Contractor software glossary: 37 terms every buyer should know in 2026
CRM, FSM, dispatch, close rate, change order, ACH, per-seat pricing, AI features: shopping for contractor software means wading through jargon. Here are 37 terms in plain language, with what each one means for a home-service business and the question to ask a vendor about it.
By The Revcore team
Reviewed by Hayden Mitchell, founder
Updated 12 min read
Quick answer
What contractor software terms should buyers know?
The terms that matter most fall into five groups: software categories (CRM, field service management, all-in-one, integration), selling (lead, pipeline, estimate, close rate, in-home presentation), field work (scheduling, dispatch, work order, change order), money (deposit, ACH, processing rate, payout, service agreement) and buying (per-seat pricing, onboarding, data export, API, AI features).
Software shopping comes with a wall of jargon, and sales reps do not always slow down to explain it. Worse, two vendors can use the same word for different things. One company's dispatch board is a drag-and-drop calendar with route optimization. Another's is a list of names. This glossary defines the terms that come up most when a $2M to $30M contractor compares tools, in plain language, with the question worth asking about each one.
Keep it open during demos. When a rep uses a term, check the definition here, then ask them to show it working on a job that looks like yours.
What are the main types of contractor software?
CRM (customer relationship management)
The system that holds every lead, customer, conversation and job history so nothing slips. For a contractor, a CRM should connect the first call to the signed job and the paid invoice. Ask: can I see every text, estimate and payment for one customer on one screen? More in what is a contractor CRM.
FSM (field service management)
Software for running work in the field: scheduling, dispatch, job tracking, time tracking and invoicing. FSM tools grew up around service calls, so some are weaker on the sales side. Ask: how does a job get from a signed estimate onto the schedule? See what is field service management software.
All-in-one platform
One system that runs the whole job from lead to payment, instead of separate apps for marketing, sales, scheduling and billing. The benefit is one customer record and no copying data between tools. Ask: which parts of my workflow would still need another app?
Point solution
A tool that does one job well, such as estimating or reviews, but has to be connected to others to cover the whole workflow. Point solutions can be excellent, and the cost is the wiring between them. The tradeoffs are laid out in all-in-one vs point solutions.
Integration
A connection that passes data between two tools. Quality ranges from real-time two-way sync to a one-way nightly import. Ask: which direction does data move, how often, and what happens when the same customer is edited in both places?
| Term | Built around | Usually strong at | Watch for |
|---|---|---|---|
| CRM | Leads and customers | Pipeline, follow-up, marketing | May stop at the signed deal, with no scheduling or invoicing |
| FSM | Jobs and technicians | Scheduling, dispatch, invoicing | Can be thin on estimates with options and in-home selling |
| All-in-one | The whole job, lead to payment | One record from first call to paid invoice | Check depth in the areas you care about most, not just breadth |
What do sales and pipeline terms mean?
Lead
A potential customer who has shown interest but has not booked. Leads come from forms, calls, texts, referrals and lead services. Speed to lead is how fast you respond, and it matters more than most owners expect. See speed to lead for home services.
Pipeline
The view of every opportunity by stage, from new lead to appointment set to quoted to won to paid. A useful pipeline shows dollars at each stage and which deals have gone quiet.
Estimate, quote and proposal
The priced offer you put in front of a homeowner. Many people use the three words interchangeably. When they differ, a quote is a firm price, an estimate may change, and a proposal is the full package with scope, options and terms.
Good, better, best
Quoting three complete options instead of one price, so the homeowner chooses which option rather than whether to hire you. Full guide: good, better, best pricing.
Price book or catalog
Your saved list of products, services and packages with costs and prices. Estimates are built from it, so reps quote consistently and nobody retypes the same line items. Ask: how fast can I update prices across every package when a supplier raises costs?
In-home sales presentation
A guided, visual flow a rep presents at the kitchen table, usually on a tablet, that walks from the problem to the options to the signature. See what is an in-home sales presentation.
Close rate
Signed jobs divided by presentations or estimates delivered, over the same period. A related number, booking rate, is appointments set divided by leads. Track both by rep and lead source. More in what is a good close rate for in-home sales.
E-signature
A legally recognized electronic signature on an estimate, contract or change order, captured on a tablet or the homeowner's phone. It removes the print, sign and scan step that lets deals cool off.
Cooling-off rule (right to cancel)
A federal rule that lets buyers cancel many sales made in their home. According to the FTC, it covers home sales over $25, the buyer can cancel until midnight of the third business day, Saturday counts as a business day, and the seller must provide two copies of a cancellation form. States can add their own rules.
What do scheduling and field terms mean?
Scheduling
Managing the calendar of appointments, installs and crew availability. Good scheduling shows capacity by crew and skill, not just open time slots.
Dispatch
Assigning the right crew or technician to the right job and sending them there, often with route optimization and an on-the-way text to the homeowner. See the dispatch software buyer's guide.
Work order or job
The live record of one job: scope, crew, status, notes, photos, materials and time. It should carry forward everything the salesperson promised, so the crew does not arrive surprised.
GPS clock-in and time tracking
Crews clock in and out from their phones, with the location recorded at that moment. It feeds payroll and job costing and settles questions about hours on site.
Change order
A signed change to the original scope and price, such as rotted decking found on tear-off. The best practice is photo, price, signature, then work. See contractor change orders.
Homeowner portal
A page where the homeowner can see their job, documents and invoices, approve work and pay without calling the office.
Automation
A rule that sends a follow-up, reminder or update when something happens, such as a text two days after an unsigned estimate. Ask: can my office manager build and change these without calling support? For a working cadence, see how to follow up on an unsold estimate.
Two-way texting
Texting homeowners from a business number inside the software, with replies landing on the customer record where the whole team can see them, instead of on one rep's personal phone.
What do payment and pricing terms mean?
Deposit, draw and progress payment
A deposit is collected at signing. Draws or progress payments are collected at milestones on larger jobs. Some states cap deposits on home improvement work. See deposits, draws and stage payments.
ACH
A bank-to-bank electronic transfer. Nacha describes the ACH Network as a payment system that reaches all U.S. bank and credit union accounts. ACH usually costs less to accept than a card, which matters on large tickets. See card vs ACH for contractors.
Processing rate
The fee to accept a payment, often a percentage plus a flat amount per card transaction. Ask: what is the rate for cards, for ACH, and is there a cap on ACH fees?
Payout and instant payout
A payout is when collected money lands in your bank account. Standard payouts usually take 1 to 2 business days. Instant payouts, available to eligible accounts for a fee, shorten the gap between finishing a job and having the cash. See get paid on the day of the job.
Chargeback
When a homeowner disputes a card payment with their bank and the money is pulled back while the bank reviews it. Signed contracts and job photos are your evidence. See photo documentation that protects against disputes.
Markup and margin
Markup is profit as a share of cost. Margin is profit as a share of price. A 50% markup is only a 33% margin, and mixing them up underprices jobs. See markup vs margin.
Service agreement or maintenance membership
A recurring plan, often monthly or yearly, that covers tune-ups and perks. It smooths slow seasons and keeps customers coming back. See HVAC service agreement pricing.
| Pair | The difference | Why it matters |
|---|---|---|
| Markup vs margin | Profit over cost vs profit over price | Quoting a markup when you meant a margin cuts your profit |
| Card vs ACH | Card network vs bank transfer | Fees and dispute exposure differ on large tickets |
| Deposit vs draw | Paid at signing vs paid at a milestone | Deposits may be capped by state law, draws follow progress |
| Processing rate vs payout speed | What you pay vs when you get the money | A low rate with slow payouts can still hurt cash flow |
What do reporting terms mean?
Marketing attribution
Tracking which lead source produced each job and its revenue, so you know where your marketing money actually pays. See marketing attribution for contractors.
Cost per booked job
Marketing spend on a source divided by the jobs it produced. It is more honest than cost per lead, because cheap leads that never book are not cheap.
Average ticket
Total revenue divided by the number of jobs. Watch it by trade, rep and option tier, not just company-wide.
What should you know about pricing, switching and data?
Per-seat vs flat pricing
Per-seat pricing charges for each user. Flat pricing charges one price per plan with a set number of users included. As your team grows, this drives your real cost more than the starting price. See per-seat vs flat pricing and how much contractor software costs.
Onboarding and migration
Moving your customers, open jobs and team onto a new system. Ask: who moves the data, what comes over, and how long until my crews are working in it? See how to switch without downtime.
Data export
Downloading all of your data in a usable file format. It is your exit door. Every Revcore plan can download a full data export, and you should confirm the same with any vendor before you sign.
API
An application programming interface: a way for other software, or a developer you hire, to read and write data in your system. It matters when you want custom reports or connections a vendor does not build.
AI features
Software that uses AI models to draft, summarize, sort or suggest, such as writing a follow-up text or summarizing a customer's history. Useful AI saves a specific task someone does every day. Ask: which task does it do, is it live today or on a roadmap, and can my team review what it writes before it goes to a homeowner?
How should you use these terms in a software demo?
Pick your five terms
Circle the five terms above that match your biggest problems today, such as follow-up, dispatch or getting paid. Those are the parts of the demo that matter.
Bring a real job
Give the rep a recent job with options, a change order and a deposit. Ask them to run it from lead to paid invoice in the software.
Ask to see, not hear
When the rep says integration, automation or AI, ask them to show it working, live, on your example job.
Price the whole team
Count every seat you need in a year, including office staff and sales reps, plus processing rates and add-ons. Compare that number, not the starting price.
Confirm the exit
Ask how you export your data and what it looks like. A vendor that is confident about keeping you makes leaving easy.
For the full evaluation process, see the contractor software buyer's checklist, and use the comparison pages to see how tools stack up on the same terms.
Frequently asked questions
What is the difference between a CRM and field service management software?
A CRM is built around leads and customers, so it is strong at pipeline and follow-up. Field service management software is built around jobs and technicians, so it is strong at scheduling, dispatch and invoicing. Contractors who sell in the home usually need both, which is why many choose an all-in-one platform.
What does per-seat pricing mean for contractor software?
Per-seat pricing means you pay for every person who logs in, so the bill grows each time you add a tech, rep or office hire. Flat pricing includes a set number of users in each plan. Compare the cost for the team you expect to have in a year, not the team you have today.
Is ACH cheaper than credit cards for contractors?
Usually, yes. ACH is a bank-to-bank transfer and typically carries lower fees than cards, which matters most on large tickets like roofs and HVAC replacements. Cards are faster for the homeowner at the table. Many contractors offer both and steer large balances toward ACH.
What is a good close rate for contractors?
It depends on trade, lead source and how you count. Calculate it as signed jobs divided by presentations or estimates delivered, then track it by rep and lead source over time. Your own trend is more useful than an industry average, because lead quality varies so much between companies.
What AI features should contractors look for in software?
Look for AI that saves a specific daily task, such as drafting follow-up texts, summarizing a customer's history or sorting incoming leads. Ask whether each feature is live today, and whether your team can review what it writes before a homeowner sees it. Skip features that only sound impressive in a demo.
What does all-in-one contractor software include?
It typically covers lead capture, CRM, estimates, scheduling, dispatch, job tracking, invoicing and payments in one system, with one customer record from first call to paid invoice. Depth varies a lot, so check the areas you rely on most rather than counting features.
Further reading: the FTC's Cooling-Off Rule guide and Nacha's explanation of ACH are the primary sources for those two definitions. For more buyer questions, see contractor software questions answered.
Written by the Revcore team. Reviewed by Hayden Mitchell, founder of Revcore Pro, who closed $3.5M of home improvement door to door and helped scale a contractor from $1M to $10M.
