What Is a Progress Claim?
A progress claim is a request for payment that a contractor submits for the work completed up to a given date, usually at agreed intervals — such as monthly — or on reaching defined milestones. It sets out the value of work done so far, less previous payments and any retention, to arrive at the amount currently due, and in Australia it is backed by statutory Security of Payment rights.
Key takeaways
- A progress claim is a contractor’s formal request for payment for work completed to a given date, typically submitted monthly or against agreed milestones.
- It is calculated as the value of work done to date, less amounts already paid and any retention withheld, to arrive at the amount now due.
- Australian Security of Payment legislation gives contractors and subcontractors a statutory right to make progress claims, with strict, defined timeframes for the other side to respond.
- A claim not properly responded to within the statutory timeframe can become payable in full by default in most states — which is why deadlines matter as much as the numbers.
- Progress claims are usually valued against a priced Bill of Quantities or schedule of values, so the amount claimed reflects real, measurable progress rather than a guess.
What is a progress claim?
A progress claim is the formal document a contractor or subcontractor submits during a project to request payment for the work carried out up to that point. Rather than waiting until the whole job is finished to be paid, progress claims let a contractor bill in instalments as the work proceeds — which is essential for cash flow on anything longer than a few weeks.
A typical progress claim sets out the total value of work completed to date, deducts what has already been paid in earlier claims, deducts any retention the contract allows the client to withhold, and arrives at the net amount now due. It is usually accompanied by supporting evidence — photos, a site diary, or a measured schedule of values — so the assessor can check the claimed progress against what has actually been done.
Progress claims are sometimes called progress payments, payment claims, or — in a Security of Payment context — simply “payment claims”. The terms are used almost interchangeably, though “payment claim” carries specific statutory meaning under the various state Acts.
In plain terms
A progress claim is an instalment invoice for a construction job — instead of waiting to be paid at the very end, the contractor bills for the slice of the work that has actually been done this month.
How a progress claim is calculated
Most progress claims are built from a priced schedule of values or Bill of Quantities agreed at the start of the job, so the percentage or quantity actually completed for each line item can be measured and multiplied by its rate.
- Value of work completed to date — the cumulative percentage or measured quantity finished for every item, priced at the contract rate.
- Less amounts previously certified or paid — so each claim only bills the new progress since the last one.
- Less retention — the percentage the contract allows the client to withhold as security, calculated on the value claimed.
- Plus or less any approved variations — additional or omitted work agreed since the contract started.
- Plus GST — added on top in line with the contract and tax invoice requirements.
| Item | Contract value | Complete to date | Value to date | Previously claimed | Claimed this month |
|---|---|---|---|---|---|
| Concrete & structure | $180,000 | 100% | $180,000 | $150,000 | $30,000 |
| Brickwork & carpentry | $95,000 | 80% | $76,000 | $57,000 | $19,000 |
| Roofing | $60,000 | 60% | $36,000 | $0 | $36,000 |
The progress claim process
The mechanics of submitting and being paid a progress claim follow a fairly standard cycle on most jobs, though the exact dates and forms are set by the contract and, in Australia, overlaid by Security of Payment law.
- The contractor submits the claim at the agreed interval — commonly monthly — or on reaching a defined milestone.
- The superintendent, principal or client assesses the claim against actual progress on site and issues a payment schedule or certificate, approving the full amount, a reduced amount, or disputing it.
- Payment is made within the timeframe set by the contract or, where it applies, the relevant state Security of Payment Act.
- Any disputed amount can typically be pursued through the statutory adjudication process rather than waiting for a final resolution at the end of the job.
Progress claims and Security of Payment
In Australia, Security of Payment legislation exists in every state and territory to give contractors and subcontractors a statutory right to be paid for work done, running alongside whatever the contract itself says. The exact rules differ by state, but the core idea is the same everywhere: a valid payment claim triggers strict, short deadlines for the other side to respond.
If the respondent fails to issue a payment schedule within the statutory timeframe, in most states the full amount claimed becomes payable — regardless of whether the work was actually finished to that value. That single rule is why the timing and wording of a progress claim matters just as much as the underlying numbers, and why missing a response deadline can be extremely costly for the paying party.
What a progress claim should include
A claim that is clear, well-evidenced and correctly addressed is far less likely to be disputed or knocked back on a technicality. At minimum, a solid progress claim identifies the contract and the claim period, states the amount claimed and how it was calculated, and is directed to the right party in the form the contract — or the relevant Security of Payment Act — requires.
- The contract reference, claim number and the period the claim covers.
- A breakdown of work completed against the agreed schedule of values or BOQ, item by item.
- Supporting evidence — site photos, diary entries, delivery dockets or an inspection record.
- Any variations being claimed, with their approval reference.
- The retention calculation and the net amount due, including GST.
Common mistakes with progress claims
Most progress claim disputes are avoidable and trace back to a small number of recurring mistakes.
- Claiming against vague or unmeasured progress instead of a priced schedule of values, making the claim hard to verify.
- Missing the claim date or format required by the contract or the relevant Security of Payment Act, which can invalidate or delay the claim.
- Not tracking retention and previous payments accurately, so the net amount claimed is wrong.
- Leaving approved variations out of the claim, or claiming them without a clear approval reference.
- Failing to respond to a disputed payment schedule within the statutory timeframe, risking the full claimed amount becoming payable.
How My Trade Hub helps with progress claims
My Trade Hub’s invoicing module keeps a live schedule of values for every project, generated from the same measured quantities and rates as your original estimate, so each progress claim is built from real, itemised progress rather than a guess. As work is completed, you update what has been done against each line item, and the claim total, retention and prior payments are calculated automatically.
Because every claim is linked back to the project’s schedule of values, you always have a clear, defensible record of what has been claimed to date — useful for your own cash flow forecasting, and for responding quickly if a claim is ever queried or disputed.
Frequently asked questions
How often can you make a progress claim?
It depends on the contract — monthly is common — but Security of Payment legislation in every Australian state and territory also gives contractors a statutory right to make claims at defined intervals regardless of what the contract says. Check both your contract and the relevant Act for your state.
What happens if a progress claim isn’t paid on time?
If a progress claim isn’t paid or properly disputed within the timeframe set by the contract or the relevant Security of Payment Act, the contractor typically has the right to suspend work and pursue the debt through statutory adjudication, which is faster than court proceedings.
What is the difference between a progress claim and an invoice?
A progress claim is the formal request setting out the value of work completed and the amount due, which the other party assesses and may adjust; an invoice (or the certified claim) is what is actually issued for payment once the amount is agreed.
How is retention deducted from a progress claim?
Retention is calculated as the contract percentage — commonly around 5% — of the value claimed in that progress claim, and deducted from the amount otherwise payable. It is held by the client and released later, typically part at practical completion and the rest at final completion.
Can a progress claim include variations?
Yes. Approved variations are usually included in the next progress claim, referencing their approval, so the contractor is paid for changed scope at the same time as the base contract work.
What is a payment schedule in a progress claim?
A payment schedule is the formal response to a progress claim, in which the assessor states how much they propose to pay and, if less than the amount claimed, their reasons. Security of Payment law requires it to be issued within a strict timeframe or the full claimed amount can become payable.
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