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Keystart move to five progress payments for new constructions


Paul Graham, CEO

25 May 2022 • 1 min
Man and woman talking

Keystart has implemented an optional additional progress payment for all new building contracts, effective from 16 May 2022.

The Schedule of Particulars to accommodate an additional progress payment in a new fixed price building contract is outlined below, for building industry stakeholders.

To existing Keystart customers, your building contract might change. This depends on what stage of your build has been completed, and a conversation with your builder.

Under current building contracts, where the build has not yet reached roof cover, the Schedule of Particulars can be adjusted to accommodate an additional payment.

This can occur when the customer and builder have agreed to the change, a variation to the existing Schedule of Particulars has been signed and then provided to Keystart. 

I am a customer – what do I need to do?

You don’t need to do much!

Your builder might get in touch with you, to discuss updating your build contract.

I am a builder – what do I need to do?

The new Schedule of Particulars that form part of the fixed price building contract needs to reflect the following:

StagePercentage payableProgress inspection required
Slab down15%No
Plate height25%Yes
Roof cover20%Yes
Lock up20%Yes
Completion20%Yes

Where you have contracts in the pipeline, and Keystart has not yet made the first progress payment, you may wish to speak with your customer and adjust the existing contract by way of a signed variation.

Where you have existing contracts that have not yet reached roof cover and you and your customer agree to increase the progress payments from four to five, we will be able to accommodate the additional payment if you provide us with a variation to the existing Schedule of Particulars, signed by you and your customer. This is not mandatory, and this choice is completely up to you and your customer.

Please provide a copy of this signed variation when submitting the slab down invoice and photo for payment.

If you have any questions, please do not hesitate to contact the Keystart settlements team on 1300 070 756.

 

Keystart recommends that you seek your own independent financial advice prior to making any decisions about your financial needs. Any examples given in this post are provided for illustrative purposes only.