What are my responsibilities?

• You need to inform the builder and the bank of any problems, concerns or delays in the building process. The bank does not act as clerk of works on your behalf. You may want to appoint a suitable qualified professional person to supervise or oversee the project. It is important to note that you have appointed and contracted with the builder, and all disputes must be discussed directly with the builder and the NHBRC where deemed necessary.
• You must ensure that the contract you sign with the builder does not comprise of any conditions which will be prejudicial to you. If you need to, consult with a legal advisor or a suitably qualified professional to assist you before signing the contract.

• You should request progress payments only if you are satisfied with the actual construction progress and the amount requested by the builder.
• You should ensure that you and your builder understands all the bank's conditions of the loan and that all the conditions are being complied with at the times required or stipulated by the bank.
• You need to ensure that on completion of the building your Home Owner's Cover Insurance is in place. The builder's All Risk Insurance Cover only provides cover from the date when construction commences until date of completion or occupation.
• Do not commence building prior to registration of the bond.
• Do not sign blank progress payment requests or post dated requests with the builder or attorney under any circumstances, as this could result in unauthorised amounts being applied for. Progress payment forms must be signed by all parties. Signing the progress payment request confirms that you are satisfied with the progress and the amount requested by the builder.
• It is imperative for you to service your inter

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• im interest by making regular monthly repayments to avoid any shortfall that may occur. (Failure to service your interim interest means that the amount available for the builder to utilise to complete the building will be reduced as this amount will be deducted for interim interest). The servicing of repayments remains the responsibility of the mortgagor, not the builder.
• The bank must also be notified of any deviation from the tender, change in nominated builder, plan and specifications submitted to the bank initially as this could affect the loan amount approved and ultimately the assessed market value of the property. The bank needs to under such circumstances pre-approve the deviations/changes once the loan has been fully re-assessed. The bank reserves the right to decline such deviations.