Glossary

The terms behind the numbers,
defined plainly.

467 construction terms defined in plain English for Australian builders. Contracts, claims, finance, estimating, procurement, scheduling, approvals, insurance and the vocabulary of construction software.

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Contracts and variations

The contract structures, clauses and instruments that govern a residential build.

Written building contract: A written building contract is the signed document that records the scope, price, payment stages and obligations of residential building work. Australian domestic building legislation generally requires one above modest value thresholds, and the details protect the builder as much as the owner. General information, not legal advice. Written building contract guide.
Domestic building legislation: Domestic building legislation is the body of state and territory law that regulates residential building work in Australia, setting contract requirements, deposit and progress payment rules, implied warranties and insurance obligations. Each jurisdiction has its own Act, so the rules differ by state. General information, not legal advice. Residential building contracts reference.
Lump sum contract: A lump sum contract, also called a fixed price contract, sets one total price for the defined scope before work starts. The builder carries the risk of cost movement inside that scope, and the price only changes through variations and the adjustment of prime cost items and provisional sums. Fixed price vs cost plus reference. See also: Cost plus contract, Variation.
Cost plus contract: A cost plus contract charges the client the actual cost of the work plus an agreed fee or margin, so the client carries the risk of cost. It suits jobs whose scope cannot be fixed up front, demands disciplined record keeping, and some Australian jurisdictions restrict its use for domestic building work. General information, not legal advice. Fixed price vs cost plus reference. See also: Lump sum contract.
Design and construct contract(D&C): A design and construct contract makes one party, usually the builder, responsible for both completing the design and building the work. The client gets a single point of responsibility, and the builder takes on design risk alongside construction risk. Building contract types reference.
Schedule of rates contract: A schedule of rates contract prices the work as agreed rates per unit of measured work rather than one fixed total. The final price depends on the quantities actually performed, which suits work whose extent cannot be known up front. Building contract types reference.
Guaranteed maximum price(GMP): A guaranteed maximum price contract is a cost plus arrangement with a ceiling. The client pays actual cost plus a fee up to an agreed maximum, and the builder carries the cost risk above that cap. Building contract types reference. See also: Cost plus contract.
Standard form contract: A standard form contract is a pre-drafted contract suite maintained by an industry body and updated to remain compliant with each state’s domestic building legislation. In Australian residential building the two main families are the HIA suite and the Master Builders suite, and the state edition matters more than the badge. HIA vs Master Builders reference.
HIA contract: An HIA contract is a residential building contract from the suite published by the Housing Industry Association, one of the two main families of standard form contract used by Australian builders. Each state has its own edition aligned with that state’s domestic building legislation. HIA vs Master Builders reference. See also: Master Builders contract.
Master Builders contract: A Master Builders contract is a residential building contract from the suite published by the Master Builders associations, one of the two main families of standard form contract used by Australian builders. As with the HIA suite, the state edition carries the jurisdiction-specific requirements. HIA vs Master Builders reference. See also: HIA contract.
Variation(VO): A variation is a documented change to the contracted scope and price of a building job, agreed in the sequence document, price, approve, then build. It differs from a prime cost or provisional sum adjustment, which trues up an allowance the contract already carried, and an approved variation propagates through the budget, the claim schedule and the programme. Variations reference. See also: Prime cost item, Provisional sum, Variation register.
Variation register: A variation register is the running record of every variation on a job, its status, its price and its approval. Kept as one system with the claim schedule, it is what stops approved extra work being delivered and never billed. Variations reference. See also: Variation.
Scope creep: Scope creep is extra work absorbed into a job without a documented variation, so the scope grows while the price does not. It is the informal cousin of the variation, and it erodes margin invisibly because the cost lands without the corresponding revenue. Variations reference. See also: Variation.
Extension of time(EOT): An extension of time is a formal adjustment of the contract completion date for delay caused by qualifying events the contract defines. It moves the date but not automatically the money, it usually depends on written notice within the contract timeframes, and without one a late job can expose the builder to liquidated damages. Extensions of time reference. See also: Liquidated damages, Contemporaneous record.
Liquidated damages(LD): Liquidated damages are a rate for delay agreed in the contract, payable when the work finishes after the contracted completion date without an extension of time. The rate must be a genuine pre-estimate of the loss rather than a penalty, and the same mechanism can protect a builder as easily as expose one. General information, not legal advice. Liquidated damages reference. See also: Extension of time.
Practical completion(PC): Practical completion is the point under a residential building contract at which the work is complete except for minor omissions and defects, and the home can be used for its intended purpose. The final claim, handover, the defects liability period and several warranty clocks all hang off the date. In estimating, PC also stands for prime cost item, a different concept. Practical completion reference. See also: Defects liability period, Prime cost item, Occupation certificate.
Defects liability period(DLP): The defects liability period is the contractual window after practical completion during which the builder must return and rectify defects that emerge. It is a contract mechanism, distinct from the statutory warranties implied by legislation and from warranty insurance, three different clocks that builders and clients routinely confuse. Practical completion reference. See also: Statutory warranties, Practical completion.
Handover: Handover is the moment the completed home passes to the client, typically at or after practical completion once the final claim is settled. A handover done well transfers the keys, the documents, the warranties and the operating knowledge of the home in one organised package. Practical completion reference.
Statutory warranties: Statutory warranties are the promises about workmanship, materials, compliance and fitness that Australian domestic building legislation implies into every residential building contract. They cannot be contracted out of, they run for periods set per state, and they sit apart from the defects liability period and from warranty insurance. General information, not legal advice. Statutory warranties reference. See also: Defects liability period.
Major defect: A major defect is the class of serious defect, typically one affecting a major structural element or making the home uninhabitable, that attracts the longer statutory warranty period. The precise definition and the periods are set by each state’s legislation and differ between jurisdictions. General information, not legal advice. Statutory warranties reference. See also: Statutory warranties.
Defect: A defect is work that does not meet the standard the contract, the plans, the National Construction Code or the relevant standards require. Managing defects means keeping one register, separating genuine defects from maintenance items and wishlist requests, and attributing rectification cost to whoever caused it. Defects management reference. See also: Defects list.
Defects list: A defects list is the documented list of incomplete or defective items identified at practical completion or during the defects liability period, each to be rectified before the relevant sign-off. One agreed list, with dates and evidence, is what turns the defects period from an argument into a workflow. Defects management reference.
Rectification: Rectification is the work of correcting a defect. On a well-run job the cost of rectification is attributed to whoever caused the defect, which is what back-charges and subcontractor call-backs exist to do. Defects management reference. See also: Back-charge.
Deposit (building contract): The deposit is the initial payment made when a residential building contract is signed, before work starts. Australian domestic building legislation caps the deposit a builder may take, the cap differs by state and contract value, and in most states compulsory warranty insurance must be in place before a deposit is taken. General information, not legal advice. Residential building contracts reference.
Request for information(RFI): A request for information is the formal query a builder raises when the drawings or specification do not answer a question the build needs answered. An unanswered RFI becomes a delay, a response can trigger a variation or an extension of time, and the register of RFIs is part of the job’s evidence trail. RFIs and site queries reference.
Specification: The specification is the contract document that describes the materials, products, finishes and standards of the work, complementing what the drawings show. The contract sets which document prevails when the drawings and the specification disagree, and an ambiguous specification quietly manufactures variations. Specifications reference.
Site diary: A site diary is the daily record of what actually happened on site, weather, labour, deliveries, delays, directions and progress. A contemporaneous record made on the day is the evidence that wins an extension of time, a variation or a dispute months later. Site diaries reference. See also: Contemporaneous record.
Contemporaneous record: A contemporaneous record is documentation created at the time of the event it records, such as a site diary entry, a dated photo or a delivery docket. Because it was made before any dispute existed, it carries far more evidentiary weight than a recollection assembled afterwards. Site diaries reference.
Subcontract: A subcontract is the agreement between a builder and a trade for a defined scope of work on a job, carrying obligations in both directions, scope, program, quality, payment terms and often retention. It is the right instrument where a purchase order is too thin, typically where labour, sequencing and workmanship obligations matter. Subcontractor management reference. See also: Purchase order, Trade package.
Back-charge: A back-charge is a cost the builder deducts from a subcontractor’s payment because the subcontractor’s work or damage caused that cost, for example rectifying defective work or cleaning up after a trade. Fair back-charging depends on evidence and notice, not just a deduction on the remittance. Subcontractor management reference.
Novation: Novation is replacing one party to a contract with a new party by the agreement of everyone involved, so the incoming party takes over the original party’s rights and obligations as if it had been there from the start. It is common where a design consultant engaged by the owner is novated to the builder on a design and construct job. General information, not legal advice. Residential building contracts reference. See also: Design and construct contract.
Time at large: Time at large is the situation where a contract’s completion date stops being enforceable, commonly because the owner caused delay and the contract had no working mechanism to extend the date. The builder is then obliged to finish within a reasonable time rather than by a fixed date, and liquidated damages generally cannot be claimed. General information, not legal advice. Extensions of time reference. See also: Extension of time, Liquidated damages.
Latent conditions: Latent conditions are physical site conditions that could not reasonably have been anticipated when the contract was priced, such as rock, contaminated ground, fill or unexpected services. Which party carries the cost and time of a latent condition depends on how the contract allocates that risk, and it is a frequent source of variations and delay claims. General information, not legal advice. Residential building contracts reference. See also: Variation, Extension of time.
Force majeure: A force majeure clause excuses a party from performing, or extends its time to perform, when an event beyond its reasonable control prevents the work, such as a natural disaster. It only operates on the terms the contract actually sets out, so what counts as force majeure and what relief it gives are matters of the specific clause. General information, not legal advice. Residential building contracts reference.
Sunset clause: A sunset clause sets a date by which a defined event must happen, failing which one or both parties may end the contract. It is most associated with off-the-plan sales, and it can cut both ways depending on who is entitled to rely on it. General information, not legal advice. Residential building contracts reference.
Cooling-off period: A cooling-off period is a short window after signing during which an owner may withdraw from a residential building contract, where the relevant state legislation provides one. Its availability, length and conditions differ by jurisdiction, so confirm current requirements with the relevant authority. General information, not legal advice. Residential building contracts reference.
Owner-builder: An owner-builder is a person who takes on the responsibilities of a licensed builder for work on their own property, usually after obtaining an owner-builder permit above a value threshold set by the state. It shifts supervision and warranty duties onto the owner, and the permit rules and thresholds differ by jurisdiction, so confirm current requirements with the relevant authority. General information, not legal advice. Residential building contracts reference.
Principal (contract): The principal is the party that commissions the building work and for whom it is carried out, most often the owner on a residential job. The term matters in contracts and in security of payment, where obligations flow between the principal and the contractor. It is distinct from the principal contractor, a work health and safety role. Residential building contracts reference. See also: Principal contractor.
Head contract: The head contract is the main contract between the owner and the builder, sitting above the subcontracts the builder enters with its trades. Terms in the head contract, such as program, quality and payment, are commonly passed down into the subcontracts so the builder is not caught between mismatched obligations. Building contract types reference. See also: Subcontract.
Quantum meruit: Quantum meruit is a claim for the reasonable value of work performed where there is no enforceable agreed price for it, for example where the work was done outside the contract or the contract is unenforceable. It is a fallback based on the value of the work rather than on a contract rate. General information, not legal advice. Residential building contracts reference.
Set-off: Set-off is deducting an amount one party owes against an amount it is owed, so only the net difference changes hands. A builder relies on set-off when it back-charges a subcontractor, and the right to do it depends on the contract and the circumstances. General information, not legal advice. Retention and payment terms reference. See also: Back-charge.
Bank guarantee: A bank guarantee is an unconditional undertaking from a bank to pay a stated sum on demand, used as security in place of cash so a party’s own funds are not tied up. On building work it can secure performance or replace cash retention, and it is called on if the secured obligation is not met. General information, not legal advice. Retention and payment terms reference. See also: Retention.
Security deposit: A security deposit is money or a bank guarantee one party holds as security that the other will perform its obligations, released when those obligations are met. In subcontracting it overlaps with retention, and the contract sets how much is held and when it comes back. Retention and payment terms reference. See also: Retention, Bank guarantee.
Unfair contract terms: The unfair contract terms regime under the Australian Consumer Law can make a term in a standard form consumer or small business contract void where it creates a significant imbalance, is not reasonably necessary to protect a party and would cause detriment. It applies to many residential building contracts, and the current scope and penalties should be confirmed with the relevant authority. General information, not legal advice. Residential building contracts reference.
Entire agreement clause: An entire agreement clause states that the written contract is the whole of what the parties agreed, so earlier emails, quotes and conversations do not add to or vary it. It is why the terms that matter need to be inside the signed contract rather than in the correspondence around it. General information, not legal advice. Residential building contracts reference.
Time is of the essence: Time is of the essence is a contract term making strict compliance with a deadline an essential obligation, so that missing it can be a serious breach rather than a minor one. Whether it applies, and to which dates, is a matter of the specific contract. General information, not legal advice. Residential building contracts reference.
Superintendent: The superintendent is the person named in some building contracts to administer them, assess claims, value variations and grant extensions of time, acting fairly between the parties when certifying. The role is common on commercial and larger contracts and rare on small residential jobs, where the owner or builder handles the same functions directly. Building contract types reference.
Dispute resolution clause: A dispute resolution clause sets out the steps parties must follow when they disagree, commonly negotiation, then mediation, then arbitration or a tribunal or court. Following the contract’s process in order matters, because skipping a required step can stall a claim. General information, not legal advice. Residential building contracts reference. See also: Mediation, Arbitration.
Mediation: Mediation is a without-prejudice process in which an independent mediator helps the parties reach their own settlement, rather than imposing a decision on them. It is often a required step before arbitration or a hearing, and its outcome binds only if the parties sign an agreement. General information, not legal advice. Residential building contracts reference. See also: Dispute resolution clause.
Arbitration: Arbitration is a private process in which an independent arbitrator hears a dispute and makes a binding award, as an alternative to going to court. Whether a dispute goes to arbitration depends on the contract, and the award is generally enforceable much like a judgment. General information, not legal advice. Residential building contracts reference. See also: Mediation.
Expert determination: Expert determination refers a defined question, often technical, to an independent expert whose decision the parties agree to accept, usually faster and narrower than arbitration. Its binding effect and scope come from what the contract says the expert may decide. General information, not legal advice. Residential building contracts reference.
Building tribunal: A building tribunal is the state body that hears many residential building disputes as a lower-cost alternative to court, such as VCAT in Victoria, NCAT in New South Wales and QCAT in Queensland. Jurisdiction, monetary limits and process differ by state, so confirm the current position with the relevant tribunal. General information, not legal advice.
Repudiation: Repudiation is conduct by one party showing it no longer intends to be bound by the contract, or is unable to perform it, which can entitle the other party to terminate. Getting it wrong is dangerous, because purporting to terminate without the right to do so can itself be a breach. General information, not legal advice. Residential building contracts reference. See also: Termination.
Termination: Termination is bringing a building contract to an end before completion, whether for a breach the contract allows termination for or under a right the contract gives. It has serious consequences for both parties, and the grounds and process set out in the contract and the law must be followed exactly. General information, not legal advice. Residential building contracts reference. See also: Repudiation.
Frustration of contract: Frustration is the ending of a contract by law when an unforeseen event makes performance impossible or radically different from what was agreed, through no fault of either party. It is a narrow doctrine and rarely applies just because a job has become harder or more expensive. General information, not legal advice. Residential building contracts reference.
Indemnity: An indemnity is a promise by one party to cover the other against defined losses or claims, shifting a risk from one to the other. Indemnity clauses are common in building contracts and subcontracts, and their reach depends closely on the wording. General information, not legal advice. Residential building contracts reference.
Contractual warranty: A contractual warranty is a promise written into the contract about the quality, materials or performance of the work, sitting alongside the statutory warranties that legislation implies and that cannot be excluded. The two are different sources of the same kind of protection, and a builder should know which promises come from the contract and which from the law. General information, not legal advice. Statutory warranties reference. See also: Statutory warranties, Defects liability period.
Defect and damage: The distinction between defect and damage decides who pays to fix a problem. A defect is work that fails to meet the required standard, which the builder or the responsible trade must rectify, while damage is harm to completed work from an outside event, which may be an insurance or a separate liability question. Keeping the two apart on one register stops rectification cost being misattributed. Defects management reference. See also: Defect.
Special conditions: Special conditions are the clauses added to a standard form contract to cover what the standard wording does not, tailoring it to the particular job. They override the general conditions where they conflict, which is why they deserve close reading, they are where the real risk allocation on a job usually sits. General information, not legal advice. Residential building contracts reference. See also: General conditions.
General conditions: The general conditions are the standard clauses of a building contract that apply to every job using that form, covering payment, variations, delays, defects and dispute resolution. They are read together with the special conditions and the schedules, and the special conditions prevail where the two disagree. Residential building contracts reference. See also: Special conditions.
Contract price: The contract price is the agreed amount payable for the contracted scope, before it is adjusted by variations and by the truing-up of prime cost items and provisional sums. It is the baseline every later adjustment is measured against, which is why the assumptions behind it need to be recorded, not just the number. Residential building contracts reference. See also: Variation, Allowance.
Rise and fall clause: A rise and fall clause allows the contract price to be adjusted for movements in the cost of labour and materials over the life of the job, rather than fixing the price at signing. Most residential contracts are fixed price without rise and fall, which is why long build times and volatile prices put the cost risk on the builder. General information, not legal advice. Residential building contracts reference. See also: Cost escalation.

Claims, payment and security of payment

How completed work becomes money, from the claim schedule to adjudication.

Progress claim: A progress claim is a claim for payment for work completed to a point in a building job, made under the payment structure the contract sets rather than a single invoice at the end. On residential contracts the stages and the amount payable at each are fixed at contract, and the claim raised the day the stage completes gets paid weeks ahead of the claim that waits for month-end. Progress claims reference. See also: Claim schedule, Payment claim.
Claim schedule: The claim schedule is the payment structure the contract fixes, the stages of the job and the amount or percentage payable at each. It is set when the contract is signed and cannot be quietly moved later, which is why the stage boundaries need to match how the job will actually build. It is a contract document, distinct from the payment schedule served under security of payment legislation. Progress claims reference. See also: Payment schedule.
Base stage: The base stage is the early claim stage on a typical Australian residential contract covering the footings and slab or base structure of the home. The contract wording, not the state of the site, decides exactly when the stage is complete and the claim can be raised. Progress claims reference.
Frame stage: The frame stage is the claim stage on a typical Australian residential contract at which the structural frame of the home is complete, commonly aligned with the frame inspection. As with every stage, the contract definition governs what the stage requires before the claim can be raised. Progress claims reference.
Lock-up stage: The lock-up stage is the claim stage on a typical Australian residential contract at which the home can be secured, generally external walls, roof covering, external doors and windows in place. The contract definition governs exactly what lock-up requires on a given job. Progress claims reference.
Fixing stage: The fixing stage is the claim stage on a typical Australian residential contract covering the internal fit-out, commonly internal linings, doors, architraves, skirting and built-in cabinetry fixed in position. The contract definition governs what the stage includes, and it is usually the last staged claim before practical completion. Progress claims reference.
Security of payment(SOPA): Security of payment is the family of Australian state and territory laws that give anyone carrying out construction work a fast statutory right to progress payments, enforced through the payment claim, payment schedule and adjudication mechanism. The schemes differ by jurisdiction, including how owner-occupier residential contracts are treated. General information, not legal advice. Security of payment guide. See also: Payment claim, Adjudication.
Payment claim: A payment claim is a claim for payment served under security of payment legislation, which attaches statutory rights and deadlines to what would otherwise be an ordinary invoice or progress claim. Serving a valid payment claim starts the clock on the respondent’s payment schedule, and missing deadlines can decide the dispute by default. General information, not legal advice. Security of payment guide. See also: Payment schedule, Progress claim.
Payment schedule: A payment schedule is the formal response to a payment claim under security of payment legislation, stating how much the respondent proposes to pay and the reasons for any difference. Failing to serve one within the statutory window generally makes the claimed amount payable in full, which is why the response deadline matters as much as the merits. General information, not legal advice. Security of payment guide. See also: Payment claim.
Adjudication: Adjudication is the rapid statutory process under security of payment legislation that resolves a disputed payment claim without going to court. An independent adjudicator issues a determination on the papers within tight timeframes, and its pay-now-argue-later effect means the money moves even while wider disputes continue. General information, not legal advice; schemes and timeframes differ by jurisdiction. Adjudication reference. See also: Security of payment.
East Coast and West Coast models: The East Coast and West Coast models are the two design families Australia’s security of payment schemes historically fell into. The East Coast model, beginning with the NSW Act of 1999, creates a statutory entitlement to progress payments enforced through payment claims, payment schedules and adjudication, while the West Coast model implied payment provisions into contracts and took a lighter touch. Most jurisdictions now follow the East Coast approach. General information, not legal advice. Security of payment by state reference.
Owner-occupier exclusion: The owner-occupier exclusion is the carve-out in several security of payment regimes under which a contract with a homeowner who lives in or intends to live in the dwelling falls outside the scheme, leaving the builder to rely on the contract instead. Whether and how it applies differs by state. General information, not legal advice. Security of payment guide.
Response window: The response window is the statutory period a respondent has to serve a payment schedule after receiving a payment claim under security of payment legislation. The windows are short, differ by jurisdiction, and missing one generally makes the claimed amount payable in full, which is why diarising the deadline is part of a clean claims process. General information, not legal advice. Security of payment by state reference.
Evidence pack: An evidence pack is the bundle of photos, inspection records and certificates attached to a progress claim so the client can see the stage is complete without visiting site. Evidence attached to the claim turns approval from a negotiation into a formality, and it is the difference between a claim paid on terms and a claim queried. Progress claim checklist.
Retention: Retention is a percentage withheld from payments to a subcontractor as security for performance, typically released in parts at completion and at the end of the defects period. It is a different concept from retention of title on supplied materials, and the retention ledger is one of the records spreadsheets most commonly lose. Retention and payment terms reference. See also: Retention of title.
Payment terms: Payment terms are the agreed period between an invoice or claim and its payment, such as 30 days from end of month. A builder sits in the middle of the payment chain, paying trades and suppliers on their terms while being paid on the client’s, and the mismatch between the two is a structural gap the builder finances. Retention and payment terms reference.
Reference date: A reference date is the date fixed under security of payment legislation or the contract from which the right to make a payment claim arises for work done to that point. It anchors the timing of the whole claim and response process, and the rules for when reference dates fall differ by jurisdiction. General information, not legal advice. Security of payment by state reference. See also: Payment claim.
Progress payment: A progress payment is the statutory entitlement to be paid for construction work as it is carried out, which security of payment legislation gives to anyone who does the work. It is the right the payment claim enforces, distinct from the progress claim raised under the contract. General information, not legal advice. Security of payment guide. See also: Progress claim.
Claimant: The claimant is the party that serves a payment claim under security of payment legislation, the one seeking to be paid for construction work. It is the counterpart to the respondent, and the two terms run through every step of the statutory process. General information, not legal advice. Security of payment guide. See also: Respondent.
Respondent: The respondent is the party that receives a payment claim under security of payment legislation and must decide whether to serve a payment schedule in response. Missing the response deadline generally makes the claimed amount payable in full, which is why the respondent’s diary matters as much as its arguments. General information, not legal advice. Security of payment guide. See also: Claimant.
Claimed amount: The claimed amount is the sum a claimant states it is owed in a payment claim. It sits against the scheduled amount the respondent proposes to pay, and the difference between the two is what an adjudicator is asked to resolve. General information, not legal advice. Security of payment guide. See also: Scheduled amount.
Scheduled amount: The scheduled amount is the sum a respondent states it proposes to pay in a payment schedule, which may be less than the claimed amount and must give reasons for any difference. If it is less and the claimant disputes it, the gap is what goes to adjudication. General information, not legal advice. Security of payment guide. See also: Claimed amount.
Due date for payment: The due date for payment is the date by which a progress payment must be made, set by security of payment legislation where the contract is silent or non-compliant. The statutory maximum periods differ by jurisdiction and by the type of party, so confirm the current position with the relevant authority. General information, not legal advice. Security of payment by state reference.
Adjudication application: An adjudication application is the claimant’s formal request for a disputed payment claim to be determined by an adjudicator under security of payment legislation. It must be lodged within tight statutory timeframes, and lodging late can end the claim before its merits are heard. General information, not legal advice. Adjudication reference. See also: Adjudication.
Adjudication response: An adjudication response is the respondent’s reply to an adjudication application, allowed within tight timeframes and, in several schemes, only where a payment schedule was served in time. A respondent that did not schedule can lose the right to respond at all, which is why the earlier deadlines decide the later ones. General information, not legal advice. Adjudication reference. See also: Payment schedule.
Adjudicator’s determination: An adjudicator’s determination is the decision that resolves a disputed payment claim under security of payment legislation, fixing the amount payable and when. It has a pay-now-argue-later effect, so the money moves even while any wider dispute continues, and it can generally be enforced as a debt. General information, not legal advice. Adjudication reference. See also: Adjudication certificate.
Adjudication certificate: An adjudication certificate is the document that lets an unpaid determined amount be filed as a judgment debt and enforced, where the respondent does not pay. It is the mechanism that turns an adjudicator’s determination into recoverable money. General information, not legal advice. Adjudication reference. See also: Adjudicator’s determination.
Authorised nominating authority(ANA): An authorised nominating authority is a body approved to receive adjudication applications and appoint an adjudicator under the security of payment schemes that use them. Whether nominations run through an authority or a government body differs by jurisdiction. General information, not legal advice. Security of payment by state reference.
Supporting statement: A supporting statement is a declaration that must accompany a payment claim in some jurisdictions, in which the head contractor states that its subcontractors have been paid what is due. Where it is required, serving a claim without it, or with a false one, carries consequences, so confirm the current requirement with the relevant authority. General information, not legal advice. Security of payment by state reference.
Right to suspend work: The right to suspend work is the statutory entitlement, under security of payment legislation, for a claimant that has not been paid a determined or scheduled amount to stop work after giving the required notice. It is a powerful remedy that depends on following the notice steps exactly. General information, not legal advice. Security of payment guide.
Pay-when-paid clause: A pay-when-paid clause tries to make a payment down the chain conditional on the payer first being paid from above. Security of payment legislation generally makes these clauses ineffective, so a subcontractor’s entitlement does not usually depend on whether the builder has been paid by the owner. General information, not legal advice. Security of payment guide.
Final payment claim: The final payment claim is the last claim on a job, typically at practical completion, that draws down the remaining contract value and any approved variations. Getting the variation register and the retention position right before it is served is what stops earned money being left uncollected. Progress claims reference. See also: Practical completion.
Cash retention: Cash retention is retention held by deducting money from each payment, as opposed to security given by a bank guarantee. It ties up the subcontractor’s cash and depends on the holder’s solvency to be returned, which is the trade-off against a guarantee that leaves the cash with the subcontractor. Retention and payment terms reference. See also: Retention, Bank guarantee.
Retention trust: A retention trust is an arrangement requiring cash retention withheld from subcontractors to be held in trust rather than mixed with the holder’s own funds, so it survives the holder’s insolvency. Where such schemes apply, and to which contracts, differs by jurisdiction and by project value, so confirm the current requirement with the relevant authority. General information, not legal advice. Retention and payment terms reference. See also: Project bank account.
Project bank account(PBA): A project bank account is a trust account structure that holds progress payments and retentions for a project so money owed down the chain is protected if a party above becomes insolvent. Where these schemes operate, and the projects they cover, differ by jurisdiction, so confirm the current requirement with the relevant authority. General information, not legal advice. Retention and payment terms reference. See also: Retention trust.

Finance and cost control

The numbers that tell a builder whether a job, and the business, is making money.

Work in Progress (construction)(WIP): Work in Progress reporting, in construction, measures the value of work performed but not yet billed, or billed but not yet performed, across live jobs. It tells a builder whether reported profit reflects real progress rather than the timing of invoices. WIP reporting guide. See also: Over-billing, Under-billing, Profit fade.
Percentage complete: Percentage complete is the proportion of a job that has been earned, most commonly calculated on the cost basis as cost to date divided by forecast final cost. It converts the cost position into earned revenue for WIP reporting, which is why an honest forecast final cost matters more than the arithmetic. WIP formula reference. See also: Earned revenue, Forecast final cost.
Earned revenue: Earned revenue is the percentage complete multiplied by the contract value including approved variations, the revenue a job has genuinely earned regardless of what has been billed. Some builders and accountants call the same figure revenue to date or earned value; what matters is that the business settles on one term and one definition. WIP formula reference. See also: Percentage complete.
Over-billing: Over-billing is billing ahead of earned revenue, claiming more than the work performed to date has earned. It is commonly a liability rather than profit, because the cash collected still has to be built, and a whole company can be over-billed and quietly insolvent on cash. Over and under-billing reference. See also: Under-billing, Billing position.
Under-billing: Under-billing is work performed but not yet claimed, earned revenue running ahead of billing. It is an asset on paper and a cash flow leak in practice, and it is most often administrative, stages finished but claims never assembled. Over and under-billing reference. See also: Over-billing.
Billing position: The billing position is the difference between what a job has billed and what it has earned, positive when over-billed and negative when under-billed. It is the single number the WIP schedule produces per job, and its movement between periods tells the story invoices alone cannot. WIP formula reference.
Front-loading: Front-loading is structuring a claim schedule so early stages carry more value than the work they represent, deliberately billing ahead of cost. It brings cash forward but creates an over-billed position that must be built out later, and done to excess it simply borrows from the end of the job. Over and under-billing reference. See also: Over-billing.
Profit fade: Profit fade is the gradual erosion of a job’s forecast margin across its life, a job that started at one margin and finishes at a visibly lower one. It is the pattern WIP reporting exists to catch early, and the defence is a monthly forecast review that surfaces the fade while it can still be acted on. Profit fade reference. See also: Forecast final cost.
Job costing: Job costing is attributing every cost to the job and cost code that incurred it, so a builder knows the true profit on each job rather than only the whole-of-business result. It is the foundation of cost control, WIP reporting and the forecast, and it fails at data entry before it fails anywhere else. Job costing reference. See also: Cost code.
Cost code: A cost code is the addressing system for job money, the category every estimate line, order, invoice and claim is booked against. Keeping one structure from estimate to claim is what makes variance reports, the cost database feedback loop and WIP possible, and coding discipline at data entry is where it is won or lost. Cost codes reference.
Uncoded costs: Uncoded costs are costs that have hit the job without being attributed to a cost code, usually invoices posted to a catch-all line. They corrupt every report downstream, because a variance report can only be as honest as the coding beneath it. Job cost reporting reference. See also: Cost code.
Job budget: The job budget is the cost baseline a job is controlled against, created when the winning estimate is converted into the working cost plan. What gets lost at that handover, assumptions, exclusions, allowance intent and package boundaries, is where cost control quietly starts failing before the job begins. Estimate to budget handover reference. See also: Estimate to budget handover.
Committed costs: Committed costs are amounts the job is contractually obliged to pay but has not yet been invoiced for, created the moment a purchase order or subcontract is issued. They are the earliest true cost signal on a job, and a builder who only tracks paid costs is looking months behind the work. Committed costs reference. See also: Purchase order, Uncommitted budget.
Accrued costs: Accrued costs are costs for work or goods already received but not yet invoiced, sitting between a commitment and a paid invoice. Distinguishing budgeted, committed, accrued and paid is what lets a job report state a true cost position rather than a payment history. Committed costs reference. See also: Committed costs.
Uncommitted budget: Uncommitted budget is the part of a job budget not yet locked in by orders or subcontracts, the money still genuinely under the builder’s control. It is the real remaining control on a job, because committed money can only be managed, not decided. Committed costs reference.
Cost control: Cost control is knowing the true cost position of a job while decisions can still change it, built on the three-number model of budget, committed and actual plus the forecast to complete. It differs from job cost reporting, which describes what happened; cost control exists to change what happens next. Cost control reference. See also: Cost to complete.
Budget variance: Budget variance is the difference between what a cost line was budgeted at and what it is actually costing or forecast to cost. Sorted by damage rather than by code order, the variance report is the fastest honest answer to where a job is winning and losing. Job cost reporting reference. See also: Variance report.
Variance report: A variance report lists each cost code’s budget against its committed and actual costs, exposing where the job is drifting from the plan. Read regularly and sorted by the size of the damage, it is one of the few reports that actually runs a building company. Job cost reporting reference.
Cost to complete(CTC): Cost to complete is an honest price on the work remaining on a job, the forward-looking half of the forecast. Uncommitted lines drift back to budget if nobody re-prices them, so a disciplined forecast cadence is what catches trouble while it can still be fixed. Cost to complete reference. See also: Forecast final cost.
Forecast final cost(FFC): Forecast final cost is what a job will have cost when it finishes, built from cost to date plus commitments plus the cost to complete the remaining work. Its movement between reviews is the number that matters, and it is the denominator of the WIP percentage-complete calculation. Forecast final cost reference. See also: Cost to complete, Percentage complete.
Cash flow forecast: A cash flow forecast projects money in and money out over time, at job level as the cash curve from deposit to final claim and at company level as the rolled-up position across every job. The mid-stage dip, when costs run ahead of the next claim, is where jobs quietly consume the builder’s own cash. Cash flow forecasting reference. See also: Thirteen-week cash forecast.
Thirteen-week cash forecast: The thirteen-week cash forecast is the rolling one-quarter horizon many builders run their working cash position on, near enough to be built from real claims, orders and invoices rather than assumptions, and far enough ahead to act on what it shows. Cash flow forecasting reference.
Construction cash cycle: The construction cash cycle is the pattern of money through a residential job from deposit to final claim and retention, with the builder financing the structural gap between paying trades and suppliers and being paid by the client. Building businesses fail on cash rather than workload, which makes the cycle the first thing to understand. Construction cash flow reference. See also: Working capital.
Working capital (construction): Working capital, for a residential builder, is the capital tied up funding the gap between money-out commitments and money-in claims across every open job. Deposits, retentions and payment timing lock cash into each job, and working capital, not the order book, is what really caps how many jobs a builder can safely run at once. Working capital reference.
Margin: Margin is profit expressed as a percentage of the selling price. It is not the same as markup, which is expressed on cost, and confusing the two systematically underprices work because a 20 per cent markup is not a 20 per cent margin. Margin and markup reference. See also: Markup.
Markup: Markup is the percentage added to cost to reach a selling price. Because it is expressed on cost rather than price, the same percentage always produces a smaller margin, and the arithmetic difference between the two decides what a builder actually earns. Margin and markup reference. See also: Margin.
Gross margin: Gross margin is revenue less the direct cost of the building work, before overheads, expressed as a percentage of revenue. Watched over time and per job, it is one of the core measures of whether a building business is pricing and delivering well. Builder KPIs reference. See also: Net margin.
Net margin: Net margin is what remains of revenue after direct job costs and business overheads, expressed as a percentage of revenue. It is the measure of whether the business as a whole, not just its jobs, is profitable. Builder KPIs reference. See also: Gross margin.
Overheads: Overheads are the costs of running the building business rather than any one job, the office, salaries, insurance, vehicles and software. They differ from preliminaries, which are the costs of running a specific job, and margin has to cover overheads before it becomes profit. Preliminaries reference. See also: Preliminaries.
GST on a building job(GST): GST applies across a residential build, on deposits, progress claims and retentions, with the cash-versus-accruals accounting choice deciding when the GST is owed. GST collected is never the builder’s money, and treating it as working cash is one of the classic causes of a BAS shock. General information, not tax advice. GST and BAS reference. See also: Business Activity Statement.
Business Activity Statement(BAS): The Business Activity Statement is the periodic return an Australian business lodges with the ATO to report and pay GST and other tax obligations. For a builder it pulls together the GST collected on claims and paid on costs across the period. General information, not tax advice. GST and BAS reference.
Margin scheme (GST): The margin scheme is a GST arrangement that can apply to certain property sales, calculating GST on the margin rather than the full sale price. It applies only in specific circumstances and its use is a decision for the builder’s accountant. General information, not tax advice. GST and BAS reference.
Cash and accruals accounting: Cash accounting recognises income and expenses when money moves; accruals accounting recognises them when they are earned or incurred. For a builder the choice decides when GST is owed and why the profit and loss can look nothing like the bank account. General information, not tax advice. GST and BAS reference.
Tax invoice: A tax invoice is the GST-compliant document a supplier must issue for a taxable sale above the ATO threshold, carrying the details the recipient needs to claim the GST credit. On a building job it is the accounting document, distinct from the progress claim made under the contract. General information, not tax advice. Invoice matching reference.
Accounts payable(AP): Accounts payable is the workflow of receiving, checking, coding, approving and paying supplier and subcontractor invoices. In a building company it is where invoice matching against purchase orders and job coding either happen or quietly fail, and it is the single biggest admin drain in most building businesses. Construction accounts payable guide. See also: Invoice matching.
Financial visibility: Financial visibility is a building business’s ability to produce its true numbers on demand, the position of any job current within days rather than discovered at month-end. Home warranty underwriters treat financial management as an eligibility question, which makes visibility a licence-to-operate issue as much as a management one. Financial visibility reference.
Construction financial management: Construction financial management is the discipline of controlling the money trail of building work from estimate to final claim, spanning estimating, procurement, cost control, cash flow, WIP and contracts. Builders overwhelmingly fail on cash rather than workload, and this discipline is the difference. Financial management reference.
Break-even: Break-even is the level of revenue at which a building business covers its costs exactly, direct costs plus overheads, with nothing left over and nothing lost. Knowing it tells a builder how much work must be delivered at what margin just to keep the doors open before any profit is earned. Builder KPIs reference. See also: Overheads.
Fixed cost: A fixed cost is a cost that does not move with the volume of work, such as rent, insurance and core salaries. Fixed costs are carried whether the business is busy or quiet, which is why a downturn in work is dangerous long before it shows up as a loss. Builder KPIs reference. See also: Variable cost.
Variable cost: A variable cost is a cost that rises and falls with the volume of work, most of the direct cost of building. Distinguishing variable from fixed costs is what lets a builder work out break-even and understand how profit changes as the order book grows or shrinks. Builder KPIs reference. See also: Fixed cost.
Direct cost: A direct cost is a cost that can be attributed to a specific job, the labour, materials, plant and subcontract work that build it. Direct costs are what job costing captures against each job, and they sit below the line that gross margin is measured on. Job costing reference. See also: Indirect cost.
Indirect cost: An indirect cost is a cost that supports the work but cannot be booked cleanly to one job, such as general supervision, the yard or shared plant. Indirect costs are either recovered through job preliminaries and margin or carried as overhead, and how they are treated changes what each job appears to earn. Job costing reference. See also: Direct cost.
Debtor days: Debtor days measure how long, on average, it takes to collect money after a claim or invoice is issued. On building work the figure drives the cash cycle, because every extra day of debtor days is another day the builder funds the work from its own cash. Construction cash flow reference. See also: Creditor days.
Creditor days: Creditor days measure how long, on average, a business takes to pay its suppliers and subcontractors. Read against debtor days, they show whether the builder is being paid before or after it has to pay out, which is the structural gap the business finances. Construction cash flow reference. See also: Debtor days.
Aged receivables: Aged receivables are the money owed to a builder sorted by how overdue it is, current, thirty days, sixty days and beyond. The aged bands are where slow-paying clients and stalled claims become visible, and where cash is quietly leaking out of the business. Construction cash flow reference. See also: Accounts receivable.
Aged payables: Aged payables are the money a builder owes sorted by how overdue it is. Watched alongside aged receivables and the cash forecast, they show whether the business can meet what is falling due without stretching suppliers past the terms that keep accounts open. Construction cash flow reference. See also: Accounts payable.
Accounts receivable(AR): Accounts receivable is the money owed to a builder for claims and invoices raised but not yet paid. It is the mirror of accounts payable, and on building work it is dominated by progress claims moving through clients’ payment terms. Construction cash flow reference. See also: Accounts payable.
Profit and loss statement(P&L): A profit and loss statement reports revenue, costs and the resulting profit over a period. For a builder it can look nothing like the bank balance, because it recognises earned revenue and incurred cost rather than money in and out, which is exactly why cash flow is watched separately. General information, not accounting advice. Financial management reference. See also: Balance sheet.
Balance sheet: A balance sheet is a snapshot of what a business owns and owes at a point in time, and the equity left over. For a builder it is where retentions, deposits held, work in progress and the net tangible asset position that underwrites home warranty eligibility all show up. General information, not accounting advice. Financial management reference. See also: Adjusted Net Tangible Assets.
Chart of accounts: The chart of accounts is the list of categories a business books every transaction into in its accounting system. Aligning it with the job cost codes is what lets the accounts and the job reports tell the same story instead of two different ones. General information, not accounting advice. Cost codes reference. See also: Cost code.
Bank reconciliation: A bank reconciliation is the routine of matching the transactions in the accounting system against the bank statement so the two agree. It is the check that catches missed invoices, duplicate payments and coding errors before they corrupt the reports built on top of them. General information, not accounting advice. Xero for construction reference.
Depreciation: Depreciation spreads the cost of a long-lived asset, such as a vehicle or plant, across the years it is used rather than expensing it all at once. It affects reported profit without moving cash, which is one more reason a builder’s profit and its bank balance rarely match. General information, not tax or accounting advice. Financial management reference.
Input tax credit(ITC): An input tax credit is the GST a registered business can claim back on the things it buys for the business, offset against the GST it collects on sales. On a building job the credits on materials and subcontract costs are claimed through the activity statement against the GST collected on claims. General information, not tax advice. GST and BAS reference. See also: Business Activity Statement.
Recipient created tax invoice(RCTI): A recipient created tax invoice is a tax invoice raised by the buyer rather than the supplier, allowed for GST in specific circumstances and under a written agreement between the parties. Builders sometimes use them for subcontractor payments, and the current conditions should be confirmed with the ATO or an adviser. General information, not tax advice. GST and BAS reference. See also: Tax invoice.
GST-free supply: A GST-free supply is a sale on which no GST is charged but for which the supplier can still claim credits on its own costs, distinct from an input-taxed supply. Most residential building work is taxable rather than GST-free, and which category a supply falls into is a question for the builder’s accountant. General information, not tax advice. GST and BAS reference.

Estimating and takeoff

Measuring, pricing and protecting the number a job is won on.

Estimate: An estimate is the builder’s internal calculation of what a job should cost and what to charge for it. It carries assumptions and allowances rather than a promise, which is what separates it from a quote, and one estimating system should be able to produce the estimate, the quote and the tender from the same numbers. Tender, estimate and quote reference. See also: Quote, Tender.
Quote: A quote is a price offered to a client that, once accepted, generally binds the builder to deliver the stated scope for the stated amount. Its legal weight is what distinguishes it from an estimate, and the conditions and exclusions attached to it are what keep the number honest. Tender, estimate and quote reference. See also: Estimate.
Tender: A tender is a formal priced offer submitted in competition against other builders, usually against a defined documentation set and tender conditions. Tendering well means qualifying whether the tender is worth pricing at all, and winning work without buying it by underpricing. Tendering reference. See also: Tender qualifications.
Tender qualifications: Tender qualifications are the written conditions, clarifications and exclusions submitted with a tender price that define exactly what the number covers. They protect the scope the price was built on, and a tender without them hands the interpretation to the other side. Tendering reference.
Takeoff: A takeoff, or quantity takeoff, is measuring the quantities of work from the drawings so each lands against a cost item in the estimate. It can be manual, on-screen or software assisted, and the classic failure is measuring from a superseded drawing revision. Takeoff reference. See also: ANZSMM, AI takeoff.
Australian and New Zealand Standard Method of Measurement(ANZSMM): The ANZSMM is the shared measurement convention used in Australia and New Zealand for how building quantities are measured and described. Following a standard method is what makes one takeoff comparable with another and a bill of quantities readable by every party pricing it. Takeoff reference.
Bill of quantities(BOQ): A bill of quantities is a structured schedule of the measured quantities of every item of work in a job, prepared so it can be priced consistently. On residential work a full bill is less common than on commercial projects, but the takeoff that would feed one is the same discipline. Takeoff reference.
Cost assembly (recipe): A cost assembly, or recipe, is the live build-up behind a rate, the materials, labour and plant components that make up a unit of work, each repricing from the cost database. When a material price moves an assembly recalculates, where a flat unit rate has to be re-judged by hand. Assemblies and recipes reference. See also: Unit rate, Cost database.
Unit rate: A unit rate is a single composite price per unit of work, often adopted from a cost guide or from history, with the build-up invisible. It is fast to apply and hard to interrogate, which is the trade-off against an assembly whose components can be examined when a job goes wrong. Assemblies and recipes reference. See also: Cost assembly.
First principles estimating: First principles estimating builds a price from measured quantities and the real cost of the labour, materials and plant to perform them, rather than adopting composite rates. It is the most defensible methodology because every number in it can be traced to a quantity and a rate. Estimating reference.
Cost per square metre($/m²): Cost per square metre is a build cost divided by a floor area, useful as a sanity check and misleading as a price. Two builders can quote very different rates for what looks like the same house because the rate quietly includes and excludes different things, and the measurement convention decides the denominator. Cost per square metre reference. See also: Gross floor area.
Gross floor area(GFA): Gross floor area is the measured floor area of a building used as the denominator in per-square-metre rates and in planning controls. The measurement convention used decides what is included, so two rates or two areas are only comparable when they were measured the same way. Cost per square metre reference.
Cost database: A cost database is the builder’s maintained library of current prices, rates and productivity data that estimates draw from. Fed back from every finished job, it is one of the compounding assets that turn experience into something the business owns rather than something that leaves with people. Cost database reference. See also: Labour constant.
Labour constant: A labour constant is productivity data, the hours a task takes per unit of work, for instance hours per square metre of a given wall type. Kept separate from the labour rate, a wage movement becomes a single edit and every item reprices, and constants move far more slowly than prices, making them the most durable value in a cost database. Cost database reference.
Contingency: A contingency is an allowance in an estimate for risks that cannot be priced precisely, sized to the job’s actual risk rather than a blanket percentage. It is not margin and not padding, and it only works if it stays visible and separately tracked as it is consumed or released across the job. Estimating contingency reference. See also: Margin.
Allowance: An allowance is a budgeted amount for an item whose final cost is not fixed when the contract is signed, such as a provisional sum for a client’s selections or an estimate line for a trade package not yet awarded. The eventual quote or selection is measured back against it, and the difference flows to the job’s margin. Quotes over allowance guide. See also: Prime cost item, Provisional sum.
Prime cost item(PC item): A prime cost item is an allowance in a fixed price contract for the supply cost of a product not yet selected, such as tapware or appliances, with the installation already priced. When the actual selection lands, the contract adjusts for the difference against the allowance. Disclosure rules under state domestic building legislation apply. General information, not legal advice. Prime cost and provisional sums reference. See also: Provisional sum, Practical completion.
Provisional sum(PS): A provisional sum is an allowance in a fixed price contract for a whole item of work whose extent cannot be priced when the contract is signed, commonly site works such as rock excavation. It covers supply and installation, and the contract adjusts when the actual cost lands. Disclosure rules under state domestic building legislation apply. General information, not legal advice. Prime cost and provisional sums reference. See also: Prime cost item.
Preliminaries: Preliminaries are the costs of running a specific job rather than building any part of it, site facilities, supervision, scaffold, temporary services and the like. Time-related preliminaries grow when the programme slips, which is how a delayed job quietly loses money, and they differ from company overheads. Preliminaries reference. See also: Overheads.
Estimate to budget handover: The estimate to budget handover is the moment the winning estimate becomes the working job budget. Assumptions, exclusions, allowance intent and package boundaries get lost at the seam, and this handover is where the Reconstruction Tax concentrates in most building businesses. Estimate to budget handover reference. See also: Reconstruction Tax.
Quote validity: Quote validity is the period a supplier or subcontractor holds a quoted price open. An estimate built on quotes that expire before the job is won is carrying silent price risk, which is why validity and expiry are tracked alongside the numbers themselves. Subcontractor quotes reference.
Inclusions and exclusions: Inclusions and exclusions are the stated boundaries of what a quote or contract price covers and what it does not. Reading them is most of the work of comparing quotes, because two numbers are only comparable once they cover the same scope. Subcontractor quotes reference. See also: Quote levelling.
Build cost feasibility: Build cost feasibility is the assessment of the true cost of delivering a home beyond the construction line, layering site costs, statutory costs, finance, time risk and transaction costs onto the build price. A feasibility run only on a per-square-metre rate is a guess wearing a spreadsheet. Build cost feasibility guide.
Quantity surveyor(QS): A quantity surveyor is a professional who measures and prices building work, prepares cost plans and bills of quantities, and advises on the cost of a project through its life. On residential work the same measuring and pricing discipline is often carried by the builder’s estimator rather than a separate QS. Estimating reference. See also: Bill of quantities.
Elemental estimate: An elemental estimate structures a build cost by building element, substructure, frame, roof, finishes and services, rather than by trade. It is useful early, when the design is not detailed enough for a full trade takeoff but a reliable total is still needed, and it lets a cost be benchmarked element by element. Estimating reference. See also: Order of cost estimate.
Order of cost estimate: An order of cost estimate is an early, high-level figure for what a project is likely to cost, based on area, function or elements before the design is resolved. It sets the budget and tests feasibility, and it carries a wide range of uncertainty that narrows as the design and the takeoff firm up. Estimating reference. See also: Build cost feasibility.
Wastage: Wastage, or the waste factor, is an allowance added to a measured material quantity for offcuts, breakage and the difference between what is bought and what ends up in the building. It differs by material and by how the work is set out, and leaving it out systematically under-orders and under-prices. Takeoff reference.
Productivity rate: A productivity rate is how much work a resource completes in a unit of time, such as square metres laid per day, the output view of the same data a labour constant holds as hours per unit. Realistic productivity rates are what make a labour estimate and a programme duration agree instead of contradicting each other. Cost database reference. See also: Labour constant.
Plant hire rate: A plant hire rate is the cost of hiring a piece of equipment per hour, day or week, often with separate charges for delivery, fuel and an operator. Pricing plant on the true engaged time, including standing time and mobilisation, is what stops an excavator or a crane quietly running over its allowance. Cost database reference.
Dayworks: Dayworks is work paid on the actual labour, plant and materials used plus an agreed margin, rather than a fixed rate, used where the scope cannot be measured in advance. It needs signed daily records of hours and materials to be paid, which is why dayworks without paperwork so often goes unrecovered. Variations reference.
Rate loading: Rate loading is adjusting a base unit rate up or down for the conditions of a particular job, such as difficult access, height, small quantities or a tight program. It is how a rate from the database or a cost guide is made honest for the job in front of the estimator rather than applied blind. Assemblies and recipes reference. See also: Unit rate.
Labour on-costs: Labour on-costs are the amounts that sit on top of the base wage to give the true cost of an hour of labour, superannuation, leave, workers compensation, allowances and payroll costs. An estimate built on the bare wage without on-costs understates labour every time, which is why the all-in rate is the one to price on. Cost database reference. See also: All-in labour rate.
All-in labour rate: An all-in labour rate is the fully loaded cost of an hour of labour, the base wage plus every on-cost, the figure a defensible estimate is built on. Keeping the base wage and the on-costs visible behind it means a wage or superannuation change becomes one edit that reprices every labour line. Cost database reference. See also: Labour on-costs.
Prime cost sum: Prime cost sum is a term some contracts and estimates use for an allowance for the supply of an unselected item, overlapping with prime cost item. Because usage varies between contracts, the safest practice is to read what a given document means by it rather than assume, and to reconcile the allowance against the actual selection either way. Prime cost and provisional sums reference. See also: Prime cost item.
Provisional quantity: A provisional quantity is a measured item whose quantity is estimated at contract because it cannot be fixed yet, to be remeasured and adjusted against the actual quantity performed. It is the quantity equivalent of a provisional sum, and it trues up on measurement rather than on selection. Prime cost and provisional sums reference. See also: Provisional sum.
Cost escalation: Cost escalation is the rise in the price of labour and materials over the time between pricing a job and building it. It is a different thing from contingency, which covers uncertainty in scope, and on a long build it is a real and separate risk that either the contract prices in through rise and fall or the builder carries. Estimating contingency reference. See also: Contingency, Rise and fall clause.
Lineal metre(lm): A lineal metre is a measurement of length used to quantify and price items sold or installed by the running metre, such as skirting, gutter, timber and pipe. It is one of the standard units of measurement in a takeoff, alongside area, volume and the item, and reading the drawing’s dimensions rather than scaling is what keeps it accurate. Takeoff reference.

Procurement, site and quality

Buying the job, receiving it, and building it right the first time.

Procurement (construction): Procurement is the process of buying the job, converting the estimate into real orders, subcontracts and deliveries. It is where estimated margin becomes real margin or quietly disappears, through the commitment workflow that runs from budget to purchase order to invoice match. Procurement reference. See also: Purchase order.
Purchase order(PO): A purchase order is the document that commits the job to buy defined goods or work at a defined price, the commitment layer of cost control. Spend without an order is invisible until the invoice arrives, and the PO is the anchor the supplier invoice is later matched against. Purchase orders reference. See also: Committed costs, Invoice matching.
Request for quote(RFQ): A request for quote is the process of sending one documentation set to every bidder for a trade package so the returned prices can be compared like for like. It differs from a tender mainly in formality; the discipline of a single consistent scope is the same. RFQ and quote levelling reference. See also: Quote levelling.
Quote levelling: Quote levelling is adjusting returned quotes to a common scope in a levelling table, pricing each bidder’s gaps and inclusions so the comparison is genuine. The cheapest number on the page is frequently not the cheapest quote once levelled. RFQ and quote levelling reference.
Trade package: A trade package is a bundle of work scoped for one trade or supplier, carved from the estimate’s cost structure. The gaps between packages become the variations and disputes nobody priced, which is why package boundaries deserve as much attention as package contents. Trade packages reference. See also: Scope of works.
Scope of works: A scope of works is the written definition of what a trade package includes and excludes, the attendances the builder provides, and the drawings it is based on listed by revision. It is the document that decides later whether something was in the price or is a variation. Trade packages reference.
Attendance item: An attendance item is something the builder provides so a trade can perform its work, commonly scaffold, temporary power, cranage, site amenities and waste removal. Each attendance should be priced exactly once, usually in the preliminaries, with every trade scope stating which attendances the builder supplies. Trade packages reference. See also: Preliminaries.
Invoice matching: Invoice matching verifies a supplier invoice before payment. A two-way match holds the invoice against the purchase order; a three-way match adds the delivery record so payment is also tied to what physically arrived. Most builders run three-way matching on materials and two-way on services and subcontract work. Invoice matching reference. See also: Purchase order, Delivery docket.
Delivery docket: A delivery docket is the record of what physically arrived on site, signed at the gate. It is the third leg of a three-way invoice match, and a signature given without checking the load converts a short delivery into a paid invoice. Invoice matching reference.
Credit claim: A credit claim is the request to a supplier for a credit note when an invoice does not match what was ordered or delivered, a price variance, a short delivery or a return. An unmatched invoice parked without a credit claim is how small losses become permanent. Invoice matching reference.
Trade account: A trade account is the credit account a builder holds with a merchant or supplier, governed by the credit application’s terms. Those terms, credit limits, payment terms, retention of title and often a directors’ guarantee, are the contract behind every delivery. General information, not legal advice. Materials supply terms reference. See also: Directors’ guarantee.
Directors’ guarantee: A directors’ guarantee, or personal guarantee, is a promise by an individual, usually a company director, to personally cover the company’s debts to a supplier if the company does not pay. It commonly sits inside merchant credit applications, and it removes the protection the company structure would otherwise give the director for that account. General information, not legal advice. Materials supply terms reference.
Retention of title(ROT): Retention of title is a supply term under which the supplier continues to own goods until they are paid for, even after delivery to site. It is a different concept from contract retention on subcontract payments, and its practical force comes from registration on the PPSR. General information, not legal advice. PPSR and retention of title reference. See also: PPSR, Retention.
Personal Property Securities Register(PPSR): The Personal Property Securities Register is the national register on which security interests over goods, including suppliers’ retention of title claims, are recorded. Suppliers register against building companies as standard practice, and the register decides who keeps the goods when a supplier or a builder becomes insolvent. General information, not legal advice. PPSR and retention of title reference. See also: Retention of title.
Back order: A back order is the undelivered balance of an order the supplier could not fulfil in one delivery. Untracked back orders surface as missing materials on the day a trade needs them, which is why receiving records matter as much as ordering records. Materials supply terms reference.
Product substitution: Product substitution is a supplier or trade providing a different product from the one specified or ordered, sometimes under an or-equivalent clause. Unless the contract defines what equivalence means and who approves the substitute, the choice defaults to whoever is supplying, and their incentive is cost. Specifications reference.
Price validity: Price validity is the period a supplier holds quoted prices firm before escalation can apply. Supply terms set validity and escalation rights, and a job priced today and built next year needs both understood before the contract is signed. Materials supply terms reference.
Call-forward schedule: A call-forward schedule is the working list that connects the build programme to the buying. For every package and made-to-order item it records the need-on-site date, the confirmed lead time, the derived order-by date, the prerequisites and the current status. Some builders call it a procurement schedule or a materials schedule. Procurement and schedule alignment reference. See also: Need-on-site date.
Client selections: Client selections are the finishes, fittings and products a client chooses through a build, managed against a selection schedule with deadlines tied to the programme. Late or undocumented selections are one of the most common causes of delays and variations on a residential job. Selections management reference. See also: Allowance.
Drawing revision: A drawing revision is an updated issue of a drawing, identified by a revision code, that supersedes the previous set. A revision that stays in someone’s inbox is a superseded set on site, and revision control is the propagation protocol that keeps everyone working from one current set. Drawing revision control guide.
Single source of truth: A single source of truth is the discipline of keeping one current, authoritative version of each document or record, with everything else clearly superseded. On a building job it is what makes the document trail usable as the job’s memory at dispute, warranty and handover. Construction documents reference.
Hold point: A hold point is a stage where work stops until an inspection is passed, chosen to fall before the work is covered up, waterproofing before tiling, reinforcement before the pour. At a hold point a problem is visible and cheap to fix; after cover-up, finding it means demolishing good work. Quality assurance reference. See also: Mandatory inspections.
Quality assurance(QA): Quality assurance is assuring quality during the build rather than inspecting for defects after it, through hold points, checklists and quality records that prove work was done right. It differs from defect management, which reacts to failures QA exists to prevent. Quality assurance reference.
Safe Work Method Statement(SWMS): A Safe Work Method Statement is the document WHS regulations require for high-risk construction work, setting out the work, its hazards and the controls that will manage them. It must reflect the actual job and be reviewed by a competent person, not filed as paperwork. General information, not safety or legal advice. Site safety feature. See also: WHS management plan.
WHS management plan: A WHS management plan is the site-wide safety plan WHS regulations require the principal contractor to prepare for construction projects above the regulatory threshold, covering responsibilities, arrangements and the register of SWMS for the job. General information, not safety or legal advice. Site safety feature. See also: Safe Work Method Statement.
Contracts administrator(CA): The contracts administrator is the role that runs the commercial side of live jobs, subcontracts and orders, variations, claims and the paperwork that connects site to accounts. In a small builder the same responsibilities exist, just carried by fewer people. Company structure reference.
Site supervisor: The site supervisor is the role responsible for the day-to-day running of a job on site, sequencing trades, checking quality, keeping the diary and holding the programme. Supervisor capacity, the number of jobs one supervisor can genuinely run, is one of the real constraints on a builder’s growth. Company structure reference.
Inspection and test plan(ITP): An inspection and test plan lists the inspections and tests a scope of work must pass, at what point, by whom, and against what standard, marking each as a hold point or a witness point. It turns quality from a hope into a checklist, and the signed records it produces are the evidence the work was built right. Quality assurance reference. See also: Hold point, Witness point.
Witness point: A witness point is a stage where a nominated party is invited to inspect the work but, unlike a hold point, the work may proceed if they do not attend within the notice period. It gives oversight without stopping the job, and the distinction from a hold point is exactly what may and may not carry on without a sign-off. Quality assurance reference. See also: Hold point.
Non-conformance report(NCR): A non-conformance report records work that does not meet the specification, drawings or standards, the proposed fix, and its close-out once resolved. It is the formal counterpart to a quiet on-site correction, and the register of NCRs is part of the quality record a job carries to handover. Quality assurance reference. See also: Defect.
As-built drawings: As-built drawings are drawings updated to show what was actually constructed, including the changes made during the build. They matter most for concealed services and structure, because the next person to work on the home relies on them to find what is behind the linings. Construction documents reference. See also: Shop drawings.
Shop drawings: Shop drawings are the detailed fabrication and installation drawings a trade or supplier prepares from the design, for items such as cabinetry, steel, trusses and windows. Reviewing and approving them before manufacture is a hold point in its own right, because an error caught on the shop drawing is cheap and the same error caught on site is not. Construction documents reference. See also: As-built drawings.
Set-out: Set-out is marking the position of the building and its elements on the site from the survey and the drawings, so the work is built in the right place and square. An error in the set-out propagates into every stage that follows, which is why it is checked before anything is poured. Quality assurance reference. See also: Datum.
Datum: A datum, or benchmark, is a fixed reference point of known level on or near a site from which all heights on the job are set. Every finished floor level, drainage fall and ceiling height is measured from it, so a job works to one agreed datum to keep those levels consistent. Quality assurance reference. See also: Set-out.
Snag list: A snag list, also called a punch list, is the list of small incomplete or defective items found on a walk-through near completion, each to be finished before sign-off. It overlaps with the defects list at practical completion, and one agreed list with owners and dates is what turns it into a workflow rather than an argument. Defects management reference. See also: Defects list.
Commissioning: Commissioning is testing that installed systems, such as plumbing, electrical, heating and cooling, work as intended before the home is handed over. The commissioning records join the operation and maintenance manuals in the handover pack, so the owner receives proof the systems were tested, not just installed. Practical completion reference. See also: Operation and maintenance manual.
Operation and maintenance manual(O&M): An operation and maintenance manual is the compiled set of instructions, warranties and product data for the systems and finishes in a completed home, handed to the owner so they can run and maintain it. Assembling it through the build rather than at the end is what makes a handover organised rather than a scramble. Practical completion reference. See also: Handover.
Building tolerances: Building tolerances are the allowable deviations from a specified dimension or finish, the line between acceptable work and a defect. Australian guidance such as state guides to standards and tolerances is commonly used to judge them, and the current guide for the relevant jurisdiction is the reference. General information, not compliance advice. Defects management reference. See also: Defect.
Services rough-in: Rough-in is the first-fix stage where the concealed parts of the services, plumbing pipes, electrical cabling and ducting, are installed before the walls and floors are closed up. It is inspected as a hold point because it disappears behind the linings, and an error found after cover-up means opening finished work to reach it. Quality assurance reference. See also: First fix and second fix.
First fix and second fix: First fix is the work done before the internal linings go on, such as framing, rough-in and anything that will be concealed, while second fix is the finishing work installed after lining and painting, such as tapware, switches, doors and skirting. The two-stage rhythm is how trades return to a job, and mixing up which stage a task belongs to is a common sequencing error. Lead times reference. See also: Services rough-in.
Wet trades: Wet trades are the trades that work with water-based or curing materials, concreting, bricklaying, rendering, screeding, tiling and plastering, whose work needs time to dry or cure before the next trade can follow. Their curing times are real dependencies in the programme, not delays, which is why rushing them shows up later as cracking or failure. Lead times reference.
Principal contractor: The principal contractor is the work health and safety role for the party with management and control of a construction workplace, carrying duties such as preparing the WHS management plan for projects above the regulatory threshold. It is a safety concept distinct from the contract principal, and the duties are set by the WHS laws in each jurisdiction. General information, not safety or legal advice. Site safety feature. See also: WHS management plan, Principal (contract).
Sample and prototype: A sample is a piece of a product or finish provided for approval before the full quantity is ordered, and a prototype or mock-up is a trial assembly built to prove a detail before it is repeated. Approving them against the specification early is what stops a whole order or a repeated detail being wrong. Specifications reference. See also: Specification.
Site induction: A site induction is the briefing every worker receives before starting on a site, covering the specific hazards, rules and emergency arrangements of that job. It is a standard work health and safety control, recorded so it can be shown who was inducted and when. General information, not safety advice. Site safety feature. See also: White Card.
White Card: A White Card, from general construction induction training, is the credential a worker must hold to carry out construction work in Australia. It is site-entry training separate from the job-specific site induction, and the current requirements and recognition between states should be confirmed with the relevant regulator. General information, not safety advice. Site safety feature. See also: Site induction.
Toolbox talk: A toolbox talk is a short, regular on-site meeting where the crew discusses the day’s or week’s hazards and safe methods before work starts. Recording who attended and what was covered turns a routine conversation into part of the site’s safety record. General information, not safety advice. Site safety feature. See also: Safe Work Method Statement.

Scheduling and delivery

The programme, its dependencies, and the discipline that keeps dates honest.

Construction programme: The construction programme, or schedule, is the planned sequence and timing of the work on a job, built from tasks, durations and the dependencies between them. A programme whose tasks are not genuinely linked recalculates nothing when one of them moves, which is why most schedules die. Scheduling reference. See also: Dependency, Baseline.
Dependency (scheduling): A dependency is a genuine constraint that one task cannot proceed until another reaches a defined state, most commonly finish-to-start. Real dependencies are what let a schedule recalculate when something moves; decorative links drawn to make the chart look connected do nothing. Critical path reference. See also: Critical path.
Critical path: The critical path is the longest chain of dependent tasks through a programme, the chain on which a one-day slip is a one-day-later handover. Tasks off the path carry float; tasks on it carry the completion date. Critical path reference. See also: Float.
Float: Float is the amount a task can slip without delaying the completion date. It quietly disappears as other tasks consume it, and a task whose float reaches zero has joined the critical path whether anyone noticed or not. Critical path reference. See also: Critical path.
Baseline (scheduling): A baseline is the approved version of the programme held fixed so the current plan can be measured against it, two dates per task, planned and current. Without a baseline, drift is invisible and every reforecast quietly rewrites history. Baseline and progress tracking reference.
Milestone: A milestone is a zero-duration point in the programme marking a defined event, a stage completion, an inspection or an approval. Milestones are what claims, inspections and client communication anchor to, which makes them the most watched dates on the job. Scheduling reference.
Lead time: Lead time is the period between ordering something and its availability on site. It is the hidden dependency behind every start date, because a task cannot start before its materials arrive no matter what the programme says. Lead times reference. See also: Long-lead item.
Long-lead item: A long-lead item is a product whose lead time is long enough to drive the programme, commonly windows, trusses, kitchens, switchboards and made-to-order products. Long-lead packages are ordered off the programme weeks or months before they are needed, or the programme moves to suit them. Lead times reference.
Need-on-site date: The need-on-site date is the date the programme says a material or product must be available for the work to proceed. Order dates are derived backwards from it, need-on-site less lead time less a buffer, which is the arithmetic the call-forward schedule exists to hold. Procurement and schedule alignment reference. See also: Call-forward schedule.
Trade stacking: Trade stacking is compressing the programme by putting multiple trades in the same space at the same time. It reads as acceleration and usually delivers rework, damage and slower overall progress, which is why it is a false economy rather than a schedule recovery technique. Lead times reference.
Gantt chart: A Gantt chart is the bar-chart view of a programme, each task a bar along a timeline with its dependencies drawn between them. It is how most builders read a schedule, and its usefulness depends entirely on whether the bars are genuinely linked underneath or just drawn side by side. Scheduling reference. See also: Construction programme.
Look-ahead schedule: A look-ahead schedule is a short extract of the programme, commonly the next two or three weeks, used to coordinate trades, deliveries and inspections in the near term. It is the working tool that turns the master programme into what happens on site this fortnight, and it is where slippage is caught early enough to act on. Baseline and progress tracking reference. See also: Construction programme.
Predecessor and successor: A predecessor is a task that must reach a defined state before another can proceed, and the successor is the task that depends on it. Naming the predecessor and successor correctly is what gives a dependency its meaning, so the programme recalculates properly when either one moves. Critical path reference. See also: Dependency.
Finish-to-start(FS): Finish-to-start is the most common dependency type, where a task cannot start until its predecessor finishes, such as plastering waiting on rough-in. Other relationships exist, start-to-start, finish-to-finish and start-to-finish, and using the right one is what stops a schedule linking tasks in a way the site cannot actually follow. Critical path reference. See also: Dependency.
Lag: Lag is a deliberate delay built into a dependency, such as waiting for concrete to cure before loading it, so the successor starts a set time after the predecessor rather than immediately. Modelling curing and drying as lag is how a programme respects the physics of wet trades instead of pretending the next task can start straight away. Critical path reference. See also: Wet trades.
Acceleration: Acceleration is compressing a programme to finish sooner or to recover lost time, by adding resources, working longer or overlapping tasks. It carries real cost and risk, and pushed too far it becomes trade stacking, which usually delivers rework rather than genuine speed. Lead times reference. See also: Trade stacking.
Recovery programme: A recovery programme is a revised plan for pulling a slipped job back toward its completion date, showing the specific changes in sequence, resources or scope that will do it. A credible recovery programme is measured against the baseline, so everyone can see what is being made up and how. Baseline and progress tracking reference. See also: Baseline.
As-built programme: An as-built programme records when tasks actually started and finished, as opposed to when they were planned. Read against the baseline, it is the evidence behind a delay claim or an extension of time, showing what really happened rather than what was intended. Baseline and progress tracking reference. See also: Baseline.
Weather delay: A weather delay is lost time caused by inclement weather and its after-effects, such as a site too wet to work. Whether it entitles the builder to an extension of time depends on the contract, and a contemporaneous record of the days lost and their cause is what supports the claim. Extensions of time reference. See also: Extension of time.
Programme slippage: Programme slippage is the drift of tasks later than their planned dates, task by task, until the completion date moves. It is invisible without a baseline to measure against, and catching it while float still absorbs it is the difference between a note and a delay. Baseline and progress tracking reference. See also: Float.
Trade sequencing: Trade sequencing is the order in which trades come onto a job so each has what it needs and none undoes another’s work. Good sequencing keeps trades out of each other’s way and respects the drying and curing the wet trades need, which is the opposite of stacking them into the same space. Lead times reference. See also: Trade stacking.
Schedule buffer: A schedule buffer is deliberate slack placed before a critical date or a long-lead delivery to absorb the normal variability of a job. It is planned protection rather than the accidental float that other tasks leave behind, and it is what keeps an order-by date or a handover realistic when small delays accumulate. Procurement and schedule alignment reference. See also: Need-on-site date.

Planning, approvals and compliance

The approvals pathway and the compliance frameworks a home is built under.

Development application(DA): A development application is the request for planning approval assessed on its merits by the local council, weighing the proposal against the planning controls and its impacts. It is the flexible, slower pathway compared with complying development, and other states have analogous full-assessment pathways. General information, not planning advice. DA vs CDC reference. See also: Complying development certificate.
Complying development certificate(CDC): A complying development certificate is the NSW fast-track approval that combines planning and construction approval in one step when a proposal meets every pre-set standard. It is compliance-only rather than merit-based, faster when available, and unavailable the moment the design steps outside the standards. General information, not planning advice. DA vs CDC reference. See also: Development application.
Merit assessment: Merit assessment is the planning pathway in which the consent authority weighs a proposal’s merits and impacts against the controls, with discretion to approve, condition or refuse. It contrasts with compliance-only pathways such as complying development, where meeting the pre-set standards is the whole test. DA vs CDC reference.
Construction certificate(CC): A construction certificate is the NSW approval that the construction drawings and specifications comply with the Building Code and the development consent, required before building work starts under a DA. Other states issue an equivalent building approval or permit under different names. General information, not planning advice. Building approvals reference. See also: Building approval.
Building approval(BA): Building approval is the technical approval that proposed building work complies with the National Construction Code and relevant standards, issued before work starts. The name and process differ by state, construction certificate in NSW, building permit in Victoria and elsewhere, but the role in the pathway is the same. General information, not planning advice. Building approvals reference.
Occupation certificate(OC): The occupation certificate is the final approval that lets a completed home be lawfully occupied, issued after the final inspections confirm the work matches the approvals. Handover, the final claim and several warranty clocks hang off it. Some states call it an occupancy permit. General information, not planning advice. Occupation certificate reference. See also: Occupancy permit, Practical completion.
Occupancy permit: An occupancy permit is the name several states, including Victoria and Western Australia, give the final approval to occupy a completed building, the equivalent of the NSW occupation certificate. The requirements to obtain it are set per state. General information, not planning advice. Occupation certificate reference. See also: Occupation certificate.
Private certifier: A private certifier, or accredited building surveyor, is the professional who can issue building approvals, conduct mandatory inspections and issue the occupation certificate as an alternative to the council. Who appoints the certifier, and what they may certify, is set per state. General information, not planning advice. Building approvals reference.
Mandatory inspections: Mandatory inspections, called critical stage inspections in some states, are the inspections legislation requires at set points of a build, each a hold point on the programme. The stages, the inspector and the consequences of a failed inspection are set per state, and the records flow through to the occupation certificate. General information; the stages and processes change. Mandatory inspections reference. See also: Hold point.
Dwelling approval: A dwelling approval is permission to proceed with building a home, the unit counted in the approvals statistics, not a finished home. The gap between approvals and completions is why approval counts describe intent while completions describe delivery. Approvals vs completions guide.
National Construction Code(NCC): The National Construction Code is Australia’s uniform technical code for the design and construction of buildings, including the energy efficiency provisions residential work must meet. It sets the minimum, not a target, and state variations and referenced standards sit alongside it. General information, not compliance advice. BASIX and energy efficiency reference.
Building Sustainability Index(BASIX): BASIX is the NSW Building Sustainability Index, the scheme under which new residential work in NSW must meet energy, water and thermal comfort commitments before approval. The commitments made in the BASIX certificate become obligations the builder must deliver on site. Thresholds and settings change, so confirm against the current scheme. General information, not compliance advice. BASIX and energy efficiency reference. See also: NatHERS.
Nationwide House Energy Rating Scheme(NatHERS): NatHERS is the national star-rating framework that models a home’s thermal performance from its design, one of the pathways for demonstrating compliance with the NCC energy efficiency requirements. Star-rating requirements change, so confirm against the current source. General information, not compliance advice. BASIX and energy efficiency reference. See also: National Construction Code.
Bushfire Attack Level(BAL): A Bushfire Attack Level is the rating assessed at planning and design that grades a site’s bushfire exposure and flows into construction requirements under AS 3959. The higher the BAL, the more demanding and expensive the required construction, which is why the rating belongs in the feasibility, not the surprises list. General information, not compliance advice. Bushfire and BAL reference. See also: AS 3959.
AS 3959: AS 3959 is the Australian Standard for construction of buildings in bushfire-prone areas, mapping each Bushfire Attack Level to specific construction requirements. The standard and the state schemes that apply it change, so the current edition is the reference. General information, not compliance advice. Bushfire and BAL reference. See also: Bushfire Attack Level.
Easement: An easement is a registered right for someone other than the owner, commonly a utility or a neighbour, to use or access part of a property, such as for drainage or services. Easements live on the title rather than in the planning scheme, constrain siting and design, and building over or near one needs the relevant authority’s approval. General information, not legal advice. Easements and covenants reference. See also: Restrictive covenant.
Restrictive covenant: A restrictive covenant is a registered obligation on a property’s title that limits how it can be used or built on, such as minimum dwelling sizes or material requirements. Like easements, covenants surface in due diligence before design, and they bind regardless of what the planning scheme would otherwise allow. General information, not legal advice. Easements and covenants reference. See also: Easement.
Section 88B instrument(s 88B): A section 88B instrument is the NSW document attached to a deposited plan that creates the easements, covenants and restrictions recorded on the titles in that plan. The instrument, not the title’s summary line, carries the actual terms, and other states have equivalent instruments in their land titles systems. General information, not legal advice. Easements and covenants reference.
Building permit: A building permit is the approval, used in Victoria and other states, that construction work complies with the building regulations and may start, the counterpart to the NSW construction certificate. It is issued by a building surveyor, and the process and name differ by jurisdiction. General information, not planning advice. Building approvals reference. See also: Construction certificate, Building surveyor.
Planning permit: A planning permit is the Victorian approval that a proposed use or development is acceptable under the planning scheme, the merit-assessment step that can precede a building permit. Its NSW analogue is development consent, and whether one is needed depends on the controls for the site. General information, not planning advice. DA vs CDC reference. See also: Building permit.
Building surveyor: A building surveyor is the professional who assesses whether building work complies with the National Construction Code and the approval, issues the building permit or construction certificate, and carries out or oversees the mandatory inspections. In some states the appointed surveyor is called the relevant building surveyor or the principal certifier. General information, not compliance advice. Building approvals reference. See also: Principal certifier.
Principal certifier: The principal certifier is the certifier appointed to oversee a building project, carry out the critical stage inspections and issue the occupation certificate, a role known in some states as the principal certifying authority. Who may be appointed and what they may certify is set per state. General information, not compliance advice. Building approvals reference. See also: Private certifier.
Exempt development: Exempt development is minor building work that meets set standards and needs no planning or construction approval at all, such as small structures within defined limits. It is the lightest pathway, available only while the work stays inside the standards, and the categories and limits are set per state. General information, not planning advice. DA vs CDC reference. See also: Complying development certificate.
Building classification: The building classification is the category the National Construction Code assigns a building by its use, which determines the technical requirements it must meet. A detached house or townhouse commonly falls in Class 1a and a private garage or shed in Class 10, and the current class definitions are set by the NCC. General information, not compliance advice. Building approvals reference. See also: National Construction Code.
Deemed-to-Satisfy(DtS): Deemed-to-Satisfy is the prescriptive compliance pathway in the National Construction Code, a set of specific provisions that, if followed, are accepted as meeting the performance requirements. It is the default route for most residential work, the alternative being a performance solution. General information, not compliance advice. Building approvals reference. See also: Performance Solution.
Performance Solution: A Performance Solution is a way of meeting the National Construction Code’s performance requirements by means other than the Deemed-to-Satisfy provisions, justified by evidence and analysis. It gives design freedom in exchange for demonstrating and documenting compliance, and it must be prepared and assessed by suitably qualified people. General information, not compliance advice. Building approvals reference. See also: Deemed-to-Satisfy.
Zoning: Zoning is the planning control that assigns land a category, such as residential, setting what uses and development are permitted, permitted with consent or prohibited. It is the first thing a feasibility checks, because it decides whether a proposed home is even allowed before any design begins. General information, not planning advice. DA vs CDC reference.
Setback: A setback is the minimum distance a building must be from a boundary, set by the planning controls to manage privacy, light and streetscape. Setbacks shape the building envelope a home has to fit inside, and getting them wrong at design turns into a redesign or a variation to the consent. General information, not planning advice. DA vs CDC reference. See also: Site coverage.
Site coverage: Site coverage is the proportion of a lot a building may occupy, a planning control that limits how much of the block can be built on. With setbacks and height, it defines the developable envelope, and it is one of the numbers a feasibility tests before committing to a design. General information, not planning advice. DA vs CDC reference. See also: Floor space ratio.
Floor space ratio(FSR): Floor space ratio is the ratio of a building’s total floor area to the area of its site, a planning control on the bulk of development. Together with height and setbacks it caps how much can be built, and it is measured by the convention the controls define. General information, not planning advice. DA vs CDC reference. See also: Gross floor area.
Building height control: A building height control limits how tall a building may be, measured as a height above ground level or a number of storeys under the planning controls. It interacts with the slope of the site and the finished floor levels, so a height limit that looks generous on flat ground can bind tightly on a sloping block. General information, not planning advice. DA vs CDC reference.
Subdivision: Subdivision is dividing land into separate lots that can be sold or built on individually, approved and then registered through the land titles system. It has its own approval pathway separate from the building work, and its timing and conditions often govern when a home on a new lot can proceed. General information, not planning advice. Easements and covenants reference. See also: Deposited plan.
Torrens title: Torrens title is the standard Australian system of land ownership in which the government-maintained register is the definitive record of who owns a parcel and what interests affect it. Most freestanding houses sit on Torrens title, as distinct from strata or community title, and the register is where easements and covenants are recorded. General information, not legal advice. Easements and covenants reference. See also: Strata title.
Strata title: Strata title is a form of ownership for a lot within a larger building or complex, where the owner holds their unit and shares the common property through an owners corporation or body corporate. It carries by-laws and shared obligations a freestanding house does not, and building work on a strata lot can need the owners corporation’s consent. General information, not legal advice. Easements and covenants reference. See also: Community title.
Community title: Community title is a form of ownership for lots in a shared development that hold individual land but share common areas and a set of rules through a community association. It sits between Torrens and strata title, and its rules and shared costs affect what an owner can build. General information, not legal advice. Easements and covenants reference. See also: Strata title.
Deposited plan(DP): A deposited plan is the registered survey plan that defines the boundaries and dimensions of a lot in the land titles system, referenced on the title. It is the plan the section 88B instrument attaches to when creating easements and covenants, and it is where a lot’s true dimensions are read from. General information, not legal advice. Easements and covenants reference. See also: Section 88B instrument.
Planning certificate: A planning certificate is the document that sets out the planning controls, zoning and notations affecting a parcel of land, known in NSW as a section 10.7 certificate. It is standard due diligence before design and purchase, and its equivalents in other states go by different names. General information, not planning advice. Easements and covenants reference.
Developer contributions: Developer contributions are payments a consent authority can require toward the public infrastructure a development creates demand for, levied under the relevant state scheme. They can be a material cost on a project, so a feasibility confirms whether they apply and how they are calculated with the relevant authority rather than assuming. General information, not planning advice. Build cost feasibility guide.
Geotechnical report: A geotechnical report, from a soil investigation of a site, describes the ground conditions and gives the site classification the footing design is based on. Ordering it early turns a major cost risk, the foundation, from a surprise during construction into a known input at design and pricing. General information, not engineering advice. Estimating reference. See also: Site classification.
Contour and detail survey: A contour and detail survey records the levels, boundaries and features of a site so the design can respond to the fall of the land, existing structures, trees and services. On a sloping or constrained site it is what stops a design that ignores the real ground and drives cut, fill and retaining costs nobody priced. General information, not survey advice. Build cost feasibility guide.
Identification survey: An identification survey confirms where a building and its improvements sit in relation to the boundaries and easements of a lot. It is used to check that a structure is within the boundaries and clear of easements, a common step before purchase or at completion. General information, not survey advice. Easements and covenants reference. See also: Easement.
Flood planning level: A flood planning level is the level, set by the planning controls, to which building work on flood-prone land must respond, for example a minimum floor level. Where it applies it shapes the design and adds cost, and whether a site is affected and to what level is confirmed with the council or the relevant authority. General information, not planning advice. DA vs CDC reference.
Bushfire prone land: Bushfire prone land is land mapped as carrying bushfire risk, which triggers a bushfire assessment and the construction requirements that flow from the resulting Bushfire Attack Level. Whether a site is mapped as bushfire prone is checked at feasibility, because it can change both the approval pathway and the build cost. General information, not planning advice. Bushfire and BAL reference. See also: Bushfire Attack Level.
Heritage overlay: A heritage overlay is a planning control that applies extra requirements to a property or area of heritage significance, affecting what can be changed, demolished or built. Where it applies it can add approval steps and constraints, so it is identified before design rather than discovered during assessment. General information, not planning advice. DA vs CDC reference.

Building science and performance

The thermal, structural and protective performance a home must achieve, and the terms that decide whether it does.

Thermal performance: Thermal performance is how well a home resists unwanted heat flow, keeping it comfortable with less heating and cooling. It is what the energy efficiency provisions of the National Construction Code and schemes such as BASIX and NatHERS set out to measure and require, and it is built from the insulation, glazing, orientation and sealing of the home together. BASIX and energy efficiency reference. See also: NatHERS.
R-value: R-value measures how well a material or building element resists heat flow, with a higher value meaning more resistance. Insulation is specified by R-value, and the values a home must achieve are set by the energy efficiency requirements, so confirm the current requirements with the relevant source. General information, not compliance advice. BASIX and energy efficiency reference. See also: U-value.
U-value: U-value measures how readily heat flows through a building element such as a window, the inverse idea to R-value, with a lower value meaning better performance. Windows are commonly rated by U-value together with their solar heat gain, and the required values are set by the energy provisions, so confirm the current requirements with the relevant source. General information, not compliance advice. BASIX and energy efficiency reference. See also: R-value.
Thermal bridging: Thermal bridging is heat flowing through a conductive path that bypasses the insulation, such as a metal frame or a slab edge, undercutting the performance the insulation was meant to give. Managing it is part of designing a home to actually reach its rated thermal performance rather than only on paper. BASIX and energy efficiency reference. See also: Thermal performance.
Thermal mass: Thermal mass is the capacity of heavy materials such as concrete and masonry to absorb, store and release heat slowly, smoothing temperature swings through the day. Used well with orientation and shading it improves comfort, and used poorly it can work against a home, which is why it is a design decision rather than a default. BASIX and energy efficiency reference. See also: Thermal performance.
Bulk insulation: Bulk insulation resists heat flow through the still air trapped in its fibres or cells, such as batts in walls and ceilings, and is rated by R-value. It works whichever way the heat is moving, in contrast to reflective insulation, and installing it without gaps or compression is what lets it deliver its rated value. BASIX and energy efficiency reference. See also: Reflective insulation.
Reflective insulation: Reflective insulation resists radiant heat with a reflective surface, such as a foil facing, and needs an adjacent air gap to work. It is often used with bulk insulation and sarking rather than instead of them, and it must face the right way and stay clean to perform. General information, not compliance advice. BASIX and energy efficiency reference. See also: Bulk insulation.
Sarking: Sarking is a pliable membrane laid under the roof covering or behind cladding that helps shed water, manage condensation and, where it is reflective, reduce radiant heat. Which type is used and where depends on the climate and the assembly, and it works alongside the insulation rather than replacing it.
Vapour permeable membrane: A vapour permeable membrane is a wrap that resists liquid water from outside while letting water vapour escape from within the wall, helping manage condensation in the building fabric. Its correct use has become more important as homes are built more airtight, and the right membrane depends on the climate and the wall build-up. General information, not compliance advice. See also: Condensation management.
Condensation management: Condensation management is designing and building a home so moisture does not accumulate inside walls, roofs and other elements, where it can cause mould and decay. It has become a distinct concern as homes are sealed more tightly for energy performance, and the National Construction Code now addresses it, so confirm the current requirements with the relevant source. General information, not compliance advice. See also: Vapour permeable membrane.
Air tightness: Air tightness is how well a home resists uncontrolled air leaking in and out through gaps in the fabric. Reducing leakage improves comfort and energy performance, but a tighter home also needs deliberate ventilation and condensation control, so the three are designed together rather than in isolation. BASIX and energy efficiency reference. See also: Condensation management.
Whole-of-home rating: A whole-of-home rating assesses a home’s overall energy use across its major equipment, heating, cooling, hot water and the like, alongside the thermal performance of the building fabric. It is part of how the energy provisions have moved beyond the fabric alone, and the current settings and thresholds should be confirmed with the relevant source. General information, not compliance advice. BASIX and energy efficiency reference. See also: NatHERS.
Site classification: A site classification grades a building site by how reactive its soil is to moisture change, which drives the footing and slab design. The Australian standard for residential slabs and footings uses classes from stable through to problem sites, and the classification comes from a soil investigation, so confirm it against the current standard and a qualified engineer. General information, not engineering advice. See also: Reactive soil.
Reactive soil: Reactive soil is ground that shrinks and swells significantly as its moisture changes, moving the footings it supports and, if not designed for, cracking the structure above. The more reactive the site, the more substantial and expensive the required footing system, which is why the site classification belongs in the feasibility. General information, not engineering advice. See also: Site classification.
Wind classification: A wind classification grades the wind a building must be designed and braced to withstand, running through a set of non-cyclonic and cyclonic categories under the relevant Australian standard. The classification depends on region, terrain, shielding and topography, and it drives tie-down and bracing, so confirm it against the current standard. General information, not engineering advice. See also: Site classification.
Ember attack: Ember attack is the shower of burning debris a bushfire drives ahead of and around itself, a leading cause of homes igniting. It is one of the exposures a Bushfire Attack Level accounts for, and lower BAL construction focuses heavily on sealing gaps and screening openings against embers. General information, not compliance advice. Bushfire and BAL reference. See also: Bushfire Attack Level.
Radiant heat flux: Radiant heat flux is the intensity of heat a building would receive from a bushfire, measured in kilowatts per square metre, and it is the basis on which the higher Bushfire Attack Levels are set. The higher the exposure, the more demanding the construction required, and the assessed figures come from the bushfire standard. General information, not compliance advice. Bushfire and BAL reference. See also: Bushfire Attack Level.
Flame Zone(BAL-FZ): Flame Zone, written BAL-FZ, is the highest Bushfire Attack Level, where a building could be exposed to direct flame contact as well as extreme radiant heat and ember attack. It carries the most demanding and costly construction requirements of any BAL, which is why the rating is confirmed early against the bushfire standard. General information, not compliance advice. Bushfire and BAL reference. See also: BAL construction levels.
BAL construction levels: The BAL construction levels are the graded categories the bushfire standard assigns a site, running from BAL-LOW through BAL-12.5, BAL-19, BAL-29 and BAL-40 to BAL-FZ, each mapping to progressively more demanding construction. The level for a site comes from a bushfire assessment, so confirm it and its requirements against the current standard. General information, not compliance advice. Bushfire and BAL reference. See also: Bushfire Attack Level, AS 3959.
Waterproofing: Waterproofing is the system of membranes, falls and detailing that stops water penetrating wet areas, balconies, roofs and below-ground elements. It is a leading source of defects when done poorly because it is concealed and hard to fix later, which is why it is a hold point and is built to the relevant Australian standard. General information, not compliance advice. Quality assurance reference. See also: Wet area.
Wet area: A wet area is a part of a home designed to be subject to water, such as a bathroom, laundry or kitchen, with specific waterproofing and finish requirements. The falls, membranes and junctions in a wet area are built to the relevant standard, and the inspection of them is a common hold point. General information, not compliance advice. Quality assurance reference. See also: Waterproofing.
Termite management: Termite management is the system that protects a home from subterranean termites, through physical barriers, chemical treatments or a combination, together with a durable notice recording what was installed. It is required in many areas to the relevant Australian standard, and the approach depends on the site and the construction, so confirm the current requirements. General information, not compliance advice. See also: Termite barrier.
Termite barrier: A termite barrier is the specific physical or chemical protection installed to deter or detect termites reaching a building, part of a termite management system. Barriers need maintaining and periodic inspection to keep working, which is why a durable notice records what was installed and what upkeep it needs. General information, not compliance advice. See also: Termite management.
Damp proof course(DPC): A damp proof course is a barrier built into masonry to stop moisture rising or crossing from one part of the construction to another. Placed correctly it keeps damp out of walls and floors, and a bridged or missing damp proof course is a common cause of rising damp problems later. See also: Weep holes.
Weep holes: Weep holes are the deliberate gaps left in the outer leaf of masonry to let water that gets into the cavity drain out and the cavity breathe. Blocking or rendering over them traps moisture in the wall, which is why they are kept clear even though they look like missing mortar. See also: Damp proof course.
Subfloor ventilation: Subfloor ventilation is the airflow provided beneath a suspended floor to keep the space dry and prevent moisture damaging the structure above. Adequate cross-flow through vents is what stops a damp, poorly ventilated subfloor becoming a source of decay and mould. See also: Suspended slab.
Articulation joint: An articulation joint is a deliberate vertical joint in masonry that lets a wall move with the small foundation movements of a reactive site without cracking randomly. Placing articulation joints is part of designing masonry for the site classification, so the movement goes where it is allowed for rather than through the wall. General information, not engineering advice. See also: Reactive soil.
Acoustic rating: An acoustic rating measures how well a building element resists the transmission of sound, used for separating walls and floors between dwellings. The ratings required between attached homes are set by the National Construction Code, so confirm the current requirements with the relevant source. General information, not compliance advice. See also: Fire separation.
Fire resistance level(FRL): A fire resistance level expresses how long a building element withstands fire against structural adequacy, integrity and insulation, written as three periods in minutes. Which elements need an FRL, and what it must be, is set by the National Construction Code from the building’s class and layout, so confirm the current requirements. General information, not compliance advice. See also: Fire separation.
Fire separation: Fire separation is construction that resists the spread of fire between parts of a building or between attached homes, such as a fire-rated separating wall between townhouses. The requirements come from the National Construction Code and depend on the building’s class and layout, so confirm the current requirements with the relevant source. General information, not compliance advice. See also: Fire resistance level.
Livable housing design: Livable housing design is building homes that are easier for people of all ages and abilities to enter, move around and live in, through features such as step-free access, wider doorways and reinforced bathroom walls. Accessibility provisions for new homes have been introduced through the National Construction Code, so confirm the current requirements and their adoption in the relevant state. General information, not compliance advice. See also: Building classification.
Respirable crystalline silica: Respirable crystalline silica is the fine dust released when cutting or grinding materials such as concrete, brick, stone and tiles, which can cause serious lung disease when inhaled. It is a significant work health and safety hazard on building sites with strict controls, and the current rules should be confirmed with the relevant regulator. General information, not safety advice. Site safety feature. See also: Safe Work Method Statement.

Materials and building methods

The slabs, frames, cladding, roofing and glazing a home is built from, defined for the builder pricing and ordering them.

Slab on ground: A slab on ground is a concrete floor cast directly on the prepared ground, the most common footing and floor system for single-storey homes on suitable sites. Its design, including the depth and reinforcement of its edge and internal beams, follows the site classification, so a reactive site drives a more substantial slab. General information, not engineering advice. See also: Waffle pod slab.
Waffle pod slab: A waffle pod slab is a slab on ground cast over a grid of void formers, usually polystyrene pods, so the concrete forms a waffle of beams above the ground rather than trenched into it. It is a common residential system whose suitability depends on the site classification and preparation. General information, not engineering advice. See also: Slab on ground.
Raft slab: A raft slab is a stiffened slab on ground with integral edge and internal beams that spread the load and resist the movement of a reactive site as a single raft. It is one of the standard footing systems for reactive sites, with the beam depths set by the site classification and the engineer. General information, not engineering advice. See also: Site classification.
Strip footing: A strip footing is a continuous concrete footing that runs beneath a load-bearing wall to spread its load into the ground. It is a traditional footing used under masonry walls and for subfloor construction, sized for the load and the ground it bears on. General information, not engineering advice. See also: Pad footing.
Pad footing: A pad footing is an isolated concrete footing that carries a concentrated load from a column or post into the ground. Pads are used under posts, piers and framed structures, sized to the load and the bearing capacity of the soil. General information, not engineering advice. See also: Strip footing.
Bored pier: A bored pier is a concrete column cast in a drilled hole to carry a building’s load down to stronger ground below the surface. Piers are used where the surface soil is unsuitable or highly reactive, founding the structure on deeper, more stable material. General information, not engineering advice. See also: Screw pile.
Screw pile: A screw pile is a steel shaft with a helical plate that is screwed into the ground to carry a building’s load to a firmer stratum, installed with equipment rather than concrete curing. It is used for difficult ground and offers a fast, low-disturbance alternative to bored piers where suitable. General information, not engineering advice. See also: Bored pier.
Suspended slab: A suspended slab is a concrete floor that spans between supports rather than bearing on the ground, used for upper floors and for ground floors on sloping or poor sites. It is designed to carry its loads across the span, and the system chosen affects both cost and program. General information, not engineering advice. See also: Subfloor ventilation.
Stumps: Stumps are the posts, timber, concrete or steel, that support a suspended timber floor above the ground in stumped construction, common in parts of Victoria and Queensland. Replacing deteriorated stumps to relevel an older home is known as restumping or reblocking. General information, not engineering advice. See also: Bearers and joists.
Bearers and joists: Bearers and joists are the horizontal members of a suspended timber floor, the bearers carried on stumps or piers and the joists spanning across them to support the flooring. Their sizes and spacings are set for the span and load, and together they form the subfloor framing. See also: Stumps.
Reinforcement: Reinforcement is the steel, in bar or mesh form, cast into concrete to give it the tensile strength concrete lacks on its own. The size, placement and cover of the reinforcement follow the engineering design, and getting them right is a hold point because they disappear the moment the concrete is poured. General information, not engineering advice. See also: Formwork.
Formwork: Formwork is the temporary mould that holds wet concrete in shape until it cures, then is stripped away. Its accuracy sets the finished dimensions and level of the concrete, and it must be strong enough to hold the pour without moving, which is why it is checked before the pour goes ahead. See also: Reinforcement.
Concrete slump: Slump is a measure of the wetness and workability of fresh concrete, taken on site before it is placed. Ordering and checking the specified slump matters because concrete that is too wet can lose strength and too stiff can be hard to place and compact. General information, not engineering advice. See also: Control joint.
Control joint: A control joint is a planned line of weakness in concrete or masonry that encourages any cracking from shrinkage or movement to occur along the joint rather than randomly across the surface. Placing control joints is part of detailing concrete and masonry so movement is directed rather than left to chance. See also: Articulation joint.
Timber frame: A timber frame is a structural framework of timber wall frames and roof members that carries the loads of a home, the most common frame type in Australian housing. Frames are commonly prefabricated to the design and delivered for erection, and their accuracy governs everything fixed to them afterwards. See also: Steel frame.
Steel frame: A steel frame is a structural framework of light-gauge steel used as an alternative to timber for wall frames and roof trusses. It offers dimensional stability and termite resistance, and it needs its own detailing, for example around thermal bridging and fixing, which is designed for rather than assumed. See also: Timber frame.
Wall frame: A wall frame is the framed skeleton of a wall, made up of vertical studs between top and bottom plates, with noggins, lintels over openings and bracing. It carries the loads above and provides the fixing for linings and cladding, and it is set out from the plans so openings and services land where they should. See also: Lintel.
Roof truss: A roof truss is a prefabricated triangulated frame that forms the structure of a roof, engineered to span between supports and carry the roof loads. Trusses are made to order from the design and are a common long-lead item, so they are ordered off the programme well before they are needed. See also: Rafter.
Lintel: A lintel is the structural member that spans over a door or window opening to carry the load above it. Its material and size are set for the span and the load, and a lintel that is missing or undersized shows up as cracking or sag over the opening. General information, not engineering advice. See also: Wall frame.
Brick veneer: Brick veneer is a construction where a single outer leaf of brickwork is tied to a load-bearing timber or steel frame behind it, with a cavity between. The frame carries the structure and the brick is the weather skin and finish, which is the common alternative to double brick in Australian housing. See also: Double brick.
Double brick: Double brick, or cavity brick, is a construction with two leaves of masonry separated by a cavity, both contributing to the structure. It offers mass and durability at higher cost than brick veneer, and the cavity and its ties, flashings and weep holes are what keep water out of the wall. See also: Brick veneer.
Blockwork: Blockwork is walling built from concrete masonry blocks, used for structural walls, retaining walls and feature walls. Blocks can be core-filled and reinforced where the design requires, and the finish, face, rendered or painted, is decided as part of the detailing. See also: Rendered finish.
Weatherboard: Weatherboard is horizontal board cladding, traditionally timber and now also fibre cement, fixed in overlapping courses to shed water. It is a lightweight cladding fixed to the frame, and its performance depends on the sarking, flashings and paint or coating behind and over it. See also: Fibre cement cladding.
Fibre cement cladding: Fibre cement cladding is sheet or board cladding made from cement reinforced with fibres, used as a lightweight external finish in sheet, weatherboard and plank forms. It is durable and non-combustible, and cutting it releases silica dust, so it is worked with the required dust controls. General information, not safety advice. See also: Weatherboard.
Autoclaved aerated concrete(AAC): Autoclaved aerated concrete is a lightweight precast concrete containing fine air bubbles, used as panels or blocks for walls and flooring and known in Australia by the Hebel brand. It is light, workable and offers useful thermal and fire properties, and it is fixed and finished to its manufacturer’s system. See also: Blockwork.
Rendered finish: A rendered finish is a coating applied over masonry or a lightweight substrate to give a smooth or textured external surface. Render can go over brick, block or fibre cement, and the system, substrate, render and coating, is matched so it bonds and does not crack or debond over time. See also: Blockwork.
Roof tiles: Roof tiles are individual concrete or terracotta units laid in overlapping courses on battens to form a pitched roof covering. They give mass and a traditional appearance, need a minimum pitch to shed water, and rely on their flashings, sarking and pointing to keep the roof watertight. See also: Metal roofing.
Metal roofing: Metal roofing is sheet roofing, commonly profiled steel and widely known by the Colorbond brand, fixed over battens or purlins. It suits lower pitches than tiles, is lighter, and depends on correct fixing, flashing and fall to perform, with the sheets often a made-to-measure order. See also: Roof tiles.
Pitched roof: A pitched roof is a roof with sloping surfaces that shed water to the gutters, the common roof form in Australian housing. Its shape is described by terms such as hip, gable, ridge and valley, and the pitch has to suit the covering, because tiles and sheet metal each need a minimum slope to stay watertight. See also: Skillion roof.
Skillion roof: A skillion roof is a single sloping plane rather than the two or more planes of a traditional pitched roof, common in contemporary and low-cost designs. Its low pitch usually calls for sheet metal roofing, and its simplicity in framing is one reason it appears so often on modern homes. See also: Pitched roof.
Eaves and fascia: The eave is the part of the roof that overhangs the wall, and the fascia is the board along its edge that the gutter fixes to. Eaves shade windows and protect walls from rain, so trimming them to save cost has consequences for both weathering and thermal performance. See also: Gutter and downpipe.
Gutter and downpipe: Gutters collect the water running off the roof and downpipes carry it down to the stormwater system. Their size and number are set for the roof area and rainfall, and undersized or poorly fallen gutters overflow into the eaves and walls, which is why they are part of the roof design rather than an afterthought. See also: Flashing.
Flashing: Flashing is the sheet material used to seal and weatherproof the junctions of a roof or wall, such as where a roof meets a wall, a chimney or a penetration. Most roof leaks happen at junctions rather than in the middle of a sheet, which is why flashing detail is where waterproofing is won or lost. See also: Metal roofing.
Batten and purlin: Battens and purlins are the members fixed across the rafters or trusses that the roof covering fixes to, battens generally the lighter members under tiles or sheet and purlins the heavier members in some roofs. Their spacing suits the covering, and the roof covering fixes to them rather than directly to the trusses. See also: Rafter.
Rafter: A rafter is a sloping structural member that runs from the ridge down to the wall, forming the frame of a pitched roof in conventional cut construction. Rafters do the job trusses do in prefabricated roofs, and the choice between them affects both the roof space and the program. See also: Roof truss.
Glazing: Glazing is the glass in a building’s windows and doors, single or double, and a major influence on comfort, energy performance and cost. The energy provisions set performance requirements glazing must help meet, so the glass and frame are selected for their thermal performance, not just their look. General information, not compliance advice. See also: Insulated glazing unit.
Insulated glazing unit(IGU): An insulated glazing unit is a sealed assembly of two or more panes of glass separated by a spacer and a gas or air gap, commonly called double glazing. It improves the thermal performance of a window over single glazing, and a low-emissivity coating can improve it further, which is why IGUs feature in meeting energy requirements. General information, not compliance advice. See also: Glazing.
Safety glass: Safety glass is glass treated to reduce the risk of injury if it breaks, either toughened glass that shatters into blunt pieces or laminated glass that holds together on an interlayer. It is required in locations where breakage would be dangerous, such as doors and low windows, to the relevant Australian standard. General information, not compliance advice. See also: Glazing.
Plasterboard: Plasterboard is the sheet lining, a gypsum core faced with paper, used for most internal walls and ceilings, fixed to the frame and set at the joints. Specific grades are used for wet areas, fire separation and acoustic performance, so the right board goes in the right place rather than one board everywhere. See also: Cornice.
Cornice: Cornice is the moulding that finishes the junction between wall and ceiling, covering the joint and giving the room its finished line. Its profile is a design choice, from a simple cove to an ornate moulding, and it is part of the fixing and setting stage of the internal fit-out. See also: Plasterboard.
Screed: A screed is a layer of mortar laid to level a surface or to set the falls on it, most commonly under tiles in wet areas and on balconies so water runs to the drain. The falls formed in the screed are what make the waterproofing work, so it is set out to drain rather than laid flat. See also: Waterproofing.

Insurance and warranty

The compulsory schemes, commercial covers and eligibility measures behind every job.

Builders warranty insurance: Builders warranty insurance, also called home warranty insurance, is the compulsory cover most Australian states require before residential building work above a threshold, protecting the homeowner if the builder dies, disappears or becomes insolvent. The scheme name, threshold, limits and periods differ in every state, and Tasmania relies on statutory warranties rather than a mandatory insurance product. General information, not insurance advice. Builders warranty insurance reference. See also: Last-resort cover, Open Job Value.
Last-resort cover: Last-resort cover is warranty insurance that responds only when the builder can no longer be pursued, typically death, disappearance or insolvency, rather than whenever defective work occurs. Most Australian home warranty schemes are last-resort, with Queensland operating closer to a first-resort model. General information, not insurance advice. Home warranty insurance guide.
Open Job Value(OJV): Open Job Value is the maximum total contract value of residential building work a licensed builder is permitted to have under construction at any one time. It is set by home-warranty insurers from a builder’s financial position, not their building capacity. Open Job Value guide. See also: Adjusted Net Tangible Assets, Open Job Number.
Open Job Number(OJN): Open Job Number is the maximum count of incomplete jobs a builder may have at any one time under a home warranty eligibility assessment, the companion limit to Open Job Value. Together they operate as a hard cap on how much work can be under construction at once. General information; details are per the current scheme rules. NSW HBCF eligibility guide. See also: Open Job Value.
Adjusted Net Tangible Assets(ANTA): Adjusted Net Tangible Assets is the genuine equity in a building business after intangibles and certain related-party balances are removed and the remainder is weighted toward a fire-sale recovery position. It is the core financial measure home-warranty underwriters use to set a builder’s Open Job Value. Open Job Value guide. See also: Open Job Value.
Assumed turnover: Assumed turnover is the annual turnover a home warranty underwriter derives from a builder’s open job limits as if they were fully used over a year, the figure ANTA is then assessed against. It is an underwriting construct, not the builder’s actual revenue. General information; details are per the current scheme rules. NSW HBCF eligibility guide. See also: Adjusted Net Tangible Assets.
Certificate of Eligibility(COE): A Certificate of Eligibility is icare’s standing assessment that a building business may purchase home building compensation cover in NSW, recording its permitted open job limits and maximum contract price per construction type. It is not itself insurance; each job over the threshold still needs its own certificate of insurance before work starts or money is taken. General information; confirm current rules with the scheme. NSW HBCF eligibility guide. See also: Certificate of insurance.
Certificate of insurance(COI): A certificate of insurance is the per-job home warranty insurance certificate a builder must obtain before starting work or taking money on a job above the scheme threshold. It is issued under the builder’s standing eligibility and is the document the homeowner actually holds. General information; confirm current rules with the scheme. NSW HBCF eligibility guide. See also: Certificate of Eligibility.
Home Building Compensation Fund(HBCF): The Home Building Compensation Fund is the New South Wales home-warranty insurance scheme, administered by icare. Cover is generally required for residential building work over $20,000 and protects the homeowner if the builder dies, disappears or becomes insolvent. General information; confirm current rules with the scheme. Home warranty insurance guide. See also: Builders warranty insurance.
Domestic Building Insurance(DBI): Domestic Building Insurance is the Victorian home-warranty scheme, issued by the Building and Plumbing Commission. It is last-resort cover that responds if the builder dies, disappears, becomes insolvent or fails to comply with a tribunal or court order. General information; confirm current rules with the scheme. Victorian DBI guide. See also: Builders warranty insurance.
Queensland Home Warranty Scheme(QHWS): The Queensland Home Warranty Scheme is a statutory home-warranty insurance scheme administered by the QBCC, covering residential construction work valued over $3,300. It operates closer to a first-resort scheme than the last-resort schemes in other states. General information; confirm current rules with the scheme. Queensland home warranty guide. See also: QBCC.
Queensland Building and Construction Commission(QBCC): The Queensland Building and Construction Commission is Queensland’s building industry regulator, licensing contractors and administering the Queensland Home Warranty Scheme as its statutory insurer. General information; confirm current rules with the regulator. Queensland home warranty guide. See also: Queensland Home Warranty Scheme.
Building Indemnity Insurance(BII): Building Indemnity Insurance is the South Australian builder-warranty scheme under the Building Work Contractors Act 1995, compulsory for major domestic building work with a contract value of $12,000 or more. General information; confirm current rules with the scheme. SA Building Indemnity Insurance guide. See also: Builders warranty insurance.
Home Indemnity Insurance(HII): Home Indemnity Insurance is the Western Australian builder-warranty scheme under the Home Building Contracts Act 1991, required for residential building work valued over $20,000. General information; confirm current rules with the scheme. WA Home Indemnity Insurance guide. See also: Builders warranty insurance.
Residential building insurance (ACT): The ACT requires a residential building insurance policy or fidelity fund certificate for residential building work over $12,000, alongside the statutory warranties that apply under the Building Act 2004 (ACT). General information; confirm current thresholds and rules with the current ACT source. ACT home warranty guide. See also: Builders warranty insurance.
Fidelity Fund Certificate (NT): The Fidelity Fund Certificate is the Northern Territory’s mandatory residential building consumer protection, delivered through a fidelity fund rather than a conventional insurance policy but working like home warranty insurance in other states, with non-completion and defect cover subject to caps. General information; confirm current rules with the current NT source. NT Fidelity Fund Certificate guide. See also: Builders warranty insurance.
Contract works insurance: Contract works insurance covers the building work itself while it is under construction, physical loss or damage to the works from events such as fire, storm and theft. It protects the build in progress, where home warranty insurance protects the homeowner after the builder fails, two entirely different covers. General information, not insurance advice. Construction insurance reference. See also: Public liability insurance.
Public liability insurance: Public liability insurance covers a builder’s legal liability for injury to third parties or damage to their property arising from the building work. It is commercially essential on every site and frequently required by contracts and licences. General information, not insurance advice. Construction insurance reference.
Professional indemnity insurance(PI): Professional indemnity insurance covers liability arising from professional services such as design, certification or advice, relevant to builders who carry design responsibility, including design and construct work. General information, not insurance advice. Construction insurance reference. See also: Design and construct contract.
Plant and equipment insurance: Plant and equipment insurance covers a builder’s owned and hired machinery, tools and equipment against loss, damage and theft, on site and in transit. General information, not insurance advice. Construction insurance reference.
Certificate of currency: A certificate of currency is a document from an insurer confirming that a policy is in force, its cover and its dates. Builders commonly require a subcontractor’s certificate of currency for public liability and workers compensation before letting them start, so the cover behind the work is verified rather than assumed. General information, not insurance advice. Construction insurance reference. See also: Public liability insurance.
Insurance excess: An excess is the amount the insured pays toward a claim before the insurer pays the rest. A higher excess usually lowers the premium and raises what the builder carries on each claim, which is a deliberate trade-off rather than a detail. General information, not insurance advice. Construction insurance reference. See also: Insurance premium.
Insurance premium: A premium is the amount paid to hold an insurance policy, set by the insurer from the risk, the cover, the excess and the sum insured. On building work premiums are a real cost of doing business, and they belong in overheads and in the pricing of a job rather than as an afterthought. General information, not insurance advice. Construction insurance reference. See also: Insurance excess.
Sum insured: The sum insured is the maximum an insurer will pay under a policy. On contract works cover it needs to reflect the full cost to rebuild the works, because a sum insured set too low leaves the builder to fund the shortfall after a loss. General information, not insurance advice. Construction insurance reference. See also: Contract works insurance.
Underwriter: An underwriter is the party that assesses a risk and decides the terms on which it will be insured, including the premium and conditions. In home warranty schemes the underwriter also sets a builder’s eligibility limits from its financial position, which is why underwriting is a business constraint as much as an insurance one. General information, not insurance advice. Open Job Value guide. See also: Open Job Value.
Insurance broker: An insurance broker is an intermediary who arranges cover on behalf of the insured, advising on what is needed and placing it with insurers. Many builders arrange home warranty and their commercial covers through a broker, and the broker acts for the builder rather than the insurer. General information, not insurance advice. Construction insurance reference.
Duty of disclosure: The duty of disclosure is the insured’s obligation to tell the insurer the things that matter to its decision to insure and on what terms. Getting it wrong can let an insurer reduce or refuse a claim, which is why accuracy on a proposal is not a formality. General information, not insurance advice. Construction insurance reference.
Subrogation: Subrogation is an insurer’s right, after paying a claim, to step into the insured’s shoes and pursue whoever caused the loss to recover what it paid. It is why an insurer may chase a negligent trade after settling a claim, and why fault and records still matter once a policy has responded. General information, not insurance advice. Construction insurance reference.
Income protection insurance: Income protection insurance pays a portion of a person’s income if illness or injury stops them working. For a builder or subcontractor whose business depends on their own ability to work, it covers a risk that public liability and contract works do not. General information, not insurance or financial advice. Construction insurance reference.
Management liability insurance: Management liability insurance covers a range of risks that come with running a company, such as claims against directors, employment disputes and some statutory liabilities. It is a business cover distinct from the site-based construction policies, and what it includes varies by policy. General information, not insurance advice. Construction insurance reference.
Run-off cover: Run-off cover continues a claims-made policy, such as professional indemnity, for claims arising from past work after the business stops trading or stops the activity. It matters where liability can surface years later, because without it there may be no policy in place when a claim finally arrives. General information, not insurance advice. Construction insurance reference. See also: Professional indemnity insurance.
Tasmania home warranty position: Tasmania does not run a compulsory home warranty insurance product like the other states, relying instead on the statutory warranties and other consumer protections in its building laws. It is the main exception to the state-by-state warranty insurance schemes, and the current position should be confirmed with the relevant Tasmanian authority. General information, not insurance advice. Tasmania home warranty guide. See also: Statutory warranties.

Business, licensing and insolvency

How a builder is licensed to trade, employs and is taxed, and what the words mean when a building business fails.

Builder’s licence: A builder’s licence is the authorisation a person or company must hold to carry out or contract for residential building work above a value threshold. Licensing, its classes and its thresholds are administered by each state and territory, so who must be licensed and for what is confirmed with the relevant authority. General information, not legal advice. See also: Nominated supervisor.
Nominated supervisor: A nominated supervisor, or qualified supervisor, is the licensed individual whose qualifications and experience support a company’s building licence and who supervises its work. Where a company holds a licence through a nominated person, losing that person can affect the company’s ability to contract, so it is a real business dependency. General information, not legal advice. See also: Builder’s licence.
Licence class: A licence class defines the type and scope of building work a licence permits, separating, for example, a builder’s licence from individual trade licences. Working outside the class of licence held can breach the licensing law, so the class is matched to the work the business actually takes on. General information, not legal advice. See also: Builder’s licence.
Employee and subcontractor: Whether a worker is an employee or a genuine subcontractor determines who is responsible for tax withholding, superannuation, insurance and leave, and it is decided by the substance of the arrangement rather than the label on it. Getting it wrong carries real liability, so the distinction is confirmed against the current tests with an adviser. General information, not legal or tax advice. Subcontractor management reference. See also: Sham contracting.
Sham contracting: Sham contracting is treating someone who is really an employee as an independent contractor to avoid the obligations that come with employing them. It is unlawful, and it exposes the business to back-payments and penalties, which is why the genuine nature of an arrangement matters more than how it is papered. General information, not legal advice. See also: Employee and subcontractor.
PAYG withholding: PAYG withholding is the amount an employer withholds from employees’ wages and remits to the ATO toward their income tax. It is money held on behalf of the employee and the tax office rather than the business’s own, and it is reported through the activity statement. General information, not tax advice. See also: Business Activity Statement.
PAYG instalments: PAYG instalments are regular prepayments a business or individual makes toward their own expected income tax, so the liability does not fall due in one lump at year end. They are reported through the activity statement, and the amount is based on the ATO’s calculation or a rate. General information, not tax advice. See also: PAYG withholding.
Superannuation guarantee: The superannuation guarantee is the compulsory superannuation an employer must pay on top of wages for eligible workers, into their nominated fund. The rate and the eligibility rules are set by law and change over time, so the current rate and rules are confirmed with the ATO or an adviser. General information, not tax advice. See also: Labour on-costs.
Workers compensation: Workers compensation is the compulsory insurance that covers workers for work-related injury and illness, providing income and medical support. It is administered scheme by scheme across the states and territories, and builders commonly require a subcontractor’s cover to be current before they start. General information, not insurance or legal advice. Construction insurance reference. See also: Certificate of currency.
Portable long service leave: Portable long service leave lets construction workers accrue long service leave across different employers in the industry through a state scheme, rather than losing it when they change jobs. Employers contribute to the scheme for eligible workers, and the rules and rates are set per jurisdiction. General information, not legal advice.
Australian Business Number(ABN): An Australian Business Number is the identifier a business uses in its dealings with the ATO, other businesses and government. Suppliers and subcontractors quote it on invoices, and its absence can trigger amounts being withheld from a payment, so it is part of setting up any trading relationship. General information, not tax advice. See also: Tax invoice.
Taxable payments annual report(TPAR): A taxable payments annual report is a report to the ATO of the payments a business has made to contractors during the year, required of businesses in the building and construction industry among others. It is a reporting obligation separate from the activity statement, and the current requirements are confirmed with the ATO or an adviser. General information, not tax advice. See also: Business Activity Statement.
Business structure: A business structure is the legal form a building business trades through, commonly a sole trader, a company or a trust, each with different tax, liability and licensing consequences. The structure affects how profit is taxed and how much the operator’s personal assets are exposed, which is why it is set up with professional advice. General information, not legal or tax advice. Company structure reference.
Trust account: A trust account holds money on behalf of others separately from a business’s own funds, so it is protected and used only for its purpose. In construction it appears in retention trust and project bank account arrangements that ring-fence money owed down the chain, and where such schemes apply is set per jurisdiction. General information, not legal advice. Retention and payment terms reference. See also: Retention trust.
Invoice finance: Invoice finance, or debtor finance, is borrowing against unpaid invoices to bring cash forward before customers pay. It can ease the structural gap a builder finances between paying trades and being paid, at a cost, and it is one option to weigh against managing the cash cycle itself. General information, not financial advice. Working capital reference. See also: Working capital.
Insolvency: Insolvency is being unable to pay debts as and when they fall due. It is a cash-flow test rather than a measure of the order book, which is why a builder with plenty of work can still be insolvent, and it is the trigger for the formal processes that follow. General information, not legal advice. See also: Insolvent trading.
Liquidation: Liquidation is the winding up of a company, in which a liquidator takes control, realises its assets and distributes the proceeds to creditors before the company is deregistered. It is generally the end of the company, and for a builder it is the event home warranty insurance is designed to protect the homeowner against. General information, not legal advice. See also: Voluntary administration.
Voluntary administration: Voluntary administration is a process in which an external administrator takes control of a financially distressed company to work out whether it can be saved, sold or must be wound up. It pauses many creditor actions while the administrator investigates and reports, and it can lead to a deed of company arrangement or to liquidation. General information, not legal advice. See also: Deed of company arrangement.
Deed of company arrangement(DOCA): A deed of company arrangement is a binding agreement between a company and its creditors, coming out of voluntary administration, that sets how the company’s affairs will be dealt with, often to give creditors a better return than immediate liquidation. Whether one is put forward and accepted is decided by the creditors on the administrator’s report. General information, not legal advice. See also: Voluntary administration.
Receivership: Receivership is where a receiver, usually appointed by a secured creditor, takes control of some or all of a company’s assets to realise them and repay that creditor. It can run alongside other insolvency processes, and its focus is the secured creditor’s security rather than the company as a whole. General information, not legal advice. See also: Liquidation.
Phoenixing: Phoenixing is closing a company to avoid paying its debts and continuing the same business through a new entity, leaving creditors, subcontractors and the tax office unpaid. Illegal phoenixing is unlawful and targeted by regulators, and it is one reason suppliers register their interests and check who they are dealing with. General information, not legal advice. See also: PPSR.
Statutory demand: A statutory demand is a formal demand on a company to pay a due debt within a set time, and failing to comply or set it aside can be used as evidence the company is insolvent to support a winding-up application. It is a serious document with strict timeframes, so it is acted on promptly with advice. General information, not legal advice. See also: Insolvency.
Unfair preference: An unfair preference is a payment a company made to a creditor shortly before insolvency that put that creditor ahead of others, which a liquidator may be able to claw back. It means a subcontractor or supplier paid just before a builder’s collapse can, in some cases, be asked to return the money. General information, not legal advice. See also: Liquidation.
Insolvent trading: Insolvent trading is a company incurring debts when it is already insolvent, which can make its directors personally liable for those debts. It is why directors of a struggling building company need to act early and take advice rather than trading on in hope. General information, not legal advice. See also: Safe harbour.
Safe harbour: Safe harbour is a protection that can shield directors from personal liability for insolvent trading while they pursue a course of action reasonably likely to lead to a better outcome than immediate administration or liquidation. It applies only where its conditions are met, so it is used with professional advice rather than assumed. General information, not legal advice. See also: Insolvent trading.
Director penalty notice(DPN): A director penalty notice is a notice the ATO can issue making a company’s directors personally liable for certain unpaid tax debts, such as PAYG withholding and superannuation. It removes the protection the company structure would otherwise give for those amounts, which is why they are treated as debts that must not fall behind. General information, not tax or legal advice. See also: PAYG withholding.

Software and intelligence

The vocabulary of construction software, structured intelligence and Oryn.

Reconstruction Tax: The Reconstruction Tax is the hidden, recurring cost a construction business carries when the understanding of a job is rebuilt from scratch at each handover between estimating, procurement, site, accounts and management, because traditional construction software stores job data without preserving an understanding of the job. VIABUILD coined the term and is built to eliminate it. The Reconstruction Tax guide. See also: System of understanding, Re-keying.
Re-keying: Re-keying is manually typing information into one system that already exists in another, the estimate re-entered as a budget, the quote re-entered as an order. Every re-key is a chance to lose intent and introduce error, and it is the day-to-day mechanism of the Reconstruction Tax. Estimate to budget handover reference. See also: Reconstruction Tax.
Construction Operating System: A Construction Operating System is software that runs the connected workflows of a building business, estimating, procurement, scheduling, site, claims and finance, on one shared model of each job, rather than a set of disconnected tools. VIABUILD describes itself as the Construction Operating System for residential builders. AI construction operating system page. See also: System of understanding.
System of understanding: A system of understanding is software that holds a structured model of how a build fits together and interprets information once for every later workflow, rather than storing documents for humans to re-interpret at each step. It is the philosophy behind VIABUILD, in contrast to a system of record. System of understanding page. See also: System of record, Interpret once principle.
System of record: A system of record is software that stores information as the authoritative copy, a filing cabinet with search. It keeps data without preserving an understanding of the job, which is why every handover out of it requires a human to rebuild context. System of understanding page. See also: System of understanding.
Interpret once principle: The interpret once principle holds that information should only need to be understood once, a room identified at estimating, a supplier recognised in accounts, each serving every later workflow instead of being re-entered. It is the working rule that eliminates the Reconstruction Tax. System of understanding page. See also: Reconstruction Tax.
Construction Intelligence: Construction Intelligence is software that holds a structural understanding of how a job fits together and reasons over it, the shared model that estimator, site, accounts and client can all read. It is understanding first and automation as a consequence, not automation bolted onto storage. Construction Intelligence reference. See also: Structured intelligence.
Structured intelligence: Structured intelligence is intelligence that works from a connected model of the build, the jobs, cost lines, orders, invoices, claims and schedule and how they connect, rather than from raw documents alone. Because it knows what a piece of information is and where it belongs, its output is specific, grounded and checkable rather than a guess to be trusted. Oryn feature page. See also: Oryn, Grounded.
Oryn: Oryn is VIABUILD’s embedded intelligence layer. It reads the one shared understanding of a job and brings the right context to each decision, reading documents, matching invoices to orders, drafting claims and answering questions with sources, while never changing a record touching money or legal on its own. Oryn is a name, not an acronym, and not a chatbot. Oryn feature page. See also: Structured intelligence, Trust grammar.
Trust grammar: The trust grammar is the visual language that keeps a human in control of AI in VIABUILD. Amber means a candidate waiting on you, green means committed and confirmed by a human, every AI value cites its source, and money and legal never auto-commit. AI in construction guide. See also: Candidate and committed, Staged action.
Candidate and committed: Candidate and committed are the two states of any value AI prepares in VIABUILD. A value Oryn has extracted or suggested is a candidate, shown amber, until a human commits it, at which point it turns green and becomes part of the record. AI in construction guide. See also: Trust grammar.
Staged action: A staged action is a prepared, human-readable summary of exactly what an AI system will do, frozen in a plain sentence, that is only carried out when the user confirms it. It is the only way Oryn changes a record from an instruction, with permissions re-checked at the moment of confirmation. Construction AI assistant page. See also: Trust grammar.
Grounded (AI): Grounded means every value and answer an AI system produces carries the exact source it came from, a document and page or the in-app screen. A grounded system is forbidden from using outside knowledge, answers only from the material in front of it, and says so when it does not know rather than guessing. Construction AI assistant page. See also: Structured intelligence.
Deterministic engine: A deterministic engine is a precise, repeatable calculation with no language model involved, used wherever numbers, geometry or matching must be exact, cash flow forecasts, budget variance, purchase order matching and takeoff measurement. The same inputs always produce the same answer, which is why money maths should never be left to a model. AI in construction guide. See also: Model assisted, Blended engine.
Model assisted: Model assisted describes a capability where a language model does the language work, reading an invoice, coding a line, drafting a note, always grounded in the job’s real data and always presented as a suggestion for a human to confirm. The language is the model’s job; the numbers stay deterministic. AI in construction guide. See also: Deterministic engine.
Blended engine: A blended engine reads everything it can with deterministic rules first and calls a language model only for what rules cannot resolve. A fully machine-readable document can be processed with no model call at all, which keeps the work fast, cheap and exact wherever exactness is possible. AI in construction guide. See also: Deterministic engine, Model assisted.
Language model: A language model is AI that reads and produces natural language. In construction software it is genuinely useful where language is the actual problem, reading documents and drafting words, and unreliable as a source of numbers, which is why trustworthy systems keep calculations deterministic and use models only for language. AI in construction guide. See also: Model assisted.
Document intelligence: Document intelligence is software that reads construction documents into structured meaning, classifying the document, extracting its facts with the page each came from, and filing it against the right job. Trustworthy systems are built deterministic-first, keep every extraction traceable to its source, and leave commitment to a human. Document intelligence reference. See also: Grounded.
Variance alert: A variance alert is an automatic notification that fires when a job’s cost position crosses a defined threshold against budget. Done properly it is deterministic, an exact calculation on real figures, not an AI estimate, and it exists so a drifting job is seen while the drift can still be acted on. AI construction project management page. See also: Deterministic engine.
AI takeoff: AI takeoff is software-assisted quantity measurement from plans, done properly with deterministic computer vision and geometry, one click to fill and measure a room, reading the architect’s printed dimensions and trusting them over inference. It is precise measurement from the drawing, not a language model guessing at the plan. AI takeoff software page. See also: Takeoff.
AI estimating: AI estimating is the honest use of AI inside the estimating workflow, measured quantities, the builder’s own rates and assemblies, and a deterministic calculation producing the number, with models assisting on language tasks around it. A model can produce a rough figure; a defensible estimate stays deterministic. AI construction estimating page. See also: Deterministic engine.
AI accounts payable: AI accounts payable is software that reads a supplier invoice, matches it to the right purchase order deterministically, suggests the cost code for each line and queues it for one-tap human approval. Nothing posts on its own, and high-value or low-confidence invoices are forced to human review by design. AI accounts payable feature. See also: Invoice matching.
Construction management software: Construction management software is the category of tools a building business runs its jobs on, spanning estimating, scheduling, cost control, claims and client communication. Choosing it well is a criteria question, the must-haves, the platform versus point-solution trade-off, and the vendor questions that expose weak answers. Choosing construction software guide. See also: Point solution.
Point solution: A point solution is software that does one job well, takeoff, scheduling or safety, and leaves the rest of the business to other tools. The trade-off against a platform is integration, because every seam between point solutions is a handover where understanding is rebuilt by hand. Choosing construction software guide. See also: Construction management software.
Software integration: Software integration is connecting two systems so information flows between them without being re-entered, such as a construction platform passing invoices and costs to the accounting system. A real integration removes a re-keying handover, and a shallow one just moves the retyping somewhere else, which is the difference worth testing before relying on it. Choosing construction software guide. See also: Re-keying.
Application programming interface(API): An application programming interface is the defined way one system lets another read or write its data, the plumbing behind an integration. Whether a construction tool has a usable API decides how well it can join the rest of a builder’s systems rather than becoming an island that has to be typed into. Choosing construction software guide. See also: Software integration.
Cloud-based software: Cloud-based software runs on remote servers and is used through a browser or app, so the same current data is available to the office and the site without installing or syncing anything. For a building business it is what lets the estimator, the supervisor and accounts work from one live picture of a job rather than emailed copies. Choosing construction software guide.
Audit trail: An audit trail is the recorded history of who changed what and when in a system. On money and contract records it is what makes a value defensible later, because a number without a history is just an assertion, and it is part of why committed and confirmed records matter more than editable ones. AI in construction guide. See also: Candidate and committed.
Role-based access: Role-based access controls what each person can see and do in a system according to their role, so a subcontractor, an estimator and an owner each get the right slice. On construction software it is what lets one shared model of a job be opened to everyone who needs it without exposing what they should not touch. AI in construction guide. See also: Staged action.
Data migration: Data migration is moving a builder’s existing jobs, contacts, cost data and history into a new system when changing software. Done well it carries the useful history across, and done badly it recreates the Reconstruction Tax on day one, which is why migration is planned as part of choosing a platform rather than left to the end. Migration page. See also: Reconstruction Tax.
Optical character recognition(OCR): Optical character recognition is the deterministic reading of printed or scanned text into machine-readable characters, the first step in turning a paper or PDF invoice into data. It is a rules-based technology rather than a language model, which is why a machine-readable document can be read exactly with no model involved at all. Document intelligence reference. See also: Document intelligence.
Computer vision: Computer vision is software that interprets images and drawings by geometry and pattern rather than language, used in takeoff to read the lines and dimensions of a plan. Because it measures rather than guesses, a takeoff built on computer vision trusts the architect’s printed dimensions instead of inferring them. AI takeoff software page. See also: AI takeoff.
Confidence score: A confidence score is how sure an AI system is about a value it has extracted or suggested. In a trustworthy system a low score routes the item to a human rather than committing it, which is how confidence is used to protect the record instead of being shown and ignored. Construction AI assistant page. See also: Candidate and committed.
Human in the loop: Human in the loop means a person confirms an AI system’s work before it takes effect, rather than the system acting on its own. In VIABUILD it is enforced by the trust grammar, where money and legal never auto-commit and every AI value waits as a candidate until a human commits it. AI in construction guide. See also: Trust grammar.
AI hallucination: A hallucination is a confident but wrong answer a language model produces when it fills a gap with plausible invention rather than fact. It is the specific failure grounding is built to prevent, by forbidding a system from using outside knowledge and requiring every answer to cite the source it came from or say it does not know. Construction AI assistant page. See also: Grounded.

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The terms behind the numbers,defined plainly.