Financial Management
How do construction-loan progress payments work?
Your loan terms and lender's procedures determine how construction funds are released. Ask which stages, claims, inspections, contributions and approvals are required, and compare them with your building payment obligations. Check the conditions for owner-builder lending separately. A lender's inspection or drawdown approval does not itself certify the builder's workmanship or settle every contractual obligation. Arrange the process before committing to payment dates.
Official sources:
General information only. Requirements vary by state or territory and change over time, so check the current rules for your location.