Submitting a progress claim is only the start of the payment process. From there, the claim needs to be checked against the contract and supporting records before the amount payable is confirmed. Variations, retentions and local payment rules can all affect what happens next.
This guide follows that process from preparing the claim through to assessment and payment, including the key differences to be aware of in Australia and New Zealand.
A progress claim is a request for payment for construction work completed over a defined period, usually submitted according to dates and process set out in the contract.
In construction legislation, you'll often see the term payment claim. A progress claim may also operate as a statutory payment claim when it meets the requirements that apply to the project.
Submitting the claim is only the first step. The payer may assess it, issue a payment schedule or certificate, or dispute part of the amount before payment is made.
Retentions, variations and statutory payment rules can all affect the amount and timing of payment, so both the contract and the rules in your jurisdiction matter.
A progress claim is a request for payment covering construction work completed over an agreed period, usually a month. You claim for the portion of the contract completed during that period, along with variations or other amounts claimable under the contract.
Submitting the claim doesn’t mean the money is on its way. The payer may need to review the work, check supporting documents, account for variations and determine the amount payable before payment is made. That’s the important difference between claiming work and getting paid for it.
You'll also hear the terms progress claim, payment claim and invoice used around the same payment process, but they describe different functions.
A progress claim requests payment for construction work completed to date. An invoice is a billing document. Depending on the contract and the legislation that applies, one document can sometimes perform both functions, provided it contains the information required for a valid payment claim.
The important point is the function of the document, not simply what it's called.
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Progress Claim Process |
Standard Invoicing |
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What's the purpose |
Requests payment for construction work completed, or another amount claimable under the contract |
Bills for goods or services supplied |
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What's the basis |
Usually tied to work completed, milestones or another contract basis |
An agreed billing event or delivery of goods or services |
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What it shows |
Work claimed, amount and calculation, plus variations, retentions and supporting information where relevant |
Amount billed, description, tax details and payment terms |
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What happens next |
The payer may assess the claim and, where the contract or legislation requires it, provide a payment schedule, certificate or other response |
The recipient checks the invoice and pays or disputes it under the agreed terms |
The important point is the function, not the label on the document. If you intend a claim or invoice to operate as a statutory payment claim, make sure it meets the requirements that apply in your jurisdiction.
The amount you claim isn't necessarily the amount you receive. To understand the difference, follow the claim beyond submission.
The exact process depends on your contract and, in some cases, the security of payment legislation that applies to the project. A typical cycle looks like this:
Claim served. You submit the claim on the date and in the format required by the contract, covering work completed during the relevant period.
Review and response. The payer or assessor checks the work, calculations and supporting records. Where required, they issue a payment schedule, certificate or other response setting out the amount they propose to pay.
Amount payable established. The contract, the assessment and any applicable security-of-payment rules determine what's payable and when it's due.
Retention deducted. Where the contract provides for retention, the payer withholds the applicable amount. Our guide to retention in construction covers how it works.
Payment made. The balance is paid according to the applicable payment terms.
Dispute or review. If you disagree with the assessment, the contract and applicable legislation may provide a process for raising the issue.
The claim itself is only one part of this cycle. A missing document, an unrecorded variation or a figure that doesn’t reconcile with the contract can create another round of questions before the claim is resolved.
The overall process is similar in both countries, but the statutory payment rules aren't the same. You'll often see legislation use the term payment claim rather than progress claim.
In New Zealand, the Construction Contracts Act 2002 sets out the payment claim and payment schedule process. Where the contract doesn't set its own payment mechanism, the Act provides default monthly progress payment periods, and payment becomes due 20 working days after a payment claim is served. If the payer doesn't provide a payment schedule within the contract timeframe, or within 20 working days where the contract is silent, they can become liable for the claimed amount. For contracts entered into or renewed from 1 December 2015, a Form 1 notice must accompany every payment claim.
In Australia, security of payment legislation operates at state and territory level, so the exact requirements and deadlines depend on where the project's located. In New South Wales, for example, a respondent has 10 business days to provide a payment schedule, and failing to do so makes them liable for the full claimed amount.
Victoria's regime also changed significantly from 15 April 2026. Payment and performance security release terms are now capped at 20 business days, reference dates have been replaced with a monthly entitlement to claim, the window for making a claim has extended from three months to six, and the old "excluded amounts" and "claimable variations" restrictions have been removed. The changes apply to contracts entered into before commencement as well as after, subject to transitional exceptions.
The practical point: check both the contract and the security of payment rules that apply to the project before submitting or responding to a claim.
The exact requirements depend on your contract, but a well-prepared claim should make these details clear.
The period claimed. Include the start and end dates and the claim number in the sequence.
The work completed during the period. Describe the work against the contract breakdown, schedule of quantities, milestone or another agreed basis, so the reviewer can see how the amount claimed relates to the work completed.
The amount claimed. Show both the amount for the current period and the cumulative amount claimed to date, where required.
How the amount was calculated. This could be based on percentages completed, measured quantities, milestones or another method specified in the contract.
Variations. List any variations you are entitled to include in the claim individually, with the relevant approval, instruction or reference where applicable. Avoid bundling several variations into a single unexplained “extras” line.
Retentions. If retention applies, show the deduction and the rate or amount used, along with the cumulative retention held where relevant.
Supporting documentation. Attach the supporting records required by the contract and, where relevant, the legislation that applies: measurement sheets, site records, photographs, subcontractor claims or variation documentation.
Any notice the legislation requires. In New Zealand, payment claims under contracts entered into or renewed from 1 December 2015 must be accompanied by a Form 1 notice. In New South Wales, a payment claim must state that it's made under the relevant Act. Requirements like these are easy to miss and can affect whether the claim carries statutory protection.
The aim is simple: make it easy for the assessor to understand and verify what you're claiming.
Retention is an amount withheld from money otherwise payable under a construction contract. It acts as security for completing the work and addressing defects, but the rate, limit and release conditions all depend on the contract and applicable legislation.
Some contracts provide for a percentage of each payment to be retained, with part released at practical completion and the balance released after the defects liability period. Don’t assume a particular rate or release date applies - check the contract.
For cash-flow purposes, retained money isn’t cash you’ve received. Treat it as a future receivable with the relevant release conditions and expected date rather than money already in the bank.
Also check whether your contract requires a separate claim, notice or other step to obtain the release of retention. It won’t always be included automatically.
These problems all happen after the work's done but before the claim becomes cash.
Claiming work that can’t yet be verified as complete. If the assessor can’t substantiate the amount, they may reduce or question the claim. Base your claim on work supported by your contract records and evidence.
Omitting variations. A variation can be completed and then missed from the next claim because the variation register and payment claim are maintained separately. Reconcile the variation register against the claim before submission.
Submitting without the required supporting documents. If the assessor needs additional evidence before reviewing an amount, the claim may require further correspondence before it’s resolved.
Not tracking the expected response. If nobody’s responsible for checking whether the expected response has arrived, a missing response may only become obvious when payment doesn’t show up.
Claiming against an outdated contract breakdown. Variations can change the value or scope being claimed. Using an outdated schedule of quantities makes it harder to reconcile your figures with the assessor’s records.
Building a progress claim manually usually means pulling completed percentages from one place, cost data from another, and variation approvals from a third. It takes hours, and something almost always gets missed.
Lentune’s progress claims module builds the claim from the live financial state of the project. Approved variations flow in automatically from the variation register. Retention is calculated and tracked within the same workflow. Both head contract claims (to clients) and subcontractor claims (from subbies) are managed in the one platform.
When the claim is approved, the accounts receivable invoice is created in Xero automatically - no double handling.
“I can report on information extremely quickly now. I’ve just finished our month-end reporting, and it only took me three days, whereas it would have taken two or three weeks prior to Lentune.”
— Danielle Cole, Administration Manager, BLR Provincial Construction
See how progress claims work in Lentune
A progress claim is more than a document you send at the end of the month. It starts a process that needs to be tracked through assessment, deductions and payment.
Before submitting, check that:
Then diarise the expected response and payment dates on the day you serve the claim.
Want to see how Lentune builds progress claims from live project data? Book a demo and we’ll show you how it works.
Lentune connects your worksites with your finance team, bringing project costs, accounts payable, purchase orders, progress claims and variations into one place. Your team can see what a job's actually costing while there's still time to do something about it. Less manual entry, fewer spreadsheets running alongside your accounting system, and better visibility across the job.
Built in Christchurch and used by construction businesses across Australia and New Zealand. Want to see how it works on your own projects? Request a demo.