We are borrowing 80% value of our construction from BOQ and I provided them with our first progress payment 10 days ago.
The advised us last week that they could not release the payment because they didn't have a copy of the Builders Risk Insurance, which I sent them on Friday, they have now come back saying they can not release the payment until we have all of 20% funds in our bank account (we are short about 5%). This is the first time I was aware that these funds must be available before a drawdown can commence, is this normal practice?
I think we'll just pay the progress payment as we are now 7 days over when the payment was requested so can therefore be liable for interest to the builder.
Any feedback will be greatly appreciated!