Construction Contract Granny Flat NSW

Hi Everyone

I am contract stage for a granny flat we are having built in NSW.

The builder has included a couple of things I would like to push back on. Any recent experience from people who have built granny flats in NSW would be appreciated.

1. Delay damages $1 per working day (that’s cheap for him but expensive for us, the loan still has to be paid)
2. 15% interest payable by us for any late payments to the builder (the bank is financing the build so this could be expensive for us too)
3. Draw down schedule – how do we get this to be one that the bank will be agreeable with.

Our legal rep had a look at the contract but he is not used to construction loans.

Looking forward to hearing about your experiences and knowledge.

Many thanks

ronnie