In the current financial environment, some lenders have changed their lending practices for residential projects. In some states and territories, this has affected residential projects with a *contract price up to $1.5 million. These lenders have become concerned that a system of monthly progress claims give rise to the potential for unpredictable risk exposure during the duration of the project – this view is not shared by the ABIC joint-venture partners.
The following replacement schedules may be used in the state/territory specific ABIC SW 2018 contract for housing where a financial institution's lending requirements specify staged payments instead of monthly progress payments for residential projects, or the parties wish to use staged payments. They are intended to be inserted in place of the existing Special Conditions – Schedule 2a. Where staged payments have been adopted by residential building legislation, the procedure for staged payments in now integrated in the relevant ABIC SW H contract.