Browse Forums Building A New House Re: HIA Method 1 vs Method 2 - Progress Payments 4Oct 07, 2021 10:53 am So is Method 1 considered the preferred method by most, but the builders would rather Method 2? This is what I'm trying to understand, so I can advise the builder accordingly during our contract presentation. Re: HIA Method 1 vs Method 2 - Progress Payments 5Oct 07, 2021 11:12 am Stanks, I don't want this to come off rude, but it inevitably will, I just want you to know that's not the intent. Can i suggest if you're having some challenges navigating and understanding the legal documentation you're about to sign, that you get professional advice. A forum may be able to give you some general information, but it should not be in place of real legal advice, which seems to be what you likely need. The HIA link i posted suggests if you wish to use method 2, don't do it without seeking legal advice. This is because Method 2 changes your legal rights. If you want to understand more so you can decide which way to go/advise the builder, you need advice. My advice is seek that advice from a professional if you are not comfortable in understanding what you are agreeing to. Dark matter scientist, can breathe underwater, mind reader and can freeze matter just by willing it. Trust me, its in my sig. Re: HIA Method 1 vs Method 2 - Progress Payments 6Oct 07, 2021 11:36 am It's cool. I understand what you're getting at and appreciate the advice. I'm asking from the perspective where surely others on here have been through the same situation, with the same questions. I flick through the forums and understand that usually, Method 2 has the builder get paid larger amounts and in some cases, when work hasn't yet been completed. Method 2 also goes against the Victorian Act, which I assume is the change of legal rights is advised. Method 1 simply follows the Act. Now, the chance of my builder going bust mid-way through my build (assuming Method 2 is used) and being financially impacted because of the larger early payments is pretty minimal (if 100% non-existent). However, where Method 1 is involved (and preferred by my bank), it's a safer option for the bank and me as their client. I'm not asking for legal advice here, just the experiences and opinions of others who've dealt with the same thing. Cheers Re: HIA Method 1 vs Method 2 - Progress Payments 7Oct 07, 2021 12:11 pm Hey stanks It wasn't that long ago banks insisted on battlers getting true value for each stage completion Now that some builders are going broke, while still needing to trade, money has to come from somewhere to keep other projects going I'm guessing you'll be his banker Ask yourself what value do you get at lock up having paid 70% of the cost and the builder keeps coming back every day thereafter for a portion of the remaining 20% He's certainly not doing you a favour.... think it through very carefully Ask your legal eagle that Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs Re: HIA Method 1 vs Method 2 - Progress Payments 8Oct 07, 2021 12:23 pm stanks Now, the chance of my builder going bust mid-way through my build (assuming Method 2 is used) and being financially impacted because of the larger early payments is pretty minimal (if 100% non-existent). However, where Method 1 is involved (and preferred by my bank), it's a safer option for the bank and me as their client. Your jobs probably loaded.. It's the other projects under construction that he needs funding for ...you'll be milked like a cash cow (humour) Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs Re: HIA Method 1 vs Method 2 - Progress Payments 9Oct 07, 2021 12:36 pm stanks It's cool. I understand what you're getting at and appreciate the advice. I'm asking from the perspective where surely others on here have been through the same situation, with the same questions. I flick through the forums and understand that usually, Method 2 has the builder get paid larger amounts and in some cases, when work hasn't yet been completed. Method 2 also goes against the Victorian Act, which I assume is the change of legal rights is advised. Method 1 simply follows the Act. Now, the chance of my builder going bust mid-way through my build (assuming Method 2 is used) and being financially impacted because of the larger early payments is pretty minimal (if 100% non-existent). However, where Method 1 is involved (and preferred by my bank), it's a safer option for the bank and me as their client. I'm not asking for legal advice here, just the experiences and opinions of others who've dealt with the same thing. Cheers i think everything you need to know is in you post above. much like the assignment of surveyor, the first option is frictionless. I wonder it in Bimboys world, the sky is ever not falling? Dark matter scientist, can breathe underwater, mind reader and can freeze matter just by willing it. Trust me, its in my sig. Re: HIA Method 1 vs Method 2 - Progress Payments 10Oct 07, 2021 12:40 pm StructuralBIMGuy Ask yourself what value do you get at lock up having paid 70% of the cost and the builder keeps coming back every day thereafter for a portion of the remaining 20% I guess the 10% you missed is the angels share? what is it with these basic maths errors, man.... Dark matter scientist, can breathe underwater, mind reader and can freeze matter just by willing it. Trust me, its in my sig. Re: HIA Method 1 vs Method 2 - Progress Payments 11Oct 07, 2021 1:03 pm LOL, Pay attention, you can't demand the final 10% completion at the fixing stage (20%) ? Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs Re: HIA Method 1 vs Method 2 - Progress Payments 12Oct 07, 2021 1:13 pm StructuralBIMGuy Ask yourself what value do you get at lock up having paid 70% of the cost and the builder keeps coming back every day thereafter for a portion of the remaining 20% LOL indeed. Pay attention BimBoy- this sentence is rubbish if that is truly what you meant to say. Otherwise it should make reference to the fixing or not mention the "remaining" 20% but refer to the "following" 20%. The inference of "remaining" is the residual of the whole. In this case that's 30%. These are your words, not mine. I guess its maths and English you have trouble with. Dark matter scientist, can breathe underwater, mind reader and can freeze matter just by willing it. Trust me, its in my sig. Re: HIA Method 1 vs Method 2 - Progress Payments 13Oct 07, 2021 1:25 pm Bimboy and offsider on site - Bimboy - "can you go fill the remaining bore holes with concrete there matey" Bimboy Jr - "sure boss" 2hrs later Bimboy - "....matey, what have you done...?!" Bimboy Jr - "you told me to fill the remaining bore holes with concrete!" Bimboy - "i meant only 90% of them....." Dark matter scientist, can breathe underwater, mind reader and can freeze matter just by willing it. Trust me, its in my sig. Re: HIA Method 1 vs Method 2 - Progress Payments 14Oct 07, 2021 4:47 pm stanks i think its unlikely Metricon will vary their HIA contract template in the current high demand environment. I suggest reading everything in it and ensure you understand the financial and quality risks that Metricon is using this contract wording for to transfer these risks to you. For example, if the build runs late you will possibly be paying both a new motgage and rent. Can you afford any delays if your inspector identifies defects and you insist these be rectified? Metricon will assume you cannot and act accordingly. Re: HIA Method 1 vs Method 2 - Progress Payments 15Oct 07, 2021 4:53 pm Kippers01 @stanks i think its unlikely Metricon will vary their HIA contract template in the current high demand environment. I suggest reading everything in it and ensure you understand the financial and quality risks that Metricon is using this contract wording to transfer to you. For example if the build runs late you will possibly be paying both a new motgage and rent. Can you afford any delays if your inspector identifies defects and you insist these be rectified? This is what I'm going through at the moment. I already have noted a request for the damages to be lifted to cover our rent. AS long as the damages cover one or the other (mortgage or rent), I'm fine with that. I've also noted to request to bump up the progress payment time from 7 to 14 days. When requesting a payment from the bank, I'm at the mercy of however long they take, which puts me in the position of a possible penalty IF the bank drags their feet and its something I cannot control. Re: HIA Method 1 vs Method 2 - Progress Payments 16Oct 07, 2021 5:14 pm All in all, all the builder has done is populate a few items (ie: the prices) that specifically pertain to our build, into a base HIA contract. Most of what I've understood from reading on here is that many have had a contract reviewed by professionals, yet, the result was usually the same: not much can be changed. Re: HIA Method 1 vs Method 2 - Progress Payments 17Oct 07, 2021 5:14 pm Sounds like you've got the $100 p/w extra rent ( Chicken Feed) cover for delays How about time delays and surprises in starting on site, which are outside the builders control These can incur huge price increases even when the contract has been signed here Footings Cost in hewett Seriously I suggest you get professional advice from someone other than noname and no professional standing (humour) Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs Re: HIA Method 1 vs Method 2 - Progress Payments 18Oct 07, 2021 5:37 pm StructuralBIMGuy Sounds like you've got the $100 p/w extra rent ( Chicken Feed) cover for delays How about time delays and surprises in starting on site, which are outside the builders control These can incur huge price increases even when the contract has been signed here Footings Cost in hewett Seriously I suggest you get professional advice from someone other than noname and no professional standing (humour) We have $250 per week noted. They've noted 314 days (its a 38sql Double Story) including delays. I'm fine with this. I doubt they'd have any surprises when they come onsite. It's a vacant block with a few weeds. It's in the Western Suburbs of Melbourne, so I would expect nothing more than the standard slab to be used with no need for exception footings or the like. This is the 3rd time we're building with a volume builder in the same region. We didn't experience any surprises regarding the site and the start, so I wouldn't expect the same here. Re: HIA Method 1 vs Method 2 - Progress Payments 19Oct 07, 2021 5:40 pm Great have that put into the contract... get the 45day clause removed...if you are that confident Contract lawyer Perth Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs 5 6803 10 12255 You talk about deletions, are they variations or PS and PC adjustments? pleas list them 1 16542 |