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Building Forum » Building, Renovation & Maintenance » Building A New House

FIxout Payment

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B&V
 Post subject: FIxout Payment
PostPosted: Apr 23, 2012 10:35 am 
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Hi all,

Our contract states this for this payment to be on completion of to lower roof, electrical roughin, insulation, gyprocking and Fixout (excluding kitchen installation)

We have had a request of payment for this stage but when this was requested 2 weeks ago wardrobes, bathroom, laundry and kitchen were not fitted out yet. We did not make payment and have recieved phone calls that we were overdue for payment.

Since then the wardrobes and bathroom tiling has been done but vanities, door handles, light switches, lights, bathroom and laundry fitout have not been done.

The builder has stated that the fixout payment is due as the bathroom gets fitted out when the kitchen is installed (so we should ignore the wording of the contract progress payment). Reasons for us on holding back is that if we pay this we pay 97% of the build when they still have the outdoor downpipes to do, rainwater tank, electrical pole, cieling insulation, vanities, kitchen, laundry, door locks, lighting, hotwater system, painting.

Are we within our rights to hold off until the bathroom and laundry are at least fitted out?

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atom_ute
 Post subject: Re: FIxout Payment
PostPosted: Apr 23, 2012 12:24 pm 
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B&V wrote:
Are we within our rights to hold off until the bathroom and laundry are at least fitted out?


Without knowing/seeing what your contract specifies about payments on the completion of various stages it is difficult to provide an answer. If you are seriously thinking of going down the road of withholding payment, I would definitely be seeking legal advice (rather than that of an online forum) about the legality of the situation.

B&V wrote:
The builder has stated that the fixout payment is due as the bathroom gets fitted out when the kitchen is installed (so we should ignore the wording of the contract progress payment).


To me this makes sense. It sounds like your builder has the same cabinet maker doing the kitchen and the bathroom. Rather than having the cabinet maker come back multiple times, they'll come and install the kitchen/vanities in one go. Not sure if I would want my place painted after these things installed.

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nglbuilder
 Post subject: Re: FIxout Payment
PostPosted: Apr 23, 2012 12:32 pm 
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I would strongly recommend you seek legal advice if you are going to withhold payment. Even if they were to do the laundry and bathroom fitouts it seems that they still have quite a lot of work to do for the last 3% of the payment.


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mgilla
 Post subject: Re: FIxout Payment
PostPosted: Apr 23, 2012 1:10 pm 
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What was the contract used that only left 3% after fixout?

I haven't filled a HIA contract out for a while but from memory there's at least 15% left after fixout.

But that aside, definately get legal advice as to the wording of your contract. Whether there's only 3% to pay but 10% of the house to finish, if you are wrong you'll be the one who suffers.


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