Builder Terminology You Should Know

If you’ve ever looked at a building estimate or quote and felt like you’re reading another language, you’re not alone. Builders and estimators use a mix of trade terms and abbreviations that can make it hard to tell what you’re actually paying for.

Here’s a breakdown of some common terms you’ll see on South African building quotes, and what they really mean in plain English.

1. Preliminaries

This term often raises eyebrows because it’s not tied to a specific item like bricks or paint, yet it can make up a big chunk of your quote.

Preliminaries cover all the setup and management costs needed to get your project running smoothly.

That includes things like:

• Site establishment (temporary toilets, storage, or fencing)

• Supervision and project management

• Health and safety compliance

• Site administration and signage

Think of preliminaries as the behind-the-scenes costs that make the actual building possible. They’re not optional, but you can ask that they are itemised so you know what’s included.

2. PC Amount (Prime Cost Amount)

This one trips up almost everyone. A PC amount is an allowance for items that haven’t been chosen yet. For example: Your quote might say “PC amount – bathroom taps R2,000”.That means your builder has set aside R2,000 for taps, but if you choose a more expensive set that costs R3,000, you’ll pay the R1,000 difference.

In short: it’s a placeholder for materials or fittings you’ll select later.

3. Provisional Sum

A Provisional Sum is similar to a PC amount, but it applies to work rather than materials. For instance, if your builder isn’t yet sure how much excavation or electrical work will cost, they’ll list it as a provisional sum, say “Provisional Sum: R10,000 for electrical”. Once the work is done and the real cost is known, the amount is adjusted up or down.

This helps builders keep the quote moving even when not all details are finalised, but as a homeowner, you should track these carefully. They often change during construction.

4. Retention

Retention is a percentage (usually 5–10%) that the client holds back from payments until after the project is completed and defects have been fixed. It’s a way to ensure the builder finishes the job properly and returns to handle any problems that appear shortly after completion.

Typically, half the retention is released at practical completion and the other half after the defects liability period (often 3–6 months). It’s not a penalty, it’s protection for the client and a motivation for the contractor to maintain quality.

5. Snag List

Before you make your final payment, you’ll do a walk-through with the builder to check for small defects or unfinished work, that’s your snag list.

It might include things like:

• Paint touch-ups

• Loose handles

• Misaligned doors

• Minor cracks

The snag list ensures every detail is completed to your satisfaction before full payment is made. It’s a normal part of the process and should always be included in your agreement.

6. Contingency

This is a small percentage (usually 5–10%) set aside to cover unforeseen costs. Even the best-planned projects hit a few surprises, like hidden plumbing issues or bad soil. Having a contingency means you won’t be caught off guard.

7. Variations

A variation is any change made after the contract or quote is signed. If you decide mid-project to add a wall, change tiles, or upgrade fittings, that’s a variation, and it usually affects cost and time. Always get variations in writing before work proceeds to avoid disputes later.

In Summary

Term	Meaning	Tip for Homeowners
Preliminaries	Setup & site costs	Ask for itemised details
PC Amount	Allowance for materials	Check what’s included
Provisional Sum	Allowance for uncertain work	Expect adjustments later
Retention	Withheld payment for quality assurance	Know when it’s released
Snag List	List of small defects to fix before final payment	Do a walk-through
Contingency	Backup fund	Keep around 5–10%
Variations	Changes after quoting	Always approve in writing

Final Word

When you understand the language of builders, you take control of your project. Don’t be afraid to ask for clarity or to have each of these terms explained before signing a quote. A good builder or estimator won’t mind , they’ll appreciate that you’re an informed client who values transparency.