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The builder uses IPEX online payment interface, payments are processed through the New Payment Platform (NPP). You receive funds instantly!
The subcontractors incur the fee for IPEX service as they reap the benefits of having security of their hard earned money giving them peace of mind so they can focus on building their business.
IPEX charges a fee of a quarter of one percent or 0.25% for the money paid out to subcontractors & suppliers. i.e. payment to subcontractor of $1,000.00, IPEX fee is $2.50
IPEX guarantees funds in the case there is an error directly related to an IPEX action
The funds are held with CUSCAL who is an ADI with direct link to reserve bank settlements, CUSCAL is the leading provider to credit unions and mostly owned by building societies, CUSCAL handles around 10% of banking transactions in Australia.
The funds are held by CUSCAL, a regulated ADI which has been operating since the 1970’s.
The builder is paid the agreed preliminaries and margin simultaneously with each payment to the subcontractors and suppliers e.g. The builders agreed preliminaries and margin is 10% for the project; payments to subcontractors and suppliers for a payment run totals $100,000.00; the builder will get $10,000.00 paid to their bank account at the same time the $100,000.00 will go to the subcontractors & suppliers.
If the project is specified as a retention hold project, the subcontractors’ retention amounts will be paid into a separate project account, providing security over the retention amounts for the project supply chain.