teebrown

Just wondering how your builders require you to pay the stage payments. Are you paying upfront for every stage or after every stage has been completed??

Ours are asking upfront, but just a little nervous as so many building companies going under, I don't want them to go under with our money.

They do have Master builders insurance.

Any advice??

CAN2NZ

Do not pay up front. You should pay at each stage, for example at the slab, at the roof on, at the close in, at the first fix, at completion. You should pay in 7 days from date of each stage. If you are using a bank, your bank may require a valuation based on the cost of your property plus the fixed price contract including the details of the products/finishes. Your bank may also require a new updated valuation report at each or stage a payment is required. This is to ensure that the bank is not exposed to having advance more funds than the building is worth, if something were to happen. If your builder wants finance up front, get another builder. You only have pull over the completion of the project if the builder works for you and the only way that works is if you pay him for doing his work, nnt before.

BEVS

Husbandit works on new builds.

He says you pay each stage payment after the stage is done, not before.

He also says look into the possibility of putting in a penalty clause for the complete build , if not also the stages, so if they are late in finishing the build , they pay you.

HTH

teebrown

Thanks for that guys, that put's a new light on things. Thought i had better check as they want the money first before each stage payment, but now I can put my foot down with the bank and give them nothing until each stage is completed.

Cheers again.

BEVS

Let us all know

CAN2NZ

I would be surprised the bank would pay in advance. Also, the bank won't pay the invoice unless you OK it. The invoice is often forwarded directly to the bank by the builder if you arrange it that way. You will always get a copy. Otherwise, you send it to the bank with instructions to pay on a certain day. These are usually 7 day invoices as I mentioned earlier.

As for the performance clause in the contract that was mentioned by another poster, the late penalty is often in the $250 per day range. Not really a large sum, but realistic when one considers that the projecet is likely only to be delayed, if at all by only so many days. Many building firms use a number of days for houses in a particular size range. The larger the size, the greater number of days allowed. I also believe that there is a two week fudge factor so you should feel good about finishing on time. However, these late penalties will not kick in if the delay is due to weather. So, if it rains for a month and the bricklayer cannot work, then that is not the fault of the builder. Also, there can be other outs on the "not in the control of the builder" wording as you can appreciate that that is very loose wording.

I enjoy being in a house we had built. I am happy to say that now that we have lived in it for 17 months there is not much that we would change. Really, just a longer and slightly wider bench top. The other things I have thought of are not really must haves, but more like, oh wouldn't it have been nice to make the laundry bigger or moved the master ensuite further east to give another meter to the bedroom. Those are really nice to haves and don't impact on how we live, but the bench top could be 30 cm longer and 10 to 15 cm wider. However, it is granite and it is already the largest it can be without having a second piece and a seam. We would have had to go with an engineered stone for the larger size. I really like the granite but there are some engineered stone alternatives that look nice too. I wouldn't have minded real wood kitchen cabinets like we have in Canada. I find that the cabinets here make me feel like I am in a doctor's office as they all have this same laminate cabinet set up back where I am from. We had nice maple cabinets in our kitchen in Ontario and the total cost of the kitchen (bigger than here plus the bathroom vanity) was less than what our kitchen cost here.

CarolineSwan

Never pay upfront, always after each stage

Geelong Gent

As mentioned above you make payments in stages

Each stage represents a total percentage of the overall build. Based on that percentage the builder will be expecting percentage of total fixed price (hopefully its a fixed price you have undertaken).

Along with the bank making the payment its customery for an independent surveyor to view the work and sign it off as complete. Its on the invoice and the receipt of this report that the bank make the payment - not necessarily you saying okay.

If you are not using a bank, employ the services of an independent surveyor to sign off. But make sure before you proceed with any work that the stages have been agreed and what process too follow for areas of work in dispute.