Under a CLP the buyer pays a booking amount and then instalments as the builder completes stages — foundation, slabs, finishing. Other plans include down-payment, possession-linked and subvention plans.
Example
A CLP schedule in Bengaluru
On a ₹1 crore flat in Sarjapur, Bengaluru, a CLP might ask for 10% at agreement, 10% at foundation, 5% at each of several slabs, and the balance at plastering, flooring and possession. Each demand follows an architect’s certificate. If construction stalls at the 6th slab, payments stop there too, which limits the buyer’s exposure.
Figures are illustrative, not market rates.
Questions about Construction-linked plan (CLP)
What is the difference between CLP and a down-payment plan?
In a down-payment plan the buyer pays most of the price soon after booking, often for a discount. In a CLP the payments follow construction progress. CLP protects the buyer if the project slows; down payment rewards early cash but puts more money at risk.
Who certifies a construction milestone?
The builder’s architect or engineer certifies that a stage is complete, and the demand letter follows. For registered projects, quarterly progress is also uploaded to the state RERA portal, which buyers can use to cross-check a demand.
What is a possession-linked plan?
A plan where a small share is paid at booking and most of the price at possession. It reduces the buyer’s risk further but is less common and often carries a higher price. Lenders treat it differently from a CLP when disbursing loans.
Sources
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