A progress claim, or progress payment claim, is a request for payment for work completed, issued during a build rather than at the end.
Progress claims exist because as construction is delivered over time, materials are ordered, trades are paid, and work is completed in stages. Payments are typically made in stages as the project progresses.
Progress claims also create a record of what work was done, when, and the cost. This is useful for both clients and builders if questions arise later.
What does a progress claim usually include?
A progress claim often includes the stage or period being claimed:
Residential: commonly tied to milestones such as putting down the slab or framing.
Commercial: often monthly, based on % complete or measured quantities
Who handles progress claims?
Typically, the builder or construction company prepares and issues the progress claim. Often their contract administration department handles the process.
The client handles reviewing and paying
The client does the following:
- checks that the claim matches the contract stage
- confirms any variations being claimed were approved
- asks questions if something doesn’t look right
- pays by the due date
In commercial projects, there may be an extra layer
On many commercial builds, the claim may be certified by a third party such as the Superintendent, Quantity Surveyor (QS), or the client’s project manager before it’s approved for payment.
How progress claims usually work
- Work is completed on site or a milestone is reached.
- The builder issues a progress claim for that stage/period.
- The client or a third-party review it.
- If there are any questions, they are answered and resolved.
- The client pays within the timeframe required.
Security of payment frameworks in Australia are designed to keep cash flowing through the project, and they set expectations around claims, responses, and handling disputes.
What should clients look for before paying a progress claim?
1) Does it match the contract payment schedule?
- Is it at the correct stage?
- Is the stage clearly defined in your contract?
2) Is the stage complete?
Terms might mean something different depending on the contract wording. If you’re unsure, ask the builder to explain what is included and what remains.
3) Are variations clearly listed and previously approved?
A good claim makes it easy to see what was changed, the cost, and when/how you approved it.
4) Are there any obvious red flags?
- Claiming for a stage that is visibly incomplete
- Large costs added with vague descriptions
- Pressure to pay urgently without documentation
- If something feels off, request clarification in writing so there’s a clear record
Conclusion
Progress claims matter because they directly affect cash flow, timeframes, and certainty.
They are closely tied to your cash flow and loan drawdowns. If you’re using a construction loan, your bank may require inspections or evidence that a stage is complete before releasing funds. If the construction company, like IQ Construction, runs a tight ship, this will help keep the project flowing seamlessly without hiccups.
If progress claims are delayed, payments slow down which effect the schedule, something you don’t want. At IQ Construction, we understand that progress claims aren’t just invoices, they’re part of keeping your project moving and keeping communication clear.
If you’d like to understand how we handle progress claims and guide clients through builds, contact us today!