this is the entire scenario

Building a new house Ken wants to build a new house and approaches John the owner of NewHome Construction to explain what he has in mind. John is wary to quote a fixed price and only gives an indication of possible costs per square metre. He informs Ken that the first phase would involve a concept design, where certain sketches will be delivered. He also specifies the other phases he foresees - each with an indication of the deliverable, an approximate schedule and approximate cost. Later on Ken accepts a quote from John to provide the sketch plans. This contract specifies when the customer would be able to comment on a preliminary design, when the final sketches would be delivered, what the final sketches would include and what it would exclude and a fixed price for this phase. A month later Ken approves the sketch plans. John now presents him with a second proposal, this time to do the detailed design - a phase that would specify the design of the house for the construction team to build the house. Upon approval of the final plans by the municipality, John indicates that construction would also be done in phases but he insists that Ken sign a contract that would authorize the rest of the project. He argues that, at this stage, there is sufficient clarity about the project and he insists on a commitment from Ken for completion of the project. The contract he now presents to him indicates the remaining phases, including a period after occupation (guarantee period or defects liability period). Ken goes ahead and signs the contract, stating that for each phase a milestone payment that would be due once the building reaches a specific stage. The final payment has to be made only after the guarantee period. Before each payment, Ken would be granted the opportunity to inspect the work to verify that it5 / 11 80% + Building a new house Ken wants to build a new house and approaches John the owner of NewHome Construction to explain what he has in mind. John is wary to quote a fixed price and only gives an indication of possible costs per square metre. He informs Ken that the first phase would involve a concept design, where certain sketches will be delivered. He also specifies the other phases he foresees - each with an indication of the deliverable, an approximate schedule and approximate cost. Later on Ken accepts a quote from John to provide the sketch plans. This contract specifies when the customer would be able to comment on a preliminary design, when the final sketches would be delivered, what the final sketches would include and what it would exclude, and a fixed price for this phase. A month later Ken approves the sketch plans. John now presents him with a second proposal, this time to do the detailed design - a phase that would specify the design of the house for the construction team to build the house. Upon approval of the final plans by the municipality, John indicates that construction would also be done in phases but he insists that Ken sign a contract that would authorize the rest of the project. He argues that, at this stage, there is sufficient clarity about the project and he insists on a commitment from Ken for completion of the project. The contract he now presents to him indicates the remaining phases, including a period after occupation (guarantee period or defects liability period). Ken goes ahead and signs the contract, stating that for each phase a milestone payment that would be due once the building reaches a specific stage. The final payment has to be made only after the guarantee period Before each payment, Ken would be granted the opportunity to inspect the work to verify that it has been completed and that workmanship meets standards set out in the contract