The payment schedule is tied exactly to the completion of certain services such as the roof, shell construction, etc. The costs are incurred by the general contractor predominantly at the time of performance and not only at a later acceptance. Otherwise, the agreed price lock would make no sense at all and could in my opinion be considered unfair or a violation of good faith.
I find it difficult to pay a price adjustment for installed trades retroactively.
The payment schedule is tied to these specific completions of individual sections, trades, or services only as a fallback because these points in time cannot be precisely forecasted as fixed dates, but the installment payment due dates require a specific trigger. Good faith is merely the basis for the effort to reasonably quantify the partial amounts according to the customary values of the contractual parts fulfilled up to that point. The ideal here is a compensation which, although naturally (still) cannot be determined precisely, should not favor either side. A partial acceptance - even fictitious - is
not connected with this; accordingly, the view that one is explicitly settled with regard to the partial fulfillments named here is incorrect. The payment tranches do not acquire the partially completed work to date precisely because this was commissioned only as a whole – this would require an explicit termination clause for the construction contract at the designated installment payment dates. Considering the classic general contractor single-family home contract to be a smart move from the client’s point of view can only occur to ardent non-businesspeople.
Summary of this section in "simple language":
1. The installment payments up to point x DO NOT pay for the construction status achieved until then.
2. The construction contract is also NOT simply terminable (and compensable) at this point;
the belief that one then owes each other nothing anymore is legally wrong.
The agreed price lock of an offer fits best to reality if it extends until the completion and acceptance of the work. However, it does not automatically become unfair simply because it is agreed for a shorter period. A specification of events that delay or suspend the deadline is sensible but not mandatory. Building clients cannot be advised often enough not to carry out legal transactions in the dimension of a construction contract without legally knowledgeable advice. I am a technical businessman with many years of experience and would still never have my house built without consulting a lawyer. From trustworthy sources I have so far unanimously heard that the "Builder’s Driver’s License" by lawyer Reibold-Rolinger is very highly recommended.