Are you in the process of building your dream home and wondering how to manage progress payments to your builder? Look no further than a HIA building contract progress payment schedule.

The Housing Industry Association (HIA) is a nationally recognized organization that represents the residential building industry in Australia. They have developed a standard building contract template that includes a progress payment schedule that is fair to both the builder and the homeowner.

What is a progress payment schedule?

A progress payment schedule is a payment plan that outlines when and how much the builder will be paid as the construction process progresses. This provides the builder with a steady cash flow while ensuring that the homeowner is not paying for work that has not yet been completed.

The HIA building contract progress payment schedule is broken down into five stages:

1. Base stage: This stage covers the initial work required to prepare the site for building, including excavation, foundations, and footings.

2. Frame stage: At this stage, the frame of the house is erected, including walls, roof trusses, and framing.

3. Lock-up stage: This stage encompasses the work required to make the house “lockable,” such as installation of doors, windows, and roofing.

4. Fixing stage: During this stage, the house is fitted with fixtures and fittings, such as plumbing, electrical, and air conditioning systems.

5. Final stage: Finally, the completed house is inspected for defects and any remaining work is completed.

Each of these stages is assigned a percentage of the total contract price, with the majority of the payment made in the final stage when the work is completed.

Why use the HIA building contract progress payment schedule?

Using a pre-drafted progress payment schedule ensures that both the builder and the homeowner are clear on what work has been completed and what still needs to be done. It provides a roadmap for the construction process and can help prevent disputes between the builder and the homeowner.

Additionally, the HIA building contract is recognized by financial institutions and can help streamline the process of obtaining a construction loan.

In summary, the HIA building contract progress payment schedule is an effective way to manage progress payments during the construction of your dream home. By providing a clear payment plan, it can help prevent disputes and ensure that both the builder and homeowner are satisfied with the construction process.

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