What Does Progress Payments in Project Administration Mean?
A construction project in Australia can take up to one year to complete. Veteran construction contractors and subcontractors understand that the projects take place in five stages. Subcontractors only participate in segments of the project. For example, painters come in toward the end. Electricians come into the projects in the middle. Therefore, they expect to receive payment from the contractor, investor, or owner-builder when they complete their portion.
Progress payments in project administration allow for partial payments for work completed in between the milestones. After the owner-builder or investor places a down payment with the construction crew, the first step is to complete the slab/base. Some construction workers have specialists. Therefore, they go to job sites to complete those tasks. Then, they leave and go to a new job site. However, they might complete their tasks before the slab/base is complete. Moreover, they might move on to their next job before the lender processes the milestone payment. Thus, lenders allow for partial payments too.
Mortgage House loan specialists have the tools to help owner-builders and investors obtain construction loan financing. As a non-bank lender, we fund projects that banks might see as a big risk.
We also offer online resources for free including our Mortgage House car loan calculator. Try it with no strings attached.
Progress Payments in Project Administration Conclusion
Construction projects take six to 12 months to complete. Therefore, it’s possible to request progress payments in project administration. To obtain more information, contact our Mortgage House loan specialists today.