Home Building Terms Explained
A simple explanation of common terms used in house plans, builder tenders and building documents.
Building documents often contain technical terms that can be confusing for first-time home builders. This glossary explains common terminology used in builder tenders, house plans and inclusions so you can better understand what you are reviewing.
A
Allowances
Allowances are estimated budget amounts included in a builder’s tender for items that have not yet been fully specified or selected. These allowances may apply to items such as appliances, tiles, tapware or site-related work. Two common types of allowances are Prime Cost (PC) items and Provisional Sums. If the final cost of the selected item or work exceeds the allowance, the difference will usually be charged as a variation.
Asset Protection
Asset protection measures are requirements set by local councils to protect public infrastructure such as roads, footpaths, kerbs and drainage during construction. Builders may be required to install protective fencing or barriers, and in some cases pay a bond before construction begins. This ensures that any damage caused during the building process can be repaired.
B
BAL Rating
BAL stands for Bushfire Attack Level. It measures the potential exposure of a property to bushfire risk and determines additional construction requirements such as specialised windows, screens or non-combustible materials. Higher BAL ratings usually require more robust building materials and may increase construction costs.
Building Envelope
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The building envelope defines the area on the block where the house is allowed to be constructed according to planning regulations or estate guidelines.
Building Permit
A building permit (also called building approval) is formal permission issued by a private certifier or local authority confirming that the building plans comply with the National Construction Code and relevant regulations. Construction generally cannot begin until this approval has been granted.
C
Construction Timeline
The construction timeline outlines the expected duration and stages of the building process, from site preparation through to completion and handover.
Covenant
A covenant is a legal restriction placed on a property title that limits certain aspects of development. Covenants are often imposed by developers in new estates and may regulate items such as building height, facade design, roof materials or fencing styles. Buyers must ensure their home design complies with these requirements.
D
Defects Liability Period
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The defects liability period is a specified time after handover during which the builder must fix defects or issues identified in the construction work.
Design Guidelines
Design guidelines are rules set by developers or estate managers that control aspects of home design to maintain a consistent streetscape. These guidelines may include requirements for facade styles, building materials, roof colours, landscaping or driveway design.
E
Earthworks
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Earthworks refer to excavation, soil removal or reshaping of land required to prepare the site for construction. This may include cutting or filling the land to create a level building platform. Because the amount of work required may vary depending on soil conditions, earthworks are sometimes included as a provisional sum.
Easement
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An easement is a section of land where services such as drainage, sewer, water or electricity infrastructure are located. Easements give utility providers access to maintain these services and usually restrict the construction of permanent structures within the easement area.
Electrical Plan
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An electrical plan shows the locations of power points, light fittings, switches, data outlets and other electrical components in the house. These plans are typically reviewed or finalised before the selections appointment.
Elevation
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An elevation drawing shows the external appearance of the house from different sides, typically including the front, rear and side views. Elevations illustrate features such as roof lines, windows, external materials and facade elements. They help visualise how the completed home will look from the outside.
Engineering Plans​
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Engineering plans provide structural details for key components of the house, including slab design, footings, framing and load-bearing elements. These plans ensure the building is designed to safely support structural loads and comply with building regulations.
F
Facade
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A facade refers to the external front design of the house. Builders often offer multiple facade options for the same floor plan, which may include different materials, window arrangements, render, brickwork or architectural features.
Fittings
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Fittings are items that can generally be removed without damaging the structure of the building. Examples include appliances, light fittings or curtain rods.
Fixtures
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Fixtures are items that are permanently attached to the building structure, such as sinks, toilets, cabinetry and built-in wardrobes. These items are usually considered part of the property.
H
HIA Contract
The HIA Contract is a standard residential building contract developed by the Housing Industry Association and commonly used by builders in Australia. It outlines the rights and responsibilities of both the builder and the homeowner, including pricing, payment stages, variations, timelines and dispute processes.
I
Inclusions
Inclusions describe the products, materials and finishes included in the builder’s price. This can include flooring, appliances, electrical fittings, cabinetry, paint finishes and external materials. Understanding what is included—and what is not—is essential when reviewing a builder’s tender.
Initial Deposit
The initial deposit is the payment made when signing a building contract or preliminary agreement with a builder. The amount and payment conditions are regulated by building contract legislation.
L
Lot Size
Lot size refers to the total area of land on which the house will be built. The size and shape of the lot influence the house design, available building area and setback requirements.
N
NatHERS Energy Rating
NatHERS stands for Nationwide House Energy Rating Scheme. It measures the energy efficiency of a home’s design and is expressed as a star rating. New homes must achieve minimum energy ratings to meet building regulations.
P
Practical Completion​
Practical completion is the stage when the home is considered sufficiently complete for the owner to take possession, even though minor defects or unfinished items may remain.
Pre-Site Variation ​
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A pre-site variation is a change made to the building plans or inclusions after the initial contract has been signed but before construction begins. These changes may affect the final price and must usually be approved and documented before the project moves to site.
Prime Cost (PC) Item
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A Prime Cost item is an allowance included in the builder’s tender for products that have not yet been selected. Common examples include taps, sinks, tiles or appliances. If the final product chosen exceeds the allowance, the difference must be paid as an upgrade.
Provisional Sum ​
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A provisional sum is an estimated allowance for work where the exact cost cannot be determined when the contract is signed. This often applies to excavation, drainage or other site-related work. The final cost may increase depending on site conditions.
R
Retaining Wall
A retaining wall is a structure used to hold back soil when there is a difference in ground levels between areas of land
S
Selection Appointment
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A selections appointment is the meeting where clients choose finishes and materials for their home, such as flooring, cabinetry, tiles, tapware and colours. These selections can significantly affect the final price of the build.
Setback
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Setbacks are the minimum required distances between the building and the property boundaries. These distances are determined by local planning regulations or estate design guidelines.
Settlement
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Settlement is the legal process where ownership of the land transfers from the seller to the buyer and payment is completed.
Site Cost
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Site costs refer to additional work required to prepare the land for construction. These costs may include excavation, retaining walls, drainage, rock removal or additional foundations depending on site conditions.
Site Preparation
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Site preparation includes clearing vegetation, levelling land, installing temporary access and preparing the ground before building work begins.
Slab Design
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Slab design refers to the structural design of the concrete slab foundation. The design is determined by soil classification and engineering requirements to ensure the house is supported safely.
Soil Classification
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Soil classification describes how reactive the soil is on a building site. In Queensland classifications such as M, H1 or H2 indicate how much the soil may expand or contract due to moisture changes.
Specifications
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Specifications provide detailed descriptions of the materials, finishes and construction methods included in the building contract.
Standard Inclusions
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Standard inclusions refer to the base level products and finishes included in the builder’s advertised or quoted price before any upgrades are selected.
T
Tender
A builder tender is a detailed document outlining the price, inclusions and specifications for constructing a house based on a selected floor plan and site conditions.
U
Upgrade
An upgrade refers to any product, material or feature chosen that exceeds the standard inclusions provided by the builder. Upgrades usually increase the contract price.
V
Variation
A variation is a change to the building plans, inclusions or specifications after the original agreement. Variations can increase costs and may also affect construction timelines.
W
Wind Rating
Wind rating describes the wind loads a house must be designed to withstand. In many Queensland areas ratings such as N2 or N3 apply, and higher ratings may require stronger structural components.
Working Drawings
Working drawings are the detailed construction drawings used by builders and trades during construction. They include floor plans, elevations, electrical layouts, structural details and other technical information required to build the home.
Still unsure about your builder documents?​
Understanding building terminology is only one part of reviewing your plans and tender documents. If you're unsure about allowances, upgrades, layout decisions or potential risks before signing with a builder, Home Build Ally provides independent guidance to help first home builders understand their documents clearly and make confident decisions before construction begins.
You can learn more about our Plan & Tender Review service or request a Starter Consult if you would like an independent second set of eyes on your building documents.