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Cost plus is a construction pricing model where the owner pays the actual cost of delivering the project, plus an agreed builder’s fee or margin. Instead agreeing on a fixed price at the start, the final contract value depends on what the work costs as the project progresses. 

The “cost” part usually includes items such as labour, materials, subcontractors, and any other project expenses. The “plus” is the builder’s margin or management fee, which covers overhead and profit. 

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A Prime Cost (PC) item is an allowance in a building contract for an item that has not been selected when the contract price is prepared. It usually applies to the supply of a fixture or fitting excluding the labour to install it. 

Common PC items include taps, toilets, basins, tiles, appliances, door hardware, and light fittings. 

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If you’ve ever heard the term “construction certificate”, it’s important to know that in Western Australia it usually isn’t a formal term used in the approvals process. In WA, the approval you typically need before building work starts is a building permit, and depending on the application pathway, that permit may need to be supported by a Certificate of Design Compliance (BA3) signed by a registered building surveyor.  

Read more “What is a construction certificate in Perth?”

Practical completion is the stage of a building project where the work is finished, and the building is ready to be used for its intended purpose, even if a few minor items still need to be completed or corrected. 

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In construction, rendering or render is a protective and decorative coating applied to external walls, sometimes internal walls also. It’s typically a cement-based or acrylic-based material that is sprayed on, then finished to either a smooth, textured, or patterned look.

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In construction, a tender is a formal process where a client invites builders to submit a price and proposal to deliver a project. The submission itself is also commonly called “a tender.” Tendering is the structured way of asking:

-How much will this project cost?

-How long will it take?

-How will you deliver it?

For clients, tendering matters because it’s often the point where a project shifts from idea into real commitments around budget, scope, timeline, and risk.

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A construction loan is a type of finance package designed specifically for building or renovations. Unlike a standard home loan where the lender usually provides the full loan amount at settlement a construction loan is typically released in stages, as building work is completed. These staged releases are often called progress payments or progressive drawdowns.  

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Earthworks are the first major stage of a build. It’s the work that prepares the land and gets it ready so that foundations, slabs and external areas can be built properly. It involves excavating, levelling, placing and compacting fill, and setting site levels so the building sits where it should and water drains away from it.

For home buyers and property owners, earthworks are important because they can influence cost and time. Here’s all the information you need to fully understand this stage.

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A progress claim, or progress payment claim, is a request for payment for work completed, issued during a build rather than at the end.

Progress claims exist because as construction is delivered over time, materials are ordered, trades are paid, and work is completed in stages. Payments are typically made in stages as the project progresses.

Progress claims also create a record of what work was done, when, and the cost. This is useful for both clients and builders if questions arise later.

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If you’re building a new home or investing in a commercial build, you’ll hear many job titles like Construction Manager, Foreman, and Superintendent. They’re related, but they typically focus on different levels of responsibility in the construction process. 

Understanding these terms will help you understand who to contact when something changes on site and how timeframes are controlled. 

A Construction Manager (CM) is usually responsible for organising and controlling the build process, so the project is delivered safely, on time, on budget, and to the required standard. 

Read more “What does a Construction Manager do?”