Browse Forums Building A New House 1 Jun 10, 2012 6:18 pm Hi all Last week we were told by our builder that we will be required to make our slab payment BEFORE they start construction! When i said no way they said they can negotiate for 50% to be paid. I couldnt believe it!!! The reason is because we are paying the funds and not the bank. How can they do this... how can they request for us to pay for something they havent even started! Has anyone else had this happen to them? i would really appreciate some advice here. Thanks Re: Builder asking for slab payment BEFORE slab is laid???? 2Jun 10, 2012 6:26 pm As far I am concerned after the deposit the next payment is after the slab has been laid. The builder can 'try' and negotiate for an earlier payment but the answer would be NO. Read your contract and talk to your lawyer. 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: Builder asking for slab payment BEFORE slab is laid???? 3Jun 10, 2012 7:54 pm I would have thought the builder could do what they want provided they put it in the contract. You should re check your contract as that will obviously answer your question Builder asking for slab payment BEFORE slab is laid???? 4Jun 10, 2012 9:36 pm I have gone through the contract and there is nothing. The progress payment schedule clearly says "... Due on completion of slab" I have gone through it several times to check myself. Re: Builder asking for slab payment BEFORE slab is laid???? 5Jun 10, 2012 9:55 pm If that's in the contract (as it should be) and the builder won't start then I would be seeing a lawyer about getting out of the contract due to the builders breach of the contract. It sounds like the builder has cash flow problems and its better to get out at the start than have him go bust with your money in his pocket. 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: Builder asking for slab payment BEFORE slab is laid???? 6Jun 10, 2012 10:21 pm Never pay in advance. If the builder goes bust, you will be out of pocket (even after Home warranty Insurance). "Thanks builder for your request, but no thanks" Demolition August 2009, Construction Started September 2009, Completed December 2010 Re: Builder asking for slab payment BEFORE slab is laid???? 7Jun 10, 2012 10:35 pm If your contract says it's not due until the slab is poured then the money is not due until then! The only thing I can think of (other than the builder is strapped for cash) is the builder is worried you won't pay! Perhaps the builder would be happy with a bank guarnetee or maybe having the contract value held in escrow with your lawyer so the builder can be satisfied that when the work is complete he will get paid! There are extra costs involved in that, but it should make sure both sides are happy! But I definantly wouldn't just hand the money over and hope for the best! Re: Builder asking for slab payment BEFORE slab is laid???? 9Jun 11, 2012 1:53 am This is ridiculous... what would happen if you asked to not pay say the frame progress payment till after lock up??? Pretty sure the builder would be saying no you have to pay as per the contract... Work both ways. Him being worried you wont pay does not come into it as you have a agreed upon contract. I think it is more likely the cash flow. Just out of curiosity is this a small builder? I had new concrete laid, extended the alfresco and had the sidewalks concreted too. I noticed the concreter didn't put the expansion foam anywhere, there are expansion… 0 8117 Ardo That is so funny! I wonder how many people know who Larry Haun is these days. I have a couple of young guys we call Mo 1 & Mo 2 who run a crew of 6 boys and… 9 15518 You should check your detail drawings, it may show downpipe within brick pier. 14 14099 |