Approvals & Land Terminology
- Building permit
A building permit is official approval that allows construction to begin. In Victoria, it confirms that your proposed home complies with building regulations and structural standards.
It is different from planning approval and must be in place before any physical works start. Your builder will typically coordinate this process, but it is important to understand that no construction can legally commence without it. - Planning permit
A planning permit relates to how your home fits within local council requirements. Not every block requires one, but it may be necessary if there are overlays, specific estate guidelines or zoning restrictions. The key difference is simple. Planning approval looks at how the home fits within the neighbourhood. A building permit focuses on how the home is constructed. - Soil Test
A soil test assesses the classification of your block. In Victoria, soil conditions directly influence the type of footings and slab design required. If reactive clay or unstable soil is identified, the slab may need additional reinforcement. This is one reason site costs can vary significantly between blocks. - BAL rating
BAL stands for Bushfire Attack Level. Certain areas in Victoria are classified based on bushfire risk, and this rating determines the construction materials and methods required. Higher BAL ratings can increase costs due to the need for specialised materials such as bushfire resistant windows and doors. - Easement on title
An easement is a designated area on your land where you cannot build. It may allow access for drainage, sewerage or utilities. Easements can restrict where your home is positioned and influence your floor plan layout. - Setback requirements
Setbacks are the minimum distances your home must sit from the front, rear and side boundaries of your block. These requirements shape the size and orientation of your home and can impact design choices, especially on narrower lots. - Titled land & untitled land
Titled land is registered and ready to build on. Untitled land has not yet completed the registration process with the council or developer.
Building on untitled land may delay the start of construction, as permits and approvals cannot proceed until the title is issued.
Site costs & Pricing Terminology
- Site costs & fixed site costs
Site costs refer to the work required to prepare your block for construction. This may include earthworks, excavation, additional slab reinforcement or drainage solutions. Fixed site costs are estimates based on available information at the time of quoting. If conditions change or new information emerges after detailed assessments, adjustments may occur.
Understanding what is included in site costs is essential when comparing builders. - Standard inclusions
Standard inclusions outline what is provided in the base price of your home. This may cover structural elements, fixtures, finishes and certain appliances. Different builders define inclusions differently, so always review what is and is not included before assuming two quotes are comparable. - Upgrade options
Upgrades allow you to select higher quality finishes or alternative materials beyond the base specification. Some upgrades are aesthetic, such as cabinetry finishes. Others may be structural or compliance driven. Knowing the difference helps you prioritise spending - Prime cost items
Prime cost items are allowances set aside for items you will select later, such as tapware, tiles or appliances.
The allowance is included in your contract price, but if your chosen product exceeds that allowance, the difference is added to your final cost. - Provisional sums
Provisional sums are estimated amounts allocated for work that cannot be accurately priced at the time of contract signing. Because they are estimates, they carry risk. If the actual cost is higher than anticipated, you are responsible for the difference. - Contract variations
A variation is any change made to the agreed contract after signing. This could be a layout change, material substitution or adjustment required by site conditions. Variations usually impact both price and timeline, so clarity at the beginning of the process reduces the likelihood of unexpected changes.
Construction Stages
- Footings and slab
The slab forms the structural base of your home. It is engineered according to soil classification and structural requirements. Once poured and cured, it provides the foundation for framing and all subsequent construction. - Frame stage
The frame stage involves constructing the structural skeleton of the home, including walls and roof framework.
At this point, the overall shape of the home becomes visible. - Lock up stage
Lock up stage means external walls, windows and doors are installed, allowing the home to be secured.
It is typically a key progress payment milestone because the structure is now weather resistant. - Fixing stage
During the fixing stage, internal elements are installed. This includes plaster, cabinetry, internal doors, skirting and architraves. - Practical completion
Practical completion Inspection occurs when the home is almost finished and ready to hand over.
You will conduct a final inspection before handover to identify any defects that require rectification. - Certificate of occupancy
A certificate of occupancy is issued once the home meets all regulatory requirements and is deemed safe to live in. You cannot legally move in without this approval. - Defects liability period
The defects liability period is a set timeframe after handover during which the builder must rectify agreed defects. This provides peace of mind once you have moved into your new home. - Structural warranty
A structural warranty covers major structural elements of the home for a defined period under Victorian legislation. It protects homeowners against serious structural defects.
For a more in depth information, please see our blog Different Construction Stages of a New Home Build
Design & Structural Terminology
- Floorplan
A floor plan is the layout of your home, showing room positioning, dimensions and flow. It must align with block width, setbacks and any easements on title. - Facade options
The facade is the external front appearance of your home. It influences street appeal but may also include structural elements such as rooflines and materials. - Site cut and fill
Site cut and fill refers to reshaping the land to create a level building platform. On sloping blocks, this can significantly influence site costs. - Retaining walls
Retaining walls hold soil in place when there is a change in ground level. They are often required on sloping blocks and can add to overall construction costs. - Building regulations
Building regulations set minimum standards for safety, structural integrity, energy efficiency and compliance in Victoria. Every new home must meet these requirements.