We are building with ProCorp and our interest on late payments is 24%. We have to pay within 5 working days as stated in the HIA contract. I got the invoice for payment on Friday lunch time. I sent the bank the claim to be paid on Monday morning and it still hasnt been paid (she said it should be paid by tomorrow - Friday). My question is - how many builders actually charge you the late payment interest if you have done all you can do and are waiting for the bank to do its bit?
And when they say they charge you 24% interest do they mean 24% of your progress payment amount? For example if your progress payment amount was $38,000 would they charge you $9,000 for being late? Or is it $9000/365 days which is $24.65 and then times that by how many days you are late?