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The Domestic Building Contracts Act restricts the Builder as to when and how much he can claim from you by way of progress claims during the construction of your home or renovation.

The usual method used is as follows:

  1. Base Stage 10%
  2. Framing Stage 15%
  3. Lock-up Stage 35%
  4. Fixing Stage 25%
  5. Completion (balance/adjusted)

The most common issue we have come across with homeowners are issues regarding payments to builders prior to the completion of a stage. The Builder cannot claim payment of a stage from you until the stage is complete; a stage is not complete if there are defective works. If this is the case the domestic building insurer may not honor your claim for any payments made prior to deeming the stage complete. You should always have an Independent Building Consultant check works upon the Builder making a claim for completion of that stage.

You may agree to use a different method on how stages are set with your builder if the works the Builder is conducting is out of the ordinary (provided that you sign a consent notice prior), usually when the works involve alterations or large bulk works that can be cut down into smaller parts. It is best, in order to avoid disputes and save you time and money, to seek legal advice prior to the execution of your Contract so that you can make sure you are protected. Call Boutique Lawyers to discuss any aspect of your Contract on 1300 556 140.

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