stage payments if issues are not rectified

Hi guys

Do I need to pay a progress payment for the lockup stage if all work is not carried out properly but they have sent a bill.

IE: All work is complete to that stage but some issues need to be rectified as a result of my building inspection.

HIA contract says you can be charged interest if you dont pay and no reference is made to the quality just that it has been done. IE: If it has been done it says I must pay is this true?

Any feedback would be greatly appreciated

Hi Steve C

I had the same problem with Lock up stage payment. I contacted our builder and told them i wouldn't be making payment until all items were rectified, however they told me the items would be looked at and rectified and that i had to make payment otherwise interest would kick in. I ended up paying them but i made sure the items were rectified before it was too late...

Unfortunately, yes they can charge you interest if you don't pay, i think unless it is something very major.

Hope this helps.

stevec,

We were sent the frame invoice months ago.. and we rang the Accounts Receiveable person in-charge of our accoutns to tell her that we won't be paying unless all issues with the slab and frame were rectified.
She arranged for her manager and us to talk about it.
At first the AR manager asked us to pay, as the issues were mostly related to the slab, which is not what the invoice was for (invoice was for the framing). We then told her that the issues (frame overhang) with the slab was discovered after the frame was erected. In the end, we agreed that we would pay after all issues are rectified. Up to now.. we haven't paid it, as they are still fixing the issues.

I suggest, you ring the person in charge of that invoice and complain.

get something in writing after your conversation with the builder. As normally in the bill it says if you delay the payment for X days, they are entitled to delay the construction for extra X days...

You need to get some sort of proof to protect yourself.