Build Jargon 101

A legal right for someone else to use part of your land for a specific purpose — typically utilities, drainage, or access for a neighbour.

The minimum distance your structure must sit from a boundary — front, rear, or side. Set by your local council zoning rules.

Local council classifications that determine what can be built on a parcel of land — residential, commercial, agricultural, etc.

A geotechnical rating (S, M, H1, H2, E, P) that describes how reactive your soil is to moisture changes. Determines your slab and footing type.

A legal check of who owns a property and what encumbrances (mortgages, easements, caveats) are registered against it.

A private restriction registered on the title by a developer or previous owner — e.g. must use brick, no dual occupancy, minimum floor area.

An allowance in the contract for a specific item not yet selected — like tapware or tiles. The builder sets an allowance; you pay the difference if you choose something more expensive.

An estimate for work that can’t be precisely priced yet — like excavation or site costs. The final amount is adjusted when the actual cost is known.

Any change to the original contract — additional work, design changes, or substitutions. Variations must be agreed in writing and usually cost extra.

A pre-agreed daily penalty the builder pays if they don’t finish by the contracted completion date.

Payments made at defined milestones during construction — typically: deposit, base, frame, lock-up, fixing, and completion.

A period after handover (typically 3–12 months) during which the builder must fix defects at no cost to you.

Extra costs beyond the base build price to prepare your specific land — demolition, excavation, retaining walls, rock removal, service connections.

The construction stage when the home is weatherproof — roof on, walls up, windows and external doors fitted. Also called “enclosed.”

The point when the building is finished and fit for occupation, even if minor defects remain. Triggers final payment and handover.

A concrete foundation poured directly on the prepared ground. The most common residential foundation type in many regions.

Membrane or coating applied to wet areas (bathrooms, laundry, balconies) to prevent water penetration into the structure.

A score (typically 6–7 stars NatHERS in Australia) measuring your home’s thermal performance. Required for building approval in most regions.

A structure that holds back soil on a sloped block to create level areas for building, driveways, or landscaping.

A loan that releases funds in stages as construction progresses, rather than as a lump sum. You pay interest only on the amount drawn down.

The percentage of the property value you’re borrowing. An 80% LVR means you’re borrowing 80% and contributing 20% deposit.

A government tax on property purchases, calculated as a percentage of the purchase price. Rates vary by state/territory and property value.

A reserve fund — typically 10–15% of the total build cost — set aside for unexpected costs, variations, and overruns.

Someone who acts as their own builder, taking legal responsibility for the construction project and managing tradespeople directly.

Council permission to use or develop land in a particular way. Required before most construction starts. Also called a DA or planning permit.

Approval from a building surveyor that the proposed building work complies with the Building Code. Separate from a development approval.

An official document certifying that a completed building complies with approvals and is safe to occupy. Also called an occupancy certificate or final inspection certificate.

Insurance that covers injury or property damage to third parties caused by your contractor’s work.

Statutory insurance (mandatory in most states) that protects you if the builder becomes insolvent, dies, or disappears before completing the work.

A form of ownership for part of a larger property — like a unit in an apartment building. You own your lot plus a share of common property.