simple glossary covers common terms you are likely to hear.
Allowance
A budget placeholder for items not yet selected.
Change order
A written agreement documenting changes to the original scope, cost, or timeline.
Contingency
Extra budget set aside for unexpected issues.
Lead time
The time between ordering a material and when it arrives.
Punch list
A final list of small items to be completed before the project is considered finished.
Retainage
A portion of payment held until work is completed to satisfaction.
Scope of work
A detailed description of what is included in the project.
Subcontractor
A specialized trade hired by the primary contractor.
Why this matters
Understanding these terms helps you:
Ask better questions
Set realistic expectations
Reduce misunderstandings
You do not need to speak “construction fluently.” Familiarity goes a long way.