November 17, 2022

Ultimate Guide to Commercial Construction Terms

Drafting

There will be certain challenges you can expect to face with your upcoming commercial construction project. One of those obstacles might be industry language and understanding the details of your plan. It’s always a best practice to ask for clarification when you need it. But it is also helpful to have a glossary of terms and definitions handy. 

Even the savviest of professionals may have little doubt when it comes to deciphering commercial construction estimates and plans. Conversations with your contractors can be less productive if you’re unsure of terms and expectations. What you need is a roadmap of common words, phrases, and definitions. Here’s the ultimate guide to understanding commercial construction terminology.

Terms Associated with Planning

Here are a few select terms and definitions that might help during the planning phase of your commercial construction journey. 

Design-bid-build: This concept refers to a commercial construction project where various elements are completed by separate entities and contracts. These include pre-construction planning, construction, and post-construction services.

Design-build: The project delivery method involves entrusting one company with managing all aspects of the commercial project under a single contract.

Feasibility Study: This term is used to describe the process for evaluating a project’s budget, schedule, and requirements. It usually includes designs, site investigations, utility infrastructure, and estimating.

Performance Specifications: These typically refer to the minimum acceptable standards and results.

Project Programming: These are the physical requirements involved with a Capital Improvement Project. Subsequently, they include occupancy, infrastructure, and basis for a design.

Design Terms

Here are a few definitions you should know when you’re ready to design your commercial build.

CSI Master Format: A system of numbers and titles used to better organize your commercial construction details into standard order or sequence.

Constructability Review: A review of specifications by a third party or contractors for accuracy.

PD Phase: Preliminary design phases intend to develop plans by demonstrating physical spaces and features, including windows, walls, and doors.

SD Phase: The schematic design phase is more conceptual, showing scaled sizes and program spaces.

Auto CAD/CAD: Computer-Assisted Drawing

Bidding and Estimating Terms

These are a few construction terms that will be helpful to understand while receiving estimations and securing bids.

Conceptual Estimate: These estimates are early planning figures intended to determine the complexity of a commercial construction project.

Budget Estimate: Determines the approximate expenses associated with your project. These estimates are more often used to secure funding for the project.

Request for Proposal (RFP:) This refers to the solicitation made through a bid process whereby products or services can all be evaluated.

Rough Order of Magnitude (ROM:) An estimate of costs and timelines for requirements that aren’t entirely specified yet in your commercial construction project.

Schedule of Values: The statement provided by the contractor, engineer, or architect outlining the sum of various parts of the project. That is to say, this is to review applications and progress payments.

Construction Terms in the Field

Here are some of the more common terms to help you prepare. 

Building Envelope: Sometimes also called the building shell, the building envelope refers to the waterproofing elements of a structure. Similarly, it can also imply the outer structure of a commercial building.

Blueprints vs. Drawings: Blueprints, drawings, and plans are all terms for technical drawings representing the vision of the commercial construction. Designers, architects, and engineers draw and reference these as a roadmap for executing the build. 

Campus Master Plan: This is a document that references guidelines and policies to be set as standards for the campus.

Construction Manager at Risk (CM@R:) The method whereby the contractor and architect enact separate contracts with you but collaborate during the design phases.

Critical Path: The set of actions that need to be completed for the project’s due date to be met. These steps are considered a priority with deadlines.

Guaranteed Maximum Price (GMP:) The maximum price at which you agree with the contractor to build your projects according to specs and drawings.

Job Order Contracting (JOC:) The method by which commercial entities can get multiple construction projects done quickly, based on year-end contracting.

Notice of Completion (NOC:) These are written statements issued by you or your representative notifying applicable parties that all project work is done.

Punch List: This list might feature deficiencies, unacceptable, or incomplete work based on the results of a final project inspection. Jerdon Construction completes a punch list at the end of every project to make sure your project is up to your satisfaction.

Integrated Labor Delivery: A construction model involving labor being brought in during the design phase. For instance, subcontractors perform nearly 80%-100% of the labor.

Integrated Project Delivery: The IPD model involves a single, multi-party agreement between you as the owner, the builder, and the architect. In addition, this contract itemizes all stakeholders as responsible for risks and incentives.

Daily Report: This document highlights all materials installed including safety incidents, construction crew details, and work completed. It’s typically prepared by the foreman and delivered to the project manager at the end of each day.

Change Order: A document that is initiated to modify or change the original agreed-upon construction plan. It may encompass changes to price, materials, or specifications, for example.

Tools, Titles, and Roles

There will be various roles and responsibilities among your contracted teams, each using unique sets of tools, methods, and provisions. Here are some of those roles, along with definitions and common tools that might come up in conversation. 

Owner’s Rep: This optional role is contracted by you as the owner to serve as an oversight liaison between contractors and your stakeholders. 

General Contractor: This person, usually selected through a bid process, will oversee projects and subcontractors associated with your commercial project.  In addition, the general contractor may perform some of the work themselves, as well.

Construction Manager: This person serves as the owner’s representative, managing and assessing quality as well as all aspects of the work.

Architect-in-Record: The architectural company listed on all required permits for the project although it may not necessarily be the responsible designer for the project.

Microsoft Project – Software used to plan the project schedule.

Viewpoint TEAM – This is a cloud-based solution used by the general contractor to improve construction collaboration. It connects the back office and field operations with the extended team of subcontractors, suppliers, architects, and owners.

As you take the next steps to bring your commercial construction project to life, keep this glossary of common terms handy. Additionally, ask questions, and don’t hesitate to request more information from anyone involved in your project. Above all, when you’re ready to work with an established commercial construction professional with a proven record of success, contact the Jerdon Construction team.