Business and Admin
Explore business and admin in plain English, with practical context, common distinctions and questions to ask before work starts.
Start with the entries below. They are part of a growing reference library, not an exhaustive technical specification or a substitute for specialist assessment.
- Construction Industry Scheme (CIS)
- The Construction Industry Scheme is the HMRC system under which contractors deduct money from certain subcontractor payments for construction work. The deductions are advance payments towards the subcontractor's tax and National Insurance, not a separate construction tax.
- Estimate
- An estimate is an indication of the expected cost of work based on available information. It should make the assumptions and uncertainties clear rather than appearing to promise an unexplained fixed total.
- Practical completion
- Practical completion is a construction contract milestone concerned with the works being sufficiently complete for their intended use, as determined under the relevant contract. It is not a universal synonym for “every last item is perfect”.
- Public liability insurance
- Public liability insurance is business insurance intended to cover specified liabilities to third parties, subject to the policy wording. It is different from a guarantee that all defective workmanship will be repaired.
- Quotation
- A quotation sets out a proposed price for a defined scope of work, subject to its terms and stated assumptions. Its usefulness depends on how clearly the work and exclusions are described.
- Retention
- Retention is money held back under an agreed construction payment arrangement, usually linked to completion or rectification milestones. The amount and release conditions depend on the contract.
- Scope of works
- A scope of works describes what a project includes and, ideally, what it excludes. It turns a broad request such as “refit the bathroom” into a defined set of responsibilities and deliverables.
- Snagging
- Snagging is the process of identifying and recording defects or incomplete details for correction. It is a practical inspection activity, not a substitute for technical testing or required compliance checks.
- Variation
- A variation is a change to an agreed scope or specification. It can affect cost, time, sequencing and the work of other trades, not just the item being changed.
- VAT
- Value Added Tax is a tax charged on taxable supplies by VAT-registered businesses. It is separate from profit, income tax and CIS deductions.
Last editorial check: 8 November 2026.
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