Browse Forums Building A New House 1 Nov 24, 2008 2:09 pm My builder has listed this progress payments schedule and I'd appreciate any comments on what you think of it Good or Bad, and whether I should negiotating anything. He's using the standard hia nsw contract, but has used page 5 instead of the standard schedule on pg 4.
Contract price would be approx $370000 Deposit 5% slab complete 25% Frame complete 25% Lock Up 20% Fix out complete 20% Completion 5% Thanks Re: comments please on this progress payment schedule 2Nov 24, 2008 2:10 pm This is the same as my % breakdown After 4 years - we're in! Re: comments please on this progress payment schedule 3Nov 24, 2008 2:36 pm Same as mine, i think this is quite standard Blog - http://clageonewhouse.blogspot.com/ Building Thread - viewtopic.php?f=31&t=10886&hilit=milan I am in, with my husband and my beautiful bunny Re: comments please on this progress payment schedule 4Nov 24, 2008 4:37 pm mydreamhome,
Simple question for you. Once the slab is down, do you think you have 30% of the value of the house. I don't think so. I would be aiming for: Deposit 5% slab complete 15% Frame complete 20% Lock Up 20% Fix out complete 20% Completion 20% Or whatever you (or an independent source) thinks is the real value at each stage. Also talk to your bank. Most banks won't release more than the house is worth at each stage - so make them the bad guys. Remember, you only have a say for the final payment. By that time you've paid 95% of the house cost the builder has made their profit and there's not much in your favour. Also, make sure your liquidated damages for running late is equal to the market rate for renting out the new house. It's a business contract and should be put together as such. Cheers, Casa Demolition August 2009, Construction Started September 2009, Completed December 2010 Re: comments please on this progress payment schedule 5Nov 24, 2008 5:47 pm It's a tricky question, and I think part of it depends on whether you are having a lot of 'extras' with your builder. If you are and this has put the contract price up, then a lot of this stuff doesn't appear until the end of the build, so you'd probably want to change the % accordingly.
On the other hand if you're just having the basic house, then that schedule is probably ok. Remember they have to consider their cashflow and you don't want your builder going broke because they haven't got their cashflow right. C&G -------------------------------- A new building chapter begins.. Re: comments please on this progress payment schedule 6Nov 24, 2008 6:26 pm Thanks for your replies so far.
For a bit more information, we are building a custom house. I personally dont think there are many extra's and most of those are PC'd anyway. Our slab is possibly more expensive than normal due to the fact that we are doing a solid slab (not a waffle pod) and instead of piering we are using deepend edge beams. However, the builder indicated that other things are ordered and paid for, so hence this is why the progress schedule is structured like this. Thanks for the comments so far, it is hard to know what to do sometimes never having dealt with all this before, so your opinions mean a lot to me and provide a lot of reassurance, so please keep them coming. Re: comments please on this progress payment schedule 7Nov 25, 2008 12:22 pm In light of your recent post outlining more facts about your end of the house than I believe you are getting a very fair deal from your builder.
People building customised and PC'ing so many items don't realise how much they are exposing their builder's backside in 'bourke st' by doing so and I think he's done a fair job for you. For the record, I PC'd 65k worth of items on my house but the builder still managed to make a fair margin and we stuck to the normal Vic HIA progress payments. Don't fall for the "Freebies" scam Re: comments please on this progress payment schedule 8Nov 25, 2008 2:15 pm This topic was previously covered (http://www.forum.homeone.com.au/viewtopic.php?t=8376) and the standard appears to be:
5% deposit 10% at base stage 15% at frame 35% at lock-up 25% at fixing stage 10% final This seems a lot more resonable than the figures for your build (andit backed up by independant sources). Demolition August 2009, Construction Started September 2009, Completed December 2010 I am building Enfield 201 by Mimosa Homes - York Facade Link: https://www.mimosahomes.com.au/new-homes/enfield-201/ I did my colour appointment last week. I am looking… 0 600 regardless, your contract stipulates a payments schedule and SOPA doesn't give provision to that scenario. Your contractual terms appear to stand. Hence get a lawyer, it… 4 11882 There is no reason why building contract reconciliation cannot be done prior to handover, if the builder won't do it get someone to do it for you. Why would you pay for… 3 6690 |