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Sailor FNQ

20,265 Posts.

27/08/22

22:27

Post #: 63363919
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Originally posted by Rameez ↑

There is a solution.
1) No deposit to be paid
2) Builder does 21 days work and invoices for work completed in that period validated by invoices paid for material and labour plus the builders margin on those invoices. This carries on monthly until completion.
3) The proprietor or the proprietors financier has until the end of the calendar month to pay, allowing the builder to pay all of his bills and pocket his margin.
4) No payment equals no further work until payment received.
This only exposes the builder to 1 months loss if payment not made and guarantees that the proprietor has received value as per invoiced material and labour.
The above can work with fixed price contracts and certainly works very well with cost plus contracts.

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Trouble is ...
It would be near impossible to program ongoing work for all the subbies involved in the house building game.
Many houses, many subcontractors, many trades - all need to be programmed in work/trade order.
The borrower is paying interest on the mortgage from day one and wants the home to be completed as soon as possible.
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