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
Want to read the full article?
- Thousands of expert product/service reviews
- Personal support through our Consumer Rights Advice Line
- Premium articles and in-depth buying advice
- Add a Consumer magazine for even more exclusive content
Disagreements and non-payments
Glossary
Want to read the full article?
- Thousands of expert product/service reviews
- Personal support through our Consumer Rights Advice Line
- Premium articles and in-depth buying advice
- Add a Consumer magazine for even more exclusive content
Building articles
Whether you're planning to build your own home or renovate an existing one, we've got you covered with a wide range of articles covering the whole process.
Renovating articles
Renovating and altering houses is a favourite pastime for many New Zealanders. Our articles take a look at what's involved when you undertake a renovation project.
Home maintenance
Regular maintenance is needed to ensure your house holds its value and remains safe and comfortable to live in.
Member comments
Get access to comment