Change Order
Written authorization to the contractor to make
a change or addition to the work described in the
original contract. The change order should reflect
any changes in cost.
Cost-plus Contract
A contract between a contractor and homeowner
based on the accrued cost of labor and materials
plus a percentage for profit and overhead. Also
known as a time-and-materials contract.
Draw
A designated payment that is “drawn” from the
total project budget to pay for services completed
to date. A draw schedule typically is established in
the contract.
Lien Release
A document that voids the legal right of a
contractor, subcontractor or supplier to place a lien
against your property. A lien release assures you
that the remodeler has paid subcontractors and
suppliers in full for labor and materials.
Mechanic’s Lien
A lien obtained by an unpaid subcontractor or
supplier through the courts. When enforced, real
property—such as your home—can be sold to pay
the subcontractor or supplier.
Plans and Specifications
Drawings for the project, and a detailed list or
description of the known products, materials,
quantities and finishes to be used in the project.
Punch List
A list of items of work to be completed or
corrected by the contractor, typically near or at
the end of a project.
Subcontractor
A person or company hired directly by the
contractor to perform specialized work at the job
site. Sometimes referred to as a trade contractor.
MANATEE-SARASOTA BIA Contractors’ Guide 15