32 Terms Defined

AI & Construction Glossary

Clear definitions for artificial intelligence and construction industry terms. Everything you need to understand AI implementation in MEP and construction.

AI & Technology
Construction
AI in Construction
A

Addendum

Construction

Official modifications to bid documents issued before bid opening. Addenda can change scope, clarify requirements, or modify contract terms. Must be acknowledged in bid submission. AI can help compare revisions.

AI Governance

AI in Construction

Policies and procedures for managing AI use within an organization, including data security, output verification, acceptable use, and compliance requirements. Essential for responsible AI adoption in construction.

AI ROI (Return on Investment)

AI in Construction

Measuring the value generated by AI implementations against their costs. In construction, commonly measured by time saved on tasks, errors prevented, and improved win rates on bids.

AI-Powered Document Analysis

AI in Construction

Using artificial intelligence to automatically extract information, identify key terms, and summarize content from construction documents like specifications, contracts, and RFIs. Significantly reduces manual review time.

Artificial Intelligence (AI)

AI & Technology

Software that can perform tasks that traditionally required human thinking, such as understanding language, recognizing patterns, making decisions, and learning from examples. In construction, AI is used for document analysis, estimating, and workflow automation.

As-Built Documentation

Construction

Drawings and documentation that reflect actual installed conditions, including any deviations from original design. Required for project closeout and essential for future maintenance and renovations.

C

Change Order

Construction

A formal document that modifies the original contract scope, schedule, or price. Results from design changes, unforeseen conditions, or owner requests. Proper documentation is critical for getting paid for extra work.

Computer Vision

AI & Technology

AI technology that can interpret and understand visual information from images and video. In construction, used for progress monitoring from site photos, safety compliance checking, and quality inspections.

D

Division 01

Construction

The general requirements section of construction specifications covering administrative and procedural requirements that apply to all trades. Includes submittal procedures, quality requirements, and project coordination.

F

Fine-Tuning

AI & Technology

The process of further training an AI model on specific data to improve its performance for particular tasks. In construction, this might mean training on your company's historical estimates or project documentation.

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Flow-Down Clause

Construction

Contract provisions that pass obligations from the prime contract down to subcontractors. Can include schedule requirements, insurance, indemnification, and dispute resolution terms. Critical to review before signing.

H

Hallucination

AI & Technology

When an AI system generates information that sounds plausible but is factually incorrect or made up. This is a critical concern in construction where accuracy matters. Always verify AI outputs against source documents.

I

Inclusions and Exclusions

Construction

Clear statements in a bid or proposal defining what work is and is not included in the price. Critical for avoiding scope disputes and ensuring accurate bid comparison.

ITB (Invitation to Bid)

Construction

A formal solicitation from an owner or general contractor inviting subcontractors to submit pricing for a defined scope of work. The starting point for the bid process.

J

JHA (Job Hazard Analysis)

Construction

A systematic process for identifying potential hazards associated with specific tasks and determining controls to eliminate or reduce risks. Required for many construction activities, especially high-risk MEP work.

K

Knowledge Base

AI in Construction

A structured collection of documents and information that AI systems can search and reference. Building a knowledge base from past projects enables AI to provide company-specific answers grounded in your actual experience.

L

Large Language Model (LLM)

AI & Technology

An AI system trained on vast amounts of text data that can understand and generate human-like text. LLMs power tools like ChatGPT and Claude, and are used in construction for analyzing specifications, contracts, and generating documentation.

Liquidated Damages

Construction

Pre-determined monetary penalties specified in contracts for failing to meet deadlines or other requirements. Important contract term that subcontractors should identify and understand during bid review.

M

Machine Learning

AI & Technology

A type of AI where systems learn patterns from data rather than being explicitly programmed. Used in construction for predictive analytics, cost estimation, and identifying patterns in historical project data.

MEP (Mechanical, Electrical, Plumbing)

Construction

The three major building systems that specialty contractors install and maintain. MEP subcontractors handle HVAC, electrical wiring, plumbing, fire protection, and related systems. A significant portion of construction project costs.

O

O&M Manual (Operations and Maintenance)

Construction

Documentation package provided at project completion that includes equipment specifications, maintenance schedules, warranty information, and operating procedures. Required for MEP systems closeout.

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P

Prompt Engineering

AI & Technology

The practice of crafting effective instructions (prompts) to get useful outputs from AI systems. Good prompts include context, specific requirements, and examples. Essential skill for using AI tools in construction workflows.

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Punch List

Construction

A list of incomplete or defective work items that must be corrected before final project acceptance. Created during final walkthrough. AI can help create consistent, detailed punch lists.

Q

QA/QC (Quality Assurance/Quality Control)

Construction

Systematic processes for ensuring work meets specifications and standards. QA focuses on preventing defects through process controls. QC focuses on identifying defects through inspection and testing.

R

RAG (Retrieval-Augmented Generation)

AI & Technology

An AI technique that combines language models with document retrieval to provide answers grounded in specific source documents. Reduces hallucinations by forcing the AI to cite actual documents rather than generating from memory.

RFI (Request for Information)

Construction

A formal document used during construction to clarify design intent, resolve conflicts in documents, or address unforeseen conditions. AI can help draft RFIs that get answered quickly by referencing relevant spec sections.

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S

Scope Creep

Construction

Gradual expansion of project scope beyond original contract requirements without corresponding adjustments to time or cost. Often results from unclear specifications or informal direction. Must be documented and addressed promptly.

Specification

Construction

Written requirements that describe materials, products, and workmanship standards for a construction project. Organized by CSI divisions. AI can help quickly find relevant requirements within lengthy spec documents.

Submittal

Construction

Documentation submitted by contractors to demonstrate that proposed materials, equipment, or methods comply with contract requirements. Includes shop drawings, product data, and samples. AI can help build complete submittal packages faster.

T

T&M (Time and Materials)

Construction

A contract or billing method where the contractor is paid for actual labor hours and materials used, plus markup. Common for change orders and work where scope cannot be precisely defined in advance.

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Takeoff

Construction

The process of measuring and quantifying materials, labor, and equipment needed for a construction project by analyzing drawings and specifications. AI can accelerate takeoffs by extracting quantities from digital plans.

Toolbox Talk

Construction

Brief safety meetings held at job sites, typically at the start of a shift, to discuss specific hazards and safety procedures. Required by many safety programs and OSHA compliance.

Learn More About AI in Construction

Explore our in-depth articles and guides on implementing AI for MEP subcontractors.