Progress Payments and Penalty clauses

It appears a request to the bank for a Progress payment will not be approved by May1.
There were Only 5 days from request of funds by builder to using penalty clauses, as per the contract. Standard qld contract.

After May 1 the builder is entilted to use penanlty clauses for not having sufficnt fiance to proceed.
In reality will the builder immediatly invoke these clauses .
Are there 3 days of grace or something similar?
The funds will be approved but the bank is just slow , and I have informed the builder .
40 % of funds have already been outlayed
 
Hi ggumpshots,

I have had the bank pay many progress payments late (up to a week or two late), and builder has not charged any penalties (just sent reminder letters).

However, these properties were not in QLD.

The builder's timeframes just do not match with the timeframes that banks have (which the bank does not disclose in the loan documents - but with the ANZ is ten working days which is longer than any builder's timeframes). I think unless builders want to have a lot of disputes with their customers, they must allow a few days extra for the bank to pay.
 
progress payment

My first progress payment was late due to a mis-communication between myself and the bank.

The builder rang me and politely told me it was more than 7 days overdue and could I look in to it. They were very nice and said "it happens all the time and it's no big deal".

I rang the bank, they agreed to supply the correct forms (which they neglected to do) and I faxed it straight back to them and all was sorted.

I can only speak from that single experience but I would imagine that it happens all the time due to paperwork delays etc and they probably don't lose that much sleep over it.

My builder actually hasn't asked for the second progress payment yet and we are less than a week away from completing the third stage.
 
ggumpshots, Just call him first and explain..Im sure he'll be fine. Yes it does happen often and depends on the bank so as long as he is informed you most likely won't have a problem.

Hows the house going anyway? Did you get back to have a look at it or not?
 
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