The know-how, in plain English.
The words, the codes, and the playbooks — no jargon left unexplained. 79 trade, tech, and business terms.
A
Additional Insured
An endorsement extending another party's liability policy to cover you. Ongoing-operations and completed-operations endorsements are separate and cover different windows: one applies while the work is in progress, the other to defects that surface after the contractor has left. A certificate stating additional-insured status is not itself the endorsement.
Related: certificate-of-insurance, waiver-of-subrogation, statutory-employer
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
Certificate of Insurance (COI)
A one-page summary evidencing that a policy exists on a stated date. It is proof of coverage, not the coverage itself, and it does not establish which endorsements are attached. Certificates carry expiry dates, so they are commonly tracked rather than collected once.
Related: additional-insured, waiver-of-subrogation, statutory-employer
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
Construction Manager as Agent (Agency CM)
A construction manager acting as the owner's representative rather than as a builder. The owner contracts and pays each trade directly; the CM advises for a professional fee and provides no price guarantee and no warranty on the work. Commonly confused with CM at Risk, which is the opposite arrangement.
Related: construction-manager-at-risk, prime-contractor
Construction Manager at Risk (CMAR)
A delivery method where the construction manager converts into the constructor: it holds the trade contracts and guarantees a maximum price and schedule to the owner. Functionally a general contractor, and generally requires a GC license in states that license one.
Related: construction-manager-as-agent, prime-contractor, qualifying-agent
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
Dealer Fee (Merchant Fee)
The fee a contractor pays a consumer-financing provider so a homeowner can be offered a low or zero promotional rate. It is deducted from the contractor's disbursement or added to the financed amount, and it runs from the contractor to the lender. The lender earns the loan's interest; the contractor does not receive a share of it.
Related: referral-fee, average-ticket, close-rate
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
Flow-down Clause
A subcontract provision binding the subcontractor to the terms of the prime contract by reference, so obligations the prime owes the owner pass down the chain. State anti-indemnity statutes limit how much risk can be flowed down this way.
Related: subcontractor-agreement, prime-contractor, scope-of-work
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
Joint Venture (JV)
Two or more contractors combining to pursue and deliver a single project, sharing the contract and the profit. In an unincorporated JV the partners are typically jointly and severally liable for the whole obligation, and several states require the joint venture itself to hold a license separate from its members'.
Related: teaming-agreement, prime-contractor, mechanics-lien
L
Labor Broker (Loaned Crew)
An arrangement supplying workers by the hour rather than delivering a defined scope for a price. Because the hiring contractor typically directs the work, this arrangement carries the highest worker-misclassification exposure of the common contractor-to-contractor structures.
Related: statutory-employer, time-and-materials, scope-of-work
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
Mechanics Lien
A claim against the improved property securing payment for labor or materials furnished to it. Lien rights generally require having actually furnished work to the project, which is why parties who only made an introduction, and in many cases joint-venture partners on their own project, do not have them.
Related: notice-to-owner, lien-waiver, retainage, pay-if-paid
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
Pay-if-Paid vs. Pay-when-Paid
Two clauses that read similarly and differ sharply. Pay-if-paid makes the owner's payment a condition of the subcontractor being paid at all; pay-when-paid only sets a reasonable time for payment. Several states hold pay-if-paid unenforceable, while others enforce it only where the wording is unambiguous.
Related: retainage, subcontractor-agreement, mechanics-lien
Preliminary Notice / Notice to Owner
A notice sent early in a project to preserve later lien rights. Deadlines and recipients vary by state and by tier, at least one state requires the notice to repeat monthly, and in some states a first-tier subcontractor is not exempt even though the general contractor is. Missing it can defeat a claim entirely.
Related: mechanics-lien, lien-waiver, sub-subcontractor
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
Prime Contractor
The contractor holding the contract directly with the owner or customer. The prime bills the owner, carries schedule and defect risk, and subcontracts whatever it does not self-perform. On TradeAtlas a partner marked GC / PRIME is one you work under; SUB is one who works under you.
Related: subcontractor-agreement, scope-of-work, flow-down, retainage
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
Q
Qualifying Agent
The licensed individual whose qualification a contracting business holds its license through, and who is responsible for supervising its work. Allowing a license to be used by a business that individual does not actually supervise is a common basis for licensing-board discipline.
Related: pull-permit, prime-contractor, construction-manager-at-risk
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
Referral Fee (Contractor-to-Contractor)
Compensation paid for introducing work to another contractor. Practitioner sources put the defensible range at roughly one to five percent of contract price, commonly capped in dollars, and flat fees are typical on small service handoffs. Charging nothing is a common and rational choice where the referrer wants to shed liability. Several states restrict or prohibit these fees on insurance-funded work or where the recipient is unlicensed.
Related: dealer-fee, scope-of-work, prime-contractor
Retainage
A percentage of each progress payment withheld until the work is complete and accepted. Caps and release timing are set by state statute and differ between public and private work, and several states require an owner to withhold a statutory minimum.
Related: aia-billing, pay-if-paid, prime-contractor
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
Statutory Employer
A doctrine making an upper-tier contractor responsible for workers' compensation coverage of a lower-tier contractor's employees when that lower tier has no policy of its own. Mechanics vary by state; collecting a current workers' comp certificate before work starts is the usual way the exposure is avoided.
Related: certificate-of-insurance, labor-broker, subcontractor-agreement
Sub-subcontractor (Lower Tier)
A contractor hired by a subcontractor rather than by the prime. Each tier contracts only with the tier above it, so payment and warranty obligations cascade rather than running straight to the owner. Lower tiers typically face heavier lien-notice requirements than first-tier subs.
Related: prime-contractor, mechanics-lien, notice-to-owner, flow-down
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
Teaming Agreement
An agreement governing how two firms pursue a project together before award: who bids what, who bears proposal costs, and what each will do if the bid wins. It usually collapses into a prime/subcontractor relationship once the contract is awarded.
Related: joint-venture, prime-contractor, scope-of-work
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
Waiver of Subrogation
A policy endorsement preventing an insurer that has paid a claim from then pursuing another named party to recover it. Typically requested alongside additional-insured status and primary-and-noncontributory wording, which are three distinct things.
Related: additional-insured, certificate-of-insurance
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