Glossary
The terms behind the numbers,
defined plainly.
Builder finance, home-warranty insurance and compliance terms, defined in plain English. The acronyms that decide how much work you can carry and what cover you need.
- 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.
- 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.
- 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.
- 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. Home warranty insurance guide.
- 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. Home warranty insurance guide.
- 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. Home warranty insurance guide.
- 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. Home warranty insurance guide.
- 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.
The platform behind the terms.
VIABUILD keeps the cost, claims and financials these terms describe accurate and current. 7 days free, then $199 your first month.