An educated shopper is a smart shopper. This especially holds true in the world of hiring and working with contractors to make improvements to your home.
As you interview potential contractors, being able to understand the terminology they use can help you in so many ways. By avoiding potential miscommunication, you ensure a smoother remodeling experience so that you and your family can enjoy your new or updated kitchen, bathroom or room addition even sooner.
Here’s a glossary of some of the common terms used by builders and remodelers to help you understand the language of your remodeling project:
Allowance
A specific dollar amount allocated by a contractor for specified items in a contract for which the brand, model number, color, size or other details are 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 city or county building department, granting permission to undertake a construction project.
Call-back
An informal term for a return visit by the contractor to repair or replace items the homeowner has found to be unsatisfactory or that require service under the warranty.
Certified Graduate Remodeler (CGR)
A professional designation program offered through the National Association of Home Builders (NAHB) Remodelers 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-and-materials 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. If a subcontractor or supplier signed a lien release, then this lien cannot be enforced.
Punch List
A list of work items 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.
To learn more about remodeling your home, including a checklist for selecting and hiring a remodeler and advice on financing and designing your project, come to the Remodel It Right, Remodel It Green Expo Aug. 26-28 at the Hawaii Convention Center.
Karen Nakamura is executive vice president / CEO of the Building Industry Association of Hawaii.