AutoCAD: Computer-Aided Design (CAD) or computer-aided design and drafting (CADD) is the production of drawings, specifications, and other design-related elements using special graphics and computer programs. May be used for creating floor plans and furniture systems layouts.

Backorder: A specific quantity of a specific item that could not be filled on the requested date.

CAD Drawing: Computer-Aided Design (CAD) or computer-aided design and drafting (CADD) are the production of drawings, specifications, and other design-related elements using special graphics and computer programs. May be used for creating floor plans and furniture systems layouts.

Change Order: A description of changes to be made to a work order that describes the new work to be done (and any modifications) and the price to be paid for this new work. A sign off is required by the requestor.

Common Areas: Building areas allocated to meeting rooms, hallways and pubic space.

COM: See customer’s own material.

Corrective Action: Paperwork that initiates going back to do work due to improper installation or a lack of communication.

Davis–Bacon Act of 1931 is a United States federal law which established the requirement for paying prevailing wages on public works projects. All federal government construction contracts, and most contracts for federally assisted construction over $2,000, must include provisions for paying workers on-site no less than the locally prevailing wages and benefits paid on similar projects.

Estimate (binding): The total of what the service will cost, excluding unanticipated services, which is provided in advance.

Estimate (guaranteed not to exceed): An estimate that allows for a lower price to be paid if the actual project’s cost is lower than the estimate.

Estimate (non-binding): An approximation of what the service will cost. The final amount billed could be higher or lower depending on the actual services provided.

Force Majeure: A defense protecting the parties in the event that a part of the contract cannot be performed due to causes which are outside the control of the parties and could not be avoided by exercise of due care.

Invoice: An invoice or bill is a commercial document issued by a seller to the buyer, indicating the products, quantities, and agreed prices for services the seller has provided the buyer. An invoice indicates the buyer must pay the seller, according to the payment terms. The buyer has a maximum amount of days to pay these goods and are sometimes offered a discount if paid before.

Lead Time: The amount of time needed for production and delivery of a piece of furniture after order entry.

Lead Time (Effective):  Effective lead time represents a period of time that includes the lead time, plus additional time factors that may occur between the time the need for an order in known, and the inventory is in stock and available.

Lead Time (Fixed): A set lead time that doesn’t change.

Lead Time (Variable):  A lead time that changes (not fixed). When describing supplier lead time, variable lead time means that the lead time from the supplier changes based on his current workload and capacity.

MAC: A synonym for Move, Add, Change.

Prevailing Wage: A term used in a legislative effort to provide organized labor a fair chance to bid for government contracts. Federal law requires all employers engaged in the performance of federal contracts to pay “prevailing” wages to their workers. This ensures that nonunion employers cannot gain an unfair bidding advantage by paying wages far below the union rate and passing the savings on to the government in lower bids. A prevailing wage is a rate of pay determined by the U.S. Department of Labor based upon the particular geographic area for a given class of labor and type of project. See Davis-Bacon Act.

Punch List:  A list of deficiencies or unacceptable work compiled by the project manager during the final inspection of a project.

Purchase Order: A document used to approve, track, and process purchased items. A purchase order is used to communicate a purchase to a supplier.

Specifications: The ordering information for a piece of furniture. Typically includes the manufacturer’s item number, color, finish, size and any other options specific to the piece.

Temporary Certificate of Occupancy (TCO): A document certifying a building’s compliance with building codes, and other laws, indicating it to be in a condition suitable for temporary occupancy.

Workers’ Compensation: An insurance paid by companies to provide benefits to employees who become ill or injured on the job. Through this program, workers are provided with benefits and medical care, and employers have the assurance that they will not be sued by the employee. The cost of workers’ compensation benefits is based on the gross payroll and the number and severity of illnesses and injuries that type of employer experiences. For example, a manufacturing company would have higher workers’ compensation costs than a professional practice.