How to Get Paid Faster: The Builder’s Guide to Progress Claims

Stop Chasing Invoices and Start Getting Paid on Time

Key Industry Data: Australian builders approved 171,000 new dwellings in 2025 (ABS, Building Approvals), with each project requiring multiple progress claims under the Security of Payment Act. Construction businesses that use digital progress claim tools get paid an average of 14 days faster than those using manual invoicing methods (Built Simple Industry Report, 2026).

Last Updated: January 2026 | Reading Time: 14 minutes | 3,800+ words

The Cash Flow Crisis Every Builder Faces

You’ve completed three weeks of work. Materials are paid for. Subbies are waiting on their money. And the client’s payment is… nowhere.

Sound familiar?

The average Australian builder waits 47 days to get paid after submitting an invoice. Some wait 60, 90, even 120+ days.

Meanwhile:
– You’re paying subbies within 30 days (or losing them)
– Suppliers want payment within 14-30 days
– Your mortgage doesn’t wait

The cash flow gap kills more building businesses than bad estimating.

But here’s the thing: most payment delays are preventable. They happen because of unclear claims, missing documentation, or poor processes—not bad clients.

This guide shows you how to get paid faster, every time.

The Anatomy of a Bulletproof Progress Claim

Required Elements

Every progress claim should include:

| Element | Why It Matters |
|———|—————|
| Claim reference number | Tracking and audit trail |
| Date of claim | Starts payment clock |
| Contract reference | Links to agreement |
| Claimed amount | What you’re asking for |
| Work description | What was completed |
| Supporting evidence | Proves completion |
| GST breakdown | Tax compliance |
| Payment due date | Sets expectations |
| SOP statement | Legal requirement in some states |

Security of Payment Statement

In most states, your progress claim must include words to the effect of:

> “This is a payment claim made under the [relevant Security of Payment Act]. [Name of claimant] claims the amount of $[amount] for construction work carried out under [contract name/reference].”

Without this statement, you may lose your SOP rights.

Step 2: Track Work Completion Throughout

Don’t wait until claim time to document. Track daily:

What to capture:
– Photos with timestamps (before, during, after)
– Daily logs noting work completed
– Material delivery receipts
– Subcontractor sign-offs
– Inspection certificates

Built Simple approach: Daily logs automatically attach photos and notes to projects, creating a claim-ready evidence trail.

Step 4: Submit Properly

Submission requirements:
– Send to the correct person (check contract)
– Use specified method (email, post, portal)
– Keep proof of delivery
– Follow contract timing requirements

Email template:
“`
Subject: Progress Claim #[X] – [Project Name] – [Stage Name]

Dear [Client Name],

Please find attached Progress Claim #[X] for the [Stage Name] stage
of [Project Address].

Claim amount: $[Amount] (inc. GST)
Work completed: [Brief description]
Payment due: [Date – usually 10-15 business days per contract]

Supporting documentation attached:
– Progress photos
– Inspection certificate
– Variation approval (if applicable)

This is a payment claim made under the [relevant Security of Payment Act].

Please contact me if you have any questions.

Kind regards,
[Your name]
“`

Common Mistakes That Delay Payment

Mistake 1: Vague Work Descriptions

Bad: “Frame stage work”

Good: “Completion of frame stage including:
– External wall frames (102 LM)
– Internal wall frames (85 LM)
– Roof trusses installed (24 units)
– Roof battens and sarking complete
– Frame inspection passed 15/01/2026 (Cert #12345)”

Mistake 2: Missing Documentation

Claims without evidence invite questions. Every claim should have:
– [ ] Dated photos showing completion
– [ ] Relevant inspection certificates
– [ ] Variation approvals (if claiming variations)
– [ ] Subcontractor completion notices

Mistake 3: Wrong Timing

Claiming too early: Work isn’t actually complete → client disputes → delays

Claiming too late: Cash flow suffers → you’re financing the client’s project

Right timing: Claim within 48 hours of milestone completion

Mistake 4: Unclear Variation Handling

Problem: “The claim includes some extras we discussed”

Solution: Separate approved variations from disputed ones:
“`
Base claim (contract work): $67,500
Approved variation #3: $1,200
Approved variation #5: $800
Subtotal: $69,500
GST: $6,950
Total: $76,450

Note: Variation #7 ($2,400) pending approval – not included in this claim
“`

Mistake 5: No SOP Statement

In most states, omitting the Security of Payment statement means you can’t use adjudication if there’s a dispute. Always include it.

When Clients Don’t Pay

Step 1: Understand Why

| Reason | Response |
|——–|———-|
| Cash flow issues | Discuss payment plan |
| Dispute about work | Address concerns, provide evidence |
| Administrative delay | Follow up with accounts team |
| Deliberate non-payment | Escalate formally |

Step 2: Issue a Payment Schedule (SOP)

Under Security of Payment legislation, if a client doesn’t respond to your claim with a payment schedule, they must pay the full claimed amount.

A payment schedule must:
– Identify the claim it responds to
– State the amount they propose to pay
– Explain why (if less than claimed)

If no payment schedule received: Client loses right to dispute the amount.

Step 3: Formal Demand

“`
FORMAL DEMAND FOR PAYMENT

Date: [Date]
To: [Client name and address]

RE: [Project name] – Unpaid Progress Claim #[X]

This is a formal demand for payment of $[amount] being the amount
claimed in Progress Claim #[X] dated 2026.

The amount was due for payment on [due date] and remains outstanding.

If payment is not received within 7 days, we will:
1. Suspend work under clause [X] of the contract
2. Apply for adjudication under the [relevant SOP Act]
3. Take further legal action as necessary

[Your name]
[Your company]
“`

Step 4: Adjudication (SOP)

If you’ve followed proper process:
1. Lodge adjudication application with authorised nominating authority
2. Pay application fee (typically $300-500)
3. Adjudicator reviews within 10-15 business days
4. Decision is binding (temporarily) and enforceable

Adjudication is faster and cheaper than court. Most decisions favour contractors who have proper documentation.

Step 5: Suspend Work (If Contract Allows)

Most construction contracts allow you to suspend work for non-payment. Check your contract, then:
1. Issue written notice of intention to suspend
2. Give required notice period (usually 5-10 business days)
3. Suspend if payment not received
4. Document everything

Progress Claim Templates

Simple Progress Claim Template

“`
[YOUR COMPANY LETTERHEAD]

PROGRESS CLAIM #[NUMBER]

Date: [Date]
Claim Reference: [Ref]
Contract: [Contract name/number]
Project: [Project address]

To: [Client name]
[Client address]

WORK COMPLETED THIS PERIOD:
[Description of work completed]

AMOUNT CLAIMED:
Contract work this stage: $[amount]
Approved variations: $[amount]
Subtotal: $[amount]
GST: $[amount]
TOTAL CLAIM: $[TOTAL]

PAYMENT DUE: [Date]

This is a payment claim made under the [Building and Construction
Industry Security of Payment Act – your state]. [Your company name]
claims the amount of $[total] for construction work carried out
under the above contract.

Payment details:
BSB: [XXX-XXX]
Account: [XXXXXXXX]
Account Name: [Your company]
Reference: [Invoice number]

ATTACHMENTS:
[ ] Progress photos
[ ] Inspection certificate(s)
[ ] Variation approval(s)
[ ] Daily logs

[Signature]
[Your name]
[Your company]
[License number]
“`

The Bottom Line

Getting paid faster isn’t about chasing clients harder. It’s about:

1. Clear contracts with defined milestones
2. Complete documentation proving work is done
3. Professional claims submitted promptly
4. Consistent follow-up with clear escalation
5. Good tools that automate the process

The average builder who implements proper progress claim processes reduces their payment cycle by 15-20 days. On a $500,000 project with 6 progress claims, that’s $30,000+ less cash tied up in work-in-progress.

Stop financing your clients’ projects. Start getting paid on time.

Related Articles:
– Construction Cash Flow Management
– How to Write Bulletproof Variations
– Client Communication Best Practices

“Progress claims are where estimating accuracy meets cash flow reality. Builders who submit clear, well-documented progress claims with photo evidence and percentage-complete breakdowns get paid faster and have fewer disputes with clients.”

— Sarah Webb, Senior Estimating Specialist, Built Simple