Research report
17 March 2015
Construction progress payments
You need to pay the bills when they are due – find out how progress payments are managed on a building projects.
You need to pay the bills when they are due – find out how progress payments are managed on a building projects.
What are progress payments?
Unless you are paying in one lump sum, chances are you will have a clause in your contract for regular progress payments to be made to your builder.
You can negotiate with your builder how these payments will be organised, including:
- The number of payments.
- The amount of each payment.
- The gap or stage of progress between payments.
- The date or stage when each one is due.
If you have a project manager, one of their tasks will be to monitor progress payments on your behalf. Make sure this is specified as a task and they are qualified to recommend payment.
However, if you don’t intend living in the house you are building - for example you are building it as a ‘spec’ home, or to rent - the Construction Contracts Act is more prescriptive in how progress payment are to be made.
You should also be aware that residential property developers (including spec builders) must obtain a code compliance certificate before sale can be completed or possession can take place.
Making the payments
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Disagreements and non-payments
Glossary
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