Definitions for The Business of Building

Building a project requires knowledge and skill in using thousands of construction specific definitions, acronyms, and metrics. Building a business including the development of people has its own vocabulary that forms the foundation of communication.

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The owners and managers of construction businesses start learning these when navigating the initial stages of growth and as their business model starts evolving into more specialized functions. Too frequently, miscommunication happens simply because of lack of clarity around the very words being used to communicate. 

 

Our objective with this series is to create an overview of the most important impactful definitions, acronyms, metrics, and phrases for contractors.

  • Not all of them will be applicable to every contractor. 
  • Not all of them are applicable at every stage of growth.
  • Not all of them are applicable for every team member.
  • Most are broader industry-wide definitions.
  • Some are specific to DBM and how we work with clients.
  • Some have multiple definitions and we are defining them more specifically for use in a growing contractor.
  • We are not trying to duplicate comprehensive resources like Lean Lexicon by John Shook and the Lean Enterprise Institute or "The Book" from the Construction Financial Management Association (CFMA) focused on a specific discipline.

If there are definitions that you think would be valuable for us to add to this resource or if you have specific questions about application to your business, please contact us. We will share freely anything we have learned that will help your business continue to grow. 

 

 

 


Definitions for The Business of Building
Building a project requires knowledge of, and skill in using thousands of construction-specific definitions, acronyms, and metrics. Building a business including the development of people has its own vocabulary forming the foundation of communication....

Definitions for The Business of Building
Building a project requires knowledge of, and skill in using thousands of construction-specific definitions, acronyms, and metrics. Building a business including the development of people has its own vocabulary forming the foundation of communication....

Definition - Aptitude
The inborn Potential to do something (skill) to a certain level (competency) to achieve something (capability).
Definition - Capability
A team or company’s combination of skills, competencies, knowledge, processes, tools, and behaviors that allows them to Carry Out particular activities or achieve certain goals. Capabilities create the outcomes that customers are paying for.
Definition - Standard
Level of Performance required. May relate to a job role (person), team, company, materials, equipment, facility, etc. Required by business model as part of achieving strategic objectives.