Would an owner-builder need to make progress payments to a contract builder or tradesperson?
Usually a building contract will provide for progress payments before the completion of the entire work. Progress payments are in principal payments on account and do not necessarily represent the true value or the acceptance of the work done. The HBA permits a builder or tradesperson to receive a deposit payment not more than 10% of the contract price if the contract price is $20,000 or less or not more than 5% of the contract price if the contract price is more than $20,000, prior to commencement of work.
