Construction lingo explained: A simple guide for new build buyers

One question we often hear from clients building a new home is: “What do all these construction terms actually mean?”

If you're building for the first time, the process can be full of jargon. And let’s be honest, it’s not always clear what people are talking about.

So I’ve pulled together a quick cheat sheet to help you feel a bit more confident as you navigate the journey of building your first home.

Build Contract

Your agreement with the builder that sets out the price, scope of work, timeline, and what’s included.

Builder’s Risk Insurance

Insurance (usually held by the builder) that covers the home while it’s under construction – including things like theft, fire, or storm damage.

Builders Guarantee

A builder’s guarantee is a type of warranty that offers added peace of mind. In New Zealand, the two most common guarantees are the Master Build Guarantee and the Certified Builders Guarantee. These can cover things like loss of deposit, non-completion, and structural defects for up to 10 years. Not all builders are eligible to offer these, so be sure to check. It’s also important to ensure all paperwork is completed correctly – guarantees must be applied for and accepted before construction begins, so don’t leave it too late.

Building Code

The official rules and minimum standards every home in New Zealand must meet – including structure, insulation, weathertightness, and fire safety.

Building Consent

Official approval to begin construction, based on your plans meeting the Building Code. This must be granted by your local council before any work starts.

CCC (Code Compliance Certificate)

Issued by the council once the home is finished. It confirms the house has been built to plan and complies with all regulations. You’ll normally need this before the bank releases the final payment.

Certificate of Title

The legal document showing who owns the land. It also notes boundaries, covenants, and any restrictions. Your bank will need a copy for lending.

Council Final Inspection Letter

Issued by council after the final site inspection has been completed. This letter confirms your build has passed its final inspection. Some banks may release the final loan payment at this stage (before CCC is formally issued) – but this depends on the lender, so it’s important to check.

Fixed Price Contract

A contract where the total cost of the build is agreed upfront. Be sure to check what’s included (and what’s not) – things like driveways and landscaping can sometimes be extras.

Geotech Report

A specialist report on the soil condition of your section. It helps your engineer and builder design the right foundations and may be required by council before consent is granted.

House and Land Package

A combined deal where you purchase the land and build together. You’ll make staged payments throughout the build as each milestone is reached.

House Insurance

Once your build is complete and CCC has been issued, you’ll need to arrange your own house insurance. The bank won’t release final funds without it.

Owners Care Items

Tasks that are the homeowner’s responsibility after handover. These can range from small touch-ups like paint and minor adjustments, through to larger items such as landscaping or fencing, depending on what’s excluded from the build contract. It’s important to clarify upfront what your builder is delivering and what’s expected of you once the build is complete.

PC Sums (Provisional Cost Sums)

Estimates for parts of the build you haven’t chosen yet (or that can’t yet be priced accurately, like ground works). The final cost can change depending on your selections or what’s found on site. You can find out more about how PC Sums work here.

Progress Payments

These are instalments paid to the builder at key stages – like after the foundation is poured, the frame is up, or the roof is on.

Resource Consent

This is formal approval from your local council to use land in a way that isn’t automatically permitted under the district plan. You might need it if you’re building too close to a boundary, exceeding height restrictions, increasing site coverage, or subdividing. Not all builds need a Resource Consent, but if yours does, it must be granted before your Building Consent can be approved. Processing times can vary, so it’s a good idea to factor this in early when planning your build timeline.

Site Plan

A detailed drawing showing how your house will sit on the land, including distances from boundaries and the location of services like water and power.

Specification (Specs)

The list of materials and finishes for your build – things like cladding, roofing, flooring, kitchen appliances, and tapware.

Turnkey

A fully finished home you move into once it’s complete. You usually pay a 10 percent deposit up front and the rest at settlement. No progress payments along the way – potentially a great option if you’re still renting, but generally more expensive, as the builder carries the finance costs (at commercial rates) during the build. Find out more about how Turnkey works here.

Still have questions?

That’s exactly what we’re here for. At Colab, we work closely with builders to make sure the finance side of your build runs smoothly - from pre-approval right through to handover.

We’ve also created a detailed Guide to Building New which walks you through the process step by step, with practical tips and things to watch out for along the way.