Building terms, explained in plain English
35 words you'll hear when you build in Canberra or the NSW towns nearby, from approvals and certifiers to PC items and lock-up. Each one is linked so you can share it.
Approvals and planning
- Building approval BA
In the ACT, most new homes, extensions and larger sheds need building approval before work starts. A licensed building certifier checks the plans against the building code and issues it.
How approvals fit into a build- Development application DA
An application for planning approval to build or change how land is used. In the ACT it goes to the planning authority when a design falls outside the exempt rules. In NSW it is lodged with the local council through the NSW Planning Portal.
- Exempt development
Small, low-risk work that needs no planning or building approval, as long as it stays within set limits on size, height and distance from the boundaries. Many small sheds and carports fit here, but the limits are different in the ACT and NSW.
Do you need approval for a shed?- Complying development certificate CDC
A faster approval in NSW for work that meets a fixed set of standards. A council or a registered certifier issues it, usually much sooner than a DA would be decided.
- Construction certificate CC
In NSW, the certificate you need after a DA is approved and before building starts. It confirms the detailed construction plans meet the building code.
- Building certifier
An independent, licensed professional who checks the plans, inspects the work at set stages and signs it off. In the ACT the certifier issues the building approval. In NSW a registered certifier issues the CDC or construction certificate.
- Certificate of occupancy
Issued in the ACT once a new home or major building work passes its final inspection. It confirms the building can be lived in or used.
- Occupation certificate OC
The NSW version of a certificate of occupancy. The certifier issues it after the final inspection, and you need it before moving in.
- Territory Plan
The ACT planning rules that set what can be built where, from block coverage and height to how close a building can sit to the boundary.
- Crown lease
Land in the ACT is held on a Crown lease rather than freehold. The lease includes a purpose clause saying what the block can be used for, which matters for dual occupancy and commercial work.
Licences and insurance
- ACT Class A builder licence
The broadest builder licence class in the ACT, covering building work of any size or type. Construction Xperts holds ACT licence 2023538, Class A, as a company licence.
Our licences and how to check them- NSW contractor licence
The licence a builder needs in NSW to contract for residential building work over $5,000. Construction Xperts holds NSW licence 499527C. You can check any licence on the NSW Fair Trading website.
- Residential building work insurance
Insurance the ACT requires for a new home and most structural alterations or additions of $12,000 or more. It protects the owner if the builder dies, disappears or becomes insolvent. A fidelity certificate does the same job.
- Home building compensation cover HBC
The NSW equivalent, required for residential building work over $20,000. It covers incomplete or defective work if the builder can no longer finish or fix it.
- Statutory warranties
Warranties set by law in the ACT and NSW that apply to residential building work whatever the contract says. The work has to be done properly, with suitable materials, and to the approved plans.
Quotes, contracts and payments
- Site costs
The work around the house itself: excavation, retaining walls, rock removal, drainage, and connecting power, water, sewer and NBN. They depend entirely on the block, which is why a builder should see it before quoting.
What drives a building price- Provisional sum PS
An allowance in the contract for work whose cost can't be fixed yet, such as rock excavation. When the real cost is known, the price goes up or down to match, labour included.
- Prime cost item PC item
An allowance for something you haven't picked yet, such as a tap, an oven or tiles. If your choice costs more or less than the allowance, the price is adjusted. It usually covers the item only, not the labour to install it.
- Variation
A change to the work after the contract is signed. We write each one up showing the cost and any time it adds, and you approve it before the work is done.
- Progress payments
Payments made as each stage of the build is finished, rather than all at once. For a new home that's usually a deposit, then slab, frame, lock-up, fixing and practical completion.
- Practical completion
The point where the work is finished to the contract, apart from minor defects that don't stop you using it. Handover follows, and the final payment falls due.
Stages of a build
- Slab stage
The footings and concrete slab are poured and the plumbing under the floor is in place. It's usually the first progress payment after the deposit.
- Frame stage
The wall and roof frames are up and braced, and the certifier usually inspects them before the walls are closed in.
- Lock-up
The outside walls, roof, windows and external doors are on, so the building can be locked.
- Fixing stage
Inside work: plasterboard, internal doors, skirting, cabinetry and the bathroom and kitchen fit-off.
Homes, energy and design
- Knockdown rebuild KDR
Demolishing an existing house and building a new one on the same block. You keep the street and the land, and get a new home built to today's rules.
Knockdown rebuilds- NatHERS rating
The Nationwide House Energy Rating Scheme rates a home's design from 0 to 10 stars for how much heating and cooling it needs. New homes in the ACT need at least 7 stars.
Building a new home- BASIX
The Building Sustainability Index, which sets energy and water targets for new homes and some alterations in NSW. It plays the same role over the border that NatHERS plays in the ACT.
- Energy efficiency rating EER
An ACT star rating that has to be shown when a home is advertised for sale or lease. A well designed new home sets you up for a strong EER later.
- All-electric home
A home with no gas: heating, hot water and cooking all run on electricity. The ACT no longer allows new gas connections for new homes, so every new ACT home is all-electric.
Sheds and garages
- Class 10a building
The building code class for non-habitable buildings such as sheds, garages and carports. People can't live or sleep in a Class 10a building.
Sheds and garages- Wind region and terrain category
Engineering inputs for a steel shed. Together with the importance level, they set how strong the frame, bracing and fixings have to be for that site.
- National Construction Code NCC
Australia's building code. It sets the minimum standards for structure, fire safety, health, access and energy for every class of building.
Commercial fit-outs
- Cat A fit-out
The base a landlord provides in a tenancy, like ceilings, lighting, air-conditioning and floor finishes.
Commercial fit-outs- Cat B fit-out
The tenant's layer on top of Cat A: walls, offices, kitchens, joinery, data and branding that turn the space into a working office or shop.
Heard a term that isn't here?
Ask us. We'll explain it in plain words, and if it's about your job, we'll call you back within a business day.