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Move to four progress payments for new constructions


Paul Graham, CEO

25 Mar 2021 • 2 mins

 

Following feedback from industry stakeholders, Keystart is pleased to advise that we have implemented a maximum of four progress payments for all new building contracts, effective from Monday 15 March 2021.

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
Lock up40%Yes
Completion20%Yes

Customers will not incur any additional costs as a result of this change as Keystart will not require a progress inspection at the slab down stage.

What do you need to do?

Please ensure that all new contracts being drawn up for Keystart customers include the updated schedule of particulars as detailed above. To receive payment at slab down you will need to provide Keystart with the following:

  1. An invoice advising you have reached this stage, the slab is down and the percentage payable must be 15%.
  2. The invoice needs to include a photograph confirming the slab has been laid on the respective block of land.

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. Please provide a copy of this signed variation when submitting the slab down invoice and photo for payment. This is not mandatory and this choice is completely up to you and your customer.

If you do wish to adjust the existing schedule, Keystart will require a copy of a signed variation confirming the adjustment in progress payments from three to four.

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

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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.