If you are having problems logging in, please call HIA helpdesk on 1300 650 620 during business hours.
Enter details below and sign up
As a result of changes to the NSW Home Building Act, your residential building contract must include a progress payment schedule containing details of the progress payments payable under the contract.
All HIA contracts included a progress payment schedule prior to 1 March 2015.
The changes have formalised how progress stages are described and progress claims are made.
Under a fixed-price contract, a progress payment stage must be described in clear and plain language and:
Progress payments can also be claimed on the basis of fixed intervals (as determined by the contract) or on an ‘as invoiced’ basis. If this is the case, payments may be claimed for:
These claims must be supported by invoices, receipts or other documents as may be reasonably necessary to support the claim.
While there were few formal rules on the content of progress payment claims in NSW prior to 1 March 2015, there was a general rule that the amount claimed under each stage should be reflective of the actual value of work completed within that stage. Further, the work described in a progress stage needed to be completed before a claim or invoice was submitted to the client – progress payments could not be claimed in advance of work being done.
The same approach applies under the new requirements. However, while the new provisions aim to give consumers better information about payment arrangements before the contract is signed, the changes also provide increased certainty as to the permissible structure and content of progress payment stages and claims.
More articles on:
Supporting building professionals with custom built services and products.