# RAZE Construction Lending Glossary

> 506 construction lending, draw inspection and building terms, each defined in one sentence by RAZE, with a full page for the terms lenders look up most. Hub: https://getaraze.com/glossary. Machine-readable list: https://getaraze.com/glossary/terms.json.

## Full definitions

### Audit Trail

An audit trail is the complete, time-stamped record of every action on a construction loan file: who requested each draw, who inspected and what the photos showed, who approved what amount and when the funds moved. With it, any disbursement can be reconstructed and defended months later. Without it, the file is a story.

Category: Loan Admin & Compliance. Full page: https://getaraze.com/glossary/audit-trail

### Builder's Risk Insurance

Builder's risk insurance is property coverage for a structure while it is under construction: the building, materials on site and sometimes in transit or storage, against fire, wind, theft and vandalism, until the project is complete and permanent coverage takes over. Lenders require it, named as mortgagee, before the first draw.

Category: Insurance & Risk. Full page: https://getaraze.com/glossary/builders-risk-insurance

### Certificate of Occupancy (CO)

A certificate of occupancy is the document a local building department issues when a new structure has passed its final inspections and may be occupied under the building code. On a construction loan it is the usual condition for the final draw and for converting to permanent financing.

Category: Legal, Title & Liens. Full page: https://getaraze.com/glossary/certificate-of-occupancy

### Construction Loan Administration (CLA)

Construction loan administration (CLA) is the work a lender does on a construction loan after closing: holding the approved budget, taking draw requests against it, ordering and reviewing inspections, releasing funds, tracking title, permits and insurance, and keeping a file an examiner can follow from the first draw to the certificate of occupancy.

Category: Loan Admin & Compliance. Full page: https://getaraze.com/glossary/construction-loan-administration

### Contingency Reserve

A contingency reserve is an unallocated line in the construction budget, typically 5 to 10 percent of hard costs, held for costs no one planned: price increases, change orders, weather delays, rework after a failed inspection. Lenders release it only against a documented need, so the loan stays in balance when the unexpected lands.

Category: Lending & Draws. Full page: https://getaraze.com/glossary/contingency-reserve

### Cost-to-Complete

Cost-to-complete is the amount still needed to finish a project from where it stands today: the approved budget less the value of work in place, plus approved change orders and known overruns. Lenders compare it with the undisbursed loan funds before every draw to confirm the loan can finish the house.

Category: Lending & Draws. Full page: https://getaraze.com/glossary/cost-to-complete

### Draw Cycle

The draw cycle is the full sequence from a builder's draw request to money in the builder's account: request submitted, inspection ordered, site visit, report reviewed against the budget, draw approved, funds released. Its length is counted in days, and every one of them is interest accruing on the outstanding balance while crews wait to be paid.

Category: Lending & Draws. Full page: https://getaraze.com/glossary/draw-cycle

### Dry-In

Dry-in is the point in a build when the structure sheds water: the roof deck is covered with underlayment or the finished roofing, windows and exterior doors are set, and the house wrap or other weather-resistive barrier is on. Interior trades can start without rain reaching the work.

Category: Framing & Structure. Full page: https://getaraze.com/glossary/dry-in

### Interest Reserve

An interest reserve is a portion of a construction loan set aside at closing to pay the interest that accrues during the build. Each period the lender funds the interest payment from the reserve instead of billing the borrower, and the reserve is sized to the expected draw pace and construction period.

Category: Lending & Draws. Full page: https://getaraze.com/glossary/interest-reserve

### Loan Balancing

Loan balancing is the test a lender runs before each draw: the undisbursed loan funds, plus any borrower equity still to be contributed, must cover the cost to complete the project. When they do not, the loan is out of balance, and the shortfall is cured, usually with a borrower deposit, before more money is released.

Category: Lending & Draws. Full page: https://getaraze.com/glossary/loan-balancing

### Notice of Commencement (NOC)

A notice of commencement is the document a property owner records in the county records before construction starts under Florida's Construction Lien Law. It names the property, the owner, the contractor, the lender and the surety, and it sets the point from which lien priority and the notice-to-owner rules run.

Category: Legal, Title & Liens. Full page: https://getaraze.com/glossary/notice-of-commencement

### Punch List

A punch list is the written list of small items still open at the end of a build: touch-up paint, a missing cover plate, a door that does not latch, a cracked tile, a downspout not connected. The builder works it down before final completion, and lenders typically hold the last draw, or a holdback, until it is cleared.

Category: Legal, Title & Liens. Full page: https://getaraze.com/glossary/punch-list

## Every term, A to Z


### 0–9

- **100/300 Guidance** (Loan Admin & Compliance): Interagency supervisory thresholds flagging banks whose construction loans exceed 100% of total risk-based capital, or whose total CRE exceeds 300% with rapid growth — triggering enhanced risk-management expectations. https://getaraze.com/glossary
- **3-Tab Shingles** (Roofing & Exterior): Single-layer asphalt shingles cut into three tabs — the economy roofing option. https://getaraze.com/glossary

### A

- **Absorption Rate** (Valuation & Appraisal): The pace at which available homes or lots sell in a market, used to gauge demand for spec construction. https://getaraze.com/glossary
- **Acquisition and Development (A&D) Loan** (Lending & Draws): Financing for land purchase plus horizontal improvements — grading, roads, and utilities — to create buildable lots. https://getaraze.com/glossary
- **Actual Cash Value (ACV)** (Insurance & Risk): Insurance settlement basis equal to replacement cost minus depreciation. https://getaraze.com/glossary
- **Additional Insured** (Insurance & Risk): A party (such as the lender or owner) added to another's liability policy for protection against project claims. https://getaraze.com/glossary
- **Adjustment** (Valuation & Appraisal): A dollar or percentage change applied to a comp's sale price to account for differences from the subject property. https://getaraze.com/glossary
- **AFCI** (MEP Systems): Arc-fault circuit interrupter protection detecting dangerous arcing, required on most living-area circuits. https://getaraze.com/glossary
- **After-Repair Value (ARV)** (Lending & Draws): The projected market value of a property after renovations are complete, used heavily in fix-and-flip lending. https://getaraze.com/glossary
- **Air Sealing** (Interior Finishes): Closing gaps and penetrations in the building envelope to reduce uncontrolled air leakage. https://getaraze.com/glossary
- **Allowance** (Project Management): A budget placeholder for unselected items (e.g., flooring); actual selections reconcile against it. https://getaraze.com/glossary
- **Allowance for Credit Losses (ACL)** (Loan Admin & Compliance): The reserve banks hold against expected loan losses under the CECL accounting standard. https://getaraze.com/glossary
- **Ampacity / Panel Size** (MEP Systems): The panel's rated capacity (commonly 200A residential), sized to the home's electrical load. https://getaraze.com/glossary
- **Anchor Bolts** (Site Work & Foundation): Bolts embedded in the foundation that secure the sill plate and frame against uplift and lateral loads. https://getaraze.com/glossary
- **Appliance Package** (Interior Finishes): The kitchen and laundry appliances specified in the budget and installed near completion. https://getaraze.com/glossary
- **Appraisal** (Valuation & Appraisal): An independent, licensed opinion of a property's value, required for most real-estate-secured loans. https://getaraze.com/glossary
- **Appraisal Gap** (Valuation & Appraisal): The shortfall when appraised value comes in below purchase price or projected cost, requiring extra borrower equity. https://getaraze.com/glossary
- **Appraisal Independence** (Loan Admin & Compliance): Rules insulating appraisers from pressure by loan production staff, enforced through ordering firewalls and appraisal management companies. https://getaraze.com/glossary
- **Appraisal Management Company (AMC)** (Valuation & Appraisal): A third party that orders, assigns, and reviews appraisals, providing independence between lenders and appraisers. https://getaraze.com/glossary
- **Appraisal Review** (Valuation & Appraisal): A qualified reviewer's assessment of an appraisal's accuracy and compliance before the lender relies on it. https://getaraze.com/glossary
- **Appraised Value vs. Purchase Price** (Valuation & Appraisal): Lenders generally underwrite to the lower of the two, which affects maximum loan amount. https://getaraze.com/glossary
- **Architectural Shingles** (Roofing & Exterior): Laminated, dimensional asphalt shingles with longer warranties and higher wind ratings than 3-tab. https://getaraze.com/glossary
- **As-Built Drawings** (Project Management): Revised drawings documenting what was actually constructed, including field changes. https://getaraze.com/glossary
- **As-Completed Value** (Lending & Draws): The appraised value a property is expected to have once construction is finished, used to underwrite construction loans. https://getaraze.com/glossary
- **As-Is Value** (Lending & Draws): The current market value of a property in its present condition, before any construction or improvement. https://getaraze.com/glossary
- **Assessed Value** (Valuation & Appraisal): The value a taxing authority assigns for property tax purposes, often differing from market value. https://getaraze.com/glossary
- **Assignment of Contracts** (Legal, Title & Liens): The lender's right to step into the borrower's construction contract and plans if the loan defaults. https://getaraze.com/glossary
- **Audit Trail** (Loan Admin & Compliance): The complete, timestamped record of every action, document, and decision on a loan file, allowing any disbursement to be reconstructed and defended. https://getaraze.com/glossary/audit-trail
- **Automated Valuation Model (AVM)** (Valuation & Appraisal): A statistical model estimating property value from data, used for screening and portfolio monitoring rather than origination of construction loans. https://getaraze.com/glossary

### B

- **Backflow Preventer** (MEP Systems): A device stopping contaminated water from flowing backward into the potable supply. https://getaraze.com/glossary
- **Backsplash** (Interior Finishes): The protective, decorative wall surface behind counters, typically tile. https://getaraze.com/glossary
- **Balloon Framing** (Framing & Structure): An older method with studs running continuously from foundation to roof, largely replaced by platform framing. https://getaraze.com/glossary
- **Balusters** (Interior Finishes): The vertical posts supporting a handrail, spaced to prevent fall-through. https://getaraze.com/glossary
- **Baseboard** (Interior Finishes): Trim covering the joint between wall and floor. https://getaraze.com/glossary
- **Basement Foundation** (Site Work & Foundation): A full-height below-grade foundation creating usable space beneath the first floor. https://getaraze.com/glossary
- **Bath Exhaust Fan** (MEP Systems): The vented fan removing moisture from bathrooms to prevent mold, required to duct outdoors. https://getaraze.com/glossary
- **Batt Insulation** (Interior Finishes): Pre-cut fiberglass or mineral wool blankets fitted between framing members. https://getaraze.com/glossary
- **Beam** (Framing & Structure): A major horizontal structural member carrying loads from joists or walls to posts or foundations. https://getaraze.com/glossary
- **Bearing Capacity** (Site Work & Foundation): The maximum load soil can support without failure or excessive settlement. https://getaraze.com/glossary
- **Below-Grade Plumbing** (Site Work & Foundation): Sewer, drain, and supply piping installed beneath the slab or ground level before the foundation pour. https://getaraze.com/glossary
- **Benchmark** (Site Work & Foundation): A fixed reference point of known elevation used to control grades during construction. https://getaraze.com/glossary
- **Beneficial Ownership** (Loan Admin & Compliance): The individuals who ultimately own or control a borrowing entity, which lenders must identify under customer due diligence rules. https://getaraze.com/glossary
- **Bid / Estimate** (Project Management): A contractor's priced proposal; a bid is typically binding while an estimate is approximate. https://getaraze.com/glossary
- **Bid Bond** (Insurance & Risk): A surety's guarantee that a bidder will enter the contract at its bid price if selected. https://getaraze.com/glossary
- **Blocking** (Framing & Structure): Short framing pieces installed between studs or joists for support, fire-stopping, or attachment points. https://getaraze.com/glossary
- **Blower Door Test** (Interior Finishes): A pressurization test measuring whole-house air leakage, required by many energy codes. https://getaraze.com/glossary
- **Blown-In Insulation** (Interior Finishes): Loose fiberglass or cellulose blown into attics and cavities for continuous coverage. https://getaraze.com/glossary
- **Blueprints / Construction Drawings** (Project Management): The architectural and engineering plans detailing design, dimensions, and technical specifications. https://getaraze.com/glossary
- **Boundary Survey** (Site Work & Foundation): A survey establishing the legal property lines and corners of a parcel. https://getaraze.com/glossary
- **Branch Circuit** (MEP Systems): An individual circuit from the panel serving outlets, lights, or equipment. https://getaraze.com/glossary
- **Breaker** (MEP Systems): The protective switch that interrupts a circuit under overload or fault. https://getaraze.com/glossary
- **Brick Veneer** (Roofing & Exterior): A single non-structural layer of brick over framed walls, providing brick appearance without structural mass. https://getaraze.com/glossary
- **Bridge Loan** (Lending & Draws): Short-term financing that covers a gap between transactions, such as between acquisition and construction or construction and permanent financing. https://getaraze.com/glossary
- **Broken Priority** (Legal, Title & Liens): The loss of first lien position that can occur when construction visibly begins before the mortgage is recorded. https://getaraze.com/glossary
- **BSA/AML** (Loan Admin & Compliance): Bank Secrecy Act and anti-money-laundering requirements, including customer due diligence on construction borrowers and entities. https://getaraze.com/glossary
- **Budget Review** (Lending & Draws): A lender's analysis of the builder's cost breakdown to confirm the budget is complete, realistic, and sufficient to finish the project. https://getaraze.com/glossary
- **Builder Line of Credit** (Lending & Draws): A revolving facility allowing a builder to finance multiple projects under one master agreement, with sub-limits per house or lot. https://getaraze.com/answers/what-is-a-builder-line-of-credit
- **Builder's Risk Insurance** (Insurance & Risk): Property coverage protecting a structure under construction against fire, wind, theft, and vandalism until completion. https://getaraze.com/glossary/builders-risk-insurance
- **Building Envelope** (Interior Finishes): The complete barrier of walls, roof, windows, and foundation separating conditioned from unconditioned space. https://getaraze.com/glossary
- **Building Inspection** (Project Management): Municipal inspections at code-required stages (footing, framing, rough MEP, final) authorizing work to proceed. https://getaraze.com/glossary
- **Building Permit** (Site Work & Foundation): The primary permit authorizing construction of a structure per approved plans. https://getaraze.com/glossary
- **Buyout** (Project Management): The GC's process of awarding subcontracts and locking material prices after contract signing. https://getaraze.com/glossary

### C

- **Cabinet Boxes vs. Faces** (Interior Finishes): The carcass construction (plywood or particleboard) versus the visible door and drawer fronts. https://getaraze.com/glossary
- **Cabinets** (Interior Finishes): Built-in storage units in kitchens and baths, in stock, semi-custom, or custom grades. https://getaraze.com/glossary
- **Call Report** (Loan Admin & Compliance): The quarterly financial report banks file with regulators, including construction loan balances used to benchmark lending activity. https://getaraze.com/glossary
- **Callback** (Project Management): A post-closing return trip to fix warranty items. https://getaraze.com/glossary
- **CAMELS Rating** (Loan Admin & Compliance): The supervisory rating system (Capital, Assets, Management, Earnings, Liquidity, Sensitivity) regulators use to score bank health. https://getaraze.com/glossary
- **Cantilever** (Framing & Structure): A projecting structure supported at only one end, such as a bumped-out floor or balcony. https://getaraze.com/glossary
- **Carpet and Pad** (Interior Finishes): Tufted floor covering over cushion padding, stretched and tacked at edges. https://getaraze.com/glossary
- **Casing** (Interior Finishes): Trim framing door and window openings. https://getaraze.com/glossary
- **CC&Rs** (Legal, Title & Liens): Covenants, conditions, and restrictions governing a community, including architectural and construction standards. https://getaraze.com/glossary
- **CECL** (Loan Admin & Compliance): Current Expected Credit Losses — the accounting standard requiring lenders to reserve for lifetime expected losses at origination. https://getaraze.com/glossary
- **Certificate of Completion** (Project Management): The document issued for projects (like remodels) that don't require a certificate of occupancy. https://getaraze.com/glossary
- **Certificate of Insurance (COI)** (Insurance & Risk): The document evidencing a party's coverage, limits, and effective dates — collected and tracked by lenders. https://getaraze.com/glossary
- **Certificate of Occupancy (CO)** (Legal, Title & Liens): The government certificate confirming a building complies with codes and may be occupied — a standard final-draw condition. https://getaraze.com/glossary/certificate-of-occupancy
- **Chain of Evidence** (Loan Admin & Compliance): The unbroken documentation linking a draw request to its inspection, photos, approvals, and disbursement — the backbone of a defensible loan file. https://getaraze.com/answers/what-is-chain-of-evidence-in-construction-lending
- **Change Order** (Project Management): A documented modification to the contract's scope, price, or schedule, signed by both parties. https://getaraze.com/glossary
- **Cleanout** (MEP Systems): An accessible fitting allowing drain lines to be cleared of blockages. https://getaraze.com/glossary
- **Clearing and Grubbing** (Site Work & Foundation): Removing trees, stumps, brush, and debris from the building site before grading. https://getaraze.com/glossary
- **Closeout Documents** (Project Management): The completion package: warranties, manuals, lien waivers, as-builts, and final inspections. https://getaraze.com/glossary
- **Closet Systems** (Interior Finishes): Shelving and organizer installations completing bedroom and storage spaces. https://getaraze.com/glossary
- **Coinsurance Clause** (Insurance & Risk): A provision penalizing underinsurance by reducing claim payments if coverage is below a required percentage of value. https://getaraze.com/glossary
- **Commitment Letter** (Lending & Draws): The lender's formal offer stating loan amount, rate, term, and conditions that must be satisfied before and during funding. https://getaraze.com/glossary
- **Compaction** (Site Work & Foundation): Mechanically densifying soil or fill so it can support loads without settling. https://getaraze.com/glossary
- **Comparable (Comp)** (Valuation & Appraisal): A recently sold, similar property used as a benchmark in the sales comparison approach. https://getaraze.com/glossary
- **Completion Date Covenant** (Lending & Draws): A required project completion deadline in the loan agreement; missing it can constitute default even if payments are current. https://getaraze.com/glossary
- **Completion Escrow** (Loan Admin & Compliance): Funds withheld at closing or conversion to cover minor unfinished items, released when the work is verified complete. https://getaraze.com/glossary
- **Completion Guaranty** (Legal, Title & Liens): A guarantor's promise that the project will be finished, protecting the lender from an abandoned half-built asset. https://getaraze.com/glossary
- **Concentration Risk** (Loan Admin & Compliance): The risk from overexposure to one asset class or geography; regulators apply guidance thresholds to construction and CRE concentrations. https://getaraze.com/glossary
- **Concrete Block (CMU)** (Framing & Structure): Concrete masonry units used for structural walls — the dominant exterior wall system in Florida homes. https://getaraze.com/glossary
- **Condensate Drain** (MEP Systems): Piping carrying moisture removed by the evaporator coil safely out of the structure. https://getaraze.com/glossary
- **Condenser Unit** (MEP Systems): The outdoor coil and compressor assembly releasing heat absorbed from indoors. https://getaraze.com/glossary
- **Conditional Lien Waiver** (Legal, Title & Liens): A waiver effective only once the associated payment actually clears — safer for the party signing it. https://getaraze.com/glossary
- **Construction Lien** (Legal, Title & Liens): The term many states (including Florida) use for a mechanic's lien arising from unpaid construction work. https://getaraze.com/glossary
- **Construction Loan** (Lending & Draws): A short-term loan funding the construction of a building, disbursed in draws against verified progress rather than in a lump sum. https://getaraze.com/glossary
- **Construction Loan Administration (CLA)** (Loan Admin & Compliance): The systems and processes lenders use to manage the full lifecycle of a construction loan — budgets, draw schedules, disbursements, compliance, and reporting. https://getaraze.com/glossary/construction-loan-administration
- **Construction Manager** (Project Management): A professional managing the project on the owner's behalf, sometimes at-risk with a guaranteed price. https://getaraze.com/glossary
- **Construction-to-Permanent Loan** (Lending & Draws): A single-close loan that funds construction and automatically converts to a permanent mortgage at completion, avoiding a second closing. https://getaraze.com/answers/what-is-a-construction-to-permanent-loan-draw
- **Contingency Reserve** (Lending & Draws): An unallocated budget line (typically 5–10% of hard costs) reserved for unforeseen costs like price escalations, delays, or design changes. https://getaraze.com/glossary/contingency-reserve
- **Continuous Load Path** (Framing & Structure): The engineered chain of connections transferring wind and seismic forces from roof to foundation. https://getaraze.com/glossary
- **Control Joint** (Roofing & Exterior): Planned grooves or breaks in stucco or concrete that direct where shrinkage cracks occur. https://getaraze.com/glossary
- **Cost Approach** (Valuation & Appraisal): Valuation based on land value plus depreciated replacement cost of improvements — especially relevant for new construction. https://getaraze.com/glossary
- **Cost Breakdown** (Lending & Draws): A line-item schedule of all project costs by trade or phase, submitted by the builder and used as the baseline for draw funding. https://getaraze.com/glossary
- **Cost-Plus Contract** (Project Management): A contract paying actual costs plus a fee, placing overrun risk on the owner. https://getaraze.com/glossary
- **Cost-to-Complete** (Lending & Draws): The estimated remaining cost to finish the project; if it exceeds undisbursed funds, the loan is out of balance. https://getaraze.com/glossary/cost-to-complete
- **Countertops** (Interior Finishes): Work surfaces of granite, quartz, laminate, or solid surface installed on cabinets. https://getaraze.com/glossary
- **Course of Construction Endorsement** (Insurance & Risk): Policy language adapting homeowner or property coverage to a structure while it's being built. https://getaraze.com/glossary
- **Coverage Gap** (Loan Admin & Compliance): A geographic area where a lender cannot reliably source timely inspections, creating draw delays and portfolio risk. https://getaraze.com/glossary
- **Crawl Space** (Site Work & Foundation): A shallow unfinished space between the ground and first floor providing access to plumbing and mechanicals. https://getaraze.com/glossary
- **Critical Path** (Project Management): The sequence of dependent tasks determining minimum project duration; delays here delay everything. https://getaraze.com/glossary
- **Criticized Asset** (Loan Admin & Compliance): A loan rated special mention, substandard, doubtful, or loss by examiners or internal review, requiring heightened monitoring. https://getaraze.com/glossary
- **Crown Molding** (Interior Finishes): Decorative trim at the wall-ceiling joint. https://getaraze.com/glossary
- **Cut and Fill** (Site Work & Foundation): Balancing earthwork by moving soil from high areas (cut) to low areas (fill) to reach design grades. https://getaraze.com/glossary

### D

- **Daily Log** (Project Management): The superintendent's dated record of weather, crews, deliveries, and events — valuable evidence in disputes. https://getaraze.com/glossary
- **Data Integrity** (Loan Admin & Compliance): The accuracy, completeness, and consistency of loan data across systems — a prerequisite for reliable reporting and audits. https://getaraze.com/glossary
- **Dead Load** (Framing & Structure): The permanent weight of the structure itself and fixed components. https://getaraze.com/glossary
- **Debris and Site Cleanup** (Project Management): Removing construction waste throughout and after the build, leaving the site ready for occupancy. https://getaraze.com/glossary
- **Deductible Buy-Down** (Insurance & Risk): A supplemental policy reducing the effective deductible on a primary policy, used with large hurricane deductibles. https://getaraze.com/glossary
- **Deed in Lieu** (Legal, Title & Liens): The borrower's voluntary transfer of the property to the lender to avoid foreclosure. https://getaraze.com/glossary
- **Deed of Trust** (Legal, Title & Liens): A security instrument used in many states where a trustee holds title until the loan is repaid. https://getaraze.com/glossary
- **Deflection** (Framing & Structure): The bending of a structural member under load, limited by code to prevent bounce and finish cracking. https://getaraze.com/glossary
- **Delay in Completion Coverage** (Insurance & Risk): Insurance for income or interest losses caused by covered damage that pushes back the completion date. https://getaraze.com/glossary
- **Demobilization** (Project Management): Removing equipment and temporary facilities as the project closes out. https://getaraze.com/glossary
- **Depreciation (Appraisal)** (Valuation & Appraisal): Loss in value from physical deterioration, functional obsolescence, or external factors, deducted in the cost approach. https://getaraze.com/glossary
- **Design Pressure (DP) Rating** (Framing & Structure): The tested wind pressure rating of windows and doors, matched to the site's wind zone. https://getaraze.com/glossary
- **Desktop Appraisal** (Valuation & Appraisal): An appraisal performed without a site visit, using public records, MLS data, and third-party information. https://getaraze.com/glossary
- **Direct Disbursement** (Lending & Draws): Payment of draw funds directly to the borrower, who then pays contractors — simpler but higher risk of fund diversion. https://getaraze.com/glossary
- **Doc Stamp / Intangible Tax** (Loan Admin & Compliance): State taxes (notably in Florida) on notes and mortgages, calculated on the loan amount and payable at recording. https://getaraze.com/glossary
- **Door Hardware** (Interior Finishes): Knobs, levers, hinges, and locksets installed at trim-out. https://getaraze.com/glossary
- **Downspouts** (Roofing & Exterior): Vertical pipes carrying water from gutters to the ground or drainage, away from the foundation. https://getaraze.com/glossary
- **Drain Field** (MEP Systems): The soil absorption area where septic effluent is dispersed and treated. https://getaraze.com/glossary
- **Draw Cycle** (Lending & Draws): The full sequence from draw request submission through inspection, review, approval, and fund release; cycle speed directly affects builder cash flow. https://getaraze.com/glossary/draw-cycle
- **Draw Disbursement** (Lending & Draws): The release of loan funds to a borrower or contractor at a verified stage of construction, typically contingent on a completed inspection report. https://getaraze.com/glossary
- **Draw Fee** (Lending & Draws): An administrative charge assessed by the lender for processing each draw request. https://getaraze.com/glossary
- **Draw Frequency** (Lending & Draws): How often draws may be requested (weekly, monthly, or per milestone), set by the loan agreement and affecting builder cash flow. https://getaraze.com/glossary
- **Draw Inspection** (Lending & Draws): A site visit by a qualified inspector to verify construction progress before a lender releases draw funds, producing photo-documented evidence tied to the draw request. https://getaraze.com/answers/what-is-a-construction-draw-inspection
- **Draw Request** (Lending & Draws): A borrower or builder's formal application for a portion of construction loan funds, itemized against the approved budget and supported by progress documentation. https://getaraze.com/answers/what-is-a-draw-request
- **Draw Schedule** (Lending & Draws): The pre-agreed plan dividing a construction loan into stages, defining when funds are released as milestones are completed. https://getaraze.com/answers/what-is-a-draw-schedule
- **Drip Edge** (Roofing & Exterior): Metal flashing at roof edges directing water into gutters and protecting the fascia. https://getaraze.com/glossary
- **Drive-By Appraisal** (Valuation & Appraisal): An exterior-only inspection appraisal, used where interior access is unnecessary or unavailable. https://getaraze.com/glossary
- **Dry-In** (Framing & Structure): The milestone when roof underlayment, windows, and wraps make the structure weathertight — a common draw stage. https://getaraze.com/glossary/dry-in
- **Drywall / Sheetrock** (Interior Finishes): Gypsum board panels forming interior walls and ceilings, taped and finished for paint. https://getaraze.com/glossary
- **DSCR Loan** (Lending & Draws): A loan underwritten on the property's debt service coverage ratio — rental income relative to debt payments — rather than borrower income. https://getaraze.com/glossary
- **Ductwork** (MEP Systems): The system of trunks and branches distributing conditioned air to rooms and returning it to the air handler. https://getaraze.com/glossary
- **Dumpster / Roll-Off** (Project Management): The rented container for construction waste, a recurring site cost. https://getaraze.com/glossary
- **DWV System** (MEP Systems): Drain-waste-vent piping carrying wastewater out and venting sewer gases through the roof. https://getaraze.com/glossary

### E

- **Easement** (Legal, Title & Liens): A legal right to use another's land for a specific purpose, such as utilities or access, that survives ownership changes. https://getaraze.com/glossary
- **Eave** (Roofing & Exterior): The roof edge overhanging the wall, comprising soffit and fascia. https://getaraze.com/glossary
- **Effective Age** (Valuation & Appraisal): The age a property appears to be based on condition and updates, as opposed to its chronological age. https://getaraze.com/glossary
- **EIFS** (Roofing & Exterior): Exterior insulation and finish system — synthetic stucco over foam board, requiring careful drainage detailing. https://getaraze.com/glossary
- **Electrical Fixtures** (Interior Finishes): Lighting, switches, and outlets installed at trim-out. https://getaraze.com/glossary
- **Electrical Panel** (MEP Systems): The load center distributing power through breakers to branch circuits. https://getaraze.com/glossary
- **Electrical Rough-In** (MEP Systems): Running cable and installing boxes for outlets, switches, and fixtures before drywall. https://getaraze.com/glossary
- **Elevation Certificate** (Site Work & Foundation): A surveyor's document recording a building's elevation relative to flood levels, used for flood insurance rating. https://getaraze.com/glossary
- **Elevation Drawing** (Project Management): A flat exterior view of each side of the structure showing finishes and heights. https://getaraze.com/glossary
- **Encroachment** (Legal, Title & Liens): A structure or improvement extending onto neighboring property or into an easement or setback. https://getaraze.com/glossary
- **Endorsement (Title)** (Legal, Title & Liens): An amendment expanding or modifying title policy coverage, such as pending disbursement or survey endorsements. https://getaraze.com/glossary
- **Engineered Hardwood** (Interior Finishes): A real-wood veneer over a stable plywood core, more moisture-tolerant than solid wood. https://getaraze.com/glossary
- **Engineered Lumber** (Framing & Structure): Manufactured structural wood products (LVL, PSL, glulam) offering greater strength and consistency than sawn lumber. https://getaraze.com/glossary
- **Equity Requirement** (Lending & Draws): The borrower's required cash or land contribution to the project, typically injected before loan funds are advanced. https://getaraze.com/glossary
- **Erosion Control** (Site Work & Foundation): Measures like silt fences and swales that prevent soil runoff during construction, often required by permit. https://getaraze.com/glossary
- **Errors & Omissions (E&O)** (Insurance & Risk): Professional liability coverage for negligent acts or mistakes by service providers such as inspectors, architects, and engineers. https://getaraze.com/glossary
- **Escrow Account** (Loan Admin & Compliance): Funds held by the lender or a third party for taxes, insurance, or completion items, disbursed when conditions are met. https://getaraze.com/glossary
- **Evaluation** (Valuation & Appraisal): A value estimate permitted instead of a full appraisal for certain lower-risk or lower-balance transactions. https://getaraze.com/glossary
- **Evaporator Coil** (MEP Systems): The indoor coil where refrigerant absorbs heat from passing air, cooling the airstream. https://getaraze.com/glossary
- **Excavation** (Site Work & Foundation): Digging for foundations, basements, utilities, or other below-grade work. https://getaraze.com/glossary
- **Exception Report** (Loan Admin & Compliance): A recurring report flagging loans that violate policy thresholds, such as out-of-balance budgets or missed completion dates. https://getaraze.com/glossary
- **Expansive Soil** (Site Work & Foundation): Clay-heavy soil that swells when wet and shrinks when dry, requiring special foundation design. https://getaraze.com/glossary
- **Exposure Time** (Valuation & Appraisal): The estimated marketing period a property would have required to sell at the appraised value. https://getaraze.com/glossary
- **Extension Fee** (Lending & Draws): A charge for extending the construction loan maturity when the project runs past the original term. https://getaraze.com/glossary
- **Exterior Door Threshold** (Roofing & Exterior): The sealed sill assembly at exterior doors blocking water and air infiltration. https://getaraze.com/glossary
- **External Obsolescence** (Valuation & Appraisal): Value loss from factors outside the property, like a neighboring landfill or declining market. https://getaraze.com/glossary

### F

- **Failed Inspection / Correction Notice** (Project Management): An inspector's rejection requiring corrections and re-inspection before work continues. https://getaraze.com/glossary
- **Fair Lending** (Loan Admin & Compliance): The body of law (ECOA, Fair Housing Act) prohibiting discrimination in any aspect of credit, including construction lending decisions. https://getaraze.com/glossary
- **Fascia** (Roofing & Exterior): The horizontal board at the roof edge where gutters attach, protecting rafter ends. https://getaraze.com/glossary
- **Feasibility Study** (Valuation & Appraisal): An analysis of whether a proposed project's projected value and absorption justify its cost. https://getaraze.com/glossary
- **Fiber Cement Siding** (Roofing & Exterior): Cement-sand-cellulose siding (e.g., Hardie board) resisting fire, pests, and rot with a wood-like appearance. https://getaraze.com/glossary
- **Final Draw** (Lending & Draws): The last disbursement, typically conditioned on a certificate of occupancy, final inspection, final lien waivers, and completed punch list. https://getaraze.com/glossary
- **Final Lien Waiver** (Legal, Title & Liens): A waiver releasing all lien rights on the project, typically required before the final draw. https://getaraze.com/glossary
- **Finished Grading** (Site Work & Foundation): Final contouring of the ground around the completed structure to direct water away from the foundation. https://getaraze.com/glossary
- **Fire Blocking** (Framing & Structure): Framing members or materials that slow fire spread through concealed wall and floor cavities. https://getaraze.com/glossary
- **First Draw** (Lending & Draws): The initial disbursement, often covering permits, site work, or land payoff, and frequently subject to extra documentation requirements. https://getaraze.com/glossary
- **Fix-and-Flip Loan** (Lending & Draws): Short-term financing to acquire and renovate a property for resale, typically underwritten against ARV with a rehab draw component. https://getaraze.com/glossary
- **Fixed-Price Contract** (Project Management): A contract at a set total price, placing cost overrun risk on the contractor. https://getaraze.com/glossary
- **Fixture Unit** (MEP Systems): The code measure of plumbing demand used to size supply and drain piping. https://getaraze.com/glossary
- **Flashing** (Roofing & Exterior): Metal or membrane pieces sealing roof and wall intersections, penetrations, and openings against water. https://getaraze.com/glossary
- **Flex Duct** (MEP Systems): Flexible insulated ducting used for branch runs in residential systems. https://getaraze.com/glossary
- **Float-Down Provision** (Lending & Draws): A single-close loan feature allowing the permanent rate to be reduced if market rates fall before conversion. https://getaraze.com/glossary
- **Flood Determination** (Loan Admin & Compliance): The required check of whether improved property lies in a special flood hazard area, triggering mandatory flood insurance. https://getaraze.com/glossary
- **Flood Insurance** (Insurance & Risk): Coverage for flood damage, federally mandated for structures in special flood hazard areas securing regulated loans. https://getaraze.com/glossary
- **Flood Insurance Requirement** (Loan Admin & Compliance): The federal mandate that structures in flood zones securing federally regulated loans carry flood coverage before disbursement on the structure. https://getaraze.com/glossary
- **Flooring Underlayment** (Interior Finishes): The layer between subfloor and finish flooring providing smoothing, sound, or moisture control. https://getaraze.com/glossary
- **Footings** (Site Work & Foundation): Below-grade concrete bases that spread the structure's load to the soil and anchor the foundation. https://getaraze.com/glossary
- **Force Majeure** (Insurance & Risk): A contract clause excusing performance delays caused by events beyond the parties' control, such as hurricanes or supply disruptions. https://getaraze.com/glossary
- **Foreclosure** (Legal, Title & Liens): The legal process by which a lender enforces its lien and sells the property after default. https://getaraze.com/glossary
- **Form Board Survey** (Site Work & Foundation): A survey verifying foundation forms are correctly placed within setbacks before concrete is poured. https://getaraze.com/glossary
- **Foundation** (Site Work & Foundation): The lowermost structural element transferring the building's load to the ground through the footings. https://getaraze.com/glossary
- **Framing** (Framing & Structure): Constructing the structural skeleton of walls, floors, and roof from wood or metal studs, beams, and joists. https://getaraze.com/glossary
- **Front-Loading** (Lending & Draws): A padded cost breakdown that overstates early-stage line items so the builder receives disproportionate funds early in the project. https://getaraze.com/glossary
- **Functional Obsolescence** (Valuation & Appraisal): Value loss from outdated or awkward design features, such as a five-bedroom home with one bathroom. https://getaraze.com/glossary
- **Fund Diversion** (Lending & Draws): The misuse of draw proceeds for purposes other than the funded work — a core risk that inspections and title updates are designed to catch. https://getaraze.com/glossary
- **Funding Control** (Lending & Draws): A disbursement method where a third party manages payments directly to contractors and suppliers to ensure funds reach the intended parties. https://getaraze.com/glossary
- **Furnace** (MEP Systems): A fuel-fired or electric heating unit generating warm air distributed through ducts. https://getaraze.com/glossary

### G

- **Gable** (Roofing & Exterior): The triangular wall section between the edges of a dual-pitched roof. https://getaraze.com/glossary
- **Gantt Chart** (Project Management): A bar-chart schedule mapping task durations and dependencies over time. https://getaraze.com/glossary
- **Gap Coverage** (Legal, Title & Liens): Title protection for the period between closing and recording, when new matters could attach to title. https://getaraze.com/glossary
- **Gas Line / LP Service** (MEP Systems): Natural gas or propane piping serving appliances, pressure-tested before concealment. https://getaraze.com/glossary
- **General Contractor (GC)** (Project Management): The professional responsible for managing the entire project: subcontractors, materials, schedule, budget, and code compliance. https://getaraze.com/glossary
- **General Liability (GL) Insurance** (Insurance & Risk): Coverage for third-party bodily injury and property damage arising from the contractor's operations. https://getaraze.com/glossary
- **Geo-Stamp** (Loan Admin & Compliance): GPS coordinates and timestamp embedded in inspection photos, proving evidence was captured at the actual site at the stated time. https://getaraze.com/glossary
- **GFCI** (MEP Systems): Ground-fault circuit interrupter protection shutting off power at tiny current leaks — required in wet areas. https://getaraze.com/glossary
- **Girder** (Framing & Structure): A primary beam supporting other beams or joists, often at the center of a floor system. https://getaraze.com/glossary
- **Grading** (Site Work & Foundation): Leveling and shaping the land to establish proper drainage and a stable base for the foundation. https://getaraze.com/glossary
- **Green Board / Cement Board** (Interior Finishes): Moisture-resistant panels used behind tile in wet areas. https://getaraze.com/glossary
- **Gross Living Area (GLA)** (Valuation & Appraisal): Finished, above-grade living space measured to exterior walls — the standard size metric in residential appraisal. https://getaraze.com/glossary
- **Ground-Up Construction** (Lending & Draws): New construction starting from a vacant or cleared lot, as opposed to renovation of an existing structure. https://getaraze.com/glossary
- **Grounding / Bonding** (MEP Systems): The safety system connecting electrical components to earth and to each other to clear faults. https://getaraze.com/glossary
- **Grout** (Interior Finishes): The cementitious or epoxy filler between tiles, sealed against staining. https://getaraze.com/glossary
- **Grout Cell** (Framing & Structure): A block wall cell filled with concrete and rebar to create reinforced vertical columns within the wall. https://getaraze.com/glossary
- **Guaranteed Maximum Price (GMP)** (Project Management): A cost-plus contract capped at a maximum, blending transparency with price protection. https://getaraze.com/glossary
- **Guidance Line** (Lending & Draws): An uncommitted credit facility where the lender reviews and approves each project individually before advancing funds. https://getaraze.com/glossary
- **Gutters** (Roofing & Exterior): Channels along roof edges collecting rainwater and directing it to downspouts. https://getaraze.com/glossary

### H

- **Handrail / Guardrail** (Interior Finishes): Code-required railings at stairs and elevated areas, with height and load requirements. https://getaraze.com/glossary
- **Hanging (Drywall)** (Interior Finishes): Fastening drywall panels to framing — the first phase of the drywall scope. https://getaraze.com/glossary
- **Hard Costs** (Lending & Draws): Direct construction costs — labor, materials, equipment, and site work — that physically build the project. https://getaraze.com/glossary
- **Hardware and Accessories** (Interior Finishes): Towel bars, paper holders, and door stops — final punch-out items. https://getaraze.com/glossary
- **Hardwood Flooring** (Interior Finishes): Solid or engineered wood flooring, nailed, glued, or floated. https://getaraze.com/glossary
- **Header** (Framing & Structure): A beam spanning over a door or window opening, carrying loads around the opening. https://getaraze.com/glossary
- **Heat Pump** (MEP Systems): A system that both heats and cools by moving heat between indoors and outdoors — the standard Florida configuration. https://getaraze.com/glossary
- **Highest and Best Use** (Valuation & Appraisal): The legally permissible, physically possible, financially feasible use that produces the highest property value. https://getaraze.com/glossary
- **Hip Roof** (Roofing & Exterior): A roof with all sides sloping down to the walls — more wind-resistant than gable roofs and favored by insurers. https://getaraze.com/glossary
- **HMDA** (Loan Admin & Compliance): The Home Mortgage Disclosure Act, requiring lenders to collect and report data on mortgage applications, including many construction-perm loans. https://getaraze.com/glossary
- **Hold Harmless Agreement** (Insurance & Risk): An agreement in which one party assumes liability for certain risks and agrees not to hold the other responsible. https://getaraze.com/glossary
- **Holdback** (Lending & Draws): A portion of a draw or the total loan retained by the lender until specific conditions are met, such as final inspection or lien releases. https://getaraze.com/answers/what-is-a-construction-holdback
- **Horizontal Development** (Lending & Draws): Site improvements such as grading, roads, drainage, and utilities that prepare raw land for vertical construction. https://getaraze.com/glossary
- **Hose Bibb** (MEP Systems): An exterior water faucet, required to be frost-proof in freezing climates. https://getaraze.com/glossary
- **House Wrap** (Roofing & Exterior): A weather-resistive barrier over sheathing that blocks water while letting vapor escape. https://getaraze.com/glossary
- **Hurricane Deductible** (Insurance & Risk): A percentage-of-value deductible applying to named-storm damage, common in Gulf and Atlantic coastal policies. https://getaraze.com/glossary
- **Hurricane Shutters** (Roofing & Exterior): Deployable opening protection (panels, accordions, roll-downs) satisfying windborne debris requirements. https://getaraze.com/glossary
- **Hurricane Straps / Clips** (Framing & Structure): Metal connectors tying the roof to walls and walls to foundation, resisting wind uplift — required in high-wind zones. https://getaraze.com/glossary
- **HVAC** (MEP Systems): Heating, ventilation, and air conditioning — the mechanical systems controlling indoor climate. https://getaraze.com/glossary
- **HVAC Air Handler** (MEP Systems): The indoor unit containing blower, coil, and filter that circulates conditioned air through ducts. https://getaraze.com/glossary
- **HVAC Compressor** (MEP Systems): The outdoor unit component pressurizing refrigerant to reject heat and cool the building. https://getaraze.com/glossary
- **HVAC Rough-In** (MEP Systems): Installing ductwork, refrigerant lines, and equipment placement before walls are closed. https://getaraze.com/glossary

### I

- **I-Joist** (Framing & Structure): An engineered floor joist with flanges and a web, lighter and straighter than dimensional lumber. https://getaraze.com/glossary
- **Impact Fees** (Site Work & Foundation): Charges levied by local governments on new development to fund roads, schools, utilities, and other public infrastructure. https://getaraze.com/glossary
- **Impact Windows** (Roofing & Exterior): Laminated-glass windows rated to resist windborne debris, required or credited in Florida wind zones. https://getaraze.com/glossary
- **Income Approach** (Valuation & Appraisal): Valuation based on the income a property can generate, primarily used for rental and commercial properties. https://getaraze.com/glossary
- **Indemnification Clause** (Insurance & Risk): A contract provision shifting responsibility for losses or claims from one party to another. https://getaraze.com/glossary
- **Inspection Fee** (Lending & Draws): The per-inspection charge for progress verification, paid by the borrower directly or netted from draw proceeds. https://getaraze.com/glossary
- **Inspection Report** (Loan Admin & Compliance): The standardized document recording site conditions, percent complete by line item, photos, and inspector observations for a draw decision. https://getaraze.com/answers/what-is-in-a-draw-inspection-report
- **Insulation** (Interior Finishes): Materials that resist heat transfer through walls, roofs, and floors, improving efficiency and comfort. https://getaraze.com/glossary
- **Interest Reserve** (Lending & Draws): Loan funds set aside at closing to cover interest payments during construction, so the borrower isn't making payments out of pocket mid-build. https://getaraze.com/glossary/interest-reserve
- **Interest-Only Period** (Lending & Draws): The construction phase during which the borrower pays only interest on funds actually disbursed, not principal. https://getaraze.com/glossary
- **Interior Doors** (Interior Finishes): Pre-hung or slab doors installed after drywall, in hollow-core, solid-core, or panel styles. https://getaraze.com/glossary

### J

- **Jobsite Security** (Project Management): Fencing, cameras, and material controls protecting against theft — a rising cost line in budgets. https://getaraze.com/glossary
- **Joist** (Framing & Structure): A horizontal framing member supporting a floor or ceiling. https://getaraze.com/glossary
- **Junction Box** (MEP Systems): An enclosure where wiring connections are made, required to remain accessible. https://getaraze.com/glossary

### K

- **Know Before You Owe** (Loan Admin & Compliance): The CFPB disclosure regime (Loan Estimate and Closing Disclosure) designed to make loan terms transparent before consummation. https://getaraze.com/glossary

### L

- **Laminate Flooring** (Interior Finishes): A photographic layer over fiberboard core simulating wood or stone at low cost. https://getaraze.com/glossary
- **Land Equity** (Lending & Draws): The value of borrower-owned land counted toward the equity requirement in a construction loan. https://getaraze.com/glossary
- **Land Residual** (Valuation & Appraisal): A method deriving land value by subtracting development costs and profit from projected completed value. https://getaraze.com/glossary
- **Landscaping** (Site Work & Foundation): Modifying and beautifying outdoor areas with plants, sod, paths, and other features after finished grading — the last exterior line in most budgets and a common final-draw item. https://getaraze.com/glossary
- **Lead Time** (Project Management): The wait between ordering and delivery of materials — critical for windows, trusses, and appliances. https://getaraze.com/glossary
- **Level 5 Finish** (Interior Finishes): The highest drywall finish standard, with a skim coat over the entire surface for critical lighting. https://getaraze.com/glossary
- **Lien Priority** (Legal, Title & Liens): The order in which claims against a property are paid; construction lenders record before work starts to keep first position. https://getaraze.com/glossary
- **Lien Waiver** (Legal, Title & Liens): A signed document in which a contractor or supplier gives up lien rights, usually in exchange for payment. https://getaraze.com/answers/what-is-a-lien-waiver-for-a-construction-draw
- **Lift Station** (MEP Systems): A pump station raising wastewater where gravity flow to the sewer isn't possible. https://getaraze.com/glossary
- **Line-Item Draw** (Lending & Draws): A draw method funding against percent complete of individual budget lines, offering finer control than milestone draws. https://getaraze.com/glossary
- **Lintel** (Framing & Structure): A structural member spanning openings in masonry walls, precast or poured in place. https://getaraze.com/glossary
- **Liquidation Value** (Valuation & Appraisal): The likely price under a forced or accelerated sale, typically well below market value. https://getaraze.com/glossary
- **Lis Pendens** (Legal, Title & Liens): A recorded notice of pending litigation affecting the property, clouding title until resolved. https://getaraze.com/glossary
- **Live Load** (Framing & Structure): The variable weight of occupants, furniture, and movable contents a structure must support. https://getaraze.com/glossary
- **Load-Bearing Wall** (Framing & Structure): A wall carrying structural weight from above, which cannot be removed without engineered support. https://getaraze.com/glossary
- **Loan Balancing** (Lending & Draws): The requirement that undisbursed loan funds plus borrower equity always be sufficient to complete the project; shortfalls must be cured by the borrower. https://getaraze.com/glossary/loan-balancing
- **Loan Covenant** (Lending & Draws): An ongoing borrower obligation in the loan agreement — such as maintaining insurance or completing by a set date — whose breach can trigger default. https://getaraze.com/glossary
- **Loan File** (Loan Admin & Compliance): The complete collection of documents supporting a loan: application, underwriting, appraisal, closing docs, draws, and servicing records. https://getaraze.com/glossary
- **Loan Servicing** (Loan Admin & Compliance): The ongoing management of a loan after closing: billing, payment processing, escrow, draw administration, and borrower communication. https://getaraze.com/glossary
- **Loan-in-Process (LIP) Account** (Lending & Draws): The account holding undisbursed construction loan funds, drawn down as the lender approves each draw. https://getaraze.com/glossary
- **Loan-to-Cost (LTC)** (Lending & Draws): The ratio of the loan amount to the total project cost; lenders use LTC to size loans and set required borrower equity. https://getaraze.com/glossary
- **Loan-to-Value (LTV)** (Lending & Draws): The ratio of the loan amount to the appraised value of the property, a core measure of lender risk exposure. https://getaraze.com/glossary
- **Long-Lead Item** (Project Management): A product with extended delivery time that must be ordered early to protect the schedule. https://getaraze.com/glossary
- **Loss Payee** (Insurance & Risk): The party designated to receive insurance proceeds, typically the lender for property coverage. https://getaraze.com/glossary
- **Lot Loan** (Lending & Draws): Financing for the purchase of land intended for future construction, often refinanced into the construction loan. https://getaraze.com/glossary
- **Low-E Glass** (Roofing & Exterior): Glass with a low-emissivity coating reducing heat transfer and improving energy performance. https://getaraze.com/glossary
- **Low-Voltage Wiring** (MEP Systems): Data, security, audio, and doorbell wiring run separately from line-voltage circuits. https://getaraze.com/glossary
- **LVL** (Framing & Structure): Laminated veneer lumber — layered engineered wood used for headers and beams. https://getaraze.com/glossary
- **LVP** (Interior Finishes): Luxury vinyl plank — waterproof, wood-look vinyl flooring dominant in rentals and production homes. https://getaraze.com/glossary

### M

- **Manifold System** (MEP Systems): A central distribution block feeding individual PEX lines to each fixture. https://getaraze.com/glossary
- **Manual J Calculation** (MEP Systems): The engineering load calculation sizing HVAC equipment to the specific house rather than rules of thumb. https://getaraze.com/glossary
- **Market Value** (Valuation & Appraisal): The most probable price a property should bring in a competitive, open market under fair sale conditions. https://getaraze.com/glossary
- **Marketplace Fulfillment** (Loan Admin & Compliance): An inspection delivery model routing orders to a vetted network of independent inspectors rather than a fixed employee footprint. https://getaraze.com/glossary
- **Maturity Default** (Lending & Draws): Default occurring when the loan reaches maturity without payoff or conversion, even if all payments were made on time. https://getaraze.com/glossary
- **Mechanic's Lien** (Legal, Title & Liens): A statutory claim against property by contractors, subcontractors, or suppliers who furnished labor or materials and weren't paid. https://getaraze.com/glossary
- **Metal Roofing** (Roofing & Exterior): Standing seam or panel roofing prized for wind resistance and longevity in coastal markets. https://getaraze.com/glossary
- **Meter Base** (MEP Systems): The enclosure housing the utility's electric meter on the service entrance. https://getaraze.com/glossary
- **Milestone** (Project Management): A defined progress point (slab, dry-in, CO) used in scheduling and draw administration. https://getaraze.com/glossary
- **Milestone Draw** (Lending & Draws): A draw schedule keyed to completion of defined construction stages (foundation, framing, dry-in) rather than percentage of budget lines. https://getaraze.com/glossary
- **Mini-Perm Loan** (Lending & Draws): A short permanent loan (typically 3–5 years) following construction, bridging to stabilization or long-term financing. https://getaraze.com/glossary
- **Mini-Split System** (MEP Systems): A ductless heat pump with wall-mounted indoor heads, used for additions and zoned spaces. https://getaraze.com/glossary
- **Mirrors and Shower Glass** (Interior Finishes): Bath glazing items typically installed in the final trim phase. https://getaraze.com/glossary
- **Mobilization** (Project Management): The startup phase of moving equipment, facilities, and crews onto the site. https://getaraze.com/glossary
- **Monolithic Slab** (Site Work & Foundation): A slab and thickened-edge footings poured in a single placement. https://getaraze.com/glossary
- **Mortgage (Instrument)** (Legal, Title & Liens): The recorded security instrument pledging real property as collateral for a loan. https://getaraze.com/glossary
- **Mortgagee Clause** (Insurance & Risk): The policy provision protecting the lender's interest and requiring notice before cancellation. https://getaraze.com/glossary

### N

- **Named Storm Exclusion** (Insurance & Risk): A builder's risk limitation excluding or restricting coverage for declared tropical storms and hurricanes. https://getaraze.com/glossary
- **Newel Post** (Interior Finishes): The main structural post anchoring a stair railing at its ends and turns. https://getaraze.com/glossary
- **Notice of Commencement (NOC)** (Legal, Title & Liens): The recorded document (required in Florida) declaring construction has begun, setting lien priority and notice requirements. https://getaraze.com/glossary/notice-of-commencement
- **Notice to Owner (NTO)** (Legal, Title & Liens): In Florida, the notice a subcontractor or supplier must serve to preserve lien rights against the property owner. https://getaraze.com/glossary

### O

- **Occurrence vs. Claims-Made** (Insurance & Risk): The two liability policy triggers: coverage based on when the injury occurred versus when the claim is filed. https://getaraze.com/glossary
- **On Center (OC)** (Framing & Structure): The spacing measurement between centers of framing members, e.g., studs at 16" OC. https://getaraze.com/glossary
- **Ordering Engine** (Loan Admin & Compliance): The platform layer through which lenders request, route, track, and receive draw inspections from a fulfillment network. https://getaraze.com/glossary
- **OSB** (Framing & Structure): Oriented strand board — engineered wood panels widely used for wall, roof, and floor sheathing. https://getaraze.com/glossary
- **OSHA Compliance** (Project Management): Adherence to federal job-site safety standards covering falls, trenching, scaffolding, and PPE. https://getaraze.com/glossary
- **Owner-Builder** (Project Management): A property owner acting as their own general contractor, permitted with restrictions in most states. https://getaraze.com/glossary
- **Owner-Builder Loan** (Lending & Draws): A construction loan where the borrower acts as their own general contractor — higher risk and often subject to stricter draw controls. https://getaraze.com/glossary

### P

- **P-Trap** (MEP Systems): The curved fitting under fixtures holding water that blocks sewer gas. https://getaraze.com/glossary
- **Paint & Caulk (Exterior)** (Roofing & Exterior): The final exterior seal coat protecting siding, trim, and joints from moisture intrusion. https://getaraze.com/glossary
- **Parging** (Roofing & Exterior): A thin mortar coating over exposed concrete or masonry foundation walls for appearance and protection. https://getaraze.com/glossary
- **Partial Lien Waiver** (Legal, Title & Liens): A waiver covering work or payment through a specific date or draw, preserving rights for later work. https://getaraze.com/glossary
- **Pass-Through Pricing** (Loan Admin & Compliance): A pricing model where the inspection cost is billed to the borrower without lender markup. https://getaraze.com/glossary
- **Payment Bond** (Insurance & Risk): A surety's guarantee that subcontractors and suppliers will be paid, reducing lien exposure. https://getaraze.com/glossary
- **Peel-and-Stick Underlayment** (Roofing & Exterior): Self-adhering membrane underlayment providing a sealed secondary water barrier — a common Florida code and wind-mitigation upgrade. https://getaraze.com/glossary
- **Pending Disbursement Clause** (Legal, Title & Liens): A title policy provision limiting coverage to funds actually disbursed, increasing as draws are advanced. https://getaraze.com/glossary
- **Per Diem Interest** (Lending & Draws): Daily interest charged on outstanding loan balances, relevant when calculating payoff amounts or draw timing. https://getaraze.com/glossary
- **Percent Complete** (Lending & Draws): The inspector's assessment of how much of each budget line item is finished, used to calculate the maximum fundable draw amount. https://getaraze.com/answers/percent-complete-draw-inspection
- **Percolation (Perc) Test** (Site Work & Foundation): A test of how quickly soil absorbs water, required for septic system design and permitting. https://getaraze.com/glossary
- **Performance Bond** (Insurance & Risk): A surety's guarantee that the contractor will complete the project per contract; the surety steps in on default. https://getaraze.com/glossary
- **Permits** (Site Work & Foundation): Official government authorizations for construction activities, ensuring code and zoning compliance. https://getaraze.com/glossary
- **Personal Guaranty** (Legal, Title & Liens): An individual's promise to repay a business entity's loan if the entity defaults, standard in builder lending. https://getaraze.com/glossary
- **PEX** (MEP Systems): Cross-linked polyethylene tubing, the dominant flexible water supply piping in new residential work. https://getaraze.com/glossary
- **Pier and Beam** (Site Work & Foundation): A foundation of isolated piers supporting beams that carry the floor structure. https://getaraze.com/glossary
- **Pilings** (Site Work & Foundation): Deep columns driven or drilled to transfer loads through weak soil to firmer strata — common in coastal construction. https://getaraze.com/glossary
- **Plan Set** (Project Management): The complete permitted drawing package: site, floor, elevations, structural, MEP, and details. https://getaraze.com/glossary
- **Plans and Specs Appraisal** (Valuation & Appraisal): An appraisal of a not-yet-built home based on plans, specifications, and the cost breakdown, producing an as-completed value. https://getaraze.com/glossary
- **Platform Framing** (Framing & Structure): The standard method of framing one story at a time, with each floor serving as a platform for the next. https://getaraze.com/glossary
- **Plot Plan / Site Plan** (Site Work & Foundation): A drawing showing the building's placement on the lot with setbacks, drives, and utilities. https://getaraze.com/glossary
- **Plumbing Fixtures** (MEP Systems): The functional endpoints of the plumbing system: sinks, toilets, tubs, showers, and faucets. https://getaraze.com/glossary
- **Plumbing Rough-In** (MEP Systems): Installing supply, drain, waste, and vent piping before walls and slabs are closed. https://getaraze.com/glossary
- **Porcelain vs. Ceramic** (Interior Finishes): Porcelain is denser, less absorbent, and more durable; ceramic is easier to cut and cheaper. https://getaraze.com/glossary
- **Porta Toilets** (Project Management): Temporary sanitary facilities required on active job sites. https://getaraze.com/glossary
- **Portfolio Monitoring** (Loan Admin & Compliance): Ongoing surveillance of a construction loan book for stalled projects, out-of-balance loans, expiring insurance, and maturity risk. https://getaraze.com/glossary
- **Post-Closing Audit** (Loan Admin & Compliance): Quality control review of closed loan files to catch documentation defects, data errors, and compliance exceptions. https://getaraze.com/glossary
- **Pre-Sold Loan** (Lending & Draws): A construction loan for a home with an executed purchase contract in place before or during construction. https://getaraze.com/glossary
- **Preliminary Notice** (Legal, Title & Liens): The early notice many states require from subs and suppliers as a prerequisite to filing a lien. https://getaraze.com/glossary
- **Priming and Painting** (Interior Finishes): Sealing and finishing interior surfaces — typically one prime coat and two finish coats. https://getaraze.com/glossary
- **Progress Payment** (Lending & Draws): A payment to a contractor for work completed to date, typically verified by inspection before release. https://getaraze.com/glossary
- **Project Manager** (Project Management): The office-side manager handling budgets, contracts, procurement, and client communication. https://getaraze.com/glossary
- **Promissory Note** (Legal, Title & Liens): The borrower's written promise to repay the loan under stated terms — the debt itself, secured by the mortgage. https://getaraze.com/glossary
- **Punch List** (Legal, Title & Liens): The list of minor defects and unfinished items to be corrected before final completion and payment. https://getaraze.com/glossary/punch-list
- **Punch-Out** (Project Management): The final phase of correcting punch list items before closing and occupancy. https://getaraze.com/glossary

### Q

- **Quality Control (QC) Sampling** (Loan Admin & Compliance): Systematic re-review of a sample of loans or inspections to measure defect rates and process reliability. https://getaraze.com/glossary
- **Quartz (Engineered Stone)** (Interior Finishes): Manufactured stone countertops of resin and ground quartz — durable and nonporous. https://getaraze.com/glossary

### R

- **R-Value** (Interior Finishes): The measure of a material's resistance to heat flow; higher R-values insulate better. https://getaraze.com/glossary
- **Rafter** (Framing & Structure): A sloped roof framing member cut and installed on site, the traditional alternative to trusses. https://getaraze.com/glossary
- **Rake Board** (Roofing & Exterior): The inclined trim along the gable end of a roof, sealing and finishing the roof edge. https://getaraze.com/glossary
- **Rebar** (Site Work & Foundation): Steel reinforcing bars embedded in concrete to provide tensile strength. https://getaraze.com/glossary
- **Receivership** (Legal, Title & Liens): A court-appointed third party taking control of a troubled project to preserve or complete it. https://getaraze.com/glossary
- **Recessed Lighting** (Interior Finishes): Can or wafer lights installed flush in ceilings. https://getaraze.com/glossary
- **Reconciliation** (Valuation & Appraisal): The appraiser's weighing of the approaches to value to arrive at a single final opinion. https://getaraze.com/glossary
- **Refrigerant Line Set** (MEP Systems): The insulated copper lines connecting the outdoor condenser to the indoor coil. https://getaraze.com/glossary
- **Register / Diffuser** (MEP Systems): The grilles delivering supply air into rooms, adjustable for direction and flow. https://getaraze.com/glossary
- **Regulation Z** (Loan Admin & Compliance): The Truth in Lending regulation governing consumer credit disclosures, right of rescission, and billing practices. https://getaraze.com/glossary
- **Rehab Loan** (Lending & Draws): Financing for renovation of an existing structure, with a repair budget disbursed in draws against completed work. https://getaraze.com/glossary
- **Remaining Economic Life** (Valuation & Appraisal): The period over which improvements are expected to continue contributing value. https://getaraze.com/glossary
- **Replacement Cost** (Valuation & Appraisal): The cost to build a functionally equivalent structure at current prices, used in the cost approach and insurance. https://getaraze.com/glossary
- **Replacement Cost Coverage** (Insurance & Risk): Insurance paying to rebuild at current construction costs without deducting depreciation. https://getaraze.com/glossary
- **Reproduction Cost** (Valuation & Appraisal): The cost to build an exact replica of a structure, including obsolete features — distinct from replacement cost. https://getaraze.com/glossary
- **Restrictive Covenant** (Legal, Title & Liens): A recorded restriction on how property may be used or built upon, enforceable by neighbors or associations. https://getaraze.com/glossary
- **Retainage** (Lending & Draws): A percentage of each contractor payment (commonly 5–10%) withheld until project completion to ensure work is finished and defects corrected. https://getaraze.com/answers/what-is-retainage-in-construction-lending
- **Retention / Detention Pond** (Site Work & Foundation): Engineered basins that hold or slow stormwater runoff from developed land. https://getaraze.com/glossary
- **Revolver Advance** (Lending & Draws): A draw against a revolving builder credit facility, repaid as homes sell and made available again for new starts. https://getaraze.com/glossary
- **RFI** (Project Management): Request for information — the formal question-and-answer process clarifying plans during construction. https://getaraze.com/glossary
- **Ridge Board / Ridge Beam** (Framing & Structure): The horizontal member at the roof peak where rafters meet; a ridge beam is structural, a ridge board is not. https://getaraze.com/glossary
- **Ridge Vent** (Roofing & Exterior): A vent along the roof peak exhausting attic heat and moisture as part of the ventilation system. https://getaraze.com/glossary
- **Right of Rescission** (Loan Admin & Compliance): A consumer's three-business-day right to cancel certain loans secured by their principal dwelling, such as refinances — it generally does not apply to purchase or initial construction financing. https://getaraze.com/glossary
- **Romex (NM Cable)** (MEP Systems): Non-metallic sheathed cable, the standard residential wiring method. https://getaraze.com/glossary
- **Roof Deck Attachment** (Roofing & Exterior): The nailing pattern securing sheathing to trusses — re-nailing is a common wind mitigation upgrade. https://getaraze.com/glossary
- **Roof Pitch** (Roofing & Exterior): The slope of a roof expressed as vertical rise per 12 inches of horizontal run. https://getaraze.com/glossary
- **Rough Grading** (Site Work & Foundation): Initial earthmoving that brings the site to approximate elevations before construction. https://getaraze.com/glossary

### S

- **Safety and Soundness Exam** (Loan Admin & Compliance): A regulatory examination of a bank's financial condition and risk management, in which construction lending practices receive close scrutiny. https://getaraze.com/glossary
- **Sales Comparison Approach** (Valuation & Appraisal): Valuation by comparing the subject to recent sales of similar properties, with adjustments for differences. https://getaraze.com/glossary
- **Sauna** (Interior Finishes): A small heat-session room built with moisture- and heat-resistant materials — an upgrade line item that inspectors verify like any other finish. https://getaraze.com/glossary
- **Scope of Work** (Project Management): The written definition of exactly what work a contract covers — the reference point for disputes and changes. https://getaraze.com/glossary
- **Sealant Joint** (Roofing & Exterior): Flexible caulked joints at dissimilar materials accommodating movement while keeping water out. https://getaraze.com/glossary
- **Secondary Water Resistance (SWR)** (Roofing & Exterior): A sealed roof deck layer that keeps water out if the roof covering blows off — a wind mitigation credit in Florida. https://getaraze.com/glossary
- **Section Drawing** (Project Management): A cut-through view revealing internal construction from foundation to roof. https://getaraze.com/glossary
- **SEER Rating** (MEP Systems): Seasonal energy efficiency ratio — the cooling efficiency rating of air conditioners; higher is more efficient. https://getaraze.com/glossary
- **Septic System** (MEP Systems): An on-site wastewater system of tank and drain field for properties without sewer access. https://getaraze.com/glossary
- **Sequence of Construction** (Project Management): The standard order of operations from site work through punch-out that inspections are measured against. https://getaraze.com/glossary
- **Service Entrance** (MEP Systems): The point where utility power enters the building, including meter and main disconnect. https://getaraze.com/glossary
- **Service Level Agreement (SLA)** (Loan Admin & Compliance): A contractual commitment to performance standards, such as delivering inspection reports within a set number of business days. https://getaraze.com/glossary
- **Setback** (Site Work & Foundation): The minimum required distance between a structure and property lines, streets, or wetlands. https://getaraze.com/glossary
- **Sewer Tap** (MEP Systems): The permitted connection of a property's sewer line to the municipal main. https://getaraze.com/glossary
- **Shear Wall** (Framing & Structure): A braced or sheathed wall designed to resist lateral wind and seismic forces. https://getaraze.com/glossary
- **Sheathing** (Framing & Structure): Structural panels (plywood or OSB) fastened to framing to add rigidity and provide a nailing base for exterior finishes. https://getaraze.com/glossary
- **Shingles** (Roofing & Exterior): Overlapping roof covering elements of asphalt, wood, metal, or slate providing weather protection. https://getaraze.com/glossary
- **Shop Drawings** (Project Management): Fabrication-level drawings (trusses, cabinets, steel) prepared by suppliers for approval. https://getaraze.com/glossary
- **Shower Pan / Waterproofing** (Interior Finishes): The waterproof base and membrane system beneath tiled showers — a critical inspection point. https://getaraze.com/glossary
- **Sill Pan** (Roofing & Exterior): Waterproof flashing under a window or door sill directing intruding water back out. https://getaraze.com/glossary
- **Silt Fence** (Site Work & Foundation): A temporary sediment barrier installed downslope of disturbed soil to keep runoff out of drains and waterways. https://getaraze.com/glossary
- **Single-Close Loan** (Lending & Draws): A loan structure combining construction and permanent financing in one closing, locking terms before construction begins. https://getaraze.com/glossary
- **Site Value** (Valuation & Appraisal): The value of the land alone, as if vacant and available for its highest and best use. https://getaraze.com/glossary
- **Site Work** (Site Work & Foundation): Preparatory groundwork before building begins: clearing, grading, excavation, temporary utilities, and access roads. https://getaraze.com/glossary
- **Slab-on-Grade** (Site Work & Foundation): A reinforced concrete floor poured directly on prepared ground, serving as both foundation and floor — standard in Florida. https://getaraze.com/glossary
- **Soffit** (Roofing & Exterior): The finished underside of a roof overhang, often vented to allow attic airflow. https://getaraze.com/glossary
- **Soft Cost Coverage** (Insurance & Risk): Builder's risk extension covering additional interest, fees, and re-permitting costs after an insured loss delays the project. https://getaraze.com/glossary
- **Soft Costs** (Lending & Draws): Non-construction project costs such as architecture, engineering, permits, legal fees, insurance, and financing charges. https://getaraze.com/glossary
- **Soil Test / Geotechnical Report** (Site Work & Foundation): An engineer's analysis of soil bearing capacity and conditions, informing foundation design. https://getaraze.com/glossary
- **Span** (Framing & Structure): The distance a structural member crosses between supports. https://getaraze.com/glossary
- **Spearin Doctrine** (Legal, Title & Liens): The principle that an owner implicitly warrants its plans and specifications are buildable, shifting design-defect risk off the contractor. https://getaraze.com/glossary
- **Spec Loan** (Lending & Draws): A construction loan for a home built on speculation, without a committed end buyer, underwritten primarily on the builder and market. https://getaraze.com/glossary
- **Specifications (Specs)** (Project Management): The written standards for materials, products, and workmanship that accompany the drawings. https://getaraze.com/glossary
- **Spray Foam Insulation** (Interior Finishes): Expanding foam that insulates and air-seals in one application; open-cell and closed-cell types. https://getaraze.com/glossary
- **Sprinkler System (Fire)** (MEP Systems): An automatic fire suppression system, required in some residential and most commercial occupancies. https://getaraze.com/glossary
- **Stairs: Treads and Risers** (Interior Finishes): The horizontal steps (treads) and vertical boards between them (risers), governed by code dimensions. https://getaraze.com/glossary
- **Stale Draw** (Loan Admin & Compliance): A loan with no draw activity for an extended period — an early warning sign of a stalled or troubled project. https://getaraze.com/glossary
- **Standing Seam** (Roofing & Exterior): Metal roofing with raised interlocking seams and concealed fasteners. https://getaraze.com/glossary
- **Statute of Repose** (Legal, Title & Liens): The absolute deadline for construction defect claims, running from completion regardless of when the defect is discovered. https://getaraze.com/glossary
- **Steel Framing** (Framing & Structure): Cold-formed steel studs and track used instead of wood, common in commercial and coastal work. https://getaraze.com/glossary
- **Stem Wall** (Site Work & Foundation): A short foundation wall rising from the footing to support the floor structure above grade. https://getaraze.com/glossary
- **Stone Veneer** (Roofing & Exterior): Thin natural or manufactured stone cladding applied for appearance at reduced weight and cost. https://getaraze.com/glossary
- **Stop Notice** (Legal, Title & Liens): In some states, a claim served on the lender that traps undisbursed loan funds for unpaid subcontractors. https://getaraze.com/glossary
- **Stop Work Order** (Project Management): An official order halting construction due to violations, permit issues, or safety hazards. https://getaraze.com/glossary
- **Stored Materials** (Lending & Draws): Materials purchased and delivered to the site (or a bonded warehouse) but not yet installed; lenders vary on whether and how they fund them. https://getaraze.com/answers/what-are-stored-materials-in-a-construction-draw
- **Stormwater Management** (Site Work & Foundation): The permitted system of grading, drains, and basins controlling runoff from a developed site. https://getaraze.com/glossary
- **Stucco** (Roofing & Exterior): A cement-sand-lime plaster applied in layers over lath or block, the dominant Florida exterior finish. https://getaraze.com/glossary
- **Stud** (Framing & Structure): A vertical framing member in a wall, typically spaced 16 or 24 inches on center. https://getaraze.com/glossary
- **Subcontractor** (Project Management): A trade specialist (plumber, electrician, framer) hired by the GC for a defined scope. https://getaraze.com/glossary
- **Subfloor** (Framing & Structure): The structural panel layer over floor joists that supports finish flooring. https://getaraze.com/glossary
- **Subject-To Appraisal** (Valuation & Appraisal): An appraisal made subject to completion of proposed construction or repairs, with value conditioned on that completion. https://getaraze.com/glossary
- **Submittal** (Project Management): Product data, samples, or shop drawings submitted for approval before ordering or installation. https://getaraze.com/glossary
- **Subordination Agreement** (Legal, Title & Liens): A recorded agreement placing one lien behind another, such as a seller-held lot loan behind the construction mortgage. https://getaraze.com/glossary
- **Subrogation** (Insurance & Risk): An insurer's right to pursue the party responsible for a loss it paid; waivers of subrogation are common in construction contracts. https://getaraze.com/glossary
- **Substantial Completion** (Legal, Title & Liens): The stage when the project is usable for its intended purpose despite minor remaining items, triggering warranty and payment milestones. https://getaraze.com/glossary
- **Superintendent** (Project Management): The GC's on-site manager directing daily field operations and coordinating trades. https://getaraze.com/glossary
- **Supply and Return** (MEP Systems): The two sides of air distribution: supply delivers conditioned air; return carries it back to the air handler. https://getaraze.com/glossary
- **Surety** (Insurance & Risk): The company issuing bonds that guarantee a contractor's performance or payment obligations. https://getaraze.com/glossary
- **Survey** (Site Work & Foundation): Professional measurement and mapping of land, boundaries, and improvements for design, construction, and title purposes. https://getaraze.com/glossary
- **Swale** (Site Work & Foundation): A shallow graded channel that directs stormwater away from structures. https://getaraze.com/glossary
- **Sweat Equity** (Lending & Draws): Value contributed through the borrower's own labor; most lenders limit or exclude it from equity calculations because it's hard to verify. https://getaraze.com/glossary
- **System of Record** (Loan Admin & Compliance): The authoritative platform where official loan data lives; other tools must reconcile to it. https://getaraze.com/glossary

### T

- **Takeout Commitment** (Lending & Draws): A permanent lender's binding agreement to pay off the construction loan at completion, reducing the construction lender's exit risk. https://getaraze.com/glossary
- **Tankless Water Heater** (MEP Systems): An on-demand unit heating water as it flows, eliminating standby tank losses. https://getaraze.com/glossary
- **Taping and Mudding** (Interior Finishes): Embedding tape and applying joint compound over seams and fasteners to create a seamless surface. https://getaraze.com/glossary
- **Template (Countertop)** (Interior Finishes): The precise field measurement of cabinets used to fabricate countertops. https://getaraze.com/glossary
- **Temporary Certificate of Occupancy (TCO)** (Project Management): Conditional permission to occupy while minor items are completed. https://getaraze.com/glossary
- **Temporary Power Pole** (MEP Systems): The utility-connected pole providing job-site electricity during construction. https://getaraze.com/glossary
- **Termite Treatment (Pre-Treat)** (Site Work & Foundation): Soil treatment applied before the slab pour to prevent subterranean termite intrusion, required in many southern jurisdictions. https://getaraze.com/glossary
- **Texture** (Interior Finishes): Applied drywall surface patterns such as knockdown, orange peel, or smooth finish. https://getaraze.com/glossary
- **Thinset** (Interior Finishes): The cement-based adhesive mortar bonding tile to the substrate. https://getaraze.com/glossary
- **Third-Party Risk** (Loan Admin & Compliance): The operational, compliance, and reputational risk a lender assumes through outsourced service providers, subject to regulatory guidance. https://getaraze.com/glossary
- **Three-Coat Stucco** (Roofing & Exterior): Traditional stucco applied as scratch, brown, and finish coats over lath. https://getaraze.com/glossary
- **Tie Beam** (Framing & Structure): A reinforced concrete beam cast atop block walls that ties the wall together and anchors the roof structure. https://getaraze.com/glossary
- **Tile Flooring** (Interior Finishes): Ceramic or porcelain tile set in thinset mortar over a suitable substrate. https://getaraze.com/glossary
- **Tile Roof** (Roofing & Exterior): Concrete or clay tile roofing common in Florida, heavy but durable and wind-resistant when properly attached. https://getaraze.com/glossary
- **Tilt-Wall Construction** (Framing & Structure): Casting concrete wall panels flat on site and tilting them into place — common in commercial construction. https://getaraze.com/glossary
- **Title Commitment** (Legal, Title & Liens): The title insurer's binding offer to issue a policy, listing requirements and exceptions to coverage. https://getaraze.com/glossary
- **Title Exception** (Legal, Title & Liens): A matter excluded from title coverage, such as easements, restrictions, or existing liens. https://getaraze.com/glossary
- **Title Insurance** (Legal, Title & Liens): A policy protecting the lender or owner against defects in title, such as unknown liens or ownership disputes. https://getaraze.com/glossary
- **Title Update / Date-Down Endorsement** (Legal, Title & Liens): A title search refresh before each draw confirming no new liens have attached since the last disbursement. https://getaraze.com/glossary
- **Tonnage** (MEP Systems): Air conditioning capacity measurement; one ton equals 12,000 BTU/hour of cooling. https://getaraze.com/glossary
- **Top Plate / Bottom Plate** (Framing & Structure): The horizontal members at the top and bottom of a framed wall to which studs attach. https://getaraze.com/glossary
- **Top-Out (Plumbing)** (MEP Systems): The second plumbing phase completing in-wall piping through the roof vents, inspected before drywall. https://getaraze.com/glossary
- **Topographic Survey** (Site Work & Foundation): A survey mapping elevations and features of the land, used for grading and drainage design. https://getaraze.com/glossary
- **Transition Strip** (Interior Finishes): The trim piece bridging different flooring materials at doorways. https://getaraze.com/glossary
- **TRID** (Loan Admin & Compliance): The TILA-RESPA Integrated Disclosure rule governing loan estimates and closing disclosures on most consumer mortgage loans, including consumer construction loans. https://getaraze.com/glossary
- **Trim / Millwork** (Interior Finishes): Decorative moldings — baseboards, casing, crown — framing transitions and openings. https://getaraze.com/glossary
- **Trusses** (Framing & Structure): Prefabricated triangulated roof or floor structures that span long distances and transfer loads to exterior walls. https://getaraze.com/glossary
- **Turn Time** (Loan Admin & Compliance): The elapsed time from inspection order to delivered report — a core service-level metric in draw operations. https://getaraze.com/glossary
- **Two-Close Loan** (Lending & Draws): A structure using a separate construction loan and permanent mortgage, requiring two closings and two sets of fees. https://getaraze.com/glossary
- **Two-Party Check** (Lending & Draws): A check made payable jointly to the borrower and contractor, requiring both endorsements to reduce misapplication of funds. https://getaraze.com/glossary

### U

- **Umbrella / Excess Liability** (Insurance & Risk): Coverage sitting above primary liability limits, providing additional protection for large claims. https://getaraze.com/glossary
- **Unconditional Lien Waiver** (Legal, Title & Liens): A waiver effective immediately upon signing regardless of payment status — safer for the paying party. https://getaraze.com/glossary
- **Underground Utilities** (Site Work & Foundation): Water, sewer, electric, and gas services trenched and installed below grade during site work. https://getaraze.com/glossary
- **Underlayment** (Roofing & Exterior): The water-resistant layer (felt or synthetic) installed over roof sheathing beneath the finish roofing. https://getaraze.com/glossary
- **Undisbursed Funds** (Lending & Draws): The remaining loan balance not yet released; lenders monitor undisbursed funds against cost-to-complete to confirm the loan can finish the project. https://getaraze.com/glossary
- **Uplift** (Framing & Structure): The wind force that tries to lift the roof off a structure, resisted by straps and anchorage. https://getaraze.com/glossary
- **USPAP** (Valuation & Appraisal): Uniform Standards of Professional Appraisal Practice — the ethical and performance rules governing appraisers. https://getaraze.com/glossary

### V

- **Vacancy Clause** (Insurance & Risk): A policy provision reducing or voiding coverage if the property is vacant beyond a stated period — a risk on stalled projects. https://getaraze.com/glossary
- **Valley** (Roofing & Exterior): The internal angle where two roof planes meet, channeling concentrated water flow. https://getaraze.com/glossary
- **Value Engineering** (Project Management): Systematic substitution of lower-cost methods or materials that preserve function and quality. https://getaraze.com/glossary
- **Vanities** (Interior Finishes): Bathroom cabinets integrating a sink with storage below. https://getaraze.com/glossary
- **Vapor Barrier** (Site Work & Foundation): A plastic membrane under the slab blocking ground moisture from migrating into the building. https://getaraze.com/glossary
- **Variance** (Site Work & Foundation): Official permission to deviate from a specific zoning requirement, granted after a hearing process. https://getaraze.com/glossary
- **Vendor Management** (Loan Admin & Compliance): The oversight framework for third-party providers — inspectors, appraisers, title agents — covering due diligence, contracts, and performance monitoring. https://getaraze.com/glossary
- **Ventilation** (MEP Systems): Controlled introduction of outdoor air and exhaust of stale air for indoor air quality. https://getaraze.com/glossary
- **Vertical Construction** (Lending & Draws): The building phase above the foundation — the structure itself — as distinguished from horizontal site development. https://getaraze.com/glossary
- **Vinyl Siding** (Roofing & Exterior): PVC exterior cladding valued for low cost and low maintenance. https://getaraze.com/glossary
- **Voucher Control** (Lending & Draws): A disbursement system where contractors submit vouchers for completed work, which are verified before payment is released. https://getaraze.com/glossary

### W

- **Wainscoting** (Interior Finishes): Decorative wall paneling on the lower portion of a wall. https://getaraze.com/glossary
- **Warranty Period** (Project Management): The post-completion period during which the builder must correct defects, commonly one year workmanship. https://getaraze.com/glossary
- **Watch List** (Loan Admin & Compliance): The internal roster of loans showing early signs of weakness, reviewed regularly by credit administration. https://getaraze.com/glossary
- **Water Heater** (MEP Systems): The tank or tankless appliance producing domestic hot water. https://getaraze.com/glossary
- **Water Meter** (MEP Systems): The utility device measuring water consumption for billing. https://getaraze.com/glossary
- **Water Supply Lines** (MEP Systems): Pressurized piping (PEX, CPVC, or copper) delivering hot and cold water to fixtures. https://getaraze.com/glossary
- **Weather-Resistive Barrier (WRB)** (Roofing & Exterior): The code-required drainage layer behind cladding — house wrap, felt, or integrated sheathing systems. https://getaraze.com/glossary
- **Weep Screed** (Roofing & Exterior): The flashing at the base of stucco walls letting trapped water drain out. https://getaraze.com/glossary
- **Well** (MEP Systems): A drilled water source with casing and pump serving properties without municipal water. https://getaraze.com/glossary
- **Wind Load** (Framing & Structure): The design pressure a structure must resist from wind, set by code based on location and exposure. https://getaraze.com/glossary
- **Wind Mitigation Inspection** (Roofing & Exterior): An inspection documenting wind-resistant features (straps, deck attachment, SWR) that earn insurance discounts. https://getaraze.com/glossary
- **Windborne Debris Region** (Roofing & Exterior): Code-mapped areas where openings must be impact-rated or protected due to hurricane exposure. https://getaraze.com/glossary
- **Window Buck** (Roofing & Exterior): The frame set into a block wall opening to which the window attaches. https://getaraze.com/glossary
- **Windstorm / Hurricane Coverage** (Insurance & Risk): Wind peril coverage, often separately deductible or separately written in coastal states like Florida. https://getaraze.com/glossary
- **Workers' Compensation** (Insurance & Risk): Statutorily required coverage for employee injuries on the job; lenders verify contractors carry it. https://getaraze.com/glossary

### Z

- **Zoning** (Site Work & Foundation): Local regulations governing land use, density, and building types allowed on a parcel. https://getaraze.com/glossary