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Construction glossary
Construction Glossary •

Bottom-of-Chain, or Low-Tier

What is Bottom-of-Chain or Low-Tier?

Bottom-of-Chain or Low-Tier in the construction industry refers to the lowest level of subcontractors or suppliers involved in a construction project. They are at the end of the construction chain, typically providing specific services or materials as subcontracted by higher-tier companies. These can include specialized tasks like electrical work, plumbing, landscaping, or supply of construction materials. Their work is crucial as they lay the foundation for more complex tasks to be executed by upper-tier contractors. They are also bound by the contracts in place, like other members of the chain, although directly managed by mid-tier subcontractors instead of the main contractor.

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Other construction terms

Schedule of Values (SOV)

What is a Schedule of Values (SOV)?

A Schedule of Values (SOV) is an essential financial tool used in the construction industry. It's essentially a detailed plan that lists out the entire scope of construction work and assign costs to e...
Accrued Expenses

What are Accrued Expenses?

Accrued expenses in the construction industry refer to the costs that have been incurred but not yet paid for by the end of an accounting period. These could include expenses related to labor, materia...
Actual Cost

What is Actual Cost?

Actual cost, in the construction industry, refers to the accurate amount reasonably spent on a project. This includes every expense incurred during the planning, development, and execution phases. The...

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