Building & Construction Law FAQ - Is prepaying the builder normal?
Date: March 03, 2011
Q. Is it normal to prepay the builder prior to the commencement of works?
A. Where the value of building works is less than $20,000 a 10% deposit is required by the builder. Where the value exceeds this figure then only a 5% deposit may be claimed. As for other payments relating to the building works they may be either preclaimed or claimed during the course of construction. With most building contracts there is a retention which can be held back pending satisfactory completion of the works mainly to cover defects.
