How to Prepare a Progress Claim
A progress claim is a request for payment for work completed under a construction contract, submitted at agreed intervals — usually monthly — until the job is finished. To prepare one, work out how much of the contract has been completed since the last claim, using the method the contract sets (percentage complete, milestones, or a schedule of values), then set it out clearly with the reference period, variations, materials on site, retention and GST, backed by supporting evidence such as photos and dockets. Getting the method and the paperwork right is what keeps a claim moving through approval instead of being disputed or short-paid.
Key takeaways
- A progress claim requests payment for work completed to date under a construction contract — it is not the same document as a tax invoice.
- Claims are usually calculated by percentage complete, against contract milestones, or against a priced schedule of values — the contract sets which method applies.
- A clear claim states the reference period, work completed, approved variations, materials on site, retention deducted and GST, backed by supporting evidence.
- Most disputes and short payments come down to unclear or unsupported claims, unapproved variations, or a mismatch with what has actually been assessed on site.
- Security of Payment legislation exists in every Australian state and territory with strict timeframes for claiming and responding — the detail varies, so check the Act and contract that apply to your job.
What a progress claim is
A progress claim is a formal request for payment, submitted under a construction contract, for the value of work carried out since the previous claim. Rather than billing the whole contract sum at once, progress claims let a contractor or subcontractor get paid as the job moves forward, and let the principal or head contractor pay for work as it is actually delivered.
Claims are normally submitted at a set interval defined in the contract — commonly monthly, sometimes tied to program milestones — and follow a cycle: claim, assessment, a payment schedule or certificate from the other party, then payment by a due date. That cycle repeats until the contract sum has been claimed in full, usually with a final claim and a retention release to follow once the defects liability period ends.
The exact process is set by the contract and, in every Australian state and territory, overlaid by Security of Payment legislation, which gives claimants a statutory right to progress payments and a fast adjudication process if a claim is disputed.
Percentage complete, milestones, or a schedule of values
Most contracts use one of three methods to work out how much can be claimed in a given period, and the method is usually set by the contract rather than left to the claimant to choose.
- Percentage complete — the contract sum, or each trade item, is claimed against an assessed percentage of completion, for example 60% of the electrical works complete this period.
- Milestones — payment is tied to defined project stages being reached, such as slab down, frame complete or practical completion, with a fixed amount or percentage released at each.
- Schedule of values — the contract sum is broken into priced line items, often mirroring a Bill of Quantities, and each claim states the value completed against every line item, giving the clearest audit trail on larger or more complex jobs.
What to include in every progress claim
A well-prepared claim gives the person assessing it everything they need to check and approve it without chasing you for missing information.
- Reference period — the start and end date the claim covers.
- Works completed — the value of work done in that period, set out against the agreed claiming method.
- Variations — approved variations claimed separately and clearly referenced back to their approval.
- Materials on site — the value of materials delivered but not yet incorporated into the works, where the contract allows this to be claimed.
- Retention deduction — the amount withheld under the contract this period, shown alongside the running total withheld to date.
- GST — calculated on the net claimed amount and shown as its own line.
- Supporting documents — photos, delivery dockets, subcontractor invoices, and a marked-up drawing or schedule where useful.
Example progress claim summary
Bringing these figures together into one summary is what turns a page of numbers into a claim that can be checked and approved at a glance. The example below is illustrative only — your own figures will depend on your contract.
| Line item | Amount (AUD) |
|---|---|
| Contract sum (ex GST) | $420,000 |
| Value of work completed to date (55%) | $231,000 |
| Less: previously claimed (Claims 1–3) | $168,000 |
| This claim — value of work claimed | $63,000 |
| Less: retention (5%) | $3,150 |
| Net claim before GST | $59,850 |
| Plus: GST (10%) | $5,985 |
| Total payable — Claim 4 | $65,835 |
Payment claim vs tax invoice
A payment claim and a tax invoice are not the same document, even though they are often confused. A payment claim identifies the work done, the amount claimed and the reference period under the contract, and in most states it can also trigger statutory Security of Payment rights if it is not responded to correctly. A tax invoice is the separate, GST-compliant document required for accounts payable, and needs to show the specific details a valid tax invoice must include.
Many businesses issue one document that does both jobs, provided it includes everything a valid tax invoice requires as well as the contract references a payment claim needs. Others issue the payment claim first, then a separate tax invoice once the claim is certified. Check what your contract and your accounting requirements expect before assuming one document automatically covers both purposes.
Why progress claims get disputed or short-paid
Most disputes come down to a handful of recurring issues rather than genuine disagreement about the value of the work.
- The claimed percentage does not match what has been assessed on site.
- Variations are claimed before they have been formally approved.
- Supporting documentation is missing or does not clearly back the claimed amount.
- Retention is calculated inconsistently between claims.
- The claim is submitted late, in the wrong format, or missing information the contract requires, which can delay the whole payment cycle.
A short-paid claim is not the end of it
If a claim is disputed or short-paid, the contract — and in most cases Security of Payment legislation — sets out how the other party must respond, usually with a payment schedule explaining any shortfall, within a strict timeframe. Missing that response deadline can itself have consequences for the paying party.
Keep every claim tied to the contract
The single most reliable way to avoid a dispute is to keep every claim traceable back to the contract it sits under — the same claiming method, the same reference periods, the same variation references, claim after claim.
Security of Payment legislation exists in every Australian state and territory, giving contractors and subcontractors a statutory right to progress payments and strict timeframes for claiming, responding and, if needed, adjudicating a dispute. The detail differs materially between jurisdictions and between contract types, so this is general guidance only, not legal advice — check the Act that applies in your state or territory and the specific terms of your contract before relying on any timeframe.
How My Trade Hub helps you claim with confidence
A progress claim is only as easy to prepare, and as easy to defend, as the pricing behind it is structured. When a job starts from a priced Bill of Quantities rather than a spreadsheet built from scratch, claiming against completed items means checking off what is done against the same line items you tendered with, rather than reconstructing the maths from memory every month.
My Trade Hub keeps your priced job in one place — the measured quantities, your rates, and the structure you tendered with — so building a progress claim is a matter of updating completion against existing items rather than starting again. Invoicing is available as a paid add-on for businesses that want to issue the tax invoice from the same platform. It’s free to create a My Trade Hub account, with estimating and tender-prep plans tiered in AUD and no lock-in contracts.
Frequently asked questions
How do you prepare a progress claim?
Work out the value of work completed since your last claim using the method your contract sets — percentage complete, milestones, or a schedule of values — then set it out with the reference period, approved variations, materials on site, retention deducted and GST, backed by supporting evidence such as photos and dockets.
What should be included in a progress claim?
At minimum: the reference period, the value of works completed, any approved variations, materials on site where the contract allows it, the retention deduction, GST, and supporting documents such as photos, delivery dockets and a marked-up schedule.
What is the difference between a progress claim and a tax invoice?
A payment claim sets out the work done and the amount claimed under the contract, and can trigger statutory Security of Payment rights. A tax invoice is the separate, GST-compliant document required for accounts. Many businesses combine the two into one document, provided it meets the requirements of both.
Why do progress claims get short-paid?
Common reasons include the claimed percentage not matching what was assessed on site, variations claimed before approval, missing supporting documentation, retention calculated inconsistently, or the claim being submitted late or in the wrong format.
How is retention calculated on a progress claim?
Retention is a percentage — commonly around 5% — withheld from each progress claim under the contract, then released later, often half at practical completion and half at the end of the defects liability period. The exact rate and release points are set by your specific contract.
What is a schedule of values in a progress claim?
A schedule of values breaks the contract sum into priced line items, often mirroring a Bill of Quantities. Each progress claim then states the value completed against every line item, giving a clear, consistent audit trail from claim to claim.
Does Security of Payment legislation apply to my progress claim?
Security of Payment legislation exists in every Australian state and territory and gives contractors a statutory right to progress payments, with strict timeframes for claiming and responding, but the detail varies by state and contract type. This is general guidance, not legal advice — check the Act that applies in your state or territory.
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