Browse Forums Building Standards; Getting It Right! 1 Aug 24, 2011 5:21 pm We've just had the progress payment claim for the fixing stage, which states that all cabinets etc. should be installed. Our island bench has been installed, but is the incorrect colour. We've raised this with our CLE and it will be resolved, but should we be making the payment before this is actually resolved? ___________ Building a Newington 40 with Carlisle Homes in stage 7 of Saltwater Coast Point Cook Follow our progress Re: Fixing stage question 2Aug 24, 2011 5:26 pm If its not complete you shouldn't pay....... but write a letter saying why you aren't paying. If you wan't to compromise knock $1000 of the value of the claim and pay that, explaining in writing the reason for the reduction. The Harder You Try - the Luckier You Get ! Web site http://www.anewhouse.com.au Informative, Amusing, and Opinionated Blog - Over 600 posts on all aspects of building a new house. Re: Fixing stage question 3Aug 25, 2011 11:05 am bashworth If its not complete you shouldn't pay....... but write a letter saying why you aren't paying. If you want to compromise knock $1000 of the value of the claim and pay that, explaining in writing the reason for the reduction. My contract states to completion of stage OR equivalent value. I feel that this is reasonable because whilst a stage may not be complete, the builder have commenced other works on the house that have significant money invested. E.g:Progress claim for fixing stage has been made, the bench top has not been fitted due to an error in color but the builder has already had appliances fitted and (for this examples sake) landscaping completed. In my opinion the builder would have outlaid enough funds for works completed that payment is warranted. If by the time you get to your inspection there is still no benchtops you could either pay and wait for the builder to have the bench tops fitted, withhold the value of the benchtops or not pay at all until the benchtops are fitted. Also you cannot withhold a part of a progress payment (if it is actually due) unless you have applied for a variation to they payment first and it has been agreed to. Withholding a part of a payment can be deemed a breach of contract. You will still have a considerable payment to make at completion that would cover the cost of replacing the bench top if they have failed to do it before then. I would make the payment, as they have (i assume) agreed that the bench will be fixed and only worry about it if its still not done by handover. Re: Fixing stage question 4Sep 01, 2011 8:29 am I'm with chrisandkate here, you should make the progress payment. You still have the final payment in reserve, and paying on time will get you good will, which is what you need to get everything fixed. There's no legal and no practical basis for not paying. Metricon Riva 33 - http://herlihy-riva.blogspot.com Site start 15/03/2010 - Handover 23/12/2010 9 months and 8 days (284 calendar days) from site start to handover Re: Fixing stage question 5Sep 01, 2011 9:04 am btherl I'm with chrisandkate here, you should make the progress payment. You still have the final payment in reserve, and paying on time will get you good will, which is what you need to get everything fixed. There's no legal and no practical basis for not paying. x 2 Re: Fixing stage question 6Sep 01, 2011 9:08 am chrisandkate Withholding a part of a payment can be deemed a breach of contract. This is what my HIA Victorian new Homes Contract January 2008 says: - Number of Days to make Progress Payment after stage completed and notice received = 7 days - 'Progress Payment' means a payment that the Builder may claim on the completion of a construction stage as detailed in Schedule 3. - Clause 30.0 The Owner must pay the amount of a Progress Payment set out in Schedule 3 within the number of Days set out in Item 7 of Schedule 1 after both:
I'm not a lawyer, but it looks like if you received progress payment and the stage is not yet complete, you can't be breached of contract if you withhold payment. Thanks for much mate. I see that you do cabinets before flooring. For timber flooring, for most parts it's fine because it's got base plates, and for door jabs you can… 7 11562 I'll look into different shower heads and ask the plumber about some engineering and see what he says. Thanks 2 9564 Plumbers 'can be' plumbers, made all the worse by self certification which the building surveyor invariably accepts as proof of compliance! The good thing is that you know know. 3 4868 |