25 Construction Acronyms Every Building Owner Should Know

Walk onto a commercial construction site or join a project meeting, and you'll hear a steady stream of acronyms. RFI. ASI. OAC. VE. GMP. It can sound like a completely different language.

The truth is, these terms aren't meant to exclude anyone—they exist because construction projects involve hundreds of moving parts, and shorthand helps teams communicate efficiently.

At Mid-States, we believe our clients should understand these conversations just as well as we do. Here's a guide to 25 of the most common construction acronyms you'll encounter during your project.

1. RFI – Request for Information

An RFI is a formal request for clarification when something in the drawings or specifications isn't clear. Rather than making assumptions, the contractor asks the architect or engineer for an official answer.

2. ASI – Architect's Supplemental Instructions

An ASI provides additional direction or clarification from the architect without changing the overall contract value. It's often used to clarify details discovered during construction.

3. CCD – Construction Change Directive

A CCD directs work to proceed before all parties have agreed on pricing or schedule impacts. This allows construction to continue while contract adjustments are finalized.

4. CO – Change Order

A Change Order officially modifies the construction contract. It may increase or decrease the project's cost, adjust the schedule, or change the scope of work.

5. VE – Value Engineering

Value Engineering is the process of evaluating alternative materials or construction methods to improve value. The goal isn't simply to cut costs—it's to maximize performance for the investment.

6. GMP – Guaranteed Maximum Price

A Guaranteed Maximum Price establishes the highest amount the owner will pay under the contract, assuming the project scope doesn't change.

7. OAC – Owner-Architect-Contractor Meeting

These regularly scheduled meetings keep everyone aligned on progress, upcoming work, scheduling, and project decisions.

8. QA – Quality Assurance

Quality Assurance refers to the systems and procedures used to prevent mistakes before they happen.

9. QC – Quality Control

Quality Control focuses on inspecting completed work to verify it meets project requirements.

10. LEED – Leadership in Energy and Environmental Design

LEED is one of the most widely recognized green building certification programs, evaluating buildings for sustainability, efficiency, and environmental performance.

11. BIM – Building Information Modeling

BIM is a digital 3D model that combines architectural, structural, mechanical, electrical, and plumbing systems into one coordinated model to reduce conflicts before construction.

12. MEP – Mechanical, Electrical, and Plumbing

You'll hear "MEP" frequently because these three building systems require constant coordination throughout construction.

13. AHJ – Authority Having Jurisdiction

The AHJ is the agency responsible for approving code compliance. Depending on the project, this could be the local building department, fire marshal, or another regulatory authority.

14. IFC – Issued for Construction

Once drawings are marked "Issued for Construction," they're considered the official documents used to build the project.

15. DD – Design Development

The Design Development phase refines the initial design into a more detailed set of drawings before final construction documents are produced.

16. CD – Construction Documents

Construction Documents are the complete drawings and specifications contractors use to price and build the project.

17. NTP – Notice to Proceed

The Notice to Proceed is the formal authorization allowing construction work to begin.

18. T&M – Time and Materials

A Time and Materials contract pays for the actual labor, equipment, and materials used, rather than a fixed price.

19. O&M – Operation and Maintenance Manuals

These manuals are provided at project closeout and explain how to operate, maintain, and service building systems and equipment.

20. CM – Construction Manager

The Construction Manager oversees planning, scheduling, budgeting, coordination, and communication throughout the project.

21. FF&E – Furniture, Fixtures, and Equipment

FF&E includes movable items such as desks, chairs, shelving, medical equipment, and other furnishings that aren't permanently attached to the building.

22. PCO – Potential Change Order

A Potential Change Order identifies work that may result in a contract change but hasn't yet been approved.

23. Submittal

While not technically an acronym, you'll hear "submittals" almost daily on commercial projects. These are product data, shop drawings, samples, and specifications submitted for review before materials are installed.

24. SOV – Schedule of Values

The Schedule of Values is a detailed breakdown of the project's contract amount into individual scopes of work, such as sitework, concrete, steel, roofing, or electrical. Contractors use the SOV when submitting monthly pay applications so owners can see exactly what work has been completed and how payments are calculated.

25. EOR – Engineer of Record

The Engineer of Record is the licensed engineer responsible for the design and engineering documents for a specific discipline, such as structural, civil, or mechanical engineering. If questions arise during construction that affect the design, the EOR reviews the issue and provides direction to keep the project compliant with code and design intent.

Why It Matters

Understanding construction terminology doesn't mean you need to become a contractor. It simply means you'll be better equipped to follow project discussions, ask informed questions, and make confident decisions.

At Mid-States Construction, we don't believe in talking over our clients—or talking down to them. Construction is a technical industry, and technical language has its place. Our job is to make sure you understand what those terms mean so you always know what's happening with your project.

If you ever hear an acronym or construction term you don't recognize, ask. We'd much rather explain it than leave you wondering.