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Would like to seek some advice here on what is the usual way which a buyer...

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Veronica

Would like to seek some advice here on what is the usual way which a buyer verify on each building stage completion before cash disbursement to the builder? The staged payment schedule I was given have around 8-9 stages of payment. It is costly to pay a valuer (costing around $500 each time) to verify before payment to the builder. We are not residing in the city we are building which makes it hard for us to verify. The builder said they can sign off to attest each stage of completion, coupled with photos and videos. The builder is a RMB and had been in business for 20 years. Would like to get some advice here on this.
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Chris C

Hi Veronica, I guess the usual ways are to make the effort to go to Site yourself, get someone you trust (and who knows what to look for) to do it, or employ an expert. 9 stages at $500 is only $4500, which must be a lot less than 1% of the contract sum, so perhaps not that much for peace of mind, and the opinion of an unbiased professional if you end up in a dispute. But the builder’s offer of photos and video sounds reasonable (and of course he’s going to ‘attest’ everything is fine, or he shouldn’t be sending you an invoice), so maybe a compromise would be comparing a valuer’s report with the photos for at least the major items from drainage (important to have a record/photos of anything that’s buried, in case you get problems with it later), and foundations up to closing in and windows. To see whether you think the builder is being straight with you, and doing a reasonable job. Bearing in mind a lot of detail and possible problems can be glossed over in photos. Maybe if you establish (and the valuer thinks) you can trust the builder, you could rely on only photos later. Bear in mind that for payment the contract probably only requires stages to be ‘substantially’ complete, not 100%.
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Jakobs Victoria

I own a residential building company, happy to provide angles from builders point of view. You can appoint a clerk of works (someone local, could be a builder but doesnt have to be). you could ask for photos, AND inspection notices from council…if not passed, there could be a case for stage not being complete. It’s hard when you lose faith, but for eg, if it’s ‘Roof on’ stage, photos show the roof is on. Ask for a copy of the building consent including required inspections. And for inspection notices. You should also make time to view at critical stages, especially nearing completion. And, again, if you have lost faith in them, an independent/other builder to check their work. Important stages that have inspection, frame/trusses exterior cladding/joinery, preline (interior, includes plumbing), post line, finish. Ask for documentation from trades certifying their work; builder Record of works & PS3 of engineered work, engineer ps4, certification from electrician, plumber, drainlayer, tiler…all required for code and usually subcontracted by builder
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