Payments
Contracts – Provisional Sums
All new house building contracts will have a section for Provisional Sums. These are used for work that MAY be required, but the builder can’t provide an accurate estimate at the time of signing of the Contract. The main area…
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Contracts – Prime Cost Items
Some new house building contracts will have ‘Prime Cost’ items. These are used for fixtures, or fittings, which the Client requires, but have not been finally selected prior to signing the Contract. An example would be they want a professional…
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How Much Should Stage (Progress) Payments Be
When you contract someone to build a new house you are required to make regular payment as each STAGE is completed. . . . But how much? Well builders want to get paid as soon as possible so they will…
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Paying Contractors
Sponsored by CheckVault The advice you always get about paying contractors is “Don’t pay until the works are complete.” Easy to say. . . . . but most small contractors want payments up front! Why Contractors Want Up-Front Payment I…
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Beware of Escalation Clauses
What Are Escalation Clauses These are a way of allowing for inflation. Basically it provides a way for the builder to increase his costs in line with inflation. The Clause will quote an inflation index which can be used to…
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Delaying Progress Payments
So your builder has just made a claim for a Progress Payment . . . . . but you are not happy with the workmanship, or don’t agree that the Construction Stage is finished. What can you do? A lot of people…
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Post Contract Variations
The best advice I can give is: “Avoid making Post Contract Variations” The reasons are: Cost Basically the builder holds all the cards once the contract is signed. They can quote you the top price for the change…..plus a percentage…
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Final Cost – When Do You Find Out?
Some people think that when they pay an initial deposit, and leave the Builders Sales Office they know how much their house will cost…………..If you are unlucky, and/or don’t know how the system works you could be hit for unexpected…
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