Speak Contractor
Construction has a vocabulary problem, and it usually gets solved at the owner's expense. Not here. Every term below gets two beats: what it means, and why you should care. Nod-along meetings end today.
The Deal & The Space
Before a single wall moves, the lease decides half your budget.
What it isThe pre-lease handshake: a short document sketching rent, term, and who builds what before lawyers write the real lease.
Why you careBuildout economics get set HERE. Negotiate the work letter and TI allowance at LOI stage — leverage drops the day you sign.
What it isThe lease exhibit spelling out exactly what the landlord delivers and what you (the tenant) must build.
Why you careThe most expensive document most owners never read. 'Landlord delivers HVAC' can mean a working system or a stub on the roof — the work letter says which.
What it isMoney the landlord contributes toward your buildout, usually quoted per square foot.
Why you careIt's rarely cash up front — it's often reimbursed after you finish and provide lien waivers. Plan cash flow like the allowance arrives last, because it usually does.
What it isA space delivered mostly ready: walls finished, ceiling, lighting, HVAC distributed, restrooms, concrete floor.
Why you care'Vanilla' has no legal definition — one landlord's vanilla is another's bare studs. Make the work letter list the actual items.
What it isBare bones: exterior walls, roof, slab (sometimes not even that), utilities stubbed to the space, no HVAC, no interior anything.
Why you careThe rent looks cheap because the buildout isn't. Budget several times a second-generation space's cost, and add months for design and permits.
What it isBetween the shells: drywalled, painted, lit, HVAC'd — a blank room ready for your specific improvements.
Why you careGreat for offices and simple retail. Restaurants and clinics still face heavy work beyond it (hoods, plumbing, med gas) — don't let 'white box' lull the budget.
What it isA space previously built out for a use like yours — e.g., a former restaurant for your restaurant.
Why you careThe cheat code. Reusing a hood, grease interceptor, or plumbing rough-in can cut buildout cost dramatically — IF it passes inspection. Verify before you fall in love.
What it isThe dividing line of who builds what, defined (hopefully) in the work letter.
Why you careScope gaps between the two columns become YOUR change orders. Have your GC read the work letter before you sign — we do this for people constantly, free.
What it isThe state the space must be in — and when — before the landlord hands it over and your clock starts.
Why you careYour build schedule, rent commencement, and opening date all hang on this. Tie rent start to actual delivery, not a calendar date.
What it isYour share of the property's shared costs — parking lot, landscaping, common utilities — on top of base rent.
Why you careNot construction, but it hits the same budget your buildout does. Ask what CAM ran the last three years before you commit.
Money
How construction gets priced, paid, and protected.
What it isThe physical build: labor, materials, equipment — the stuff you can kick.
Why you careUsually 75–85% of the total. When someone quotes 'construction cost,' ask if it's hard costs only — the difference is the rest of this list.
What it isEverything else: design fees, permits, engineering, insurance, testing, legal.
Why you careThe classic first-timer miss. Rule of thumb: add 15–25% on top of hard costs, more for complex uses like restaurants and medical.
What it isOne fixed price for a defined scope. The GC carries the risk of their own estimate.
Why you carePredictable — as long as the drawings are complete. Vague drawings + lump sum = change-order season. Fixed price only fixes what's actually drawn.
What it isYou pay actual costs plus an agreed fee. Open books.
Why you careMaximum transparency, minimum price certainty. Best with a GC you trust and a scope still evolving. Ask for a GMP cap if the open end worries you.
What it isCost-plus with a ceiling: you pay actual cost + fee, but never more than the guaranteed max.
Why you careThe grown-up middle ground on bigger jobs. Ask who keeps savings if the job comes in under — 'shared savings' clauses change contractor behavior for the better.
What it isA placeholder number in the bid for something not yet chosen — 'flooring allowance: $6/SF.'
Why you careEvery allowance is a decision you haven't made, priced optimistically. Count the allowances in a bid: it tells you how much of the price is still a guess.
What it isMoney set aside for the unknowns — hidden conditions, price moves, surprises behind walls.
Why you care5–10% on new construction, more on remodels of older buildings. A budget with zero contingency isn't confidence, it's a schedule for your first hard conversation.
What it isSystematically finding cheaper ways to get the same function — different materials, methods, or sequence.
Why you careDone early, it saves real money with no visible difference. Done late and desperate, it's just cutting things you wanted. Ask for VE ideas at bid time, not month four.
What it isA signed change to the contract's scope, price, or schedule after work begins.
Why you careNot inherently evil — scopes legitimately change. The tell is process: pricing shown BEFORE work proceeds, signed by you, no surprises at invoice. Ask any GC to walk you through their last messy one.
What it isThe contract price broken into line items — demo, framing, electrical — used to measure progress for payment.
Why you careYour defense against paying ahead of the work. Front-loaded SOVs (huge 'mobilization' lines) mean you're financing the job. Compare the SOV to reality before each payment.
What it isA periodic payment request tied to completed work, measured against the schedule of values.
Why you careDraws should arrive with backup: percent complete, photos, and lien waivers. If a draw comes as a bare number, ask for the rest.
What it isA slice of every payment (typically 5–10%) held back until the job's fully complete.
Why you careIt keeps everyone motivated through the punch list — including us; yes, it happens to us too. Know when it releases: 'final completion' should be defined, not vibes.
What it isA signed receipt from the GC or sub giving up lien rights for money they've been paid.
Why you careCollect one with every payment. It's how you prove the plumber got paid — and why nobody can lien your building for money you already spent.
What it isA legal claim against your property by anyone who improved it and wasn't paid — even a sub YOU never hired.
Why you careThe scariest sentence in construction: you can pay your GC in full and still get liened by an unpaid sub. Lien waivers with every draw are the vaccine.
Design & Paperwork
The drawings, approvals, and questions that happen before (and during) the noise.
What it isA quick drawing showing whether your use physically fits a space — desks, seats, chairs, equipment.
Why you careDo this BEFORE the LOI. A free test fit has killed many bad leases; a skipped one has built many cramped ones.
What it isThe complete, detailed drawings and specs a builder can actually price and build from.
Why you careThe completeness of your CDs sets the accuracy of your bids. 'We'll figure it out in the field' is where budgets go to die.
What it isThe drawing package submitted to the city for approval.
Why you careDifferent jurisdictions want different things. A GC who knows the local building department's quirks saves you weeks — ask about their track record with YOUR city, specifically.
What it isThe city's review of your permit set, usually returning corrections ('comments') before approval.
Why you careThe least controllable part of any schedule. Budget for at least one correction cycle; celebrate if you don't need it.
What it isWhoever gets final say over code compliance — building department, fire marshal, health department.
Why you careRestaurants and clinics answer to several AHJs at once, each with its own timeline. Sequencing them wrong adds months. This is genuinely what you hire a GC for.
What it isApprovals about USE, not construction: zoning, conditional use permits, signage variances.
Why you careThe step before permits that first-timers discover last. If your use isn't clearly allowed at the address, resolve it before signing anything.
What it isA formal written question from the builder to the designer: 'the plans show X here and Y there — which?'
Why you careHealthy jobs have RFIs; drawings are never perfect. Watch response time — a designer sitting on RFIs for two weeks is quietly moving your open date.
What it isThe builder's 'here's exactly what we plan to install' package — product data, samples, shop drawings — for approval before ordering.
Why you careBoring, invisible, and where quality is actually decided. Slow submittal review delays orders, which delays everything long-lead.
What it isAnything with a long factory wait: HVAC units, switchgear, custom storefronts, kitchen equipment.
Why you careThe #1 schedule killer of the last five years. Ask on day one: 'what are my long-lead items and when must they be ordered?' A good GC answers from memory.
What it isWork that appears in nobody's contract — it fell between the landlord's column, your GC's bid, and your vendor's quote.
Why you careGaps surface at the worst time and always cost more late. The fix is one person reading everything side by side. (This is a service. We perform it.)
The Build
What's actually happening behind the fence.
What it isEverything before shovels: estimating, permitting strategy, buyout, long-lead purchasing, schedule.
Why you careWhere projects are won or lost. A GC who wants to start precon early isn't upselling — they're moving problems to when they're cheap.
What it isThe startup act: fencing, trailers or staging, temporary power, safety setup, first crews.
Why you careA real cost with a real line item — but a giant mobilization line in the schedule of values is front-loading. Reasonable, not enormous.
What it isThe super runs the site daily — trades, sequence, safety, quality. The PM runs the business of the job — budget, contracts, submittals, you.
Why you careMeet BOTH before signing. You're hiring the humans, not the logo. (Ours are childhood friends and neighbors of the owner; ask us why that matters.)
What it isThe specialty companies — electrical, plumbing, HVAC, drywall — who perform most of the physical work under the GC.
Why you careA GC's real product is their sub relationships. Subs prioritize GCs who pay on time; ask any contractor how fast they pay, then watch their face.
What it isWork the GC does with its own crews instead of subbing out.
Why you careCan mean better control on some trades — just make sure self-performed work gets bid-checked like everything else.
What it isMechanical (HVAC), Electrical, Plumbing — the systems trades.
Why you careRoutinely 30–40% of a commercial buildout and nearly all of the surprises. When a bid seems too low, MEP is usually where the corners got cut.
What it isInstalling the guts — pipes, ducts, wiring — inside walls and ceilings before they're closed up.
Why you careThe last cheap moment to change your mind about where anything goes. After drywall, every outlet you move costs multiples.
What it isThe city checks everything hidden in walls/ceilings BEFORE it gets covered.
Why you careFailing one stops the job — you can't hang drywall over unapproved work. Good GCs pre-walk their own inspections so the city visit is a formality.
What it isThe building shell keeps water out: roof on, windows/doors in, wrap complete.
Why you careThe milestone that unlocks everything interior. On ground-up jobs, ask the schedule question as 'when are we dried in?' — it's the honest one.
What it isThe end-of-job list of small fixes and finish items, walked and written with you.
Why you careThe difference between contractors isn't having a punch list — it's how fast it closes. Ask how they run punch. (House Rule 02: our clients used to inspect in socks. Habits stick.)
What it isThe legal milestone: the space is usable for its purpose even if punch items remain.
Why you careIt starts warranty clocks and retainage timelines and often ends delay penalties — which is why the DATE gets negotiated hard. Know what your contract says triggers it.
Closeout & Opening
Getting the keys, the paperwork, and the doors open.
What it isThe city's official 'this building is safe — you may occupy it.'
Why you careConstruction has two COs: the change order costs you money, this one lets you open. Always clarify which someone means. No certificate, no customers — it's the true finish line.
What it isConditional permission to occupy while minor approved items finish up.
Why you careThe pro move when a hard opening date collides with small remaining work. Ask early if your jurisdiction grants them; not all do, and not for everything.
What it isFormally testing building systems — HVAC, controls, life safety — to prove they work as designed.
Why you careSkipped commissioning becomes year one's mystery comfort complaints and energy bills. On bigger jobs, it pays for itself.
What it isDrawings updated to show what was ACTUALLY built, changes included.
Why you careFeels like paperwork until your first remodel or repair, when knowing where the pipes really are is priceless. Demand them in the closeout package.
What it isThe final binder (usually digital): as-builts, warranties, O&M manuals, final lien waivers, inspection sign-offs.
Why you careYou paid for every page of it. A GC who delivers closeout fast and complete is showing you how the whole company runs.
What it isThe care instructions for everything installed — filters, warranties, service schedules.
Why you careHand them to whoever maintains the space on day one. Half of 'warranty' fights end with 'the manual said to change the filter.'
What it isThe window (typically one year on workmanship) when the builder fixes defects free.
Why you careWalk the space at month eleven, on purpose, list in hand. Good contractors expect the call. (You're on the team for life here — but still: month eleven.)
The fine print, minus the fine print
Call and ask. Seriously — no project required, no pitch attached. If a contractor, landlord, or lender said something that didn't add up, we'll translate. That's the whole idea.
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