Construction Terms Every NYC Homeowner Should Know

A placeholder amount included in a bid for items not yet selected (e.g., tile, lighting). Final cost may vary based on choices.

Extra funds (usually 10–20%) set aside in the budget for unforeseen issues like water damage or structural surprises.

A cost-saving process where design or materials are modified to meet budget without sacrificing functionality.

NYC Department of Buildings (DOB) alteration permit types. Alt-1 involves major changes or CO updates; Alt-2 covers interior-only work.

The official set of architectural drawings submitted to the DOB for permit approval. Includes floor plans, elevations, and specs.

A vertical pipe or duct that runs through a building. Common in co-ops/condos for plumbing, gas, or HVAC systems.

A list of items to be completed or fixed before final project sign-off. Usually created near the end of construction.

The time it takes for materials or products to arrive after ordering. Long lead times can affect project timelines.

Documents submitted by the contractor for approval before work begins—includes product specs, samples, or shop drawings.

A formal written agreement to modify the original contract scope, typically affecting cost or schedule.

A billing method where the client pays for actual time spent and materials used, rather than a fixed price.

A portion of the contract value withheld until the project is completed and all punch list items are resolved.

Request for Information. A formal question submitted to clarify plans, specs, or site conditions during construction.

The licensed professional or firm managing the entire construction project and subcontractors.

May work with or instead of a GC, typically overseeing scheduling, cost tracking, and quality control.