In an era of disruption and change, construction business leaders need to understand how business trends and terms are evolving and emerging in the industry. Since the earlier two-part series on construction industry terms and acronyms (Glossary of Construction Industry Acronyms Part I and Part II), new ones have entered the lexicon.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
CSO: Chief Sustainability Officer: A chief sustainability officer is described as a senior executive at a company who is responsible for managing its environmental impact. As part of an organization’s “C-suite”—which refers to several corporate executive positions in a company, including the chief executive officer (CEO) and the chief financial officer (CFO)—a CSO is responsible for tailoring a company’s business operations to be as sustainable as possible. (source: MasterClass)
CSR: Corporate Social Responsibility: Business News Daily defines corporate social responsibility as a form of self-regulation that reflects a business’s accountability and commitment to contributing to the wellbeing of communities and society through various environmental and social measures. CSR plays a crucial role in a company’s brand perception; attractiveness to customers, employees and investors; talent retention; and overall business success. CSR is increasingly becoming a topic of conversation for construction industry executives.
DEI: Diversity, Equity and Inclusion: While there is no one definition of DEI, each component has a different meaning. Advancing Organizational Excellence (AOE) provides the following definitions: Diversity is the presence of “difference” within a given setting. Equity (not to be confused with “equality,” which means “sameness”) is the fair treatment, access, opportunity and advancement for all people. Inclusion is the act of creating environments in which people feel like they can bring their authentic selves to work.
EIA: Environmental Impact Assessment: EIA is a process of evaluating the likely environmental impacts of a proposed project or development, taking into account interrelated socioeconomic, cultural and human-health impacts, both beneficial and adverse. It aims to predict environmental impacts at an early stage in project planning and design, find ways and means to reduce adverse impacts, shape projects to suit the local environment and present the predictions and options to decision-makers. By using EIA, both environmental and economic benefits can be achieved, such as reduced cost and time of project implementation and design, avoided treatment/clean-up costs and impacts of laws and regulations.
EIS: Environmental Impact Statement: The EIS is a government document that outlines the impact of a proposed project on its surrounding environment. In the United States, these statements are mandated by federal law for certain projects. Environmental impact statements are meant to inform the work and decisions of policymakers and community leaders.
ESG: Environmental, Social and Governance: Every business is intertwined with environmental, social and governance concerns. Environmental includes the energy a company takes in and the waste it discharges, the resources it needs and the consequences for living beings as a result. Social refers to the relationships a company has and the reputation it fosters with people and institutions in the communities where it conducts business. Social includes labor relations and diversity, equity and inclusion. Governance is the internal system of practices, controls and procedures a business adopts to govern itself, make effective decisions, comply with the law and meet the needs of external interested parties. (source: McKinsey & Company)
EV: Electric Vehicle: All-electric vehicles (commonly referred to as EVs) have a large battery that powers one or more electric motors and do not use gasoline. Although ranges are continuing to increase, EVs currently have a driving range of 80 to more than 300 miles. EVs also require minimal maintenance since there is no need for oil changes, smog checks, spark plug changes, etc. All-electric vehicles can be charged at home using standard 120-volt or 240-volt house plugs, or away from home at public or workplace charging stations. EVs are becoming more common in fleets and equipment for construction firms.
GHG: Greenhouse Gas: Gases that trap heat in the atmosphere are called greenhouse gases. Carbon dioxide (CO2) is the primary greenhouse gas emitted through human activities, accounting for 79% of all U.S. greenhouse gas emissions from humans in 2020. Like CO2, methane emissions come from human activity including natural gas leaks and raising livestock. Other greenhouse gas contributors include nitrous oxide, which is generated by agriculture, fuel combustion, wastewater management and industrial processes and fluorinated gases, which are emitted through their use as substitutes for ozone-depleting substances and through a range of industrial processes. (source: U.S. Environmental Protection Agency)
HEV: Hybrid Electric Vehicle or Plug-In Hybrid Electric Vehicles (PHEV): Plug-in hybrid electric vehicles (commonly referred to as PHEVs) offer both gas-only and electric-only driving—even at relatively high speeds. With smaller batteries than all-electric vehicles, plug-in hybrids achieve an electric-only range of 20-55 miles, during which they produce no tailpipe emissions. When the car uses up its electric range, it switches to gas and drives just like a conventional car. (source: www.electricforall.org)
IAQ: Indoor Air Quality: According to the Environmental Protection Agency (EPA), indoor air quality (IAQ) refers to the air quality within and around buildings and structures, especially as it relates to the health and comfort of building occupants. Understanding and controlling common pollutants indoors can help reduce risk of indoor health concerns.
ICE: Internal Combustion Engine: Combustion, also known as burning, is the basic chemical process of releasing energy from a fuel and air mixture. In an internal combustion engine (ICE), the ignition and combustion of the fuel occurs within the engine itself. ICE engines currently power the majority of construction industry trucks, equipment and vehicles. Increasingly, EVs are replacing ICE engines on the jobsite. (source: US Office of Energy Efficiency & Renewable Energy)
KSI: Key Sustainability Indicator: Key sustainability indicators are used to rate an organization’s sustainability efforts. They are measurable aspects of environmental, economic or social systems that are useful for monitoring changes in system characteristics relevant to the continuation of human and environmental well-being. Tracking and reporting on KSIs are quickly becoming an imperative for construction leaders.(source: U.S. Environmental Protection Agency)
PRI: Principles for Responsible Investment: The Principles for Responsible Investment, developed by the United Nations, include six principles developed by an international group of institutional investors reflecting the increasing relevance of environmental, social and corporate governance issues to investment practices. The principles include incorporating ESG issues into investment analysis, decision making and ownership policies, promoting appropriate disclosure on ESG issues, acceptance and implementation within the investment industry, enhanced effectiveness in implementation and reporting by all signatories. PRIs are used by financial institutions to evaluate financing for specific projects.
UHI: Urban Heat Island: An urban heat island occurs when a city experiences much warmer temperatures than nearby rural areas. The difference in temperature between urban and less-developed rural areas has to do with how well the surfaces in each environment absorb and hold heat.
VOC: Volatile Organic Compound: According to the EPA, volatile organic compounds (VOCs) are compounds that have a high vapor pressure and low water solubility. VOCs are emitted as gases from certain solids or liquids. They include a variety of chemicals, some of which may have short- and long-term adverse health effects and can be common groundwater contaminants. Many VOCs are human-made chemicals that are used and produced in the manufacture of paints, pharmaceuticals and refrigerants. VOCs are typically industrial solvents, such as trichloroethylene; fuel oxygenates, such as methyl tert-butyl ether (MTBE); or byproducts produced by chlorination in water treatment, such as chloroform.
TECHNOLOGY
CMS: Content Management System: A content management system is software that helps users create, manage and modify content on a website without the need for specialized technical knowledge. (source: Kinsta)
COS: Content Optimization System: A software platform that focuses on optimizing content to deliver a fully personalized web experience to customers. (source: Digital Marketing)
EDI: Electronic Data Interchange: Electronic data interchange (EDI) is the computer-to-computer exchange of business documents in a standard electronic format between business partners. (source: EDI Basics)
MAP: Marketing Automation Platform: A marketing automation platform automates monotonous marketing work such as email marketing, social media posting and ad campaigns—not just for the sake of efficiency, but also to provide a more personalized experience for customers. Marketing automation adoption among construction firms is increasing. (source: HubSpot)
LOGISTICS
3PL: Third-Party Logistics: Third-party logistics refers to the outsourcing of ecommerce logistics processes to a third-party company that acts as a link between the manufacturer and customers. A 3PL provider offers services including warehousing, inventory management, shipping and receiving, packing, returns and more.
SCM: Supply-Chain Management: Supply-chain management is the handling of the entire production flow of goods or services, from the raw components to delivering the final product to the consumer. A company creates a network of suppliers (links in the chain) that move the product along from the suppliers of raw materials to those organizations that deal directly with users. (source: IBM)
CUSTOMER ENGAGEMENT
CX: Client (or Customer) Experience: Client (or customer) experience is the overall perception the customer has of a brand after interacting with a business across the customer’s journey. From marketing to sales and customer service during a construction project—CX is the sum of all touchpoints and can impact a customer’s decision to return to your brand. (source: Delighted by Qualtrics)
ICP: Ideal Customer Profile: An ideal customer profile is a description of the company—not the individual buyer or end user—that’s a perfect fit for your solution. An ICP should focus on relevant characteristics of target accounts including industry/vertical, annual revenue, budget, geography, size of customer base, return on marketing investment and more. (source: Terminus)
UX: User Experience: User experience (UX) focuses on having a deep understanding of users, what they need, what they value and their abilities and limitations. It also considers the business goals and objectives of the group managing the construction project. UX best practices promote improving the quality of the user’s interaction with and perceptions of a product and any related services. (source: Usability)
BUSINESS AND FINANCE
BANT: Budget, Authority, Need, Timeline: BANT is a marketing qualification approach, created by IBM, that lets sales reps determine whether a lead is a good fit based on conversations with leads or clients about their business and solution needs. According to IBM, an opportunity is considered a good fit if the prospect meets three out of the four BANT criteria—budget, authority, need and timeline.
CapEx: Capital Expenditure: Capital expenditures are funds used by a company to acquire, upgrade and maintain physical assets such as property, plants, buildings, technology or equipment. CapEx is often used to undertake new projects or investments. This type of financial outlay increases the scope of a company’s operations or adds some future economic benefit to the operation. (source: Investopedia)
CD: Construction Document: Construction documents is a term that refers to the documents that define the work completed by members of the design and construction team for a specific project. According to the Construction Specifications Institute, included in construction documents are working drawings, specifications, contracting requirements, procurement requirements, modifications, addenda and more.
NGO: Non-Governmental Organization: Non-governmental organizations, independent from government, are typically nonprofit entities, many of which are active in humanitarianism or the social sciences. They can also include clubs and associations that provide services to their members and others. Surveys indicate that NGOs have a high degree of public trust, which can make them a useful proxy for the concerns of society and a company’s interested parties. However, NGOs can also be lobby groups for corporations. (source: Wikipedia)
PSCM: Preconstruction Services and Construction Management: Services offered before actual construction begins to help plan, analyze and establish needs for a project are referred to as preconstruction services. The intent is to educate a client about what is needed to make a project functional and financially viable. PSCM is when a project contractor delivers both preconstruction and construction services.
WEEE: Waste Electrical & Electrical Equipment: WEEE refers to legislation originating in the EU that specifies the recovery and recycling of electronic equipment and its components. It was adopted by OSHA in 2009. The directive specifies the methodology to be followed in the disposal of electronic waste including fluorescent tubes, household and workplace appliances; it also specifies the materials to be used in the manufacture of electronic components. WEEE compliance aims to encourage the design of electronic products with an emphasis on environmentally safe recycling and recovery. (source: Safeopedia)
DIGITAL MARKETING
CTA: Call to Action: A call to action is an invitation for a user to take some desired action. It often appears in advertising or marketing, such as an invitation to request more information or visit a website.
CTR: Click-Through Rate: CTR is the number of clicks that your ad receives divided by the number of times your ad is shown; clicks ÷ impressions = CTR. It is a common metric used in digital advertising programs.
PV: Page View: A page view (or page view hit, page tracking hit) is an instance of a page being loaded (or reloaded) in a browser. PVs are a metric defined as the total number of pages viewed. It is a common metric used in digital advertising programs.
SEO: Search Engine Optimization: Search engine optimization, or SEO, is the process of increasing a website’s visibility when internet users search for products or services related to a business in a search engine. Search engines, such as Google and Bing, use bots to collect information and put them in an index. Algorithms then analyze the pages in the index, taking into account a variety of ranking factors or signals, to determine the order pages should appear in the search results for a given query.
SEM: Search Engine Marketing: Search engine marketing refers to tactics that will increase a website’s visibility in search engines—primarily paid advertisements that appear alongside search queries in search engines.
For more definitions, see the U.S. General Services Administration (GSA) list of real-estate related abbreviations and acronyms.
