Progress Payments

Hello,

As this is my first build, hopefully you can clear an issue up for me.

As we are borrowing 80% of the construction loan and have the 20% in cash, do we have to pay the bank, before the builder starts construction or do we pay once the builder sends the first progress payment invoice at end of the slab stage?

Thanks

We were in the same situation as you and we just transferred the money directly to the builder to cover progress payments up to 20%. Our 20% only covered 1 and a half progress payments so the second one was a combination of us sending a direct transfer to the builder and the bank sending money to the builder and drawing from the loan.

Thanks xxkatxx,

was the payment to the builder after the stage was completed?

Thanks

That depends on your payment plan. For us we had to pay a deposit in advance of the slab going down but then after that we only paid each progress payment after the works were completed. You should have a schedule of payments before you begin

Thanks, Ill have a look.

We've paid the first 5% already, so hopefully the the last 15% for the slab stage will be due after.