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Building Progress Reports

If you have engaged a builder to complete your building project it is crucial to stay well informed in relation to the progress of the build. Progress claims involve large amounts of money, and often even a single progress claim may amount to the largest amount of money you will ever have handed over in one transaction. It is easy during the construction phase to become complacent with handing over money as the builder demands, particularly if the bank is providing the funds.

 

Don't be fooled by the ease at which these claims and payments are made - the onus is well and truly on you to ensure that the builder has delivered what he is claiming for. If you find yourself in a situation where the builder has over claimed on progress and you have paid him for that claim, the resultant dispute can last for years.

 

Often the unscrupulous builder has cash flow problems and is over claiming to prop up his business. The cash flow problems result in trouble with payments to subcontractors. Unpaid  subcontractors will be reluctant to continue work, resulting in a subsequent reduction in progress.

 

The reduction in progress results in a reduction in the ability to claim legitimate progress payments and there begins a vicious cycle which may ultimately lead to failure of the business. Unfortunately this has left many prospective home owners in major financial trouble with no prospect of recovering the over payments and a significantly reduced entitlement to Home Warranty Insurance. 

 

We recommend that owners commission progress reports at each progress claim stage as detailed in your construction contract. Usually the claim stages are deposit (no report necessary), base or slab stage, frame stage, enclosed (or lock up) stage, fixing stage and practical completion. These stages can sometimes be altered or more or less stages included in the contract, depending on the specific circumstances of the build.

 

GM Building Consultants provide two variations of the Progress Report, either of which can be commissioned at any stage during construction.

 

Progress Report

(milestone only)

 

The milestone only progress report is a low cost option providing peace of mind for home owners that the building works have reached the appropriate level of progress to warrant release of the progress payment.

The consultant will make the necessary arrangements with the builder to attend site and detail the progress of the build via photographs and a summary report confirming a snapshot of the state of the works at the time of the inspection. The report provides photographic evidence of the state of the build and an expert opinion as to whether or not the works have reached the required milestone in accordance with the terms of the contract.

 

NB. The inspection does not include a detailed quality check or provision of a technical defect report in relation to the works.

 

The milestone only progress report is your safeguard against release of monies for works which the builder may not yet be entitled to claim for.

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Progress Report

(including quality check)

 

Many builders engage their own specialists to perform quality checks at various stages of construction, and the building certifier role also extends to ensuring that the construction is in accordance with the design.

Experience has proven that at times it is difficult to ensure that the inspection is being undertaken by a truly independent person. Unfortunately, the prospect of repeat business sometimes results in a less than arms length relationship between the builder and the consultants they engage. 

 

In addition to the inclusions of the milestone only progress report,  the progress report including quality check includes a detailed independent inspection of the works, noting any visible items which have not been completed in accordance with the National Construction Code, the relevant Australian Standards, generally accepted building tolerances or manufacturers recommendations.

 

Once completed, the report provides certainty in relation to progress and the quality of the work. If there are issues that require attention, it is much easier to get the builder to respond if he is expecting a progress payment than after the money has been released. Once any issues identified have been attended to by the builder, we can co-ordinate a prompt re inspection to check off the rectification, reducing the risk of delays to the ongoing progress of the works. 

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For free expert advice or to book a progress inspection click here