Before you nail down your next home improvement project, learn the lingo. These common terms and definitions may help you avoid miscommunications with your contractor. Allowance - a specific dollar amount allocated by a contractor for specified items in a contract for which brand, model number, color, size, or other detail is not yet known. Bid - a proposal to work for a certain amount of money, based on plans and specifications for a project. Building Permit - a document issued by a governing authority, such as a building department, granting permission to undertake a construction project. Callback - an informal term for a return visit made by a contractor to repair or replace items the homeowner has found to be unsatisfactory or that requires service under warranty. 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 know as a time-and-materials contract. Draw - a designed 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 remodelor 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 - drawing 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 a contractor to perform specialized work at the job site. Sometimes referred to as a trade contractor.