Assumption
A condition treated as true so pricing or planning can proceed, even though it has not been fully verified.
ScopeLearn the language before it costs you.
Four practical lessons, one searchable glossary, and ready-to-use questions for your next renovation conversation.
Start lesson one ↓Start with the work
Define what the number is supposed to cover.
A useful scope explains what is included, what is excluded, what the contractor is assuming, and what cannot be confirmed until the site or existing conditions are checked.
Included
The work, materials, coordination, and responsibilities explicitly covered by the price.
Excluded
Work or cost that is intentionally outside the quoted scope. An exclusion is not “free later.”
Assumed
A condition used to create the price even though it has not been fully confirmed.
Field verification
A dimension, condition, quantity, or access issue that must be checked at the property.
Words you can use
“Can you price this scope and clearly list what is included, excluded, assumed, and still needs field verification?”
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Watch for: a detailed number attached to a one-line project description. Ask which version of the work the number represents.
Quote decoder
Read the structure behind the price.
A number becomes useful only when you can connect it to scope, assumptions, schedule expectations, and a pricing method.
Estimate
A preliminary or rough range based on incomplete information. Ask what would cause it to move.
Quote
A price for stated work and assumptions. Confirm its validity, exclusions, and change process.
Bid
A formal offer to perform a defined body of work, often submitted for comparison or acceptance.
Proposal
A broader offer that may combine scope, terms, exclusions, schedule, and pricing.
Fixed price
A set price for a defined scope, subject to stated exclusions and approved changes.
Time and materials
Billing based on labor time and material cost; ask about rates, markups, records, and controls.
Cost plus
Project cost plus an agreed fee or percentage. Ask what counts as cost and how it is documented.
Unit price
A rate tied to a measurable unit, such as square feet or fixtures. Final cost follows final quantity.
Words you can use
“Before I compare totals, can you walk me through the scope, exclusions, assumptions, allowances, pricing model, and anything that could change this number?”
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Remember: a number without scope is not a real comparison. A lower total may simply represent less work or more unresolved cost.
Budget drift
Separate the base from the maybes.
Keep the base bid, allowances, alternates, and owner upgrades visible on separate lines. That lets you see what is firm, what is optional, and what is still waiting on a decision.
Base bid
The core price for the defined work before separately identified options or upgrades.
Allowance
A placeholder amount for an item or category that is not fully selected or priced.
Alternate
Optional work priced separately so it can be accepted or rejected without hiding the base.
Upgrade
A selection or specification above the base assumption. Ask for both cost and related impacts.
Words you can use
“Please show the base scope, allowances, alternates, and owner-selected upgrades separately so I can see what is included in the core price.”
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Ask the second question: what product, quantity, tax, delivery, labor, waste, and markup are included in each allowance?
The finish line
Document the change and close the loop.
Change is normal. Undocumented change is the risk. Decide how new work is described, priced, scheduled, and approved before anyone proceeds.
Change order
A written record of changed scope, cost, timeline effect, related impacts, and approval.
Punch list
An agreed list of incomplete or corrective items identified near substantial completion.
Warranty
Written terms explaining what is covered, by whom, for how long, and how to request service.
Closeout
The final collection of records that apply: warranties, manuals, approvals, photos, selections, and final account information.
Words you can use
“Before this change moves forward, can you document the changed work, cost, timeline effect, related impacts, and who must approve it?”
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Before final payment: confirm the punch-list process, unresolved items, final documents, warranty contacts, and any project-specific inspections or approvals.
Searchable glossary
Translate the document in front of you.
Search a word or filter by the part of the project where it commonly appears. Definitions here are educational and may be used differently in a specific agreement.
Allowance
A placeholder amount for an item or category not fully selected or priced.
PricingAlternate
Optional work priced separately from the base scope.
PricingBase bid
The core price for a defined set of work before separately shown options.
PricingBid
A formal offer to perform defined work under stated conditions.
PricingChange order
A written record of changed work, cost, schedule effect, related impacts, and approval.
ChangesCloseout
The process of completing remaining obligations and collecting the final project records.
CloseoutCost plus
A pricing method based on project costs plus an agreed fee or percentage.
PricingEstimate
A preliminary or approximate range based on the information available at the time.
PricingExclusion
Work, cost, or responsibility intentionally left outside the stated scope or price.
ScopeField verification
An item that must be measured or confirmed at the property before it is final.
ScopeFixed price
A set price for defined work, subject to the agreement’s exclusions and approved changes.
PricingPunch list
A documented list of incomplete or corrective items identified near completion.
CloseoutProposal
An offer that may combine scope, schedule, exclusions, terms, and pricing.
PricingQuote
A price for stated work and assumptions, subject to the document’s terms.
PricingScope
The written boundary of the project: what is and is not part of the work.
ScopeTime and materials
A method that bills labor time and material cost according to stated rates and terms.
PricingWarranty
Written terms describing covered work, duration, exclusions, and the service process.
CloseoutNo matching term yet. Try a broader word such as “price,” “scope,” or “change.”
Put the language to work
Organize a clearer request for bids.
Use Bid Ready Home to bring the project story, scope, visuals, decisions, and open questions into one contractor-facing place.
Continue to Bid Ready Home ↗- Define the same scope
- Record selections and assumptions
- Share one organized packet
- Compare contractor responses