Progress claim

Most construction contracts pay the contractor in instalments as the work progresses rather than in one lump at the end. Each month, or on the date the contract sets, the contractor submits a progress claim showing the value of work done to date.

The claim is usually built from a schedule of values or trade breakdown: each line has a contract value, the percentage complete, the value claimed to date, the amount previously claimed and the amount claimed this period. Approved variations, materials on site where the contract allows it, and any retention deductions are shown separately.

The superintendent or head contractor assesses the claim, often walking the site to check progress, and issues a payment certificate or payment schedule for the amount they agree with. Payment then follows within the period the contract and the relevant state Act allow.

For a deeper look, read The Variation That Started as a Conversation (And Ended as a Dispute).

A clear claim is quicker to assess and harder to dispute. Most good claims include:

• Claim details. Project, contract, claim number, period and the date the claim is made.

• Breakdown of work. Each trade or contract line with value, percentage complete and amount claimed.

• Variations. Approved variations listed separately from the base contract, and pending variations only where the contract permits.

• Deductions. Retention held, previous payments and any agreed contra charges.

• Supporting evidence. Photos, quantities, delivery dockets or invoices for materials on site.

• Statutory wording. Where required, a statement that the claim is made under the relevant security of payment Act. NSW removed this requirement in 2019, but some other states and some contracts still expect it.

In everyday site language the two terms mean the same thing. Legally there is a difference. A payment claim is the term used in the security of payment Acts, and a progress claim that meets the Act's requirements is also a payment claim under that Act.

That matters because a payment claim starts a statutory clock. The respondent must reply with a payment schedule within the time set by the Act or the contract, whichever is shorter. In NSW that is generally 10 business days, and in Queensland 15 business days. Miss it and the respondent can become liable for the full claimed amount. The states differ on timing and content, so check your state's Act.

• Claiming on the wrong date. Many contracts and Acts fix when a claim can be made. A claim served early or late can be invalid.

• Over-claiming. Claiming work not yet done damages trust and invites a harsh assessment.

• Mixing in unapproved variations. Keep pending variations separate so the approved claim is not held up.

• Poor records. Without photos and quantities, disputed items usually get assessed at nil.

• Ignoring the payment schedule. If the assessed amount is lower, read the reasons. They set the battlefield for any adjudication.