Reference

What that line on your estimate actually means

Contractor estimates are written in trade shorthand. Here is each common term in plain English, why it matters to your money, and the exact question to send back.

• T1-11 overlay

  Siding

  New siding installed over existing T1-11 plywood panels instead of tearing them off.

  T1-11 is a grooved plywood siding panel common on homes built from the 1960s onward. An overlay leaves those panels in place and installs the new siding on top. It is cheaper and faster, but the sheathing behind is never inspected, hidden rot stays hidden, and window and door flashing has to be built out to the new thickness.

  Ask your contractor: “Is this an overlay over the existing T1-11, or a full tear-off? If it's an overlay, how are window and door flashing details handled at the new depth?”

• Water mitigation drying log

  Restoration

  The daily record of moisture readings and equipment used during water-damage drying.

  Restoration contractors are expected to document moisture content readings, temperature, humidity, and which equipment ran where, each day, until materials reach a drying goal. Insurers use the log to justify the number of air movers and dehumidifier days billed. If a water mitigation invoice has equipment line items but no drying log, the quantity billed cannot be verified.

  Ask your contractor: “Can you send the daily drying log with moisture readings and equipment placement for each day billed?”

• Square (SQ)

  Roofing / Siding

  100 square feet of roof or wall area — the unit roofing and siding are priced in.

  A 2,000 square foot roof surface is 20 squares. Dividing the bid total by the square count gives a per-square price you can actually compare between contractors. A bid with no square count cannot be compared to one that has it.

  Ask your contractor: “What is the square count you measured, and what is your price per square?”

• Ice-and-water shield

  Roofing

  A self-adhering membrane at eaves, valleys, and penetrations where water backs up.

  Unlike underlayment, this membrane seals around fasteners. Codes in cold climates typically require coverage a set distance inside the exterior wall line. Its absence from an estimate is a common scope gap on roofs with valleys or ice-dam history.

  Ask your contractor: “Where exactly is ice-and-water shield applied, and how far up the slope from the eave?”

• Drip edge

  Roofing

  Metal flashing at the roof edge that directs water into the gutter.

  Drip edge is required by most current residential codes at eaves and rakes. It is inexpensive, frequently omitted from bids, and difficult to add after the shingles are on.

  Ask your contractor: “Is new drip edge included at both eaves and rakes, and what gauge and color?”

• WRB / house wrap

  Siding

  Water-resistive barrier installed behind siding to drain incidental water.

  The wrap only performs if seams are taped and it is integrated with window and door flashing in the right order. 'Install house wrap' with no product name and no mention of taped seams tells you nothing about what you are buying.

  Ask your contractor: “Which wrap product are you installing, are seams taped, and how does it integrate with window flashing?”

• Manual J load calculation

  HVAC

  The engineering calculation that sizes heating and cooling equipment for your house.

  Equipment sized by rule of thumb or by matching the old unit is commonly oversized, which short-cycles, controls humidity poorly, and shortens equipment life. A Manual J references your square footage, insulation, window area, and orientation.

  Ask your contractor: “Was a Manual J load calculation performed for this house, and can I see the result?”

• ACV vs. RCV

  Insurance claims

  Actual cash value is depreciated; replacement cost value is not.

  On a replacement-cost policy, the insurer often pays ACV first and releases the withheld depreciation once the work is complete and documented. Reading an ACV check as the total settlement is one of the most common reasons homeowners believe a claim was underpaid.

  Ask your contractor: “Is this estimate written at ACV or RCV, and what documentation releases the recoverable depreciation?”

• Allowance

  Remodeling

  A placeholder dollar amount for a material you have not selected yet.

  Low allowances make a bid look competitive and move the real cost to a change order later. An allowance should state the unit (per square foot installed, or per fixture) and the markup applied to any overage.

  Ask your contractor: “What does this allowance buy at today's prices, and what is your markup on anything over it?”

• Change order

  All trades

  A written amendment adding or altering work and its cost.

  Change orders are normal. The risk is in the contract language: 'additional work billed as incurred' authorizes open-ended charges. The protection is a stated markup percentage and a requirement that you sign before the added work begins.

  Ask your contractor: “What is your change-order markup, and will every change be signed by me before the work happens?”

• Rough-in

  Plumbing / Electrical

  The stage where lines and boxes are installed before walls close.

  Rough-in inspection is the last moment hidden work can be verified cheaply. Payment milestones tied to passed rough-in and passed final inspections protect you far better than calendar dates.

  Ask your contractor: “Is a payment milestone tied to passing rough-in inspection rather than a date?”

• Punch list

  All trades

  The final list of incomplete or defective items to fix before final payment.

  The punch list is your last leverage. It should be written at a walkthrough, dated, and tied to the final payment — not agreed verbally after the balance is paid.

  Ask your contractor: “Will we do a written walkthrough punch list before the final payment is due?”

• Lien waiver

  All trades

  A signed document releasing the right to place a lien for work already paid.

  Subcontractors and suppliers can lien your property even if you paid the general contractor. Conditional waivers with each payment, and final unconditional waivers at completion, are how homeowners avoid paying twice.

  Ask your contractor: “Will you provide signed lien waivers from subcontractors and suppliers with each payment?”

• Retainage

  All trades

  A percentage of each payment held back until the work is fully complete.

  Commonly 5–10%. Retainage keeps a reason for the crew to return for the punch list. It should be written into the payment schedule rather than negotiated at the end.

  Ask your contractor: “Can the contract hold 10% retainage until the punch list is signed off?”