Browse Forums Building A New House 1 May 28, 2009 4:10 pm Hi all, does anyone know the HIA standard progress payment schedule for NSW? I am being told two different schedule by Clarendon (the builder) and my bank. Bank is telling me the schedule should be: slab incl deposit 15.0%, frame 15.0%, enclosed 35.0%, fixing 20.0% and practical completion 15.0% Whereas Clarendon came up with a different schedule: deposit on signing 5%, slab: 20%, frame: 25%, brickwork: 20%, internal linings: 20%, practical completion: rest Both are claiming to follow HIA NSW standard contract. Who do I believe? Re: HIA standard progress payment schedule 2May 28, 2009 5:03 pm Believe your bank. Clarendon are trying to get more money up front but everyone i dealt with were the same. Re: HIA standard progress payment schedule 3May 28, 2009 5:34 pm It can be anything as long as you both agree 'A bottle of wine contains more philosophy than all the books in the world.' Louis Pasteur Vegie garden: viewtopic.php?f=19&t=27637&start=0 My Backyard Adventure Re: HIA standard progress payment schedule 4May 28, 2009 6:27 pm These are the two "standard" or common payment schedules. The HIA contracts I've seen have both attached and you agree to use one that suites you/builder/bank. Trying this building gig one more time. Re: HIA standard progress payment schedule 5May 28, 2009 7:40 pm Clarendon are asking for 25% once the slab is down, while the bank thinks 15% is a better figure. Ask yourself this question, after the slab is down, do you have 25% or 15% of the house value delivered? Demolition August 2009, Construction Started September 2009, Completed December 2010 Re: HIA standard progress payment schedule 6May 28, 2009 8:44 pm Casa2 Clarendon are asking for 25% once the slab is down, while the bank thinks 15% is a better figure. Ask yourself this question, after the slab is down, do you have 25% or 15% of the house value delivered? Or 90 % by internal lining stage Tell me, was the Clarendon rep able to maintain a straight face while presenting that schedule? Cheers zeke Re: HIA standard progress payment schedule 7May 28, 2009 10:14 pm Thank you all for your replies. This is the first time we are attempting building a house. Couple of our family friends recommeded Clarendon, so we just went straight to them. Went to their display homes, loved one of the design - the sales rep was incredibly helpful... so it just carried on from there. We were sort of set on the design... but now this problem of progress payment popped up. We didn't really think things like this could go wrong with big companies like Clarendon. What do we do now? Do you think the payment schedule is something they would be willing to negotiate on? Re: HIA standard progress payment schedule 9May 29, 2009 2:40 pm "What do we do now? Do you think the payment schedule is something they would be willing to negotiate on?" Everything is negotiable. You can tell them that the Bank won't allow you to pay so much up front, and that is the truth. If the bank is involved in the making your payments then you are in trouble if you are being asked to amy more than they assess ahs been done. The Payments should be reflective of the value that is existing on your block of land at the time that the payment is made. That way if they go belly up, you should not be worse off, albeit that an insurance policy exists. We negotiated the following: 1 Deposit 5% 2 Concrete slab poured 15% 3 Frame 95% complete 20% 4 Ground floor Brickwork practically complete 9% 5 First Floor Brickwork Complete 6% 6 Brickwork Rendered 5% 7 Tiled roof 90% complete 8% 8 Internal linings - includes plumbing & electrical rough in . 9% 9 Wall & Floor tiles to wet areas complete 13% 10 Practical completion 10% Regards Dan C Re: HIA standard progress payment schedule 10Dec 19, 2012 1:31 pm Based on the number of builders that have gone broke in 2011 and 2012 as a result of "Frontloading" Contracts I believe that the NSW State Govt need to Legislate the maximum amounts that Builders can claim at each stage. The final payment on handover should be a minimum of 15% Cheers Michael Re: HIA standard progress payment schedule 11Dec 19, 2012 9:10 pm I'd go to Clarendon and tell them this is what my bank wants Re: HIA standard progress payment schedule 12Dec 19, 2012 11:16 pm I know it may be different in WA.. but with my progress payments the builder had set it up where they got a lot of money at the start of the build.. but the valuer of the bank set down exactly what they where happy with and that was that.. the builder redone the progress payment schedule to suit in back in a matter of half an hour.. the builders will do most anything when they realise its the banks who have the final say on releasing the money.. hope this helps Re: HIA standard progress payment schedule 13Dec 20, 2012 8:02 am Chintook - I think with the recent collapse of Procorp you just want to be a little bit careful with front loading of payments. I think that having 90% of your contract payments made once gyprock has been installed is excessive and I can totally understand why your bank did not agree to it. The problem that I think that you could face, if Clarendon did get into any financial difficulty is that they get to you to gyprock and it costs them more money to finish the house than they are going to receive from you, so they leave it at that place and start the next house. Plus it is going to cost you more in the long run as you will be paying higher mortgage payments. I believe that builders do front load their payments. Slab payments are generally high as they cover all of the initial costs to get you to slab - my builder paid for all the DA costs. It also covers HOW insurance and surveyors fees etc. I would be negotiating down the frame, bricks, gyprock and have another payment in between internal linings and PC - maybe a fixout claim. Modified Fernside 38 Rawson Homes Blog: http://www.thehousethatmatandjenbuilt.blogspot.com Build Thread: https://forum.homeone.com.au/viewtopic.php?f=31&t=60501 Re: HIA standard progress payment schedule 14Oct 01, 2018 7:46 pm If you want to know the payment schedule look up Domestic building contracts ACT 1995 section 40. it will give you the legal payment methods depending on the project anything over $20,000 is 5% deposit anything under is 10%. this will then allow you to look at the different payment methods depending on your project. All Licensed builders MUST use these payment schedules, when entering into any contract. The only exception is a cost plus contract which is for projects over the value of $500,000. Cost plus contracts are only a good idea when you have poor plans or want to design as you go. Bear in mind that every change you make costs you money. Cheers Steve Re: HIA standard progress payment schedule 15Oct 02, 2018 1:08 am It would say that ideally builders would have to deal with their own financing solutions and do not expose any of their financial risks on the clients/banks, same way manufacturers are arranging manufacturers' finance. The whole practice of clients/banks paying for anything other than completed house is faulty and prone to issues (minus 5%-10% deposit). Re: HIA standard progress payment schedule 16Jan 11, 2019 4:38 pm This is what we negotiated with our builder: Quote: Slab Down 15% Plate High 25% Roof Cover 20% Lock up 20% Practical completion 20% 10 12321 You talk about deletions, are they variations or PS and PC adjustments? pleas list them 1 16568 Sorry but you have a crap builder. Probably too late now. For our last build I only spoke to builders who would allow me easy access (at no cost). I used my own sparky… 10 9837 |