Builder demanding Final Payment?

Section 42 of the Domestic Building Contracts Act 1995 states, “A builder must not demand final payment under a

major domestic building contract until—

(a) the work carried out under the contract has been completed in accordance with the plans and specifications set out in the contract; and

(b) the building owner is given either—

(i) a copy of the occupancy permit under the Building Act 1993, if the building permit for the work carried out under

the contract requires the issue of an occupancy permit (COO); or

(ii) in any other case, a copy of the certificate of final inspection (CFI).

The important word above is ‘and’ . Often the Builder will want full payment once the surveyor issues the COO or CFI.

Beware, Beware. Beware of handing over the final payment to the builder unless the site is completely finished and all of the handover defects have been rectified.