What is a construction-linked plan (CLP)?
A construction-linked plan (CLP) is a payment plan in which the buyer pays instalments as construction reaches set stages, such as plinth, each slab and possession, instead of on fixed dates.
Also called CLP, stage-wise payment plan, construction-linked payment plan.
In a construction-linked plan, the agreement for sale lists the stages of work and the share of the price due at each. When a stage is complete and certified by the builder’s engineer or architect, the builder sends each buyer a demand letter for that instalment.
A typical schedule looks like this (an illustration, not a standard):
| Stage | Share of price |
|---|---|
| On booking | 10% |
| On agreement for sale | 10% |
| Plinth | 10% |
| Each of 10 slabs (5% each) | 50% |
| Brickwork, plaster and flooring | 10% |
| On possession | 10% |
The buyer’s risk is lower than in a down-payment plan, because money follows visible progress. The builder’s cash flow depends on raising each demand promptly after the stage is certified, and on collecting it.
Other common plans are the down-payment plan (most of the price early, often at a discount) and the time-linked plan (instalments on fixed dates whatever the progress).