PROPERTY CONSTRUCTION

Progress Claims
(Building Finishing Stages &
Building contracts)

ANSWERS

Workshop, Week 10
1
Please read through the document “Building Complaint
Resolution” and “Building Contracts and progress
Payments” from DMIRS and answer the following
questions;

Who is able to make a complaint to the Building Commission?

Page 1
“a person whose interests are being, or have been, adversely
affected by the carrying out of a regulated building service
(such as the owner of the work, a neighbour, or some other
affected third party); or an owner or builder under a contract
for carrying out home building work.”

What is the time limit for making a complaint?

Page 2” A building service complaint cannot be made more
than six years after completion of the work.”

The Home Building Contracts Act 1991 regulates the payment

of deposits and progress payments for home building contracts
between what values?
Page 1 $7,500 and $500,000

What are listed as the common progress payment claim

stages?
Page 2 & 3. Slab, Plate height, Roof cover, Lock up, Secondary
finishing and Practical completion.
Please read through the document “HIA
Information Sheet” for A guide to progress
payments WA and answer the following
questions;

What does the HBCA set out?

The HBCA sets out minimum requirements for

certain contracts, and prohibits certain
arrangements, including how much can be
charged by way of deposits and how progress
payments can be charged.

What does home building work include?

•Constructing a new home

•Placing a transportable home on land
•Altering, improving or repairing an existing home
•Carrying out any ‘associated work’ in connection
with constructing a new home or placing a
transportable home on land.
Please watch the three short topic videos for
the Construction Contracts Act (for Builders)
and answer the following questions;

Topic 1 – What are some of the additional

services covered in the Construction Contracts
Act?
- Preparatory and completion works.
- The installation of fixtures and fittings and
building systems.
- Supplying materials to site for use in
construction.
- Professional services agreements.
Topic 2 – Making a payment claim. What are
four essential pieces of information required
on a payment claim?
- Party Address
- Claimant
- Date
- Amount
Topic 3 – Applying for Adjudication. What are
four reasons you could apply for adjudication?
- A payment claim is rejected or disputed.
- Payment in full has not been received
- Any money retained has not been paid.
- Any security held has not been returned.
Please read through the HIA Progress Claims
presentation and answer the following
questions;

What percentage of houses in the other

capital cities of Australia are double brick?

What is the figure in Western Australia?

Please have a look at the API Progress Claim
document and answer the following question;

Why do you think the document states;

“Progress payment inspections are

undertaken in our capacity as Valuers, and
not as building inspectors or building experts,
and the Valuer’s inspection and report does
not constitute a structural survey of building
report and is completed in accordance with
the PropertyPRO Supporting Memorandum”?

- Valuer’s knowledge is limited

- Future liability.
Please watch the short presentation on
Progress Claims by Josh Hodby, Director of
NAB’s Property Services Group, Queensland
and Western Australia and answer the
following questions;

What does the Bank consider some of the

risks associated with progress claims?
- Make sure the claims happening accordance
with the contract.
- That there are sufficient funds to complete
the project (they are not front end loaded).