Your comprehensive A-Z dictionary of Australian construction vocabulary, focusing on the critical language used for tendering, bidding, and contract management for Subcontractors, Suppliers, and Estimators.
Working in construction and dealing with tenders, it’s essential to understand the industry vocabulary. While terms like ‘chippie’ and ‘smoko’ are familiar on site, success in securing profitable work relies on mastering the formal vocabulary of tendering, legal contracts, and Australian Standards. This comprehensive glossary decodes the construction industries essential terminology to help you win more work, manage risk effectively, and submit compliant bids.
Tendering & Bid Management Terms
These are the terms that govern the process of winning work. Mastery here is key to a compliant and profitable tender submission.
| Term / Acronym | Definition
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| Accepted Tender | The tender submission formally selected by the Principal/Client as the winning bid, leading to the award of a contract.
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| Addendum / Addenda | During a project’s life, the drawings and documents may need to be updated to reflect changes being made. An addendum is the official process in which these documents are updated and issued to all tenderers.
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| Alternative Tender | A tender submission that offers a non-conforming methodology, product, or pricing structure outside the specifications of the RFT, often proposed to provide cost or time savings.
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| Approach To Market (ATM) | A generic term referring to any process used by a buyer to advertise a business opportunity (tender, RFQ, etc.) to potential suppliers/contractors.
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| Awarded Tender | The formal notice of acceptance given to the successful bidder, resulting in a legally binding contract (also referred to as the Contract Award).
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| BAFO (Best and Final Offer) | A final, often negotiated, detailed and fully-priced offer submitted by a tenderer, representing their lowest price under the current terms.
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| Bid | Synonymous with a Tender Response Document (quote, mandatory documentation, and client-specific requirements) submitted by a supplier when interested in a project.
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| Closing Date | The strict deadline (time and date) by which all tender submissions must be submitted and received. Offers submitted after this time are usually deemed non-conforming.
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| Compliance | The adherence of a tender response to all the specified requirements, deadlines, and criteria outlined in the tender documents. Non-compliance often leads to immediate disqualification.
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| Conforming Tender | A tender that strictly meets all specified requirements outlined in the Invitation to Tender (ITT).
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| Deliverables | The specific goods, services, or outcomes that the contractor or subcontractor is contractually required to provide.
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| Document Register | A comprehensive list of all documentation (drawings, specifications, schedules, revisions) given to a subcontractor for their quote. It is used to ensure the subcontractor submits their price using the latest and correct documents, reducing risk of mispricing.
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| Drawing Register | A detailed record of all drawings and schedules with their respective revisions. To an Estimator, it’s a spreadsheet used in the process of allocating drawings, specifications, and other tender documents to specific trade packages.
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| Enquiry (Trade Package) | An invitation from a Main/Head Contractor to a Subcontractor/Supplier requesting pricing for a specific trade portion of the works.
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| EOI (Expression of Interest) | This is when a subcontractor expresses interest in supplying a quote for a project after a general announcement has been made, often preceding a formal RFT or ITT.
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| Estimator | A person responsible for constructing a price for a specific scope (or scopes) of work. The estimator for a builder compiles subcontractor quotes in order to put together an accurate and educated price to the client.
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| Exclusion | A clear statement in a quote or tender defining work, services, or products that have been explicitly excluded from the scope of the offered price.
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| ITT (Invitation to Tender) | A formal invitation issued by a buyer (Principal) to selected potential suppliers to submit a detailed, formal bid for a specific project.
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| PQQ (Pre-Qualification Questionnaire) | A formal questionnaire sent to prospective bidders to assess their suitability, experience, financial stability, and capacity before they are invited to submit a detailed price.
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| Request for Proposal (RFP) | A procurement document where the buyer requests detailed proposals outlining how a tenderer intends to meet specific requirements (focus on methodology, not just price).
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| Request for Quotation (RFQ) | These are the invitations head contractors send to subbies and suppliers asking them to price a project.
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| RFI (Request for Information) | A formalised (i.e., written) communication between two parties when clarification around a particular piece of information, drawing detail, or specification is needed during the tendering or construction phase.
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| Request for Tender (RFT) | A formal procurement document issued to invite detailed, formal bids (a tender) from potential suppliers or contractors for a project.
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| Scope of Works (SOW) | This is a list of all the requirements for a subcontractor to complete on the job. It is the agreed-upon list of tasks, services, and deliverables.
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| Tender | A bid or offer to provide goods and/or services for a stated fixed amount of money. A builder will submit a tender to the client, basing their price off a series of subcontractor quotes.
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| Tender Clarifications | Formal questions raised by tenderers during the bid period to seek greater detail or clarity on the tender documents, to which the Principal must issue a formal response (often via Addenda).
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| Trade Coverage | Also referred to as coverage, this refers to the amount of quotes a builder has received for each trade package. Builders require multiple quotes for each trade package to put in an accurate and educated price to the client.
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Contractual, Legal & Commercial Terms
These are the terms that dictate risk, payment, and financial obligations.
| Term / Acronym
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Definition & Australian Context |
| AS [Standard No.] | Australian Standards. Voluntary national standards and codes (e.g., AS 4000:1997 General conditions of contract). These are mandatory when referenced in a contract or building regulation.
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| Back-to-Back Contract | A common Australian contracting practice where the terms and conditions of the Head Contract (between Principal and Head Contractor) are passed down or ‘flowed down’ to the Subcontractor.
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| BOQ (Bill of Quantities) | Bill of quantities – an itemised list of the products and scope of work to be supplied in the project. Essential for Estimators to accurately calculate their price.
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| Contract Variation | An alteration or update to the terms, scope, price, or timeline of an already awarded contract, mutually agreed upon by both parties.
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| Defects Liability Period (DLP) | A fixed period, typically 12 months after Practical Completion, during which the contractor is financially and contractually responsible for rectifying any defects that arise in their work.
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| Fixed Price Contract | A contract where the total price for the defined Scope of Works is set and unchangeable, regardless of cost overruns (unless a formal Variation is approved).
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| GST | Goods and Services Tax. Australia’s broad-based consumption tax. Contracts must clarify whether prices are inclusive or exclusive of GST.
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| Head Contract | The primary contractual agreement between the Principal/Client and the Head/Main Contractor that governs the entire project. Subcontracts must align with this.
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| Latent Conditions | Physical conditions on or below the site that could not have been reasonably foreseen by an experienced contractor at the time of tendering (e.g., unknown contaminated soil).
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| Liquidated Damages (LDs) | A pre-agreed financial penalty payable by the contractor/subcontractor to the Principal for failing to achieve a Milestone or Practical Completion by the specified date.
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| PC Sum (Prime Cost Sum) | An amount included in the contract to cover the cost of materials or items that have not yet been selected or specified in detail at the time of contract signing.
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| Principal | The party commissioning the construction project (the Project Owner or Client). The one who pays the Head Contractor.
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| Retention | A percentage (typically 5-10%) of each progress payment withheld by the Principal/Head Contractor as security against potential defects during the DLP.
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| SOPA | Security of Payment Act. Crucial State-based legislation (e.g., NSW, VIC, QLD) that provides a strict statutory process for making, responding to, and enforcing payment claims to ensure Subbies get paid promptly.
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| Subcontractor Agreement | A legally binding contract between the Head Contractor (or Principal) and the Subcontractor, defining the scope, timeline, payment, and WHS obligations.
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| Variation | A formal change to the original Scope of Works, usually resulting in an adjustment to the contract price and/or time. Subbies must have variations formally approved before proceeding.
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| WHS | Work Health & Safety. The regulatory framework in Australia requiring cooperation and coordination between all duty holders on a project for hazard management and incident
reporting. |
General Site & Construction Vocabulary
These common terms capture the broad construction audience, ensuring high-volume search traffic hits the page.
| Term / Acronym | Definition & Context
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| Aggregate | A coarse construction material (sand, gravel, or crushed stone) mixed with cement and water to form concrete.
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| Architrave | The decorative moulding used around a door or window opening to cover the gap between the frame and the wall finish.
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| Bagging | A masonry process where a thin mortar is applied to a brick surface with a coarse material, imparting a textured, slightly rough finish.
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| BAL Rating | Bushfire Attack Level. A mandatory rating that dictates the construction requirements for building in Australian bushfire-prone areas, as per the NCC.
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| Bargeboard | A board covering the gap between the roof edge and the wall on the slope of a gable roof.
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| Bearer | A sub-floor structural timber or steel member which supports the floor joists.
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| Bulkhead | A dropped or lowered portion of a ceiling, often used to conceal a structural beam, drainage pipe, or air-conditioning ducts.
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| Cavity | The gap or space left between the outer and inner skin of a brick veneer wall to prevent moisture penetration.
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| CC (Construction Certificate) | An official approval granted by a Principal Certifying Authority (PCA) or council that certifies the proposed construction complies with the BCA and the development consent.
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| Chippie | Australian industry slang for a carpenter.
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| Cladding | The exterior surface layer of a house (brick, timber, metal) which is typically non-structural but provides weatherproofing and aesthetic appeal.
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| Complying Development | A streamlined planning and building approval process for low-impact development that meets pre-determined standards, approved by a private certifier.
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| Cornice | Ornamental moulding that covers the joint between the wall and the ceiling.
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| Crossover | The section of a driveway or path connecting the property boundary to the road, often requiring council approval.
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| Cut & Fill | The process of excavating soil (cut) from one area of a site and using it as compacted backfill (fill) in another to achieve a level foundation pad.
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| Damp Proof Course (DPC) | A barrier material (plastic, bitumen) inserted into a masonry wall near ground level to prevent the passage of moisture from the ground into the building structure.
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| Development Application (DA) | The application submitted to the local council or planning authority to obtain permission to construct, alter, or demolish a building.
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| Double-Hung Window | A window with two sashes that slide vertically, allowing both the top and bottom sections to be opened.
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| Easement | A legal right granted to a person or entity (often a utility company) to use the land of another for a specific purpose (e.g., access to a sewer pipe).
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| Eaves | The lower edge of a roof that overhands the walls, providing protection from sun and rain.
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| Electric Rough-in | The stage where all electrical cables, wires, and junction boxes are installed within the walls, floors, and ceilings before the plasterboard is fixed.
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| Elevation Sheet | A drawing showing the vertical projection of a building, illustrating one side or face (front, rear, or side).
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| Fall | The slope or gradient intentionally built into a surface (e.g., concrete slab, tiled floor, gutter) to ensure rainwater or wastewater drains away correctly.
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| Fascia | A long, straight board fixed horizontally along the lower edge of the roof, covering the ends of the roof rafters.
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| FFL (Finished Floor Level) | The final, documented height or elevation of the floor surface after all finishes (tiles, carpet, timber) have been installed.
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| Finial | A decorative ornament or feature that caps the highest point of a roof (e.g., at the apex of a gable).
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| Flashing | Strips of impermeable material (metal, plastic) installed around openings (windows, chimneys) or joints to prevent water penetration into the structure.
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| Footing | The bottom-most part of a foundation, usually reinforced concrete, designed to transfer the load of the building to the supporting ground.
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| Foundation | The structural system that supports the building and transfers the loads from the structure to the earth (includes footings, slab, and piers).
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| FOC | Free of Charge. Often referenced in contracts to indicate an item is supplied by the Principal/Client at no cost to the subcontractor.
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| Gable | The triangular section of a wall between the edges of a dual-pitched roof.
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| Guttering | Channels (usually metal or plastic) fixed beneath the eaves of a roof to collect and carry rainwater away from the building.
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| Hip Roof | A roof where all sides slope downwards to the walls, typically forming a ridge in the centre.
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| Hoarding | A temporary barrier or fence erected around a construction site for safety, security, and dust control.
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| Hoop Iron Strap | Thin, galvanised steel strapping used within brickwork or timber frames to provide vertical bracing and tensile strength against wind loads.
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| Jack Rafter | A short rafter that runs between a hip rafter and the wall plate.
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| Joist | Horizontal timber or steel members that span between bearers or walls to support the floor or ceiling structure.
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| Lintel | A horizontal load-bearing beam (steel or timber) spanning over a door or window opening.
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| Lock-up Stage | A construction milestone when the external doors and windows are installed, allowing the house to be physically secured.
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| Manhole | An access opening into a space such as the roof cavity, subfloor, or sewer system. |
| Meter Box | A secure enclosure, typically mounted externally, containing the electricity and/or gas meters and the main electrical switchboard.
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| NCC (National Construction Code) | Australia’s primary set of technical provisions for the design and construction of buildings, consisting of the Building Code of Australia (BCA) and the Plumbing Code of Australia (PCA).
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| Nib Wall | A short length of wall protruding perpendicularly from a main wall, often used to create a partially enclosed shower area or screen.
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| Perp | Short for Perpend, referring to the vertical joint between two bricks in a masonry wall.
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| Picture Rail | A moulding fixed high on an interior wall, traditionally used to hang pictures to avoid damaging the wall surface.
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| Pitch Roof | A roof with two sloping sides that meet at a ridge. (Also known as a gabled roof).
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| Plasterboard | Sheets of gypsum plaster sandwiched between heavy paper, used for lining interior walls and ceilings (commonly known by the brand name Gyprock).
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| Practical Completion (PC) | The stage of construction when the works are substantially complete, fit for occupation, and only minor defects (snags) remain to be rectified during the DLP.
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| Purlin | Horizontal members in a roof structure that span between trusses or rafters to support the roof cladding.
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| Rafter | Sloping pieces of timber or steel that form the structural framework of a roof and support the roof covering.
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| Raking Joint | A masonry joint technique where the mortar is scraped out to a specific depth, creating a shadow line (often discouraged in high exposure areas).
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| Reinforcing Steel (Reo) | Steel bars or mesh (rebar) embedded within concrete slabs or footings to provide tensile strength and prevent cracking.
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| Retaining Wall | A structure designed and built to hold back a mass of earth, preventing soil from sloping or collapsing.
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| Ridge | The horizontal apex or peak where the two sloping sides of a roof meet.
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| Riser | The vertical section of a stair.
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| Rough-in | The stage where all internal services (plumbing, electrical, HVAC) are installed within the walls and floors before they are covered by linings.
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| Sarking | A pliable, reflective membrane (usually foil-backed) installed beneath the roof tiles or metal sheeting for insulation, condensation control, and secondary water protection.
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| Setback | The minimum required distance a building must be placed from the property boundary (front, rear, or side).
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| Skirting | A decorative wooden board running along the base of an interior wall, covering the joint between the wall surface and the floor.
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| Slab on Ground | A concrete foundation poured directly onto the earth (often containing reinforcing steel), forming the floor structure of the building.
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| Slip Joint | A horizontal joint used in the structure of tall buildings to accommodate settlement and movement between the load-bearing frame and the non-load-bearing wall elements.
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| Smoko | Australian industry slang for a short break from work (e.g., morning tea).
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| Soffit | The finished underside of a structural element, most commonly the underside of the eave or roof overhang.
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| Soldier Course | A course of bricks laid vertically on their ends, often used as a feature over windows or as the edge of a path.
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| Stretcher Bond | The most common pattern in brickwork where all bricks are laid lengthwise, overlapping the course below by half a brick.
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| Stud Wall | A non-load-bearing internal partition framed with vertical timber or metal studs, ready to be lined with plasterboard.
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| Survey Peg | A wooden stake driven into the ground by a surveyor to mark boundaries, building corners, or specific heights on a site.
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| Truss | Prefabricated timber or steel triangular frameworks used to form the structural support for the roof.
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| Underpinning | The process of strengthening or repairing a foundation by extending it deeper or wider, often required when subsidence occurs.
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| Wainscoting | Decorative wood panelling covering the lower portion of an interior wall.
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| Weep Holes | Small vertical joints or openings left in the bottom course of brickwork (especially above a DPC) to allow moisture to escape the cavity.
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| Winders | Tapered treads used to change the direction of a staircase without the need for a landing.
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| Z-Purlin | A lightweight steel roof purlin profile shaped like the letter ‘Z’, commonly used in commercial and industrial construction.
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Alexander
Green
General Manager - Subcontractors
