HOMEOWNERS: Renovation Terms Every Homeowner Should Know (Before Work Begins)
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.