Browse Forums General Discussion 1 Sep 20, 2023 2:27 pm I am repairing the downstairs of my flood damaged house. I am a pensioner and a widow, navigating the draft contract before signing. The builder has provided the below Progress Payment which seems top heavy... your thoughts are appreciated. Deposit once Contract signed to book job in 10% Electrical rough in 10% Plumbing rough in 10% Once demolition & removal of tiles in the main house complete 20% Once wall frames are straightened & existing door jambs are out 10% Once new door jambs are in and plastering is up to the stage of cornice 20% When fix out materials arrive to site 10% When painting is complete 5% Upon final completion 5% Re: Progress Payments - Flood rebuild 2Sep 20, 2023 3:13 pm so many payments lol. Looks like the builder is trying to sort out each trade as teh job is done. Don't know if that's good or not. But I agree, seems really front loaded. should be around 4-5 payments at most, not 9 in my opinion. Re: Progress Payments - Flood rebuild 3Sep 21, 2023 8:41 am ponzutwo so many payments lol. Looks like the builder is trying to sort out each trade as teh job is done. Don't know if that's good or not. But I agree, seems really front loaded. should be around 4-5 payments at most, not 9 in my opinion. ponzutwo I love reading your posts, and I agree with 99.9% of your advice, but in this case with a complicated remodel, I think a higher number of smaller progress payments are actually in favour of the client. When a client has being paying cash, especially with renovations we try and do between 8-10 progress payments, which is more paperwork, but in my mind it helps them reduce any risk as they aren't front loading their payments too heavily and manage cashflow. I could be wrong with my thinking though, but that's the approach I have been taking. With our new builds, we have noticed a change recently to the progress payment structures that several banks are insisting on ( especially Macquarie), and they are so heavily loaded by lockup 65-70%, which is great for the builder but I wonder what would happen if the builder got into trouble. ANZ are similar and pay 90% of the contract by plasterboard. There are a lot of expenses after plasterboard. We submitted a progress payment schedule for an ANZ funded job which was far more conservative and it was rejected. So I am not sure what is going on as they all used to be far more accomodating. It is kind of counterintuitive at the moment. Please keep up your hilarious and cutting posts. I love how you say what the rest of us are thinking! Cheers Simeon Architectural Homes & Duplexes - specialising in custom designing homes to your budget Get a Free Onsite Consultation Today or send a PM for information, questions or advice. Re: Progress Payments - Flood rebuild 4Sep 21, 2023 11:00 am Ashington Homes ponzutwo so many payments lol. Looks like the builder is trying to sort out each trade as teh job is done. Don't know if that's good or not. But I agree, seems really front loaded. should be around 4-5 payments at most, not 9 in my opinion. ponzutwo I love reading your posts, and I agree with 99.9% of your advice, but in this case with a complicated remodel, I think a higher number of smaller progress payments are actually in favour of the client. When a client has being paying cash, especially with renovations we try and do between 8-10 progress payments, which is more paperwork, but in my mind it helps them reduce any risk as they aren't front loading their payments too heavily and manage cashflow. I could be wrong with my thinking though, but that's the approach I have been taking. With our new builds, we have noticed a change recently to the progress payment structures that several banks are insisting on ( especially Macquarie), and they are so heavily loaded by lockup 65-70%, which is great for the builder but I wonder what would happen if the builder got into trouble. ANZ are similar and pay 90% of the contract by plasterboard. There are a lot of expenses after plasterboard. We submitted a progress payment schedule for an ANZ funded job which was far more conservative and it was rejected. So I am not sure what is going on as they all used to be far more accomodating. It is kind of counterintuitive at the moment. Please keep up your hilarious and cutting posts. I love how you say what the rest of us are thinking! Cheers Simeon really? this seems like it could go either way for the client. But i do get your point. Id hate to be in a position right now to be building or renovating. Seems like after the last year or so, the game has changed so much that it would be like a new experience. Like i have counters to all of a builders old excuses and delays, but it seems none of those are likely to be relevant today Re: Progress Payments - Flood rebuild 5Sep 22, 2023 5:06 am ponzutwo I am going to concede a draw on this one. I think you make a really good point that it could go either way depending on the integrity of the builder. Architectural Homes & Duplexes - specialising in custom designing homes to your budget Get a Free Onsite Consultation Today or send a PM for information, questions or advice. Yes it had a house on it. But Melbourne water only wanted something the original size of the existing house. We managed to fit a 45sq house on. 10 33795 Give Jonathan a call. Tell him you know me. He is in my opinion the best surveyor I have ever worked with. His number is 0425 285 622 All the best Simeon 3 12637 8 6300 |