Progress Claims in Australia: A Subcontractor's Complete Guide

What is a Progress Claim?

A progress claim is a formal request for payment for construction work you've completed up to a certain date. Unlike a regular invoice, a progress claim is backed by legislation — specifically the Security of Payment Act (SOPA) — which gives it legal teeth.

Here's the key difference: if a builder ignores your invoice, you're left chasing them. If a builder ignores your progress claim under SOPA, the full amount becomes automatically due, and you can take it straight to adjudication.

Every state and territory in Australia has its own version of SOPA, but the core principle is the same: anyone who does construction work has the right to be paid for that work, and to have payment disputes resolved quickly.

What a Progress Claim Should Include

• Your name and ABN
• The builder/contractor's name
• A description of the work completed
• The amount claimed (broken down by line item)
• The reference date (more on this below)
• A statement that it's made under the relevant Security of Payment Act

The reference date is crucial. It's the date from which you're entitled to make a claim, usually set out in your contract (e.g., the 25th of each month). If your contract doesn't specify one, the legislation provides a default — typically the last day of each month.

SOPA Timelines: State-by-State

Each state has slightly different rules about how long a builder has to respond and pay. Here's a quick comparison:

Why this matters: If a builder doesn't provide a payment schedule within the deadline, the full claimed amount becomes payable. This is one of the most powerful protections subbies have — but only if you serve a proper payment claim.

How to Submit a Progress Claim

Submitting a progress claim isn't complicated, but getting the details right matters. Here's the process:

Step 1: Know Your Reference Date

Check your contract for the reference date. This is when you're entitled to submit a claim. If it says "the 25th of each month," you can submit on or after the 25th for work done up to that point.

Step 2: Calculate What You're Owed

Break your claim down by line item from your contract. For each item, calculate:

• Total contract value — what the item is worth when complete
• Percentage complete — how much you've done so far
• Claimed to date — total value × percentage complete
• Previously approved — what's already been paid
• This claim — claimed to date minus previously approved

Step 3: Include Variations

If you've done any approved variation work, include it as a separate section. Each variation should have its own reference number, description, amount, and approval status.

Step 4: Serve the Claim

Send your payment claim to the builder in writing. Email is fine, but keep a record. Include a statement that the claim is made under the relevant Security of Payment legislation.

Step 5: Wait for the Payment Schedule

The builder must respond with a payment schedule within the statutory timeframe (see the table above). The payment schedule should show how much they intend to pay and, if it's less than your claim, the reasons why.

When the Builder Doesn't Pay

This is where most subbies get stuck. The builder either doesn't respond, pays less than claimed, or just ghosts you. Here's what you can do:

Scenario 1: No Payment Schedule at All

If the builder doesn't respond within the deadline, the full claimed amount becomes automatically due. You can:

1. Apply for adjudication immediately
2. Seek a statutory demand or court judgment for the debt

Scenario 2: Payment Schedule for a Lesser Amount

The builder says they'll pay $50,000 but you claimed $75,000. Compare the two line by line. The builder must give reasons for every item they've reduced. If the reasons are vague or missing, that strengthens your adjudication case.

This is where most money gets lost. Builders commonly reduce amounts by a few percent here and there — $500 on this line, $1,200 on that one. Individually they seem small, but they add up fast. Across a $500,000 project, a consistent 5% reduction on every claim costs you $25,000.

Scenario 3: Payment Schedule Received But Not Paid

If the builder provides a schedule but doesn't pay the scheduled amount by the due date, you can recover that amount as a debt. No adjudication needed — it's already an admitted debt.

Adjudication: Your Fast-Track to Getting Paid

Adjudication is the enforcement mechanism built into SOPA. It's faster and cheaper than going to court, and decisions are binding (at least on an interim basis).

How It Works

1. Apply to an Authorised Nominating Authority (ANA) — in QLD, this includes organisations like the Queensland Building and Construction Commission (QBCC). In NSW, there are several private ANAs.
2. An adjudicator is appointed — usually within 4-5 business days
3. The adjudicator reviews — your claim, the builder's schedule (if any), and any supporting documents
4. A decision is made — typically within 10-15 business days
5. The decision is enforceable — as a court judgment. If the builder still doesn't pay, you can take enforcement action.

What Does Adjudication Cost?

The application fee varies by state and claim amount. In QLD, it starts at around $500 for claims under $25,000. The adjudicator's fee is usually shared between parties. Compared to litigation, it's significantly cheaper and faster.

5 Tips to Protect Yourself on Every Claim

1. Always submit a formal payment claim — not just an invoice. Reference the SOPA legislation. This activates your legal protections.
2. Keep a running record — Track what you claimed, what the builder assessed, and what was actually paid. The gap between these numbers is often where money disappears.
3. Compare every payment schedule — Don't just accept the builder's assessment. Go through it line by line and challenge any reductions you disagree with.
4. Document everything in writing — Verbal agreements, site instructions, variation requests — if it's not written down, it didn't happen.
5. Don't wait too long to act — SOPA has strict timeframes for adjudication applications. Miss the window and you lose the right to adjudicate that particular claim.

Stop Losing Money on Every Claim

The biggest challenge for subcontractors isn't understanding the law — it's having the time and tools to actually compare every payment schedule against every claim, line by line, across multiple projects.

That's exactly what SubbieClaim is built for. Upload your builder's payment schedule (PDF or Excel), and our AI automatically matches it against your progress claim — line by line. It flags every discrepancy, calculates the total underpayment, and gives you the evidence you need to dispute or adjudicate.

No complex project management. No builder buy-in needed. Just clarity on whether you're being paid what you're owed.