Browse Forums Home Finance 1 May 06, 2015 10:52 am Hi Finally we have a contract for our build. It is a standard Master Builders Association contract with no special conditions. I note the contract is not 'subject to finance'. Should I be inserting this special condition? I don't anticipate an issue but the costs to date in case of failure to execute by us are listed as 10k. We have started the process with the broker and don't expect an issue, will be checking with solicitor but wondering how it normally works? Can the bank approve pending we provide the signed contract opposed to the unsigned one used to assess? (Looking at Bank West). Thanks Re: Construction contract - subject to finance? 2May 08, 2015 11:38 am Well. Answer to our own question we now have conditional approval. Need to sign contract and provide a little more information. Now having a problem with progrss payments. Builder has specified a scope of works for Progrss payments as 16 separate sections and a specified dollar amount for each, paid monthly. It's very detailed not really top Ended but the bank wants a standard schedule Or will not approve loan. Anyone heard of such a detailed payment schedule? Builder says this is the "new" way, I am concerned If they have cash flow issue etc? Re: Construction contract - subject to finance? 3May 13, 2015 12:25 am Leksie5000 Well. Answer to our own question we now have conditional approval. Need to sign contract and provide a little more information. Now having a problem with progrss payments. Builder has specified a scope of works for Progrss payments as 16 separate sections and a specified dollar amount for each, paid monthly. It's very detailed not really top Ended but the bank wants a standard schedule Or will not approve loan. Anyone heard of such a detailed payment schedule? Builder says this is the "new" way, I am concerned If they have cash flow issue etc? Not sure about any "new" way? 16 progress payments seems way over the top. In Victoria the progress payments are governed by the Domestics Building Act and it is normal for payments to be in 5 stages (6 counting the deposit), which is the standard lenders look for. I don't know what other states regulations are, but ultimately the lender is the one who is lending the money, so the builder has to comply with what they require otherwise they won't get paid. Cheers Tom Re: Construction contract - subject to finance? 4May 13, 2015 7:36 am Leksie5000 Or will not approve loan. Anyone heard of such a detailed payment schedule? Builder says this is the "new" way, I am concerned If they have cash flow issue etc? It may depend on how complex the project is, but you should have looked at that first off. banks are pretty strict at the moment, and they are getting tougher, here in WA. If you pull out you may loose part of your deposit as well, on work already done in the prep.Goodluck Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs Re: Construction contract - subject to finance? 5Aug 07, 2015 2:58 pm StructuralBIMGuy Leksie5000 Or will not approve loan. Anyone heard of such a detailed payment schedule? Builder says this is the "new" way, I am concerned If they have cash flow issue etc? It may depend on how complex the project is, but you should have looked at that first off. banks are pretty strict at the moment, and they are getting tougher, here in WA. If you pull out you may loose part of your deposit as well, on work already done in the prep.Goodluck Thanks. We got around it in the end, no problem with finance and got that approved conditional on signing contract. We went with BankWest. You talk about deletions, are they variations or PS and PC adjustments? pleas list them 1 16545 you were just referred to get advice from your solicitor. This is a legal matter. Separately, why would you use a buyers agent for a house and land package? 3 55408 We are about to commence a new build I and Iām reading about defects along the way. My question is should we employ a independent building inspector to come in and… 0 5237 |