PROGRESS PAYMENTS

Bay of Plenty Beacon, Volume 11, Issue 80, 15 September 1947, Page 5

PROGRESS PAYMENTS

REHABILITATION BUILDING LOANS The system of progress payments operating in the case of rehabilitation building loans has been described in a statement by the Minister of Rehabilitation, the Hon. C. F. Skinner.

“Acting as agent for the Rehabilitation Board, the State Advances Corporation makes regular payments to builders who are erecting homes for ex-servicemen using rehabilitation finance*” said the Minister. “These payments may be made as frequently as once a month during the building period following inspection of work. This has been done to assist ex-servicemen and the builders they employ during present conditions. “Although the Corporation can make frequent and regular payments, it is nevertheless bound by the Wages Protection and Contractors’ Liens Act. Section 32 of this Act provides that one-fourth of the monies which for the time being are payable to the contractor shall be retained by the solicitor who acts for the borrower until 31 days after the completion of the work specified in the contract. The legislation has been in force for some time and applies to similar operations, apart from rehabilitation loans, • however financed. The purpose of the Act when passed was to- protect workmen and others who might be compelled to resort to the contract monies in order to obtain remuneration for their services. „ “The Rehabilitation Board and those Departments of State which act as its agents in the various phases of rehabilitation wish to extend all possible aid to ex-service-men towards achieving their reestablishment. They must, however, comply with the regulations laid down by law.”

The Minister also referred to what is known as the Certified Building Scheme, under which builders could erect homes which could be allocated on completion to ex-servicemen and paid for with rehabilitation loans. Here again progress payments could be made as often as monthly following inspections, while if the builder did not require progress payments at reduced inspection fee could be arranged. The Liens Act would, of course, operate where rehabilitation or any other mortgage finance was involved.