Glossary
A
Abandonment (Construction Contract) Abandonment is when a contractor stops work on a job and walks away without a legal excuse, leaving it unfinished. In Arizona it is a specific ground for disciplining a contractor's license, and it lets an affected homeowner file a complaint with the Registrar of Contractors.Allowance (home building contract) An allowance is a set dollar amount in a building contract for an item you have not chosen yet, such as flooring, cabinets, or appliances. The builder budgets the allowance into the price; if your final selection costs more, you pay the difference, and if it costs less, you get credited.Arizona Registrar of Contractors (ROC) The Arizona Registrar of Contractors (ROC) is the state agency that licenses, regulates, and disciplines construction contractors. It sets license classes, takes consumer complaints about poor work, and runs the Residential Contractors' Recovery Fund that can reimburse homeowners up to $30,000 when a licensed builder fails.As-Completed Appraisal An as-completed appraisal estimates what a home will be worth once it is finished, based on the plans and specifications, not its value today as a vacant lot or half-built shell. Construction lenders use this future value to set how much they will lend on a build.Authority Having Jurisdiction (AHJ) The Authority Having Jurisdiction (AHJ) is the government office or official with legal power to approve plans, issue permits, and inspect construction in a given area. For a custom home in Arizona, the AHJ is usually your city or county building department.
B
Blower Door Test A blower door test measures how airtight a home is by mounting a calibrated fan in an exterior doorway, depressurizing the house, and recording the air leakage. Energy codes set a pass threshold in air changes per hour at 50 pascals (ACH50), commonly 3 to 5 ACH50.Blue Stake / Arizona 811 (utility locating) Blue Stake, now called Arizona 811, is the free statewide service that locates and marks buried utility lines before anyone digs. You file a locate request, utilities mark their underground gas, power, water, and communication lines, and you can dig safely without striking them.Braced Wall Panel A braced wall panel is a section of wall built and fastened to resist sideways forces from wind and earthquakes, keeping a home from racking or collapsing. The IRC, in Section R602.10, sets where panels go, how wide they must be, and which bracing methods qualify.Build on Your Lot Build on your lot is a custom home approach where you already own (or buy) the land, then hire a builder to construct a home on that specific lot. Unlike a tract subdivision, the home is designed and permitted for your parcel, its soil, slope, and views, rather than a builder-chosen site.Builders Risk Insurance Builders risk insurance is a short-term property policy that covers a building while it is under construction. Also called course of construction insurance, it protects the structure and on-site materials from losses like fire, wind, theft, and vandalism until the project is finished and a homeowners policy takes over.
C
Casita A casita is a small, separate living space on the same lot as a main house, common in the Southwest. It usually has its own entrance and bathroom, and often a kitchenette, and is used for guests, family, or as a home office. In Arizona it may count as an accessory dwelling unit.CC&Rs CC&Rs are the Covenants, Conditions & Restrictions: recorded rules that govern what owners can do with their lots in a subdivision or HOA. They cover home size, materials, colors, setbacks, and approvals, and they are legally binding on every owner. In Arizona they fall under planned community law.Certificate of Occupancy (CO) A Certificate of Occupancy (CO) is the document your city or county issues stating that a building is complete, meets code, and is legally safe to live in. In Arizona you cannot move into a new home until the local building department grants the CO.Change Order A change order is a written, signed amendment to a construction contract that adds, removes, or changes work and adjusts the price and schedule to match. It documents what changed, what it costs, and how it affects the timeline, so both the owner and builder agree before the new work begins.Cistern A cistern is a large water-storage tank that holds a home's water supply where there is no well or city water main. In Arizona's hauled-water areas, like Rio Verde Foothills, a buried or above-ground cistern is filled by a water-hauling truck and feeds the house through a pump.Conditioned (Unvented) Attic A conditioned attic, also called an unvented attic, is an attic sealed and insulated at the roofline instead of the ceiling, so it sits inside the home's cooled envelope. This keeps ductwork and the air handler out of extreme heat, which improves efficiency in hot climates like Arizona.Conditioned Space Conditioned space is the part of a home that is heated and cooled and sits inside the insulated, air-sealed building envelope. It excludes areas like a vented attic, an unconditioned garage, or a crawlspace. The boundary decides where insulation and air-sealing go.Construction Defect A construction defect is a flaw in the design, materials, or workmanship of a home that makes part of it fail to work as it should, such as a leaking roof, cracked foundation, or faulty wiring. In Arizona, owners must follow a notice process under the Purchaser Dwelling Act before suing.Contractor's License A contractor's license is the state credential, issued by the Arizona Registrar of Contractors, that lets a person legally build or remodel for pay. Arizona requires it for almost all construction over $1,000, and the license class (such as B for residential general contracting) sets what work the holder may perform.Contractor's License Bond A contractor's license bond is a surety bond (or cash deposit) that Arizona requires a contractor to post with the Registrar of Contractors before getting licensed. It guarantees a pool of money that homeowners, suppliers, and workers can claim against if the contractor breaks the contract or fails to pay.Cool Roof A cool roof is a roof built to reflect more sunlight and shed more heat than a standard roof, so it stays cooler in the sun. It uses reflective coatings, tiles, or membranes to lower roof and attic temperatures, which trims summer cooling costs in hot climates like Arizona.Cost-Plus Contract A cost-plus contract pays the builder the actual cost of the work (labor, materials, and subcontractors) plus a set fee or percentage for the builder's profit and overhead. The owner sees the real invoices, so the final price is open and moves with the true cost of the job.
D
Defensible Space Defensible space is the managed buffer between a home and the wildland around it, cleared and thinned to slow a wildfire and protect the structure from embers, flames, and heat. Arizona organizes it into zones measured outward from the house, typically reaching up to 100 feet.Design Review Committee (DRC) A Design Review Committee (DRC), also called an Architectural Review Committee (ARC), is the HOA body that approves a custom home's design before you build. It checks your plans against the community's private guidelines, separate from the city. In Arizona, A.R.S. 33-1817 sets rules for how it must operate.Draw Schedule A draw schedule is the payment plan in a construction contract that releases money in stages as the home reaches set milestones, such as foundation, framing, and drywall. Each release is a draw. It ties payments to completed work rather than paying everything up front.Dust Control Training Dust control training is a certification Maricopa County requires for people responsible for dust on a construction site under Air Quality Rule 310. Larger permitted sites must keep a trained dust control coordinator on site during dust-generating work, and certifications are valid for three years.Dwelling Action A dwelling action is the legal name in Arizona for a lawsuit a homeowner brings against the builder, developer, or contractor over a construction defect in a home. It is defined in A.R.S. 12-1361 and triggers a required notice-and-repair process before suit.
E
Easement An easement is a legal right for someone else to use part of your land for a specific purpose, such as utility lines, drainage, or access, even though you still own that land. Easements run with the property and usually limit what you can build over them.Expansive Soil Expansive soil is clay-rich ground that swells when it absorbs water and shrinks as it dries. This swelling and shrinking pushes on foundations and can crack slabs, walls, and floors. It is common across central Arizona and drives how custom home foundations are designed.
F
Fenestration Fenestration is the industry term for all the openings in a building's shell that let in light or air: windows, doors, skylights, and glass walls, plus their frames. In energy codes it is where heat enters and escapes, so fenestration ratings like U-factor and SHGC drive a home's efficiency.Final Inspection A final inspection is the last code inspection of a new home, where a city or county inspector confirms the completed build meets the approved plans and the building code. Passing it is what allows the certificate of occupancy to be issued, so you can legally move in.Footing A footing is the widened concrete base at the bottom of a foundation that spreads the home's weight onto the soil below. It sits under walls, posts, and grade beams, keeping the structure from sinking or settling unevenly. Footing size depends on the load above and the soil's bearing strength.
G
Grade Beam A grade beam is a reinforced concrete beam that runs along or just below ground level and carries the load of the walls above, spanning between footings, piers, or stronger soil. It lets a foundation bridge over weak or expansive soil instead of resting directly on it.Graywater Graywater is gently used household wastewater from clothes washers, tubs, showers, and bathroom sinks, but not from toilets, kitchen sinks, or dishwashers. In Arizona, a home system under 400 gallons a day can reuse it for irrigation under ADEQ's Type 1 general permit.Guaranteed Maximum Price (GMP) A guaranteed maximum price (GMP) is a contract where the builder is paid actual costs plus a fee, but the total cannot exceed a hard cap. If the job comes in under the cap, the owner usually keeps the savings; if it runs over, the builder absorbs the overage, not the owner.
H
Hauled Water Hauled water is potable water delivered to a home by truck and kept in an onsite storage tank, used where there is no city water line or well. In Rio Verde Foothills, haulers fill at the EPCOR standpipe and deliver to tanks of 2,500 gallons and up that the home runs off.Header (framing) A header is a horizontal framing beam placed above a door, window, or other opening in a wall. It carries the weight from above and transfers that load around the opening down to the studs on each side, so the opening does not sag or crack the structure.Heat Pump A heat pump is a single system that both heats and cools by moving heat instead of burning fuel. In summer it pulls heat out of the house; in winter it pulls heat from outside air into the house. Because it transfers heat rather than generating it, it can deliver two to four times the energy it uses.
I
ICF (Insulated Concrete Form) Construction ICF construction builds walls from hollow foam blocks that lock together, get filled with steel and concrete, and stay in place as permanent insulation. The result is a solid, well-insulated wall that suits Arizona's heat by keeping cooling costs and indoor temperature swings low.Impact Fees Impact fees are one-time charges a city or town collects from new construction to help pay for the public infrastructure the growth creates, such as roads, water lines, sewers, and parks. In Arizona they are called development fees, and the amount depends on the jurisdiction and the type of home.Interest Reserve An interest reserve is money built into a construction loan to cover the interest payments during the building phase. Instead of paying out of pocket each month while the home is unfinished, the lender draws the interest from this reserve, so the borrower's cash flow stays clear until the home is done.International Fire Code (IFC) The International Fire Code (IFC) is a model code from the International Code Council that sets fire-safety rules for buildings, from sprinklers and fire access to defensible space. Arizona cities adopt and amend it locally. Paradise Valley enforces the 2021 IFC.International Residential Code (IRC) The International Residential Code (IRC) is the model building code for one- and two-family homes, written by the International Code Council. Arizona cities and counties adopt it, often the 2018 edition, so it sets the minimum rules your custom home must meet to pass plan review and inspection.
L
Lien Waiver A lien waiver is a signed document in which a contractor, subcontractor, or supplier gives up the right to file a mechanic's lien for work or materials, usually in exchange for payment. It is the receipt that proves a trade was paid and cannot later claim the home.Lot Coverage Lot coverage is the share of a lot that buildings are allowed to cover, set by zoning as a percentage of the lot area. A 35% maximum on a 10,000-square-foot lot caps the building footprint at 3,500 square feet. It limits how large a home and outbuildings can be on a given parcel.Low-E Glass (Low-Emissivity Window) Low-E glass is window glass with a microscopically thin metallic coating that reflects heat while letting light through. The coating lowers the window's U-factor and can cut solar heat gain, reducing energy loss by 30% to 50%. In the desert, spectrally selective low-E glass blocks sun heat while keeping daylight.
M
Makeup Air Makeup air is fresh outside air brought into a house to replace air pulled out by a strong exhaust fan, usually a large kitchen range hood. The building code requires it once a hood moves more than 400 cubic feet per minute, so the exhaust does not depressurize the tight, sealed home.Manual J Load Calculation A Manual J load calculation is the industry method for sizing a home's heating and cooling system. It measures how much heat the house gains and loses through walls, windows, roof, and air leakage, then sets the exact size of air conditioner or heat pump the home actually needs.Mechanic's Lien A mechanic's lien is a legal claim a contractor, subcontractor, or supplier can record against a property when they have not been paid for labor or materials used to improve it. The recorded lien attaches to the home and can force a sale to collect the unpaid amount.Mini-Split (Ductless HVAC) A mini-split is a ductless heating and cooling system with an outdoor compressor connected to one or more indoor air handlers by a small refrigerant line. Because it has no ductwork, it cools or heats individual rooms directly, avoiding the energy lost through ducts in a hot attic.
P
Perc Test (Percolation Test) A perc test, short for percolation test, measures how fast water drains through the soil on a lot. It is used to decide whether the ground can absorb wastewater from a septic system. On rural Arizona lots without a sewer hookup, a passing perc test is often required before you can build.Plan Review Plan review is the step where a city or county building department checks your home's drawings against the building code and zoning rules before it issues a permit. Reviewers confirm the design is safe and legal, request corrections if needed, and only then approve the project to start construction.Plat A plat is the official recorded map that divides land into lots, showing each lot's boundaries, dimensions, streets, and easements. When a subdivision is recorded, its plat becomes the legal description of every lot in it. Your lot is defined by the plat on file at the county recorder.Post-Tension Slab A post-tension slab is a concrete foundation strengthened by steel cables that are tightened, or tensioned, after the concrete hardens. The cables squeeze the slab together so it resists cracking and movement, which is why it is the standard foundation on Arizona's expansive soils.Punch List A punch list is the list of small items a builder must finish or fix before a construction project is considered complete. It is created during a walk-through near the end of the build and covers cosmetic and minor functional defects, like paint touch-ups, sticking doors, or missing hardware.
R
R-Value R-value measures how well insulation resists heat flow. A higher R-value means more resistance and better insulation. It is the standard rating for attic, wall, and roof insulation, and it drives how much you spend cooling an Arizona home through the summer.Radiant Barrier A radiant barrier is a reflective material, usually aluminum foil, installed in an attic to reflect radiant heat from the hot roof instead of absorbing it. It lowers the heat that reaches your ceiling and ductwork, which cuts summer cooling costs in hot, sunny climates like Arizona.Retention (Retainage) Retention, also called retainage, is a portion of each construction payment, often 5 to 10 percent, that the owner or lender holds back instead of paying out. The held money is released after the work is finished and accepted, giving the builder an incentive to complete every detail.Roof Truss A roof truss is a pre-engineered triangular frame of wood members that supports a roof and ties the structure together. Built in a factory and craned into place, trusses span the home without interior load-bearing walls, carrying the roof load out to the exterior walls.RV Garage (Motorcoach Garage) An RV garage, also called a motorcoach garage, is an oversized enclosed garage built to store a recreational vehicle indoors. It has a tall door and a high ceiling, usually 14 to 16 feet, to fit a motorhome, plus the depth and utilities a large coach needs.
S
SEER / SEER2 SEER (Seasonal Energy Efficiency Ratio) rates how efficiently an air conditioner or heat pump cools over a season. A higher SEER means lower cooling bills. SEER2 is the updated federal test that replaced SEER on January 1, 2023, with slightly lower numbers for the same units.Semi-Custom Home A semi-custom home is built from a builder's existing floor plan that you then personalize, choosing finishes and select structural options instead of designing from scratch. It sits between a production home, where choices are limited, and a fully custom home, where every detail is drawn for your lot and needs.Septic System A septic system is an on-site way to treat household wastewater where there is no city sewer. Waste flows to a buried septic tank that separates solids, then the liquid drains into a leach field where soil filters it. Most rural Arizona custom homes rely on one.Setback A setback is the minimum distance your home must sit from a property line, street, or other feature, set by local zoning. In Arizona, front setbacks often run 20 to 25 feet and side setbacks 5 to 10 feet, but the exact numbers depend on your city and zone.Soil Report A soil report, also called a geotechnical report, is an engineer's study of a lot's soil that tells the foundation designer how strong the ground is and how it moves. It comes from drilled or dug test borings and drives the foundation design. Most Arizona custom home permits require one.Solar Heat Gain Coefficient (SHGC) Solar Heat Gain Coefficient (SHGC) measures how much of the sun's heat a window lets into a home, on a scale from 0 to 1. A lower SHGC blocks more solar heat. In Arizona's desert sun, a low SHGC window is one of the biggest levers on summer cooling bills.Solar Reflectance Index (SRI) The Solar Reflectance Index (SRI) is a single number that rates how cool a roof or paving surface stays in the sun. It combines how much sunlight a surface reflects with how well it sheds absorbed heat. A higher SRI means a cooler surface, which matters a lot under the Arizona sun.Spec Home A spec home is a house a builder designs and constructs on speculation, meaning before a buyer is under contract, then sells once it is finished or nearly done. The builder picks the floor plan and finishes, so a spec home offers less customization than a true custom build.Spray Foam Insulation Spray foam insulation is liquid polyurethane sprayed onto surfaces, where it expands and hardens into a solid layer that both insulates and air-seals. It comes in open-cell and closed-cell types and is used in walls, roof decks, and attics to cut heat flow and air leaks.Statute of Repose A statute of repose is a hard deadline that bars a lawsuit a set number of years after an event, no matter when the harm is discovered. For Arizona construction, A.R.S. 12-552 bars most defect claims more than 8 years after substantial completion, or 9 with a late-appearing defect.Stem Wall A stem wall is a short concrete or block wall that sits on a footing and raises the house's framing above the ground. Soil or fill is placed inside it, and the floor sits on top, so the living space is lifted off grade. It is one of the two main foundation types used on Arizona homes.Substantial Completion Substantial completion is the point in a construction project when the home is finished enough for the owner to use it for its intended purpose, even if small punch-list items remain. It usually triggers final payment, the start of warranty periods, and the handoff of the keys.
T
Temporary Certificate of Occupancy (TCO) A temporary certificate of occupancy (TCO) is a time-limited approval that lets people move into or use a home before final inspections are fully done, as long as the occupied areas are safe. The building department lists the remaining items and a deadline to finish them.Thermal Mass Thermal mass is a material's ability to absorb, store, and slowly release heat. Dense materials like concrete, brick, stone, and tile have high thermal mass, so they soak up heat during the day and give it back at night, smoothing out indoor temperature swings in desert climates.Title Insurance Title insurance protects against problems with a property's ownership history, like old liens, unpaid taxes, or boundary disputes. A lender's policy protects the bank and is usually required for a mortgage. An owner's policy is optional and protects the buyer's own investment in the home.
W
Water-Resistive Barrier (WRB) A water-resistive barrier (WRB) is a water-shedding layer installed behind a wall's exterior cladding, such as stucco or siding, to keep moisture that gets past the surface from reaching the framing and sheathing. The IRC requires at least one layer on most exterior walls.Weep Screed A weep screed is a metal trim strip installed at the base of a stucco wall that gives trapped water a path to drain out and stops the stucco short of the soil. The IRC sets a minimum height: at least 4 inches above grade or 2 inches above paved surfaces.
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