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Cost is always an important factor to consider when deciding whether to use a service or not. At BUILDSAFE®, we have carefully considered all the costs you may incur on a building project and made the cost to use BUILDSAFE® very minimal and in fact less than if you were to talk to your lawyer for an hour or so. The cost to use the service depends on the value of the Contract Works you are having done. Costs start at just $100 for small scale projects under $15,000 - The highest fee is for building work that is over $1m and even then the fee is only $675. For a smaller project such as a new deck, new french doors or a fence where the total value of the works is less than $15,000 then the cost to use BUILDSAFE is $100. Typically this will be shared between the parties in recognition of the fact that both the owner and the builder will benefit from the money being held in trust until the work is done. For a new home or substantial renovation that is budgeted to cost $500,000, the fee to use BUILDSAFE is $475. Once again that can be split between the parties so it is only $237.50 each. In between those amounts, there is a floating scale of fees. When you consider the cost of talking to your lawyer at the start of a building project or, if there are problems with payment, after the works, you can see that using the BUILDSAFE® Service is very cost effective. (Please see our Calculators to find out how much the Registration and Administration fee will be for your specific project) In addition to using the trust account part of the BUILDSAFE Scheme when you register your building project, you also get access to our fair and independent conditions of contract, guidance on managing the construction process and various forms to help reduce the chances of there being any confusion or disputes during the works.
These are all provided to registered users of the BUILDSAFE® Security of Payment Scheme free of charge. Once again, if you consider the cost to visit your lawyer to talk about whether to sign a contract or not, BUILDSAFE® is a very good and cost effective option.
Of course, the above fees are separate to the Security Amount that is payable by the Owner/Principal. The Security Amount varies depending on the value of the Contract Works and is either an amount agreed on by the parties or an amount roughly equal to the deposit that would otherwise be required by the Contractor before commencing work and calculated by BUILDSAFE®.
WHO IS RESPONSIBLE FOR PAYING THE FEE?
BUILDSAFE® is an independent neutral third party which provides Security of Payment Services (Escrow) for the equal benefit of all parties to a construction contract. Therefore it is preferable that the Owner/Principal and the Contractor pay an equal share of the cost of registering and administering the Scheme. However, of course one party can pay the whole of the registration and administration fee if that is what the parties agree, but it makes no difference to how the services are provided and gives absolutely no priority whatsoever over how the services are delivered. WHAT HAPPENS IF THE BUILDSAFE FEE IS NOT PAID ON TIME?If any party fails to pay the registration and administration fee or the adjudicator’s fees and expenses by the due date, BUILDSAFE® may deduct the relevant fees and expenses from the Security Amount. |
