A progress claim (also called a progress payment claim) is a formal request for payment submitted by a builder or contractor for work completed during a specific period of a construction project.
Instead of waiting until the entire project is finished to get paid, builders submit progress claims at agreed milestones or intervals — typically monthly or at the completion of each construction stage.
How Progress Claims Work in Australia
Under Australian state building legislation (such as the Building and Construction Industry Security of Payment Act), builders and subcontractors have the right to submit progress claims for work completed. The process:
- Work is completed to a defined stage or period
- Builder submits a progress claim detailing work done and amount owed
- Client/principal has a set period to respond (typically 10-15 business days depending on the state)
- Payment is made or a payment schedule is issued explaining any disputed amounts
What Should a Progress Claim Include?
- Reference to the construction contract
- Description of work completed in the claim period
- Value of work completed (often as a percentage of total contract)
- Any variations approved during the period
- Less previous payments received
- GST component
- Supporting documentation (photos, sign-offs, inspection certificates)
Common Progress Claim Stages
| Stage | Typical % | Description |
|---|---|---|
| Base/Slab | 10-15% | Foundation and slab poured |
| Frame | 15-20% | Wall and roof framing complete |
| Lockup | 15-20% | External cladding, windows, doors installed |
| Fixing | 20-25% | Internal fit-out, plumbing, electrical |
| Completion | 10-15% | Final finishes, cleaning, handover |
Frequently Asked Questions
How often should I submit progress claims?
Most construction contracts allow monthly progress claims. Some contracts specify milestone-based claims at each construction stage. Check your contract for the specific schedule.
What happens if a progress claim is disputed?
The principal must issue a payment schedule within the timeframe specified by your state’s Security of Payment legislation, explaining which amounts are disputed and why. You can then pursue adjudication if needed.
Can subcontractors submit progress claims?
Yes. Subcontractors have the same rights under Security of Payment legislation. They submit claims to the head contractor, who is then obligated to respond within the legislated timeframe.
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