The Commercial Construction Glossary

The commercial construction industry uses specialized terminology that can be daunting for newcomers and seasoned professionals alike. This glossary, inspired by Skyline Construction's definitions, provides clear explanations of key terms to help owners, developers, and stakeholders understand the processes and roles involved in commercial construction projects in Texas.

A

Agency Construction Manager (Agency CM) A fee-based service where the construction manager acts solely in the owner's interest, providing advice on budgeting, scheduling, and scope management without contracting directly with subcontractors.

C

Class A Buildings High-quality buildings in prime locations with state-of-the-art infrastructure, superior management, and above-average market value. These are the most desirable commercial properties, often commanding premium rents.

Class B Buildings Older structures with moderate design and finishes, well-maintained with good management and tenants. They offer quality but do not compete with Class A buildings in terms of price or prestige.

Construction Manager At Risk (CMAR) A delivery method where the construction manager commits to delivering the project within a Guaranteed Maximum Price (GMP) based on construction documents, providing professional services and acting as a consultant during design and construction phases.

D

Demising Wall A wall separating a tenant's suite from another tenant's space or common building areas, typically constructed from floor to roof or floor deck. It may also be fire-rated for safety compliance.

Design-Build A project delivery method where a single entity handles both design and construction under one contract, promoting collaboration between disciplines, incorporating trade input, and streamlining project delivery for cost and time efficiency.

F

1st Generation Space New office space on a floor that has never been customized for a tenant, ready for tailored renovations or tenant improvements to meet specific business needs.

G

General Contractor (GC) The entity responsible for daily oversight of a construction site, managing vendors, trades, and communication with all project stakeholders to ensure smooth project execution.

P

Partition Wall A wall constructed to create work areas, such as offices or conference rooms, which may not extend to the roof or floor deck, depending on security or design requirements.

Punch List A list of incomplete or unacceptable construction items that must be addressed to fulfill the contractor’s obligations, typically finalized before the project is handed over to the client.

S

Substantial Completion The stage in construction when the contractor is ready to turn over the property to the tenant or client for acceptance and final punch list, usually coinciding with the issuance of a certificate of occupancy.

W

Warm Shell A building considered lease-ready, equipped with partial HVAC systems and fully functioning core areas (e.g., electrical closets, mechanical rooms, elevator lobbies, or restrooms), prepared for tenant improvements.

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This glossary covers essential terms used in commercial construction, particularly relevant to Texas projects. For further details, refer to resources like Skyline Construction’s Glossary.