Common use of PAYMENT OF THE CONSTRUCTION COST Clause in Contracts

PAYMENT OF THE CONSTRUCTION COST. 5.1. Payment of the construction cost shall be made by the Purchaser to the Builder in progress payment instalments according to the standard procedure of the financial institution concerned, 5.1.1 Where a building mortgage bond is applicable: In a case where a part of the construction cost is financed by a building mortgage bond the Purchaser undertakes to pay the first part of the construction cost as indicate on the Pricing Structure into the conveyancer nominated trust account to make the progress payment instalment to the Builder when applied for and the bond be utilized for the later payments to pay to the Builder in progress payment instalments according to the standard procedure of the financial institution concerned Where the full construction cost is financed by a building mortgage bond the Purchaser undertakes to pay to the Builder in progress payment instalments according to the standard procedure of the financial institution concerned 5.1.2 Where a turnkey bond is applicable: Where the full balance of the Construction cost be financed by a turnkey mortgage bond the construction cost will be paid to the Builder on registration of the turnkey mortgage bond against Transfer In a case where a part of the construction cost is financed by a turnkey mortgage bond the Purchaser undertakes to pay the first part of the construction cost as indicate on the Pricing Structure into the conveyancer nominated trust account to be release together with the portion of the Construction cost financed by a turnkey mortgage bond against Transfer 5.1.3 Where the total Construction cost is paid by the purchaser: In a case where the total construction cost is paid by the Purchaser the Purchaser undertakes to pay the total amount of construction cost as indicated on the Pricing Structure into the conveyancer nominated trust account to make the progress payment instalments to the Builder when applied for, in progress payment instalments according to the completion percentage of the house as verified by the Builder’s Quality controller. 5.2. Should there be any dispute between the Parties, then the matter will be referred to the Architect whose determination will be final and binding on the Parties. 5.3. Any agreed payments not paid on due date will bear interest in accordance with the provisions of Clause 18 below from due date to date of final payment. 5.4. In the event of any part of the building cost being payable from the proceeds of a building loan secured by a mortgage bond obtained from a financial institution then the Purchaser irrevocably cedes the Contractual sum equal to the outstanding balance of the building cost or the total proceeds of the building loan, whichever is the lesser. 5.5. In the event of a Purchaser failing or refusing to authorize payment of any interim or final draws, the Builder shall be entitled without prejudice to any other rights which he may have in terms of this contract in law to discontinue the Works forthwith and all damages arising, costs include and additional interest accrued shall be for the account of the Purchaser.