Question: Who keeps tabs on how much a builder is paid to ensure they do not exceed the quoted price for a particular job?
Regarding bookkeeping and periodic payments in a builder’s contract, who keeps tabs on how much a builder is paid to ensure they do not exceed the quoted price for a job? Is there a process that rings alarm bells if overpayment occurs?
Answer: The project manager will verify and approve payment claims and track expenditures against the contract payment schedule.
Arranging payments for a strata scheme is typically a delegated function in a strata manager’s contract as part of their agreed services. In our business, for almost all of our clients, we have the approval to pay invoices on their behalf. I suggest checking Schedule A1 of your agreement, as this function will be expressly listed and documented.
If you have concerns regarding progress payments, you should speak with your strata manager and make arrangements to review and approve their invoices prior to payment.
Most of our major work projects engage a project manager to manage the project. In this instance, the project manager will verify and approve payment claims, track expenditures against the contract payment schedule, and manage variation claims and the payments on those claims.
Our software system does show expenditure against budget at the time of invoice payment, however, it doesn’t put a flag up at the time of payment. We need to check this against the payment.
Rod Smith The Strata Collective E: rsmith@thestratacollective.com.au P: 02 9879 3547