Building
or renovating
February 2005
Tips from the Ombudsman
for Banking Services
Don't sign any blank
progress-payment form (which authorises payment for work done by the contractor).
Check the form carefully before signing. To whom will payment be made?
Study the conditions of your bond carefully. The contract may insist that
a certain percentage of the building work must be completed with your
own money before progress payments from the loan can be made.
Insist on the progress payments being made to you or to your own account,
never directly to the builder or contractor. you can then pay the contractor
when you are satisfied with the work.
The bank's assessor is there to ensure that the progress payments are
used for building work - he is not permitted to give you any advice or
assurance about the quality of the work done and you cannot rely on any
advice he may give in this regard.
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