Beginner-first definitions for real estate ops, procurement, finance, and carbon
This glossary is not meant to be "studied." Use it like a tool.
Beginner rule: If a term affects money, risk, or reporting credibility, it belongs here.
A contract renews automatically unless you send notice by a deadline.
Why it matters: Miss the deadline, lose leverage.
Notice window: "60 days prior"
Notice deadline: the actual date you must send notice
Beginner trap: People track the end date and forget the notice deadline. The notice deadline is what matters.
A contract that renews continuously (often month-to-month or annually) unless terminated.
The legal umbrella agreement (terms, liability, indemnities, insurance, confidentiality).
The operational agreement (what gets done, where, how often, and pricing mechanics).
Beginner rule: SOW controls what you pay. MSA controls how you get hurt.
Attachments that often contain the real terms (pricing, SLA, insurance requirements, site list).
Beginner trap: The price is often in an exhibit, not the main contract body.
A change to a signed agreement. It can override original terms.
How long the contract lasts (e.g., 12 months).
How long the contract extends if renewed (e.g., 12 months, 24 months).
A clause allowing you to end a contract without cause (usually with notice).
Why it matters: It restores leverage if the vendor is underperforming.
You can terminate if the vendor breaches terms (usually requires cure period).
Time given to fix a breach before termination (e.g., 30 days).
Defined performance requirements (response time, uptime, completion time, etc.).
Beginner trap: "We'll do our best" isn't an SLA.
A measurable performance metric (e.g., completion time, repeat work rate).
A rule that increases price over time (fixed %, CPI-based, "market adjustment," fuel surcharge).
Beginner trap: "Market adjustment" with no cap is a blank check.
An inflation index sometimes used in escalators.
A cost the vendor can bill you for, usually requiring documentation (materials, disposal fees, fuel).
Beginner trap: Pass-throughs without documentation rules become profit centers.
A written approval for work not included in the base scope.
Beginner rule: If it's not in the base scope, it needs a change order ID before invoicing.
Work expands beyond original scope without explicit approval, causing cost creep.
Controls that verify:
1) approved work/scope
2) approved pricing
3) invoice matches both
Difference between expected and billed cost. Requires reason code and action.
How you manage vendors: cadence, scorecards, QBRs, issue logs, renewal strategy.
A structured rating of vendor performance (quality, responsiveness, billing integrity, compliance).
A structured quarterly meeting reviewing performance, issues, and improvements.
Competitive process where vendors propose solutions and pricing.
Re-opening competition for a service to validate price and performance.
Only one vendor is used. Requires a higher standard of justification and controls.
Requesting activity data or emissions data from suppliers to improve Scope 3 quality.
Beginner rule: Start with activity data suppliers already track.
Tenant pays property taxes, insurance, and operating expenses (often including utilities), in addition to rent.
Why it matters: Tenant may control utility accounts → landlord may not have energy data.
Landlord pays most operating expenses. Tenant pays rent (and possibly limited pass-throughs).
Hybrid of gross and NNN; responsibility varies.
Costs to maintain common areas (lobbies, hallways, shared systems).
Ongoing costs to operate a building (repairs, janitorial, utilities, security, etc.).
In some leases, operating expense increases are measured relative to a base year.
A meter that measures usage for a specific tenant space or system, separate from the master meter.
Whole-building meter. Without submeters, tenant allocation becomes necessary.
Splitting a total (e.g., whole-building kWh) across tenants/areas when direct measurement isn't available.
Rentable: what is leased (often includes a share of common areas)
Usable: the space you can actually occupy
Gross: total building area
Beginner trap: Mixing area definitions breaks allocation math.
A lease that includes clauses supporting energy efficiency, sustainability cooperation, and/or data sharing.
Owner pays for upgrades; tenant gets the utility savings (or vice versa). This blocks investment unless addressed.
A lease mechanism to recover efficiency capex through operating expenses when it reduces total costs.
Gases that trap heat in the atmosphere. Reporting typically focuses on CO₂e.
A way to express different gases in a comparable unit.
Direct emissions from sources you control (on-site fuel combustion; refrigerants if you control equipment).
Indirect emissions from purchased energy you consume (electricity, steam, heating, cooling).
Other indirect emissions in your value chain (suppliers, purchased services, capital goods, waste, etc.).
Scope 3 is split into categories (like Purchased Goods & Services, Capital Goods, Waste, Leased Assets).
Location-based: average grid emissions where you consume energy
Market-based: based on contractual instruments (where defensible)
Beginner rule: Always compute location-based. Only publish market-based if you can defend the instruments.
Kilowatt-hour. Unit of electricity energy consumed.
Kilowatt. Unit of power demand (how fast energy is being used). Not the same as kWh.
Beginner trap: People confuse kW with kWh and report the wrong thing.
Common units for natural gas consumption (region/provider dependent).
The start/end dates of a utility statement. Do not assume "calendar month."
The source document that proves the number (bill PDF, portal export, meter report).
Beginner rule: No evidence link = not accepted (or clearly marked as estimated).
A simple rating of how trustworthy data is (measured vs allocated vs proxy).
Estimated value using typical averages when you lack real measurements.
Beginner rule: Proxy is temporary; it should shrink over time.
Counting the same emissions in more than one place (common when allocations and tenant data overlap).
One canonical place for contracts, renewals, or data (not spread across inboxes).
A repeatable schedule (weekly renewal review, monthly utility closeout, quarterly vendor QBR).
The person accountable for completion (not "the team").
The exact deliverable required (e.g., "kWh with billing dates + evidence link + QA pass").
A predictable follow-up path (friendly reminder → firm reminder → leadership/leasing escalation).
Term: Plain-English definition: Example: Common confusion: Why it matters (money/risk/reporting): Related resources: Owner (who maintains this term):
Subject: Clarification needed on [term] in our agreement/invoice Hi [Name], Can you clarify what you mean by "[term]" in [document]? Please include: 1) The exact definition (in writing) 2) How it is calculated (formula or method) 3) What documentation supports it 4) When it applies (and when it does not) Thanks, [Name]