Cost & Construction Glossary
Contractor quotes and estimates use a lot of trade words. Here is what the most common ones mean, in plain English.
- AFUE (Annual Fuel Utilization Efficiency)
- A rating for how much of a furnace’s fuel turns into heat, as a percentage. An 80% AFUE furnace wastes 20% of its fuel. A 96% furnace wastes only 4%.
- BTU (British Thermal Unit)
- A unit that measures heat. Contractors use it to size heating and cooling equipment. Bigger spaces need more BTUs.
- Change order
- A written change to your contract that adds, removes or changes work. It usually changes the price too. A lot of change orders can push a job far over budget.
- Cost vs. Value
- How much of a project’s cost you get back when you sell the home. Projects on the outside of the home tend to get back the largest share of their cost.
- Draw
- A payment to your contractor when a set stage of the job is done, instead of paying it all up front.
- Egress window
- A window big enough to climb out of in an emergency. Building code requires one in any basement room used as a bedroom.
- Fixed-price vs. cost-plus
- Two kinds of contracts. A fixed-price contract sets one total price. A cost-plus contract charges what the work really costs, plus a fee for the contractor. With a fixed price, the contractor takes the risk if the work costs more than planned.
- Flashing
- Thin metal put around chimneys, skylights and the seams of a roof. It sends water away so it can’t leak in. Worn-out or broken flashing is a common cause of leaks.
- Gunite / shotcrete
- Concrete that is sprayed on to build custom in-ground pools. Gunite pools last the longest and can be built in almost any shape. They also cost the most.
- HSPF2 (Heating Seasonal Performance Factor)
- A rating for how well a heat pump heats your home. A higher HSPF2 means lower heating bills.
- Linear foot vs. square foot
- A linear foot measures length only. It is used to price fences, gutters and trim. A square foot measures area. It is used to price flooring, roofing and siding.
- Manual J
- The standard way to work out what size heating and cooling system your home needs. Ask your contractor to do one. Systems that are too big for the home are common, and they waste money.
- Net metering
- A billing setup that gives solar owners credit for extra electricity they send back to the grid. It helps solar panels pay for themselves sooner.
- Permit
- Permission from your local government to do certain kinds of work. The work is then inspected to make sure it meets code. That matters for safety and when you sell the home.
- Pitch (roof)
- How steep a roof is. A steeper roof costs more to work on, because the job takes more labor and more safety steps.
- R-value
- How well insulation keeps heat from passing through it. A higher R-value means the insulation works better.
- SEER2 (Seasonal Energy Efficiency Ratio 2)
- A rating for how well an air conditioner or heat pump cools. A higher SEER2 means lower summer energy bills, but the unit costs more to buy.
- Soft costs
- The costs that aren’t equipment or materials, like permits, design, engineering and inspections. On a solar install, soft costs can be 30% to 40% of the total.
- Square (roofing)
- A roofing unit equal to 100 square feet. Roofers measure and price jobs in squares.
- Tonnage (air conditioners and heat pumps)
- How much cooling an air conditioner or heat pump can do, measured in tons. One ton equals 12,000 BTUs per hour. The right size depends on how much cooling your home needs, not just its square footage.
- Underlayment
- A layer that goes under roofing or flooring. It keeps moisture out and gives a smooth, solid base.
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