Requirements under the Americans with Disabilities Act that commercial spaces must meet, including accessible entrances, restrooms, parking, and pathways. Most tenant buildouts require ADA review, especially for public-facing spaces.
A written modification or addition to construction documents issued after the original bid but before contract signing. Addenda clarify scope, correct errors, or respond to contractor questions during bidding.
A dollar amount included in a construction contract for specific items not yet fully specified—like flooring, lighting fixtures, or millwork. The actual cost is reconciled against the allowance during construction.
Updated drawings that reflect the actual constructed conditions, including any changes made during construction. Essential for future renovations and facility management.
The core structure and systems of a commercial building provided by the landlord, typically including the shell, roof, exterior walls, main HVAC, electrical service, and common areas. Tenant improvements build on top of base building conditions.
A complete set of documents sent to subcontractors or general contractors for pricing, including drawings, specifications, scope of work, and contract terms.
Wood or metal framing installed behind drywall to provide solid backing for mounting heavy items like wall-mounted TVs, grab bars, cabinets, or equipment.
Official approval from the local jurisdiction authorizing construction work. Required for most commercial buildouts and triggers inspections at various stages.
A detailed written description of all work included (and excluded) in a construction contract. Clear scope prevents disputes and change orders.
Fees tenants pay to landlords covering shared building expenses like landscaping, parking lot maintenance, lobby cleaning, and common area utilities. Understanding CAM charges helps tenants budget total occupancy costs.
A document issued by the local building department certifying that a space meets all codes and is approved for occupancy. Required before a tenant can legally operate.
A formal document modifying the original construction contract—adjusting scope, cost, or schedule. Change orders require signatures from both owner and contractor.
See "Vanilla Shell." A space delivered with minimal improvements—typically just exterior walls, roof, and concrete floor. Tenant is responsible for all interior buildout including HVAC, electrical, plumbing, and finishes.
The complete set of drawings and specifications used for permitting and construction. Includes architectural, structural, mechanical, electrical, and plumbing plans.
A professional who oversees the planning and execution of a construction project on behalf of the owner, often working alongside or instead of a general contractor.
A percentage of the construction budget set aside for unexpected costs, design changes, or unforeseen conditions. Typically 5-10% for renovations, sometimes higher for older buildings.
The base building structure landlords provide, including the structural frame, exterior envelope, roof, lobbies, restrooms, elevators, and base mechanical/electrical systems. Tenants build out their individual spaces from this starting point.
A wall separating one tenant's space from another or from common areas. Demising walls typically extend from floor to the structural deck above and must meet fire-rating requirements.
A project delivery method where one entity provides both design and construction services under a single contract. Streamlines communication and can accelerate schedules.
A payment schedule tied to construction milestones or percentage of completion. Protects both owner and contractor by linking payments to actual progress.
The standard interior wall material in commercial construction. Available in various thicknesses and types including fire-rated, moisture-resistant, and impact-resistant.
The path of exit from a building, including doors, corridors, and stairways. Building codes specify requirements for egress width, distance, signage, and lighting based on occupancy type and capacity.
The distribution board where electrical circuits originate. Commercial spaces require adequate panel capacity for lighting, HVAC, equipment, and receptacles.
A detailed projection of construction costs based on drawings, specifications, and site conditions. Accurate estimating requires experience with local labor rates, material costs, and subcontractor pricing.
Items specifically not included in a construction contract or estimate. Clear exclusions prevent misunderstandings—common examples include furniture, data cabling, security systems, and permit fees.
Items not permanently attached to the building—desks, chairs, shelving, equipment, and decorative elements. Usually purchased separately from construction contract.
To confirm existing conditions on-site before finalizing designs or orders. Critical for renovation work where as-built drawings may not reflect actual conditions.
Materials and methods used to seal penetrations through fire-rated walls and floors, maintaining the fire barrier's integrity. Required by code and inspected.
A document specifying all interior finishes—paint colors, flooring types, ceiling materials, hardware—organized by room or area.
Contract language addressing delays caused by events beyond either party's control—natural disasters, pandemics, labor strikes. Typically extends schedule without penalty.
The overhead costs a general contractor incurs to manage a project—supervision, temporary facilities, insurance, permits, cleanup, and project management. Usually a line item in estimates.
The primary contractor responsible for overall construction, including hiring and coordinating subcontractors, managing schedule, ensuring quality, and maintaining safety.
A contract type where the contractor guarantees the project won't exceed a specified amount. Cost savings may be shared; overruns are the contractor's responsibility.
A space delivered with some improvements beyond vanilla shell—typically including HVAC, basic electrical, and insulated exterior walls—but without interior finishes.
Direct construction expenses including labor, materials, equipment, and subcontractor work. Distinguished from soft costs like design fees, permits, and financing.
The mechanical systems controlling temperature, humidity, and air quality. Commercial HVAC design must account for occupancy loads, equipment heat, and code requirements.
Materials requiring special handling and disposal—asbestos, lead paint, mold, contaminated soil. Older buildings often require hazmat surveys before renovation.
See "Tenant Improvement Allowance." Funds provided by the landlord toward a tenant's buildout costs, typically expressed as dollars per square foot.
Official review by building department inspectors at required stages—foundation, framing, rough mechanical/electrical/plumbing, insulation, and final. Passed inspections are required before proceeding.
The physical location where construction work is performed. Job site management includes safety, cleanliness, material storage, and coordination.
A skilled tradesperson who has completed an apprenticeship and is fully qualified in their trade—electrician, plumber, carpenter, etc.
A metal plate installed at the bottom of doors to protect against damage from foot traffic, carts, and equipment. Common in commercial and high-traffic areas.
Construction or improvements the property owner agrees to complete before or concurrent with tenant buildout. May include base building upgrades, demising walls, or restroom improvements.
Permanent improvements made to leased space that become property of the landlord. Also called tenant improvements or TI.
A preliminary agreement outlining key lease or contract terms before final documents are prepared. LOIs typically cover rent, term, TI allowance, and major business terms.
A document from contractors or suppliers waiving their right to file a mechanic's lien for work completed or materials supplied. Owners should collect lien waivers with each payment.
A predetermined daily amount the contractor pays if the project isn't completed by the scheduled date. Compensates the owner for delay-related losses.
A wall that supports structural weight from above—roof, floor, or other walls. Load-bearing walls cannot be removed without engineering and structural modifications.
A dedicated space housing HVAC equipment, water heaters, electrical panels, and other building systems. Requires adequate access for maintenance and code-required clearances.
The major building systems beyond the structural shell. MEP coordination is critical in commercial construction to avoid conflicts and ensure code compliance.
Custom-built wood or laminate items—cabinets, reception desks, shelving, trim, and architectural features. Typically fabricated off-site and installed during finishes phase.
The process of setting up a job site—bringing in equipment, materials, temporary facilities, and personnel to begin construction.
A sample installation demonstrating materials, finishes, or workmanship for owner approval before full installation proceeds.
Items shown on drawings for reference but not included in the construction scope—often owner-furnished equipment or future work.
Formal written authorization from the owner directing the contractor to begin work. Typically starts the contractual schedule clock.
The maximum number of people permitted in a space based on its size and use type. Determines egress requirements, restroom counts, and HVAC capacity.
A pricing approach where the contractor shares all subcontractor bids and costs with the owner, adding an agreed markup or fee. Promotes transparency.
Items the owner purchases directly but the contractor installs—often specialty equipment, fixtures, or materials where the owner wants control over procurement.
A list of minor items requiring completion or correction at the end of a project before final payment. Developed during the final walkthrough with the owner.
Invoices submitted at regular intervals (usually monthly) reflecting work completed during that period. Tied to percentage of completion or milestone schedule.
A formal written question from the contractor to the architect or owner seeking clarification on drawings or specifications. RFIs create a documented record of decisions.
A document inviting contractors to submit proposals for a project, including pricing, approach, qualifications, and schedule.
The installation phase for mechanical, electrical, and plumbing systems before walls are closed—running pipes, wires, and ductwork that will be concealed.
A packaged HVAC unit installed on the building roof, common in commercial construction. Connects to ductwork serving the space below.
The early design phase establishing overall project concept, layout, and major systems. Follows programming and precedes design development.
Gradual expansion of project scope beyond the original agreement, often without corresponding budget or schedule adjustments. Clear documentation prevents scope creep.
The state of a commercial space before tenant improvements—may range from cold/vanilla shell to warm shell with varying levels of base improvements.
The existing physical state of a project location, including structural elements, utilities, accessibility, and any issues that may affect construction.
Project expenses beyond direct construction—architectural and engineering fees, permits, inspections, legal fees, financing costs, and furniture.
A floor plan showing the proposed layout of a tenant space—walls, doors, rooms, and major elements. Typically precedes full construction documents.
Written descriptions of materials, products, and workmanship standards required for construction. Complement the drawings with detailed requirements.
The project stage when work is sufficiently complete for the owner to occupy and use the space for its intended purpose, even if minor punchlist items remain.
A specialty contractor hired by the general contractor to perform specific trades—electrical, plumbing, HVAC, flooring, painting, etc.
See "Acoustical Ceiling Tile." A suspended ceiling system using a metal grid supporting removable tiles. Standard in commercial office spaces.
Construction work customizing a leased space for a specific tenant's needs—walls, finishes, MEP systems, and specialty requirements.
Funds provided by the landlord toward tenant buildout costs, typically expressed as dollars per rentable square foot. May cover all or part of construction costs.
A contract type where the owner pays actual labor and material costs plus an agreed markup. Used when scope can't be precisely defined upfront.
A project delivered completely finished and ready for immediate occupancy—the tenant just "turns the key" and moves in.
A contract pricing method establishing costs for specific items on a per-unit basis—per square foot of flooring, per linear foot of wall, per light fixture. Useful when quantities may vary.
Another term for tenant improvement or buildout—preparing a space for a specific tenant's occupancy.
The process of analyzing design and construction options to achieve required functions at lower cost—substituting materials, simplifying details, or suggesting alternatives without sacrificing quality.
A commercial space delivered in minimal condition—concrete floor, unfinished walls, no ceiling, no HVAC distribution, basic electrical service only. Tenant assumes all buildout costs.
A commercial space delivered with more improvements than vanilla shell—typically including HVAC, finished ceilings, basic lighting, and insulated/painted walls. Reduces tenant buildout scope and cost.
A guarantee from the contractor that work will be free from defects for a specified period—typically one year for workmanship, with longer warranties on specific systems or materials.
The process of returning a commercial space to a clean, neutral condition for lease or sale. White boxing typically includes demolishing previous tenant improvements, removing old fixtures and equipment, patching and painting walls, cleaning or sealing concrete floors, and ensuring base building systems are functional. The goal is to present a blank canvas that appeals to the widest range of prospective tenants or buyers—eliminating the visual distraction of outdated buildouts and helping decision-makers envision their own use. White boxing can significantly reduce time on market and is often performed between tenants or before listing a property.
The lease exhibit detailing construction responsibilities—who builds what, allowances provided, specifications required, and approval processes.
Local regulations governing how property can be used—commercial, industrial, retail, office, residential. Zoning determines what activities are permitted and may affect signage, parking, and hours of operation.
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