Construction Management Glossary
Key terms and definitions for construction quantity tracking, billing reconciliation, and project management.
Billing Reconciliation
The process of comparing what was contracted against what was actually delivered, installed, or performed, then generating accurate billing documents that reflect the true state of work on a project. In construction, this typically happens monthly and involves calculating the difference between previous cumulative billing and current cumulative performance.
Learn more →Commodity Manager
A software tool for managing the flow of construction aggregates and commodities. It tracks delivery tickets (what was received on site), invoices (what was billed), and contracts/POs (what was agreed upon), then reconciles them against each other to catch discrepancies and pricing errors.
Learn more →Construction Takeoff
The process of measuring and quantifying materials needed for a construction project from drawings, plans, and specifications. Takeoffs determine the quantities of materials like concrete, steel, aggregate, pipe, and other items required to complete the work. AI-powered takeoff tools can automate this process by analyzing drawings digitally.
Contract Line Item
A specific item in a construction contract with a defined description, quantity, unit of measure, unit price, and total price. Contract line items form the basis for billing and quantity tracking throughout the project lifecycle.
Delivery Ticket
A document that accompanies a material delivery to a construction site, recording the quantity, material type, date, time, ticket number, and supplier. Delivery tickets serve as proof of receipt and are matched against supplier invoices during reconciliation.
Earned Value
The dollar value of work completed on a project, calculated as the performed quantity multiplied by the contract unit price. Earned value metrics help project managers understand project progress in financial terms and compare it against planned and actual costs.
Invoice Reconciliation
The process of matching supplier invoice line items against delivery tickets or other proof of receipt to verify billing accuracy. Effective invoice reconciliation catches quantity discrepancies, pricing errors, duplicate charges, and unauthorized charges before payment is released.
Learn more →JTD (Job-to-Date)
Cumulative totals from the start of a project to the current date. JTD received refers to the total quantity of materials delivered to the site since project inception. JTD invoiced refers to the total quantity billed by suppliers over the same period. Comparing JTD received vs. JTD invoiced reveals systemic billing discrepancies.
Production Manager
A quantity tracking and production reporting tool for construction projects. It tracks contract quantities, monitors deliveries and installations over time, manages imports from supplier schedules and field data, and generates billing-oriented exports. The core function is maintaining a clear, auditable picture of contracted vs. actual quantities, month by month.
Learn more →Progressive Billing
A billing method where the contractor bills the client periodically (usually monthly) based on work completed during each period. Each bill shows the current period's work, previous cumulative billing, and total billing to date. Most construction contracts use progressive billing.
Retention
A percentage of each progress payment that is withheld by the client until the project is substantially complete. Typical retention rates are 5-10%. Retention provides the client with financial leverage to ensure the contractor completes the work and addresses any deficiencies.
Unit of Measure (UOM)
The standard unit used to measure quantities in a construction contract. Common UOMs include tons, cubic yards, linear feet, square feet, each, and lump sum. Consistent UOM usage across tickets, invoices, and contracts is critical for accurate reconciliation.
Unmapped Component
An imported line item (from a supplier schedule, field data, or other source) that has not yet been linked to a contract item in the tracking system. Resolving unmapped components is a key step in the quantity tracking workflow to ensure all delivered quantities are accounted for against the contract.
Validation Rules
Automated checks configured at the organization level that flag ticket and invoice lines for review. Common validation rules include quantity range checks (e.g., a single delivery ticket should not exceed 30 tons), UOM consistency checks, date validation, and ticket number format checks. Lines that fail validation are flagged; legitimate exceptions can be dismissed with overrides.