Progress Claim Generator

How progress claims work in Australian construction

A progress claim (also called a payment claim) is a formal request for payment submitted by a contractor or subcontractor for work completed during a specific period. Under the Building and Construction Industry Security of Payment Act (which exists in every Australian state and territory with minor variations), contractors have a statutory right to submit progress claims and receive payment within prescribed timeframes.

The claim details work completed as a percentage of each contract item, calculates the amount due for the current period (less amounts previously claimed), applies retention deductions, and adds GST. The principal or head contractor must respond with a payment schedule within the timeframe specified in the contract or the relevant Act, and payment is due within 15-20 business days of the claim.

What makes a progress claim valid

A valid payment claim under the Security of Payment Act must include:

• A statement identifying it as a payment claim under the relevant Act
• The claimed amount
• A description of the construction work or related goods and services
• The reference date (the date from which the entitlement to claim arises)

If any of these elements are missing, the claim may be invalid and the claimant loses statutory protections including the right to adjudication. This is one of the most common reasons progress claims fail. A properly formatted claim with the correct statutory wording protects the claimant if the matter escalates to adjudication.

Worked example: mechanical subcontractor, commercial project

A mechanical services subcontractor in Sydney has a AU$640,000 contract for HVAC installation on a 10-month commercial fit-out. At month 6, they submit their sixth progress claim.

• Retention (5%): -AU$4,175
• Net claim (excl. GST): AU$79,325
• GST (10%): AU$7,933
• Total payable: AU$87,258

The cumulative retention held on this contract is now AU$15,275 (5% of $305,500 total claimed to date). The maximum retention is AU$32,000 (5% of AU$640,000), so retention will continue to be deducted from future claims until that cap is reached.

Payment deadlines under the Security of Payment Act

Each state has its own version of the Act with different response and payment deadlines:

• NSW: Payment schedule within 10 business days. Payment due within 15 business days of the claim (subcontractors) or 30 calendar days (head contractors to principals).
• VIC: Payment schedule within 10 business days. Payment due within 10 business days of the payment schedule.
• QLD: Payment schedule within 15 business days. Payment due within 25 business days of the claim.
• WA: Payment schedule within 14 days. Payment due within 28 days of the claim.

If the respondent does not provide a payment schedule within the deadline, they become liable for the full claimed amount. This is one of the strongest protections in the Act. Missing the response deadline is a common and expensive mistake for head contractors.

Common mistakes in progress claims

Claiming work not yet completed. Overclaiming is the fastest way to damage the relationship with the superintendent and invite disputes. If the superintendent assesses work at 60% but the subcontractor claims 75%, the entire claim can be reduced or rejected. The percentage claimed should be defensible with site records, photos, and delivery dockets.

Omitting the statutory wording. A claim that does not identify itself as a payment claim under the relevant Security of Payment Act may not qualify for statutory protections. The wording varies by state. In NSW, the claim must state it is made under the Building and Construction Industry Security of Payment Act 1999. Without this, the claimant cannot access adjudication if the claim is disputed.

Not reconciling against variations. If approved variations have changed the contract sum but the progress claim still references the original contract value, the percentage-complete calculations are wrong. Each claim should reflect the current contract value including all approved variations. Use the variation order generator to document scope changes before including them in claims.

Inconsistent retention treatment. If earlier claims applied retention at 5% but a later claim omits it (or applies a different rate), the superintendent will reject the claim for recalculation. The retention rate and cap should match the contract terms exactly. Use the retention schedule calculator to verify your retention position across projects.

How to use this progress claim generator

1. Enter your company details, client information, and project specifics.
2. Add line items for each scope of work with the contract value and percentage complete (both previously claimed and this period).
3. Set the retention rate. The tool calculates amounts for each item, applies retention, and adds 10% GST.
4. Download the PDF to submit as your payment claim. The default payment terms reference the Security of Payment Act, but you can customise them to match your contract.

Frequently asked questions

What must a valid payment claim include?

It must identify itself as a payment claim under the relevant Security of Payment Act, state the claimed amount, describe the work or goods and services, and specify the reference date. If any element is missing, the claim may be invalid and cannot be taken to adjudication.

How long does the principal have to respond?

It depends on the state. In NSW and VIC, 10 business days. In QLD, 15 business days. In WA, 14 days. If no payment schedule is provided within the deadline, the respondent becomes liable for the full claimed amount.

How is retention calculated on progress claims?

Typically 5% of the value of work completed in each claim period, up to a maximum of 5% of the total contract sum. Half is released at practical completion, and the remaining half at the end of the defects liability period (usually 12 months).

What happens if a progress claim is not paid on time?

The claimant can apply for adjudication under the Security of Payment Act, suspend work after giving the required notice (typically 2 business days), and recover the unpaid amount as a debt in court. In some states, the claimant can also lodge a charging order against the property.