Cost & Construction Glossary
Quotes and estimates are full of jargon. Here are plain-English definitions of the terms you'll run into most when budgeting a home project.
- AFUE (Annual Fuel Utilization Efficiency)
- A furnace efficiency rating — the percentage of fuel converted to heat. An 80% AFUE furnace wastes 20%; a 96% model wastes only 4%.
- BTU (British Thermal Unit)
- A unit of heat energy used to size heating and cooling equipment. Bigger spaces need more BTUs.
- Change order
- A written amendment to a construction contract that adds, removes, or alters work — and usually changes the price. Frequent change orders are how budgets balloon.
- Cost vs. Value
- The relationship between what a project costs and how much of that cost it returns at resale. Exterior projects tend to have the best cost-vs-value ratios.
- Draw
- A scheduled payment released to a contractor as project milestones are completed, rather than all upfront.
- Egress window
- A window large enough to climb out of in an emergency. Required by code for any basement room used as a bedroom.
- Fixed-price vs. cost-plus
- Two contract types: fixed-price quotes one total; cost-plus charges actual costs plus a contractor fee. Fixed-price shifts overrun risk to the contractor.
- Flashing
- Thin metal installed at roof joints, chimneys, and skylights to direct water away and prevent leaks. Failed flashing is a common leak source.
- Gunite / shotcrete
- Sprayed concrete used to build custom in-ground pools. Gunite pools are the most durable and customizable — and the most expensive.
- HSPF2 (Heating Seasonal Performance Factor)
- A heat pump heating-efficiency rating. Higher HSPF2 means lower heating bills.
- Linear foot vs. square foot
- Linear foot measures length only (used for fencing, gutters, trim); square foot measures area (used for flooring, roofing, siding).
- Manual J
- The industry-standard calculation for sizing HVAC equipment to a home’s actual heating and cooling load. Insist on it — oversizing is common and wasteful.
- Net metering
- A billing arrangement that credits solar owners for excess electricity sent back to the grid, improving solar’s payback.
- Permit
- Local government authorization to do regulated work. Permitted work is inspected for code compliance — important for safety and for selling the home later.
- Pitch (roof)
- The steepness of a roof. Steeper pitches cost more to work on because of added labor and safety requirements.
- R-value
- A measure of insulation’s resistance to heat flow. Higher R-value means better insulation.
- SEER2 (Seasonal Energy Efficiency Ratio 2)
- An air-conditioner and heat-pump cooling-efficiency rating. Higher SEER2 lowers summer energy bills at a higher purchase price.
- Soft costs
- Non-hardware project costs like permits, design, engineering, and inspection. On solar installs, soft costs can be 30–40% of the total.
- Square (roofing)
- A roofing unit equal to 100 square feet. Roofers price and measure jobs in squares.
- Tonnage (HVAC)
- The cooling capacity of an AC or heat pump, measured in tons (one ton = 12,000 BTU/hour). Sized to your home’s load, not its square footage alone.
- Underlayment
- A protective layer installed beneath roofing or flooring for moisture protection and a smooth, sound base.
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