Reference

Home Renovation Glossary

Every renovation term homeowners encounter on a permit, contract, or estimate — defined plain-English with examples drawn from real Renology projects across Los Angeles, San Diego, San Francisco, Seattle, Portland, and Denver. 31 terms across six categories.

Permits & process

Permit pull(pulling a permit, building permit pull): A permit pull is the act of filing for a building permit with a city or county building department before starting a renovation. Pulling a permit creates a public record of the planned work, schedules required inspections, and identifies the responsible party for code compliance.

Cost & contract

Allowance: An allowance is a placeholder dollar amount in a contractor estimate for materials that have not yet been selected, such as tile, fixtures, lighting, or hardware. Allowances appear on every renovation contract because finish-level decisions are typically made after the contract is signed.
Change order(CO): A change order is a written amendment to a signed construction contract that modifies the scope of work, the price, the schedule, or all three. Each change order must be signed by both the homeowner and the contractor before the affected work begins.
Contingency reserve(contingency, reserve): A contingency reserve is the budget set aside on top of the contracted construction cost to cover unknowns discovered during the project — rotted framing, outdated wiring, surprise plumbing, scope additions. Industry guidance is 10–20% for cosmetic remodels, 15–25% for full remodels, and 20–30% for additions and ADUs.
Draw schedule(payment schedule, progress payments): A draw schedule is the documented sequence of payments a homeowner makes to a contractor across a renovation project, tied to milestone completion (demo done, rough-in inspected, drywall complete, etc.). A clean draw schedule never pays the full balance until punch-list items are signed off.
Hard cost(direct cost): Hard cost is the portion of a renovation budget that covers physical construction: labor, materials, equipment, and on-site work. Hard cost typically runs 70–80% of total project cost for residential renovations.
Retention(retainage, holdback): Retention is the portion of each contractor draw payment a homeowner withholds until project completion, typically 5–10%. The retained amount is released only after the punch list is signed off and any required lien waivers are filed. Retention protects against incomplete work.
Soft cost(indirect cost): Soft cost is the portion of a renovation budget that covers non-construction expenses: architectural drawings, engineering, permits, design fees, project management overhead, and contingency reserve. Soft cost typically runs 15–25% of total project cost.

Project management

As-built drawings(record drawings): As-built drawings are the final set of construction plans updated to reflect what was actually installed in the field — including changes from the original design, hidden utility locations, and any field-measured deviations. As-builts become the reference document for future renovations, refinances, and appraisals.
Design-build(design-build firm): Design-build is a project delivery method where a single firm handles both the architectural design and the construction of a renovation under one contract. The model contrasts with the design-bid-build approach, where the homeowner hires an architect separately and then bids the resulting plans to multiple general contractors.
Punch list(punchlist, completion list): A punch list is the documented set of minor unfinished or defective items identified at the end of a renovation that the contractor must complete before final payment. Common punch-list items: paint touch-ups, hardware adjustments, caulking gaps, missing trim, last-mile fixture connections.
Scope creep: Scope creep is the uncontrolled expansion of a renovation project after work begins, where small additions accumulate into significant cost and schedule overruns. Common triggers: discovering hidden conditions during demo, designer suggestions mid-project, homeowner second-guessing decisions made at planning.
Value engineering(VE): Value engineering is the systematic review of a renovation scope to find equivalent or near-equivalent substitutions that lower cost without lowering perceived value. Common moves: switching slab quartzite to porcelain slab, replacing custom cabinets with semi-custom, downgrading appliance package tier.

Structural & systems

Accessory Dwelling Unit(ADU, granny flat, in-law unit): An Accessory Dwelling Unit (ADU) is a secondary, self-contained dwelling located on the same lot as a primary residence. ADUs include their own kitchen, bathroom, and sleeping area, and can be detached (DADU), attached to the primary home, or converted from existing space such as a garage or basement.
Dormer: A dormer is a roofed structure with a window that projects vertically from a sloped roof. Dormers create usable attic floor area, add natural light, and change the silhouette of a roofline. Adding a dormer typically requires structural engineering plus a permit.
Junior Accessory Dwelling Unit(JADU): A Junior Accessory Dwelling Unit (JADU) is a secondary dwelling under 500 square feet located within the walls of an existing single-family home, typically by converting a bedroom and adding a small kitchen. JADUs can share a bathroom with the main residence and have looser parking and impact-fee requirements than full ADUs.
Knee wall: A knee wall is a short interior wall (typically 3 to 5 feet tall) that supports a sloped ceiling or roof at the junction where headroom drops below useful living height. Knee walls are common in attic conversions and Cape Cod-style upstairs bedrooms.
Load-bearing wall(bearing wall): A load-bearing wall is an interior or exterior wall that transfers vertical load from roof, ceiling, or upper-floor framing down to the foundation. Removing a load-bearing wall requires a structural engineer to design a replacement beam-and-post or header system, sized to the span and the load it carries.
MEP(Mechanical, Electrical, Plumbing): MEP is shorthand for the Mechanical, Electrical, and Plumbing systems of a building. MEP work includes HVAC equipment and ductwork, electrical panels and wiring, plumbing supply and waste lines, gas lines, and tied-in fire suppression. MEP rough-in is the inspection milestone before drywall closes the walls.
R-value: R-value is the measure of an insulation material's resistance to heat flow. Higher R-value means better insulation. Building codes set minimum R-values per climate zone for walls (R-13 to R-21), ceilings (R-30 to R-49), and floors. ADU permits in California typically require R-19 walls and R-30 ceilings minimum.
Structural engineer(SE): A structural engineer is a licensed professional who designs and certifies the load-bearing system of a building. Renovations that open a load-bearing wall, add a second story, build an ADU, or change the seismic load path require structural engineering plans stamped and signed by a licensed SE.
U-factor(U-value): U-factor is the measure of how much heat flows through a window assembly per square foot per degree of temperature difference. Lower U-factor means better insulation. California Title 24 typically requires U-factor below 0.30 for new and replacement windows in single-family residential renovation.

Codes & compliance

AFCI(Arc Fault Circuit Interrupter): An AFCI (Arc Fault Circuit Interrupter) is a breaker that detects dangerous arcing in wiring and trips before the arc starts a fire. The National Electrical Code requires AFCI protection on most circuits in bedrooms, living rooms, kitchens, hallways, and other living spaces in renovated work.
Easement: An easement is a recorded legal right that allows a specific party to use a portion of a property for a defined purpose (utility access, shared driveway, drainage path). Easements show on title and restrict where structures can be built. ADUs and additions are commonly blocked or downsized by recorded easements.
Frost line(frost depth): The frost line is the maximum depth at which the ground freezes in a given climate. Foundation footings and exterior post bases must be poured below the frost line to prevent frost heave. Frost line depth varies by region: 6 inches in Los Angeles to 48 inches in parts of the Pacific Northwest.
GFCI(Ground Fault Circuit Interrupter): A GFCI (Ground Fault Circuit Interrupter) is an electrical receptacle or breaker that shuts off power within milliseconds when it detects a ground fault — current escaping from the hot wire to ground. The National Electrical Code requires GFCI protection on all kitchen, bathroom, garage, outdoor, and basement outlets in renovated spaces.
Mechanics lien(contractor lien, construction lien): A mechanics lien is a legal claim filed against a property by a contractor, subcontractor, or material supplier who has not been paid for work performed or materials delivered. A lien clouds title and can block a sale or refinance until resolved. State laws set strict notice and filing deadlines.
Setback: A setback is the minimum distance a structure must be located from a property line, set by local zoning code. Setbacks vary by zoning district and structure type — front, side, and rear setbacks are usually different. ADUs in California are allowed at 4-foot side and rear setbacks under state law, regardless of local zoning.

Finishes & materials

CMU(Concrete Masonry Unit, cinder block, concrete block): CMU (Concrete Masonry Unit) is a precast concrete block used for structural walls, retaining walls, foundations, and garden walls. Standard CMU measures 8x8x16 inches and can be reinforced with rebar and grout-filled cells for load-bearing applications.
Mansard roof: A mansard roof is a four-sided hip-style roof with two slopes on each side — a steep lower slope (often near vertical) and a shallow upper slope. Mansard roofs maximize usable attic floor area within a given building footprint and are common in Second Empire-style residential architecture.
Mil thickness: Mil thickness is a unit of measurement equal to one thousandth of an inch (0.001 inch), used to specify the thickness of vinyl flooring wear layers, paint coatings, and roofing membranes. Luxury vinyl plank wear layers typically range from 8 mil (entry-grade) to 30 mil (commercial-grade).