Do you Understand the Construction Jargon?

Why Construction Industry Jargon Can Be So Confusing

Construction projects are complex, with lot of moving parts, multiple trades and specialists who have to work around each other and thousands of materials which need to be brought in at the right time to avoid delays. When you’re not in the industry, it’s almost impossible to get your head around all the different issues at play. This is why a professional Project Manager is such an important member of the team!

What doesn’t make it any easier, is the amount of jargon used in the construction industry. The number of specialist terms which are banded around in meetings can make it even more difficult to follow what’s going on, and misunderstandings and poor communication results – often standing in the way of clients making an informed decision.

MDCI Project Managers do not believe that it needs to be this way. We’re our clients’ champions and believe that clear communication is crucial to making the process easier, minimising stress and confusion and ensuring projects hit their deadlines and are delivered on budget. Our regular reports are always written in simple terms which are clients’ can understand and we take the time to explain the terms they may encounter and ensure they understand why it’s relevant.

If you’re undertaking a refurbishment or construction process and struggling to understand what everyone is talking about, you are not alone! To help you, we’ve put together some definitions and explanations of commonly used construction terminology, so that you can go into any project meetings, or read any reports with confidence.

Remember, we’re here to protect your interests, be your champion, explain terms and the impacts of decisions and show everyone involved in the project that you have a representative that knows this world inside and out, understands every term and will not be baffled or bullied into making the wrong decision. If that sounds like someone you’d like to have on your side, contact us today.

Construction Industry Jargon Definitions and Explanations.

BOQ (bill of quantities)

This is the document prepared by the cost consultant or technical architect that itemises materials, equipment, labour, and other associated costs. It provides the specific quantities of the project as per the project drawings, plans and specifications.

It is important because it provides a detailed breakdown of everything related to a construction project, ensuring fair and accurate tendering, facilitating cost control, improving project planning, and increasing transparency for all stakeholders.

By standardising project components and quantities, the BOQ allows for direct comparison of contractor bids and helps manage costs and scope changes throughout the project lifecycle.

Do not put a project out to tender without one!

MDCI can support you to prepare this document and handle the whole tendering process, to ensure you get the right people behind you and the best terms possible.

CAD (computer-aided design)

This broad concept primarily refers to using computer software to undertake project design successfully. Project designers create models and digital representations of entire structures using CAD. It is marvellous for exactly seeing how the “innards” (i.e. piping, wiring and aircon ducts, windows and doors etc) interact with other structures (i.e. beams, pillars and false ceilings etc). Solutions can be visualised in 3D formats and greater accuracy in design solutions taken.

It’s a boom for architects and draughtsmen, as it makes their work much easier.

BUT there is a downside…. Very similar models are used time and time again, simplifying the design process and removing the individuality and design flair you might expect from building your own home. It’s a big reason why so many villas look the same!

Seeing an architect’s previous work and asking them about their use of CAD, and if they will use the same template for your project as they’ve used before, is important when you’re choosing an architect.

Find out more about how to choose an architect.

Change Order

A change order is a formal document that alters the original construction contract scope, typically used to add, delete, or change the scope of work, timelines, or costs during the project.

It’s vital that if you make a change during a site visit, or a planning session, that a change order is created, processed and registered as a contract addendum and that you discuss the implications of this change on your budget and timeline. Many people are surprised by increased time and costs at the end of a project, not realising that the “small” change they suggested, ended up costing so much in both.

Ensuring that a change order is issued within the terms of the contract and implications are discussed and agreed, avoids confusion and wasted time, budget and control.

Closeout

Construction project closeout is the process of confirming all facets and components of an entire job are properly finished and signed off on before the team begins to disperse. The contractor or project manager needs to be sure that all parts of a project are truly complete and that the last components installed look as good as the first.

This is a very important process, and sometimes known as snagging. We’d recommend that you have an independent professional to manage this part of the project, so that when you get the keys everything is as it should be.

General Contractor

The General Contractor (GC) is the company or person responsible for managing the entire construction project and play a very important role.

They sit at the centre of a construction project, acting as the conductor of a very large, very complex orchestra. They make sure the right people and materials show up at the right time so the project keeps moving. They bring in the experts and make sure they do their jobs correctly and they ensure the project meets all legal and technical standards.

The GC is the main point of contact for architects, engineers, and the client. They translate technical details into actionable steps on site. The Project Manager works alongside the GC, always protecting their client’s interest and oversees the project from the owner’s or developer’s perspective, ensuring the GC is meeting expectations.

For example, the GC builds the schedule and updates it as conditions change. The PM reviews it, challenges assumptions, and ensures it aligns with the broader project goals.

When the GC is strong, the project feels coordinated and predictable. When the GC is weak, everything downstream becomes harder, slower, and more expensive. That’s why it is vital you select this company carefully and establishing a water-tight contract with them and your PM can help you do that.

A strong GC–PM partnership creates; fewer surprises, faster problem‑solving, better cost control, clearer communication and higher‑quality results.

Lead Time

The amount of time needed to order, deliver, or prepare materials or equipment. Lead times are one of the quiet forces that shape whether a construction project runs smoothly or spirals into delays and cost overruns. They’re easy to overlook, but they affect almost every decision on a job.

Some materials are readily available; others take weeks or months to arrive. If you don’t order early enough, the entire schedule can stall while you wait. Trades can’t start until the materials they need are on site. If materials arrive late, subcontractors may move on to another job, creating a domino effect of delays.

Lead times determine the order in which tasks can realistically happen. A project schedule isn’t just “what comes next”—it’s “what can we do once the materials arrive.” Order long‑lead items early and build the schedule around them.

Lead times are a major source of project risk. Smart teams with a good project manager will track lead times weekly, confirm delivery dates in writing and have backup options for critical items.

Lead Times matter so much because construction is a chain of dependencies. If one link is late, everything behind it slows down. Managing lead times well is one of the biggest differences between a project that feels controlled and one that feels chaotic and something that a professional Project Manager can really impact.

Open Market Bidding Process

This is where multiple companies are asked to bid on the same project, and supply their prices and proposals to the client or their Project Manager for consideration and comparison. If you want to achieve a competitive price that is directly comparable to others then this is an effective method.

However, it depends on the bids received being directly comparable to each other, rather than each bidder coming up with his own interpretations of what is being requested, which can lead to confusion and poor decisions being made.

It’s vital to require each bidder to follow the terms of the detailed Bidding Terms and Conditions (known in Spanish as Pliego de Condiciones de Licitacion) or be disqualified from the subsequent rounds of bidding negotiations.

Ensure this Bidding Conditions document has all the key factors included and that the Project Documentation has been audited to discover any errors, omissions or costly options and rectify them, prior to starting the Bidding Process.

Using a Project Manager for this process ensures that you have all the correct information and that the bidding process is correctly managed throughout. The project manager will ensure that the final deal is dove-tailed into the terms of the Construction Contract. Not only does this ensure there are no nasty surprises, but it can save you a lot of money too!

Contact us to discuss running the Open Market Bidding Process for your project.

Penalty Clause

This is a provision in a contract that specifies payable monetary sums in the event of a breach of contract. They usually happen when there is a breach in time, use of adequate resources or project budget.

We highly recommend integrating an interim and final penalty clause into any contract you sign with the main contractor who is responsible for your build. It is an excellent motivation to keep things on track.

Punch List

If you hear your team talking about a Punch List, this is a list of minor tasks or repairs that need to be completed before a construction project is considered totally finished per the contractual delivery conditions. These tasks are usually identified during a set of final inspections- on which the technical team must raise the necessary legal documentation to oblige the contactor to complete these items.

This is otherwise known as a snagging list and a thorough snagging inspection by an independent specialist is highly recommended to avoid any nasty surprises, or inadvertently accepting sub-standard work or finishes.

Don’t skip this step, as you may find that the builder wants to get paid and move to another job, while the architect and technical architect who invigilated the works may have differing views on what “acceptable quality” means, which could differ from your own.

RFI (Request for Information)

RFI is a formal process where contractors request clarification or additional information from the project owner or architect regarding unclear or ambiguous details in the plans or specifications.

Your Project Manager should have made a very clear and complete brief for contractors prior to the bidding process, so there are no need for RFIs, which can slow down the process.

Involving a Project Manager from the outset of your project will help you to avoid all these issues and be confident that you won’t have RFIs to deal with.

Scope creep

Scope creep refers to when project requirements and scope extend and increase gradually over time. Deliverables increase over time and so does the budget and project length.

Scope creep is generally a result of poor planning and vague definitions, disagreements and miscommunication and is a sad fact of a lot of projects. But it doesn’t have to be that way.

With the right planning, specifications, contracts, management, monitoring and good communication, you can avoid scope creep and ensure your project comes in on time and budget!

Check out this article on why projects go over budget, so you can ensure yours doesn’t do the same.

Submittals

When we refer to “Submittals” we’re talking about the documents, samples, or drawings provided by contractors to the architect or engineer for approval before proceeding with construction. These include materials, finishes, and product specifications.

Careful checking of these submittals to ensure they meet the clients’ brief and budget before approval is essential. They are also important to refer to when checking the work completed, before signing off and authorising payment, to ensure that what was agreed has been completed correctly.

A Project Manager can help you to handle submittals, review them, make changes and also check during the project that the correct materials and products have been used.

Underpinning

Underpinning is the process of increasing the depths of existing foundations to transfer loads to stable soils. It is sometimes used to stabilize buildings with shallow foundations when buildings with deep foundations are constructed adjacent to them. A geotechnical survey on the soil will reveal if you require underpinning, something which will significantly impact the budget. That’s why these surveys are so important to the planning stage of your construction process.

Frequently Asked Questions About Construction Industry Jargon

1. What is construction industry jargon?

Construction industry jargon refers to the specialised terminology and abbreviations used by architects, contractors and project managers during a building project. When construction industry jargon is not clearly explained, it can create confusion, misunderstandings and costly mistakes for clients.

2. Why is it important to have construction industry jargon explained clearly?

Having construction industry jargon explained in simple terms helps clients make informed decisions, protect their budget and avoid delays. Clear communication reduces misunderstandings in contracts, specifications and site meetings, ensuring the project stays aligned with agreed scope and objectives.

3. What is a BOQ in construction?

A BOQ (Bill of Quantities) is a detailed document listing materials, labour, equipment and quantities required for a construction project. It ensures transparent tender comparisons, accurate pricing and better cost control throughout the construction process.

4. What is a change order in a building contract?

A change order is a formal written amendment to the original construction contract. It records agreed changes to scope, cost or timeline and ensures that all parties understand the financial and scheduling impact before additional work proceeds.

5. What does RFI mean in construction?

RFI stands for Request for Information. It is a formal process where contractors request clarification on unclear drawings or specifications. Proper planning and clear documentation reduce the number of RFIs and help keep construction projects on schedule.

6. What is scope creep in construction projects?

Scope creep happens when additional requirements or changes are introduced after a project begins without proper cost or time adjustments. Without strong project management, scope creep can increase the construction budget and extend the project timeline.

7. What is a punch list or snagging list?

A punch list, also known as a snagging list, outlines minor defects or incomplete items that must be corrected before final project handover. It ensures the construction work meets contractual standards before final payment is released.

8. How does a project manager help explain construction terminology?

A professional project manager ensures construction terminology is clearly explained to clients. They review contracts, manage documentation, oversee communication and protect the client’s interests, helping prevent misunderstandings and keeping the project on time and on budget.