B

A term which refers to Arbitration, litigation or other forms of dispute resolution arising out of a dispute in relation to the parties' construction Contract. (Contrast with Front End)

The effective interest rate based on the cost of buying Bills of Exchange and other negotiable instruments in which there is an actively traded market. The BBR is a commonly used indicator of short term interest rates (90 days to 1 year).

A form of security provided by a Financier to a Contractor in favour of a Principal which is designed to secure the Contractor's performance of its contractual obligations to the Principal. (See also Performance Bond)

An engineer engaged on behalf of a bank or financier to review, assess or carry out work in relation to a project that the bank or financier is financing.

The status of an individual who is insolvent.  The period of bankruptcy is limited, and during the period of bankruptcy the individual’s financial affairs are managed by the trustee in bankruptcy.

Building works carried out by a landlord (generally at the landlord’s cost) that relate to structural and primary operational elements of a building including the building envelope and core, certain services (such as air-conditioning), risers, lifts, lobbies and entrance. The term is usually used in the context of leasing to distinguish between a tenant's fitout works and the works a landlord is carrying out.

A guide for a financial institution's lending rate with loans generally written at a margin above the base value.

Used for small construction projects. See for example the ABIC BW-2018 contract.

A standard of performance set out in a Contract which indicates the required standard for works or services.

An obligation on a contracting party to do no more than it reasonably can in the circumstances to achieve the contractual object. (See also Reasonable Endeavours and All Reasonable Endeavours)

In the building and construction industry, the unearned increase in value of property as a result of completed works or other improvements made to the land.

An unconditional written and signed order by one person to another to pay on demand, or at a fixed or determinable future time, a sum of money to, or to the order of, a specified person, (as defined in section 8 of the Bills of Exchange Act 1909 (Cth)). A Bill may be negotiated at an amount less than its face value, depending on prevailing interest rates and the amount of time before payment is due.

A list setting out each item of material or work required for construction and the type, cost per unit, estimated quantity and estimated total price of each item. The bill of quantities is usually prepared by a Quantity Surveyor.

A decentralised database used to maintain digital assets.  Originally developed as an accounting method for the virtual currency Bitcoin to show transactions on the network.  A block is the current part of the blockchain recording recent transactions and once completed goes into the blockchain as a permanent database.

A form of security provided by a Financier in favour of a Principal which operates as security for performance of the Contractor's contractual obligations, as a substitute for Retention. (See also Performance Bond)

An incentive system which provides for an additional payment on top of the Contract Sum to be paid to the Contractor when the work is completed prior to the Date for Practical Completion.

This is essentially an extension to a BOT contract which includes additional terms under which the Contractor will operate the completed project for a defined duration.

A building contract in which the Contractor undertakes the design and construction of the project, which is then sold or handed back in a completed and operating state to the proprietor, and may include terms under which the Contractor will operate the completed project. Under a BOT contract the Contractor bears the total responsibility for the work. Also known as a BOOT contract.

Where a party to a Contract fails to act (by a positive act or by omission) in accordance with its contractual obligations.

A site that has been previously developed and the redevelopment or reuse of which may involve environmental issues such as contamination. (Contrast with Greenfield Site)

The degree of ease with which a design can be constructed so that a project can be completed efficiently in terms of time, cost and quality.

The Contractor who carries out the construction work under a Contract.

A licence issued under the builders licensing or registration requirements of a State or Territory.

An agreement generally entered into by the Contractor, the Principal and the Financier. It can restrict the rights of the Contractor in relation to a number of aspects of the Contract including Variations, Extensions of Time and notice requirements. It also manages default and termination of the Contract by establishing Privity of Contract between the Contractor and the Financier and enables the Financier to ensure that the Contractor cannot terminate the building contract and walk away from the project without dealing with the Financier.

The term is now redundant and is known as a Construction Certificate application.

A certificate which is issued upon completion of certain contractual obligations or applicable regulations.

An individual or organisation approved by a statutory Authority to certify that work has been completed in accordance with applicable regulations.

A uniform set of technical provisions for the design and construction of buildings and other structures throughout Australia. It is produced and maintained by the Australian Building Codes Board on behalf of the Commonwealth Government and referenced or adopted by legislation enacted by each State and Territory Government. From 1 May 2011, the BCA forms chapters 1 and 2 of the National Construction Code.

Owners of commercial office buildings of 2000 m² or more are required to disclose their building's energy efficiency performance under the CBD scheme in the form of a BEEC before being allowed to advertise for a lease or purchase to potential interested parties. The certificate has three components: (a) NABERS rating: an energy rating given to the premises based on its operational outputs; (b) tenancy lighting assessment: an assessor examines the lighting of each tenant in the building and assigns a rating based on total energy efficiency; (c) general energy efficiency guide: this requires no assessment, but acts as a comparative guide for the entire premises to manage their energy usage. Once obtained, the certificate is valid for 12 months and must be made publicly accessible on the Building Energy Efficient Register.

Building Information Modelling, known as BIM, is the creation of a digital 3D model of a facility. BIM models are increasingly used on new buildings and civil infrastructure projects to integrate multi-discipline contributions and information within a single model, that stimulates project and 3D lifecycle applications for analysis.

A permit issued by a local authority which allows specified building work to be carried out.  Usually the responsibility of the builder to obtain.

Where a plaintiff has claimed against two or more defendants, and the plaintiff does not succeed against the defendants, a court may order the unsuccessful defendant to pay the costs of the successful defendants where the unsuccessful defendant is found to be primarily liable.

A day that is not a Saturday, Sunday or public holiday.  In some cases a business day can also exclude RDOs (rostered day off).

Rules governing a strata scheme, including the behaviour of lot owners and their guests and use of the scheme's common property. In each state, legislation provides standard by-laws which can be varied by special resolution of the Owners' Corporation.