Glossary
Progress claim
Also called: progress payment
A progress claim is a builder's request for payment for work completed at a stage of construction, as set out in the building contract. In a funded project, the lender pays the claim after its QS verifies the work.
An example
The builder finishes the frame stage and submits a progress claim. The lender's QS inspects the site, confirms the work and the lender releases funds directly to the builder.
Why it matters
Progress claims determine the drawdown schedule and how quickly interest builds up. Security of payment laws in each state also set rules about how and when builders can claim and be paid.
Points to check
Check that each claim matches the stage set out in the building contract and that the quantity surveyor has verified the work. Ask how long the lender takes to pay after receiving a verified claim. Keep a record of all claims, payments and variations. If a claim is disputed, state security of payment laws set out how and when disputes are handled, so get advice promptly.
Try it: Construction drawdown calculator