If you are a prospective homebuyer who has no prior experience with new home construction, the process of reading and signing a contract for construction can be a jarring learning experience. Although most homebuyers have experience with other types of contracts, the complexity and unfamiliar terminology can be a bit overwhelming. Use this guide to familiarize yourself with some of the terms you are likely to find in a contract for construction: Allowance: This is a sum of money set aside to cover future expenses that might be unknown or undetermined at the time the contract is signed; Change order: This is a written document that modifies the provisions set forth in the original contract; Easement: This is an agreement that allows the use of another property for a specific purpose, such as sewage or plumbing access; Fixed-price contract: This is a contract that guarantees that all described work will be completed for an agreed-upon price; Time and materials contract: This contract does not proceed according to a fixed price, but rather, costs accumulate based on the time and materials the builder dedicates to the project.