Keep four figures separate
Maintain the current contract value, work reached under the payment schedule, payments already made and the forecast for the whole owner project. They answer different questions. A revised contract is not necessarily all due today; a paid deposit does not increase its price; and owner-bought products do not automatically belong inside a builder’s claim.
For NSW residential work, check the current contract and payment rules. The maximum deposit is 10%, not a required deposit. Agree a lawful schedule that reflects the work. The example below uses a negotiated 5% deposit; it does not recommend the same stages or percentages for every renovation. Where HBC cover is required, check the project certificate before payment or commencement.
Credit the deposit against cumulative progress
| Payment point | Cumulative amount payable | Paid before this point | New transfer |
|---|---|---|---|
| Agreed deposit | 6 000 | 0 | 6 000 |
| First completed scheduled stage, deposit included | 30 000 | 6 000 | 24 000 |
| Next completed scheduled stage, deposit included | 84 000 | 30 000 | 54 000 |
| Original final scheduled amount, before later adjustments | 120 000 | 84 000 | 36 000 |
Each new transfer is the cumulative amount less payments already made. Do not pay AUD 84,000 again at the second stage. Check the actual claim, agreed milestone and evidence before transferring. Verify changed bank details through a known contact route; an email with a familiar project name is not independent confirmation.
Write changes before the changed work
Record the scope, reason, price calculation, GST, timing, approvals and responsibilities. NSW guidance requires written, signed variation documentation, with a narrow provision for urgent danger or property-damage situations where writing may follow. A casual instruction to “sort it out” is a poor basis for tracking an ordinary selection change.
Ask whether a requested charge is a genuine scope change, an allowance reconciliation or correction of the contractor’s own defect. Do not automatically accept all remedial work as an owner-funded extra. Resolve disputed responsibility under the contract with appropriate advice. Keep proposed changes outside the accepted-value column until their status is clear.
Reconcile PC and PS adjustments under stated terms
Assume the original AUD 120,000 final price already includes the PC/PS allowances, original margins and applicable GST. For a PC item, the net allowance is AUD 3,000 and selected net supply AUD 4,200. This example contract adds 20% margin to the AUD 1,200 excess, then 10% GST: AUD 1,584 final increase. For a PS, actual net cost is AUD 4,200 against AUD 5,000 allowed. Assume the chosen terms credit the AUD 800 difference plus AUD 80 GST, with no separate refund of original margin: AUD 880 credit.
These are explicit teaching contract assumptions. HIA’s explanation describes its own mechanism; use the actual signed contract for real adjustments. If the selection changes installation as well as supply, record the additional scope separately. Never charge the full replacement item while leaving its original allowance inside the contract.
Update the whole funding forecast
| Line | Amount |
|---|---|
| Original contract price | 120 000 |
| PC adjustment under stated terms | 1 584 |
| PS credit under stated terms | −880 |
| Accepted additional work | 6 600 |
| Accepted omission credit | −2 200 |
| Revised contract value | 125 104 |
| Builder payments already made | 84 000 |
| Remaining builder commitment | 41 104 |
| Separate owner products | 16 000 |
| Professional fees | 4 500 |
| Accommodation | 6 000 |
| Fixed remaining contingency provision | 10 000 |
| Whole-project funding provision | 161 604 |
| Already paid across included project lines | 97 000 |
| Still to fund, including unused contingency | 64 604 |
The AUD 97,000 comprises AUD 84,000 to the builder, AUD 8,000 for owner products, AUD 2,000 in fees and AUD 3,000 for accommodation. The builder balance is a subtotal, not another line to add to the revised contract. These figures assume all changes above have been accepted; the actual payment timing still follows the contract and verified progress.
Show how each next decision is funded
If a further accepted AUD 2,200 final change is funded from the existing contingency, the total remains AUD 161,604 and the unallocated contingency falls to AUD 7,800. If the owner preserves the AUD 10,000 contingency instead, the total becomes AUD 163,804. Choose and record the treatment; do not quietly reduce the reserve and then describe it as intact.
A funding provision does not prove the money is available. Track upcoming claims against actual cash and any lender’s requirements. Reno Pro can record stages, purchases, payments and accepted changes; retain the signed documents, cost evidence and inspection records that explain why a claim is payable.
Sources, date and scope
- Building Commission NSW — Contracts for residential building work
- Housing Industry Association — Prime cost and provisional sums for NSW
- SIRA, NSW — Home building compensation for builders and tradies
Checked on 19 October 2026. Worked projects are in Sydney, NSW, unless stated otherwise. NSW rules are not national rules. All dollar amounts are Australian dollars (AUD); worked costs, quantities, margins and contingency percentages are invented teaching assumptions, not market prices, quotations or prescribed reserves. Each article describes a separate project. GST treatment is stated for the example; final amounts already include any applicable tax. Check the property, current approvals, insurance and contract with the appropriate professionals.