Glossary
Plain-English definitions for the terms that tend to trip people up in the documents MarkupAlertanalyzes. Each one includes real examples and why it matters when you're making a decision.
Change Order
A change order is a written modification to the original contract — adding scope, changing materials, or extending the schedule — with an updated price.
Contractor Markup
Contractor markup is the percentage a GC adds on top of sub costs and materials to cover overhead and profit.
Cost-Plus Contract
A cost-plus contract bills you for actual labor and materials plus an agreed-upon contractor fee or percentage markup.
Fixed-Price Contract
A fixed-price (or lump-sum) contract locks in the total cost for a defined scope of work.
General Contractor
A general contractor (GC) is the licensed professional who manages an entire construction or renovation project — scheduling subs, pulling permits, sourcing materials, and overseeing quality.
Lien Waiver
A lien waiver is a signed document where a contractor or supplier gives up their right to file a mechanic's lien on your property for work or materials already paid for.
Permit
A permit is official authorization from a local building department to perform specified construction work.
Scope Creep
Scope creep is the gradual expansion of a project's scope beyond what was originally contracted, usually without matching schedule or budget changes.
Subcontractor
A subcontractor is a specialist — electrician, plumber, roofer — hired by a general contractor to perform a specific trade.
Time and Materials
A time and materials (T&M) contract bills you for hours worked at a set labor rate plus actual material costs, usually with a markup on materials.