Navigating Your Queensland Home Construction Payment Schedule
Starting a new home build in Queensland requires a clear understanding of the payment schedule. Payments are released progressively as various stages of the construction are completed, helping you manage cash flow efficiently while keeping your builder on track.
Standard Construction Stage Payment Breakdown
Builders in Queensland typically follow a staged payment structure similar to the table below:
| Stage | Typical % of Contract Price | Description |
|---|---|---|
| Deposit | 5% | Paid at contract signing |
| Base/Slab | 10–15% | Completion of slab or stumps with certification |
| Frame | 15–20% | Structural frame erected and inspected |
| Lock-Up | 20–25% | Home secured with roof, doors, and windows installed |
| Fixing/Fit-Out | 20–30% | Installation of kitchen, bathrooms, cabinetry, tiling, and plumbing |
| Completion | 10% | Final inspection, handover, and securing the occupancy permit |
Case Example: $750,831 House & Land Package
For instance, a typical package might be broken down as follows:
- Land: $345,500 paid at settlement
- House: $405,331 disbursed in stages as detailed below
| Stage | % of House Build | Amount |
|---|---|---|
| Deposit | 5% | $20,266 |
| Base | 15% | $60,800 |
| Frame | 20% | $81,066 |
| Lock-Up | 25% | $101,333 |
| Fixing | 25% | $101,333 |
| Completion | 10% | $40,533 |
Overall Payment Timeline
- Land Settlement: $345,500 due at the time of land registration
- House Build: $405,331 to be paid over approximately 6–8 months
Managing Your Stage Payments
Consider these tips to ensure smooth financial management during construction:
- Verify Each Stage: Only release funds once each stage has been properly certified as complete.
- Loan Drawdowns: Interest is typically charged only on the funds that have been drawn down.
- Contingency Budget: It’s wise to reserve an extra 5–10% for unexpected expenses or upgrades.
Final Thoughts
Construction finance is structured for flexibility, but staying engaged is crucial. Always confirm that each milestone is fully met before releasing the next payment, ensuring your build stays on time and within budget.
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