ABIC SW 2018 H Schedule 2a – staged payments

In the current financial environment, some lenders have changed their lending practices for residential projects where financing is being given under certain lending products. In some states and territories, this has affected residential projects with a contract price up to $1.5 million. We understand that these lenders have become concerned that a system of monthly progress claims (with an architect administering the contract) gives rise to the potential for risk exposure for the bank, 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. In those states or territories where staged payments have been adopted by residential building legislation, the procedure for staged payments is now integrated in the relevant ABIC SW H contract.