Browse Forums Building A New House 1 Apr 03, 2009 11:32 am I"m interested in proposing to any builder that we negotiate with my own payment schedule rather than use their own which is usually heavily skewed in their favour. My goal is to come up with something fair, but minimise my risk if the builder goes under. Am happy to produce lots of payment milestones, but don't want to pay for anything until it's immediately completed (ok to some deposits), and at no point in time risk more than $10k in their favour. Can those of you more experienced with the process please help me to devise a plan for this? A standardish sort of plan that I see is something like the following, which makes too big the chunks, help please!! 5 % deposit 10% slab 25% frame 35% lock up 15% final Re: In these times, whats a safe and fair payment schedule?? 2Apr 03, 2009 11:40 am I did a bit of trawling and found the following that people have proposed for reference? Deposit 5% Slab Complete 10% Frame Complete 15% Lock Up Stage 35% Fix Out Complete25% Final 10% So that makes 6 stages, lets say something to achieve 10-12 staged payments and smaller amounts at each stage, what would make sense? Re: In these times, whats a safe and fair payment schedule?? 3Apr 03, 2009 12:11 pm Talk to your lender about what they will pay out for each stage- we had issues as ourbank wouldn't release the amount agreed to for frame stage as their valuer declared it too high (once the frame was already up) and we had to find the funds ourselves- not a pleasant experience! Re: In these times, whats a safe and fair payment schedule?? 4Apr 03, 2009 2:33 pm peterd I did a bit of trawling and found the following that people have proposed for reference? Deposit 5% Slab Complete 10% Frame Complete 15% Lock Up Stage 35% Fix Out Complete25% Final 10% So that makes 6 stages, lets say something to achieve 10-12 staged payments and smaller amounts at each stage, what would make sense? peterd, These figures sound about right. Builders don't mind more frequent payments, but in the end, each stage will still amount to the same, so you're no better off. The one stage that needs a definiotn is "Fix Out Complete". This is a big payment and is ill defined. Of course, by defintion the house would have to be 90% compelte, since you are payign for 90%. I wonder if it includes all power points/light switches and light fittings, nternal wall covering, kitchen, bathroom items, etc. Basically, everything but flooring and painting? Cheers, Casa Demolition August 2009, Construction Started September 2009, Completed December 2010 Re: In these times, whats a safe and fair payment schedule?? 5Apr 03, 2009 2:44 pm Forgive my ignorance of NSW law but isn't this covered by your state equivalent of the Domestic Building Contract as it is in Victoria see http://www.pic.vic.gov.au/resources/doc ... ts_Act.pdf Clause 40 (pp 37-39). "base stage" means— (a) in the case of a home with a timber floor, the stage when the concrete footings for the floor are poured and the base brickwork is built to floor level; (b) in the case of a home with a timber floor with no base brickwork, the stage when the stumps, piers or columns are completed; (c) in the case of a home with a suspended concrete slab floor, the stage when the concrete footings are poured; (d) in the case of a home with a concrete floor, the stage when the floor is completed; (e) in the case of a home for which the exterior walls and roof are constructed before the floor is constructed, the stage when the concrete footings are poured; "frame stage" means the stage when a home's frame is completed and approved by a building surveyor; "lock-up stage" means the stage when a home's external wall cladding and roof covering is fixed, the flooring is laid and external doors and external windows are fixed (even if those doors or windows are only temporary); "fixing stage" means the stage when all internal cladding, architraves, skirting, doors, built-in shelves, baths, basins, troughs, sinks, cabinets and cupboards of a home are fitted and fixed in position. Why do anything else than that laid out and clearly defined in legislation...then there is no arguement about what constitutes a stage being completed. mmm....donuts Homer Simpson 1956- Links: Site Costs Ready Reckoner | H1 Addiction Medical Advice | Château TDL: The Backyard Re: In these times, whats a safe and fair payment schedule?? 6Apr 03, 2009 2:47 pm We're doing the following about to sign. 5% on signing of contract (less a deposit paid) 15% Slab Poured 20% frame – 95% complete, Acknowledges that some trusses need to be left out for the bricklayers 15% Brickwork Complete 10% Roof Tiles - Installed 10% Internal linings – No cornice to wet areas 15% Wall & Floor tiles to wet areas complete 10% Completion Regards Dan C Re: In these times, whats a safe and fair payment schedule?? 7Apr 03, 2009 8:38 pm we were able to renegotiate to a larger final percentage. BUT only because we considered walking after a huge markup on our expected earth works of nearly 20k or so over what we expected. I think because the builder knew we were only borrowing a smallish percentage of the total cost and not many people were looking at building at the time it helped though. We've just paid our 2nd last payment and are now just into bank money. ( by $600 ) our final payment will be approx 30% of the build cost. Hi Minho I have heaps of experience in Ku-ring-gai with both DAs and CDC ( this is the main area we build in). DA's are taking 12-18months and CDC's we have been doing… 1 3162 Block of two storey townhouses requires painting on the roof. A brick parapet wall separates each unit and extends above the tiled roof. The parapet walls require sealing… 0 3502 Hi, we live in an area where the black soil is prone to a lot of movement. We have an old 50's house with masonite everywhere and nails popping out, warping, rusted etc.… 0 4510 |