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H O M E S , M O R T G A G E S , F I N A N C I A L P L A N N I N G & I N S U R A N C E
C H I C A G O W E D D I N G & P A R T Y R E S O U R C E
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Home Improvement Terms
You’ve found your first home, but it needs some fixing up to make it perfect.
Before you nail down any home improvement project, learn
the lingo. These common terms and definitions may help
you avoid miscommunication with your contractor.
ALLOWANCE
A specific dollar amount allocated by a contractor for
specified items in a contract for which brand, model
number, color, size or other detail is not yet known.
BID
A proposal to work for a certain amount of money, based
on plans and specifications for the project.
BUILDING PERMIT
A document issued by a governing authority, such as a
building department, granting permission to undertake
a construction project.
CALL-BACK
An informal term for a return visit made by a contractor
to repair or replace items the home owner has found to be
unsatisfactory or that require service under the warranty.
CGR (CERTIFIED GRADUATE REMODELOR)
A professional certified program offered through
the National Association of Home Builders (NAHB)
Remodelors’ Council. To attain the CGR designation, a
remodeler must take a specified number of continuing
education courses and must comply with a strict code of
ethics.
CHANGE ORDER
Written authorization to the contractor to make a change
or addition to the work described in the original contract.
The change order should reflect any changes in cost.
COST-PLUS CONTRACT
A contract between a contractor and homeowner based on
the accrued cost of labor and materials plus a percentage
for profit and overhead. Also known as a time-andmaterials
contract.
DRAW
A designated payment that is “drawn” from the total project
budget to pay for services completed to date. A draw
schedule typically is established in the contract.
LIEN RELEASE
A document that voids the legal right of a contractor,
subcontractor or supplier to place a lien against your
property. A lien release assures you that the remodeler
has paid subcontractors and suppliers in full for labor
and materials.
MECHANIC’S LIEN
A lien obtained by an unpaid subcontractor or supplier
through the courts. When enforced, real property—
such as your home—can be sold to pay the subcontractor
or supplier.
PLANS AND SPECIFICATIONS
Drawings for the project, and a detailed list or description
of the known products, materials, quantities and finishes
to be used in the project.
PUNCH LIST
A list of items of work to be completed or corrected by the
contractor, typically near or at the end of a project.
SUBCONTRACTOR
A person or company hired directly by the contractor
to perform specialized work at the job site. Sometimes
referred to as a trade contractor.