Construction & Development Subcontractor A specialty contractor (electrical, plumbing, etc.) hired by the general contractor.
Construction & Development Substantial Completion The point at which a project is sufficiently complete to be used for its intended purpose.
Construction & Development Surety Bond A contractor’s guarantee of project completion, backed by a third-party insurer.
Construction & Development Time and Materials Contractor billed for time worked plus materials at cost or markup.
Construction & Development Vertical Construction The actual building phase of construction — framing through finish work.
Finance & Returns Annualized Return Investment return expressed as an annual rate, smoothing multi-year periods.
Finance & Returns Break-Even Ratio Operating expenses plus debt service divided by gross income, the point at which a property covers its costs.
Finance & Returns Cap Rate Net operating income divided by purchase price — a basic measure of unleveraged yield.
Finance & Returns Cash Flow The net amount of cash moving in and out of a property, after operating expenses and debt service.
