Around the home, in plain English.

The lingo.

Bonded

Covered by a surety bond that pays you if the contractor fails to finish or pay their subs, up to the bond amount. Often required to hold a license.

Certificate of insurance (COI)

The one-page summary from the insurer showing coverage types, limits and dates. A Pro can have it sent to you directly by their agent.

Change order

A written, priced amendment to the contract for anything added or removed after signing.

Code

The building, electrical, plumbing and mechanical rules your city enforces, mostly based on the International Codes and the National Electrical Code. Code is the minimum, not the best practice.

Deposit

Money paid before work starts, normally to cover materials. Ten to a third is typical; some states cap it. Never pay in full up front.

Estimate vs. quote vs. bid

An estimate is an educated approximation; a quote or bid is a fixed price for a defined scope. Ask which one you are holding, and whether it is written.

Financing

Paying for a project over time: a contractor's finance partner, a home equity loan or line of credit, or a personal loan. Compare the rate and the fees, and be wary of same-as-cash offers with a deferred interest trap.

General liability

The policy that covers damage a contractor causes to your home or a neighbor's. One million dollars per occurrence is a common minimum for a residential contractor.

Home warranty

A service contract, sold separately from insurance, that covers repairs to systems and appliances. Different from a contractor's workmanship warranty and from homeowners insurance.

Insured

Carrying general liability (damage to your property) and workers compensation (injury to their crew). Ask for the certificate of insurance and check the dates; without workers comp, an injured worker can claim against you.

Lead-safe certified

The EPA certification required for contractors disturbing paint in homes built before 1978.

Licensed

Holding the state or local license required for the trade. Licensing rules vary by state and trade; a license number can be looked up with the issuing board.

Mechanic's lien

A legal claim against your home by a contractor or supplier who was not paid, even if you paid the general contractor. Lien waivers with each payment prevent it.

Permit

Municipal approval for work that affects safety or structure, with inspections. The contractor usually pulls it; a contractor who asks you to pull it as an owner-builder is shifting liability to you.

Scope of work

The written description of what is and is not included. Compare scopes, not just prices, when you have several estimates.

Verified by HomeMaxx

HomeMaxx has checked this Pro's business entity, trade license, insurance, warranty pledge and reviews, and re-checks them every year. It is a check of the business's bona fides, not a grade on their craft.

Workmanship warranty

The contractor's promise to fix defects in their labor for a set period. Separate from the manufacturer's warranty on materials. Get it in writing, with the term and what is excluded.

From the Pros.

Written by the people who do this work every day, in your area.

The first posts from Around the home Pros are on their way.