PROGRESS CLAIM PAYMENTS

PROGRESS CLAIM PAYMENTS 2017-12-12T06:46:55+11:00

A major risk homeowners face when building or renovating a home, is paying their builder in advance of the building work being completed.

If a builder becomes bankrupt or insolvent, suffers an injury or death, or for an unexpected reason is unable to continue construction, the homeowner suffers a significant financial loss.

SecureBuild’s Terms and Conditions  require builders and contractors to:

  • ensure that progress claim payments within their contracts align with the value of the work completed at each payment stage, and
  • not demand or receive a progress claim payment unless it has been approved by SecureBuild.

SETTING PROGRESS CLAIMS WITHIN BUILDING CONTRACTS

Based upon analysis conducted by quantity surveyors, SecureBuild has set progress claim stage percentage ranges  for standard residential building contracts.

When a builder or broker applies for home building compensation certificates, SecureBuild’s online certificate purchasing module ensures that the progress claim payment schedules are aligned with the value of the work completed at each stage of construction.

If a building project includes high-end or unique design and building elements, and the certificate purchase cannot be completed online, please  call 13 13 14 and the SecureBuild team will help complete the purchase.

When calling SecureBuild, please provide:

  • a description of the nature of the building work, or
  • a copy of the contract or quotation.

PROGRESS CLAIM PAYMENT PERCENTAGE RANGES

SecureBuild’s quantity surveyors have set out percentage progress claim payment ranges applicable to each building stage for all standard building projects.

The percentage ranges differ depending on the number of progress claim payments scheduled within the building contract with the homeowner.

The progress claim payment stage names typically used within residential building contracts are set out within the HBC certificate purchasing module.

Learn more about what information is required to purchase HBC certificates .

The tables below set out the progress claim payment percentage ranges for contracts with 10 and seven progress claims.

10 Stage Progress Claim Schedule

Progress Claims or Stage*   Progress Claim Amounts $ Range Cumulative
(max) %
Contract Value $1,000,000
1 Deposit $100,000 10% 10%
2 Slab $100,000 10%-15% 30%
3 Frame $100,000 10%-15% 40%
4 Rough-in $100,000 10%-15% 50%
5 Lock-Up $100,000 10%-15% 60%
6 Plasterboard $100,000 10%-15% 70%
7 Waterproofing $100,000 10%-15% 80%
8 Tiling $100,000 10%-15% 90%
9 Painting $100,000 10%-15% 95%
10 Final $100,000 10%-15% 100%
  Total $1,000,000   100%

Contract price validated by Quantity Surveying estimator tool

Maximum 10% permitted by law

Within the correct range

Outside the correct range

7 Stage Progress Claim Schedule

Progress Claims or Stage*   Progress Claim Amounts $ Range Cumulative
(max) %
Contract Value $1,000,000
1 Deposit $100,000 10% 10%
2 Slab $100,000 10%-25% 35%
3 Frame $100,000 10%-15% 50%
4 Lock-Up $100,000 5%-10% 60%
5 Waterproofing $100,000 15%-20% 80%
6 Fit out or fixing $100,000 10%-15% 95%
7 Final $100,000 5%-15% 100%
  Total $1,000,000   100%

Contract price validated by Quantity Surveying estimator tool

Maximum 10% permitted by law

Within the correct range

Outside the correct range