Browse Forums General Discussion 1 Aug 20, 2010 9:43 am Hi guys, I would like your advice please. We are yet to make our first progress payment to the builder, however it won't be far off as our slab is due to be poured next Monday and the frames to be errected the following week. We have decided not to have independent building inspections at this stage as we figure that the inspections arranged by the builder and the lender are sufficient. However when I asked the site supervisor about receiving copies of the inspection reports prior to making payments, he said it doesn't work that way. Rather he said we would receive copies of all of the inspection reports at the end of constrution. This doesn't make sense to me. Is this correct? What has your experience been?? Am I right/fair in asking for copies as 'evidence' of appropriate work standards prior to paying the builder? Thanks. Re: Inspections and progress payments 2Aug 20, 2010 9:56 am I don't have an independent inspector and didn't receive copies of the inspection reports at each stage (am now in the final stage of the build) so, in my experience, yes that is normal. I'd assume that if there's issues with the inspection at any stage they would have to rectify the issues before moving onto the next stage. Really your obligation in terms of authorising payments is to ensure that the "stage" has been reached to your satisfaction and in accordance with the definitions stated in the building contract. Hope that helps Re: Inspections and progress payments 3Aug 20, 2010 10:26 am grom40 Really your obligation in terms of authorising payments is to ensure that the "stage" has been reached to your satisfaction and in accordance with the definitions stated in the building contract. Check your contract about your obligations re: authorising payments. If you have a HIA contract I believe you cannot withhold any payment, except at PCI. With an HIA contract progress payments are due on completion of a stage, regardless of quality or your level of satisfaction. Note that does not mean a builder can get away with crappy job, as they are obliged by the contract to build to an set level of standard and quality. DKP Re: Inspections and progress payments 4Aug 23, 2010 4:37 pm Thanks guys. It's good to know what others have experienced as standard procedure. I appreciate the feedback Re: Inspections and progress payments 5Aug 24, 2010 2:19 pm I am interested in this also. I have already paid the base stage payment, this was once the frame was almost complete so I was happy that this was done. I think, however, for the next stage I will have issues as the stage is defined as: "the stage when a home's frame is completed and approved by a building surveyor;" (Victorian HIA Contract) My builder also has on their invoices a statement: "To the Lending Authority, I certify that the work has been completed, as detailed above and approved by the Owner." with room for "Owners Signature". and further to this the progress payment instructions that I must send to the bank include this statement: "In authorising this payment, I/we confirm and acknowledge that it is not ANZ's responsibility to ensure that: * the quality of the work is to my/our satisfaction * the work done is in accordance with the building contract * sufficient work has been done to cover progress payments." I have a few issues with the frame at the moment (albeit minor issues), and I am sure that the builder will not provide a certificate from the building surveyor stating that the work has been done. I think I will try to at least get this document before I authorise any payments, regardless of the clause that states that " View our blog at: http://room4acubby.blogspot.com/ Re: Inspections and progress payments 6Aug 27, 2010 11:18 am If there is one thing I found during my build that I would have done before would have been an inspection at frame and final. Without a doubt the most important aspects unless you really know what you are doing. Even though you might have done all of your research and you think you know everything, you wouldn't as much as a independant inspector. The biggest benefit here though is the shear fear in the SS's eyes when you tell him that you'll have a independant inspector come around. Also, don't assume that the building surveyor will spot anything. I haven't heard to date of anyone saying "the building surveyor spotted X". They are hired by the builder for a few reasons, they were the cheapest at the time and are told what to do. In other words, only rely on yourself. 5 6812 8 6138 You have mandatory building inspections and privately engaged building inspections. The difference between the two comes down to inspecting the building so it's safe and… 3 18063 |