Home Extension Repayment Schedules − Method A vs. Method B
  • Home Extension Repayment Schedules − Method A vs. Method B

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    There are two options available when it comes to payment schedules: Method A and Method B. Over the last few years, as banking institutions have become increasingly hypersensitive and over-reactive, there has been some deliberation to extension builders using Method B as the basis of their payment schedule.

    What is Method A?

    The Master Builders Home Improvement Contract contains two methods of progress payment schedules. Method A is used generally for new home builds as the payment schedules reflect the standard stages of construction.

    Table of payments and progress payments Method A:

    Type of contract % of Contract Price Amount $ Payments and stages
    Contract to build all stages 5%   Deposit
      10%   Base stage
      15%   Frame stage
      35%   Lock-up stage
      25%   Fixing stage
      10%   Final payment
      100%   Total

    The above schedule is very rigid and inflexible perfectly suited to a new home build.

    What is Method B?

    For an extension / renovation Method B allows the builder and the client the flexibility to stay in their home as extension works are progressing, thus avoiding potential costs of moving out and having to rent a property for the duration of the build.

    This method is determined on a job-by-job basis to achieve the fairest and best balance of amenity for both the Client and the Builder.

    To demonstrate this, imagine a second storey extension being erected whilst retaining use of your ground floor amenities. Ground floor works will then proceed with installation of the stairs allowing access to the upper level for work required to be carried out by the Client. The Project Manager will discuss timing and progression of works prior to site start at the Pre-commencement meeting.

     

    Why is Method B best for Extensions & Renovations?

    Let’s compare. Method A lists ‘Frame Stage’ as a fixed option. For a second storey extension that would require ALL of the framework to both the upper and lower floors to be completed at the same time. How does a family live through this from a practical point of view? Remember, our aim is to keep you in your home with minimal disruption whilst we complete your extension.

    By using Method B, we are able to bring the second storey extension to ‘Lock-up stage’ before beginning downstairs work. This is only one example of many as each payment schedule is specific to the Project.

Testimonials

We would like to express our gratitude to you & your team for your recently completed Project of a second storey addition to our existing weatherboard home. From our first meeting with the Designer, we were confident in his enthusiasm for the business & his passion to design an extension...

Steve & Sophie – Ringwood Nth

It was a great experience and was handled with great care. It could have been a stressful time with a toddler, newborn, two dogs & a home extension. But it was really good & we really love our new space and home.

Ryan & Lisa – Viewbank

We purchased in an area we loved & that was a major factor in making the decision to extend...we loved the idea of being able to create something that suited our needs.

Alex & Sam – Knoxfield

Right from the first phone call we found the whole team at Extensions Unlimited to be very attentive and professional. The Design Consultant listened to our requests, and came up with a design that suited our needs and existing construction. Once the work commenced, we had fairly tight deadlines due...

Brenda – Glen Waverley

Our initial contact with the company was great. The Design Consultant met us for our first appointment and listened to our ideas and came up with a design which was exactly what we were looking for. The process was very easy and construction started after only a few months of...

Michael & Natalie – Nunawading

Very happy with our upstairs extension. The company stood out from the very beginning in terms of customer service as well as promptness and clarity of communication.Our project was finished on time and within budget. Have to especially acknowledge our Project Manager and our Designer. Our Designer was very patient...

Harish – Essendon

We opted for Extensions Unlimited purely based on our experience with our Designer. We were impressed by his professionalism & conscientiousness in finding the best design for our needs. Moreover, we felt he was someone we could trust. In fact, all Extensions Unlimited staff members were professional & friendly, so...

Stephen & Kim – Glen Waverley

Excellent Project Management! Communication was always clear, precise, timely & trustworthy. The whole extension / renovation process was well handled and we enjoyed the journey.

Huei & Chin-Wei – Mount Waverley

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