Glossary
60 trade, tech, and business terms
A
AIA Billing
A standardized progress billing format used on commercial projects where the contractor invoices for work completed in each phase rather than all at once.
Related: lien-waiver, change-order, job-costing, scope-of-work
API
A connection point that lets two software systems share data automatically, such as syncing completed jobs from field software into an accounting platform.
Related: webhook, integration-marketplace, saas, automated-dispatch
Automated Dispatch
Software logic that assigns and routes incoming jobs to the best available technician without requiring a dispatcher to manually review and assign each one.
Related: smart-scheduling, gps-fleet-tracking, dispatching, fsm
Average Ticket
The average revenue generated per service call or job, used as a key performance indicator for pricing and technician effectiveness.
Related: revenue-per-truck, flat-rate-pricing
B
Backflow Prevention
A plumbing device or assembly that stops contaminated water from flowing backward into the potable water supply, required by code in most jurisdictions.
Related: code-compliance, pull-permit, commissioning
Billable Hours
The number of hours a technician spends on revenue-generating work at customer sites, as opposed to total clocked hours which include non-productive time.
Related: utilization-rate, book-rate, time-and-materials, overhead-rate
Bonding Capacity
The maximum dollar value of contracts a contractor is financially approved to take on, as determined by their surety bond provider.
Related: prevailing-wage, subcontractor-agreement, job-costing
Book Rate
The minimum billable hourly rate a company must charge to cover all overhead costs and hit a target profit, calculated before setting final prices.
Related: overhead-rate, flat-rate-pricing, billable-hours, gross-margin
C
Callback Rate
The percentage of completed jobs that require a return visit to correct a problem with the original work, a key quality indicator for field teams.
Related: first-time-fix-rate, warranty-callback, net-promoter-score, churn-rate
Change Order
A formal document modifying the scope, cost, or schedule of an existing construction contract after work has begun.
Related: punch-list, takeoff
Churn Rate
The percentage of customers who cancel or do not renew a service agreement or membership within a given period, measuring customer retention health.
Related: recurring-revenue, clv, cac, membership-model
Close Rate
The percentage of presented proposals or quotes that a technician or sales rep successfully converts into sold jobs.
Related: conversion-rate, digital-proposals, average-ticket, flat-rate-pricing
Code Compliance
Meeting all applicable local, state, and national building codes and standards required for a permitted installation to pass inspection.
Related: pull-permit, backflow-prevention, commissioning, warranty-callback
Commissioning
The process of testing, adjusting, and verifying that installed equipment or systems operate correctly before handing the job off to the customer.
Related: punch-list, code-compliance, trim-out, warranty-callback
Conversion Rate
The percentage of customer inquiries or estimates that turn into booked jobs, measuring how effectively the sales process is working.
Related: close-rate, cac, digital-proposals, average-ticket
Customer Acquisition Cost
The total marketing and sales spend divided by the number of new customers gained in a period, showing how much it costs to win each new customer.
Related: clv, conversion-rate, churn-rate, recurring-revenue
Customer Lifetime Value
The total revenue a business expects to earn from a single customer over the entire length of their relationship, used to justify acquisition and retention spending.
Related: cac, churn-rate, recurring-revenue, membership-model
Customer Portal
A secure online dashboard where customers can view job history, invoices, warranties, and upcoming appointments without calling the office.
Related: online-booking, digital-proposals, service-agreement, net-promoter-score
D
Demobilization
The process of clearing a job site, returning equipment, and removing materials and debris when a project phase or project is complete.
Related: mobilization, punch-list, job-costing
Digital Proposals
Quotes sent electronically that allow customers to review, approve, and sign on any device, typically including photos, options tiers, and financing prompts.
Related: customer-portal, online-booking, close-rate, flat-rate-pricing
Digital Takeoff
Software that lets estimators measure and count materials directly from PDF plans on screen, replacing manual scaling with rulers on paper drawings.
Related: takeoff, material-takeoff, digital-proposals, job-costing
Dispatching
The process of assigning and routing field technicians to service calls or jobs, optimizing for skills, location, availability, and urgency.
Related: fsm, smart-scheduling
F
Field Service Management (FSM)
Software platforms that manage the end-to-end workflow of field service operations including scheduling, dispatch, job tracking, invoicing, and customer communication.
Related: dispatching, smart-scheduling
First-Time Fix Rate
The percentage of service calls resolved completely on the first visit, without needing to return for parts or additional diagnosis.
Related: callback-rate, warranty-callback, utilization-rate, net-promoter-score
Flat Rate Pricing
A pricing method where the customer is quoted a fixed price for a service regardless of time spent, using standardized pricing books.
Related: pricebook, time-and-materials
G
GPS Fleet Tracking
Technology that provides real-time location data on all company vehicles, enabling dispatchers to route technicians efficiently and verify on-site arrival times.
Related: smart-scheduling, automated-dispatch, dispatching, utilization-rate
Gross Margin
Revenue minus the direct cost of labor and materials on a job, expressed as a percentage, indicating how much is left to cover overhead and profit.
Related: overhead-rate, net-promoter-score, average-ticket, revenue-per-truck
I
Integration Marketplace
A directory within a software platform listing pre-built connections to popular third-party tools like QuickBooks, Google, or marketing platforms.
Related: api, webhook, saas, white-label
J
Job Costing
Tracking all labor, material, equipment, and overhead costs associated with a specific job to determine profitability.
Related: overhead-rate, gross-margin
L
Lien Waiver
A document signed by a contractor or supplier giving up the right to file a mechanic's lien against a property in exchange for payment.
Related: subcontractor-agreement, aia-billing, scope-of-work
Load Calculation
An engineering calculation used in HVAC to determine the correct equipment size needed to heat or cool a specific structure based on its dimensions and conditions.
Related: rough-estimate, code-compliance, commissioning, scope-of-work
M
Material Takeoff
A detailed list of every material, part, and quantity needed for a job, derived from plans or site measurements and used to build an accurate cost estimate.
Related: takeoff, digital-takeoff, pricebook, job-costing
Membership Model
A business structure where customers pay a recurring fee for bundled benefits like maintenance visits, discounts, and priority booking, creating predictable revenue.
Related: service-agreement, recurring-revenue, clv, churn-rate
Mobile-First
A design approach where software is built primarily for phones and tablets, ensuring technicians in the field get the same full functionality as office staff.
Related: offline-capable, fsm, digital-proposals
Mobilization
The costs and effort involved in getting a crew, equipment, and materials to a job site and ready to begin work.
Related: demobilization, job-costing, dispatching, rough-estimate
Multi-Tenant
A software architecture where a single platform serves many companies simultaneously, each with their own isolated data, while sharing the underlying infrastructure.
Related: saas, white-label, api
N
Net Promoter Score
A customer loyalty metric based on a single question asking how likely a customer is to recommend the company, scored on a scale from negative to one hundred.
Related: callback-rate, first-time-fix-rate, churn-rate, customer-portal
O
Offline-Capable
Software that continues to function and stores data locally when there is no internet connection, syncing automatically once connectivity is restored.
Related: mobile-first, fsm, gps-fleet-tracking
Online Booking
A feature that lets customers schedule service appointments directly through a website or app without calling the office, reducing inbound call volume.
Related: customer-portal, digital-proposals, conversion-rate, cac
Overhead Rate
The percentage of revenue consumed by fixed costs like rent, insurance, and admin salaries that must be covered before a company earns any profit.
Related: gross-margin, book-rate, billable-hours, job-costing
P
Prevailing Wage
The minimum hourly rate set by government regulation that must be paid to workers on publicly funded construction projects in a given area.
Related: subcontractor-agreement, bonding-capacity, scope-of-work
Pricebook
A catalog of standardized service prices that technicians present to customers, enabling flat-rate pricing and consistent revenue per job.
Related: flat-rate-pricing
Pull Permit
The act of obtaining an official permit from the local authority before starting work, which requires the job to be inspected and approved before completion.
Related: code-compliance, scope-of-work, rough-in, commissioning
Punch List
A final checklist of incomplete or defective items that must be corrected before a job is officially closed out and final payment is released.
Related: scope-of-work, change-order, warranty-callback, commissioning
R
Recurring Revenue
Income that is predictably collected on a scheduled basis from service agreements or memberships, providing stable cash flow independent of one-time job sales.
Related: membership-model, service-agreement, churn-rate, clv
Revenue Per Truck
A key performance metric in service trades measuring total revenue divided by number of service vehicles, indicating fleet efficiency.
Related: average-ticket
Rough Estimate
A quick, ballpark cost figure given to a customer before a full takeoff or site inspection, used to qualify whether the project is feasible to pursue.
Related: takeoff, material-takeoff, flat-rate-pricing, job-costing
Rough-In
The initial phase of plumbing, electrical, or HVAC installation where pipes, wires, or ductwork are installed inside walls before drywall goes up.
Related: trim-out
S
SaaS
Software delivered over the internet on a subscription basis, meaning the vendor hosts and maintains it and users pay a monthly or annual fee to access it.
Related: multi-tenant, api, integration-marketplace, white-label
Scope of Work
A written document that defines exactly what tasks, materials, and deliverables are included in a contract, leaving no ambiguity about what is owed.
Related: change-order, punch-list, subcontractor-agreement, lien-waiver
Service Agreement
A recurring maintenance contract sold to customers that provides scheduled visits and priority service in exchange for a monthly or annual fee.
Related: membership-model, recurring-revenue, clv, churn-rate
Smart Scheduling
Software that automatically assigns jobs to technicians based on skill, location, availability, and priority to minimize drive time and maximize daily capacity.
Related: automated-dispatch, gps-fleet-tracking, dispatching, utilization-rate
Subcontractor Agreement
A written contract between a general contractor and a specialty trade contractor that defines payment terms, scope, liability, and insurance requirements.
Related: scope-of-work, lien-waiver, prevailing-wage, bonding-capacity
T
Takeoff
The process of measuring and quantifying materials from blueprints or plans to determine exactly what is needed to complete a job.
Related: material-takeoff, rough-estimate, digital-takeoff, job-costing
Time and Materials
A billing method where the customer pays the actual labor hours worked plus the cost of materials used, rather than a fixed price agreed upfront.
Related: flat-rate-pricing, job-costing, billable-hours, change-order
Trim-Out
The final phase of plumbing, electrical, or HVAC installation where fixtures, outlets, and visible components are installed after drywall and paint.
Related: rough-in
U
Utilization Rate
The percentage of a technician's available working hours that are spent on billable job activity versus driving, waiting, or administrative tasks.
Related: billable-hours, revenue-per-truck, smart-scheduling, overhead-rate
W
Warranty Callback
A return visit to a customer's property to fix an issue with work that was previously completed, typically at no charge within a defined warranty period.
Related: callback-rate, first-time-fix-rate, punch-list, code-compliance
Webhook
An automatic notification sent from one software system to another the instant a specific event occurs, such as a job status change or payment received.
Related: api, integration-marketplace, automated-dispatch
White-Label
A product built by one vendor but rebranded and resold under another company's name, commonly used by franchises and buying groups in the trades.
Related: saas, multi-tenant, integration-marketplace