Browse Forums General Discussion 1 Sep 05, 2012 6:59 pm I bought a land+building package, and today I did my first inspection, everything is fine except some minor issues(can be fixed very quickly), as I am renting and paying loans, so I want to move in as soon as possible, and asked the builder how soon I can move in, then they told me: 1. they got my occupancy permit 2. I need to pay for the final stage before they can handover 3. they will have the inspection report tomorrow morning(then they will know how soon they can fix them) They particularly told me that the bank may need to do their inspection for the final payment that may take time, so I should send the invoice to bank ASAP if I am in a hurry. I heard that one should NOT make the payment until they fix all the issues otherwise they won't fix them once they got the money, but all the issues are in the inspection report and they have to fix it by law(right?), so I don't know in this case whether I should go ahead and send the invoice to my bank, or wait until they fix all the issues? If I wait then it will be a longer time, but if I send the invoice the bank now, it may take some time for the bank to actually make the payment and during this period they can fix all the issues? Thanks! Re: Pay final stage or wait for issue fixed? 2Sep 05, 2012 7:40 pm It normally takes a couple of weeks to sort out the defects. Send a letter to the bank saying the house is practically complete and ask them to inspect but hold the payment until the defects are attended to. 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: Pay final stage or wait for issue fixed? 3Sep 08, 2012 12:11 am once you hand the $$$ over it can be like pulling teeth to get things done. If you can, wait for everything being complete before you hand over. Whilst I am sure they will eventually get everything fixed, the urgency will deminish dramatically Re: Pay final stage or wait for issue fixed? 4Sep 23, 2012 5:17 pm You usually have 6mths for builders to return and fix things. But once they have your money, they wont do it. I would get them to fix the things first. Builders dont make money until final payment, so they will rush to get things done. Re: Pay final stage or wait for issue fixed? 5Sep 25, 2012 11:06 pm Whether you should hand over now depends on the extent of the defects. Minor cosmetic defects, its normal to have them addressed at the 90 day stage, especially if you're paying rent/interest and the builder is in no hurry to complete the work. OTOH, our builder tried to have us hand over with the air con still not installed. We refused. Re: Pay final stage or wait for issue fixed? 6Sep 26, 2012 12:26 am You can ask for the last payment to be in the form of a bank cheque. That way you can hand it over at anytime you see fit. Although if the fixes are only minor, would it cost you more than $300 in rent per week? You also have the 3 month post handover inspection which you can somewhat rely on getting those minor items fixed. By the sounds of it, I would suggest you don't fret and move in! On another note... my 200th post! Re: Pay final stage or wait for issue fixed? 7Sep 26, 2012 8:00 am Hi hao I think Adam.M has given you most practical advice because you are under pressure to move in and because the defects are minor. However you should understand that Occupancy Permit is not a certificate of compliance and unless you have had your home professionally inspected you run the risk of serious issues slipping past undetected, only to come back and bite you later. Then it may be difficult to get them fixed. The way progress payments are structured means that builders have most of your money by lockup and nearly all of their profit by then, that's why it can be so difficult to get them to finish. After lockup cost to finish can be greater than money left in the contract. I think we should have a system of retention where 5% of contract sum is withheld until end of maintenance (same as in commercial building contracts). You would then have much greater chance of having your defects fixed satisfactorily before authorising final payment. Foremost Building Expert in Australia,assisting with building problems/disputes, building stage inspections,pre-contract review advice for peace of mind 200 blogs http://www.buildingexpert.net.au/blog 1 9556 Yep, very good point. I’ll do more research and see what figures I get. Thank you! 8 2467 Are you saying that these consultants are involved at key-points of the building, and perform site inspects at the stages, or only after building is completed to point… 4 8995 |