Browse Forums Building A New House 1 Feb 15, 2011 8:38 am Hi, I have just received my first progress payment invoice after slab completion. For me, the excavation was a provisional sum item. My question is when does the builder need to provide me with the invoices and calculations of the provisional sum cost. My builder is telling me that I pay the full progress payment now and they will make any contract price adjustments after they receive all the invoices from their subcontractors. But my NSW HIA contract states that idf the price of a provisional sum item is more or less than the allowance then this is a contract price adjustment. It also states in clause 14 that contract price adjustments are due at the next progress payment after it arises unless a different time is agreed. So the question is does arises mean after the work has been performed or after the builder has been invoiced? I think that the contract price adjustment should be made to the first progress payment and not adjusted later in a subsequent progress payment when the builder has got around to doing the paper work. Does anyone have any opinions or experience with this? Thanks trm Re: Provisional Sum Items - When do you pay them? 2Feb 15, 2011 10:03 am Our progress payments were made based on the contracted price, and any adjustments were taken off the final invoice. Our building contract specified that the progress payments were a % of the contracted price which was in the contract. contract signed: Nov 09 Released to Construction: 23 Jul 10 Slab poured: 9 Aug 10 Frame completed: 30 Aug 10 Windows & Gutters: 7 Sep 10 Bricks: 15 - 23 Sep 10 Roof: 24 Sep 10 Gyprock: 20 Oct 10 Lockup: 25 Oct 10 Kitchen: 27 Oct 10 Tiling: 6 - 9 Nov 10 Painting: 17 Nov 10 Carpet: 30 Nov 10 PCI: 15 Dec 10 Handover: 17 Dec 10 https://forum.homeone.com.au/viewtopic.php?f=31&t=35943 Re: Provisional Sum Items - When do you pay them? 3Feb 15, 2011 11:02 am A provisional sum is for work that may or may not need to be done If their is a likelyhood of a provisional sum being involved then you should be told. The actual amount will be calculated by various means which may include invoices. An example on my current house. There was a provisional sum for excaving and removing rock. I was told that some boulders had been excavated and I would need to pay an amount from the provisional sum for removal of 5 cubic m. I visited the site and asked for all but the two largest rock to be left on site. The amount I was eventually charged was based on removing 2 cubic m of rock 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: Provisional Sum Items - When do you pay them? 4Feb 15, 2011 11:17 am It is usual that any provisional sums get paid or returned in the final payment. Built with New Generation (Summit Homes) We own land!... with a slab on it! Plus a shell of a house with stuff inside ! Re: Provisional Sum Items - When do you pay them? 6Feb 15, 2011 12:40 pm Wow! I shouldn't have been so naive! When we chose more expensive doors than our PC amount the builder invoiced the difference to us at the time he purchased them and I paid no questions asked - doh! Re: Provisional Sum Items - When do you pay them? 7Feb 15, 2011 12:44 pm dif doors wouldn't be a provisional sum, they'd be a variation Built with New Generation (Summit Homes) We own land!... with a slab on it! Plus a shell of a house with stuff inside ! Re: Provisional Sum Items - When do you pay them? 8Feb 15, 2011 1:08 pm Candylea dif doors wouldn't be a provisional sum, they'd be a variation Well, front door and bifold doors are listed in a table under the heading "Provisional Sum Items" in our contract, along with vanity units, toilets, flooring and other similar items. Re: Provisional Sum Items - When do you pay them? 9Feb 15, 2011 1:18 pm I guess dif builders have their own meanings of what is a provisional item then. Changing items from what is standard, to me that is a variation. Built with New Generation (Summit Homes) We own land!... with a slab on it! Plus a shell of a house with stuff inside ! You talk about deletions, are they variations or PS and PC adjustments? pleas list them 1 16662 The best advice is for you to get a competent building consultant to guide you through your build 7 4710 The significant date is when receive final payment invoice Check that section of contract Bit of fluff by builders prior to that 1 15955 |