Progress Claim Templates Compliant Under Australian SoP

What it is

A progress claim is the document a contractor sends to claim a stage payment under a construction contract. Under the Security of Payment (SoP) regime in each Australian state, the claim has a specific statutory form. Get the form right and you have a fast-track payment right backed by adjudication. Get it wrong and you are back to suing on the contract.

This entry covers what a compliant SoP payment claim looks like, what the head contractor's supporting statement or statutory declaration must say, and how the requirements vary by state.

When SoP applies

SoP is a statutory payment regime. It does not replace the contract. It gives the claimant an extra statutory right to be paid and to take a dispute to adjudication.

SoP applies to construction contracts for construction work in Australia. Each state has its own Act. The carve-outs differ slightly but the headline carve-out is the same across most states: SoP does not apply to a contract between a builder and a resident owner-occupier for residential building work where the owner lives or proposes to live in the home.

So a builder claiming against an owner cannot use SoP. A subcontractor claiming against a builder, even on a residential job, can.

Anatomy of a compliant payment claim

The basics are similar across NSW, Vic, Qld, WA, SA, Tas, ACT and NT. The wording and timing differ.

Identify the contract

State who is claiming and against whom. Reference the contract by name or date. A claim that does not identify the contract is a non-starter.

Identify the construction work

The claim must identify the construction work or related goods and services to which the claim relates. Enough detail that the recipient knows what is being charged. A line item description and a stage reference is usually sufficient on residential work.

State the claimed amount

The amount must be stated as a dollar figure inclusive of GST where applicable. Show the reference period (the period the claim covers).

State that it is a claim under the Act

In several states the claim must indicate that it is made under the relevant SoP Act. In NSW the wording is typically "This is a payment claim made under the Building and Construction Industry Security of Payment Act 1999 (NSW)". In Queensland under the BIF Act 2017. In Victoria, since the 2006 amendments, the endorsement requirement was removed but identifying the Act on the face of the claim remains best practice.

Reference date

Each Act ties the right to make a claim to a "reference date" set in the contract. Most contracts schedule reference dates monthly. The claim must be made on or after the reference date.

The Queensland supporting statement

Queensland has the most specific extra requirement for head contractors.

Under section 75 of the Building Industry Fairness (Security of Payment) Act 2017 (Qld), a head contractor giving a payment claim must include a supporting statement. The statement is a declaration by the head contractor (or a director or authorised person) that all subcontractors have been paid the amounts owed to them at the date the payment claim is given.

An amount is "owed" to a subcontractor when its due date for payment has occurred. The QBCC publishes a template supporting statement under the BIF Act.

A false supporting statement is an offence under the Act and a head contractor who gives a payment claim without the required supporting statement is also committing an offence.

State by state on statutory declarations

The statutory declaration sits alongside the SoP claim in some jurisdictions and is purely a contractual creature in others.

NSW

The NSW SoP Act does not require a statutory declaration on every claim. Some standard form NSW commercial contracts (notably the AS 4000 family) require a statutory declaration confirming subcontractors are paid before the head contractor can claim. This is contractual, not statutory.

Victoria

Same position. No statutory declaration mandated by the SoP Act 2002 (Vic). Contracts often require one.

Queensland

Section 75 supporting statement is mandatory for head contractors under the BIF Act. This is a statutory requirement, not just contractual. The format is set by regulation and QBCC publishes a template.

Western Australia

Under the Building and Construction Industry (Security of Payment) Act 2021 (WA), head contractor declarations and retention trust account requirements phased in by contract value. Specific form requirements are set in the regulations.

South Australia, Tasmania, ACT, NT

SoP exists in each but without the Queensland-style statutory supporting statement layered on top. Contracts do most of the work on declarations.

What to put in the template

A reusable template that covers the common ground across states.

Header section

Claimant name, ABN, contact details. Respondent name, ABN, contact details. Contract reference (name, date, project address).

Body section

Reference date. Claim number (sequential). Period covered by the claim. Description of work claimed (by stage or line item). Original contract sum. Approved variations to date. Total work done to date. Less amount previously claimed. Net amount claimed this period. GST. Total claimed.

Statutory endorsement

For each state the appropriate line: "This is a payment claim made under the [relevant Act]". Even where not required, it preserves SoP rights.

Supporting statement (Qld) or stat dec (contract requires)

A signed declaration that all subcontractors and suppliers have been paid amounts owed at the date of the claim. Where the contract requires a statutory declaration, the form must be sworn or affirmed under the relevant Oaths or Statutory Declarations Act.

Attachments

Variation schedule with signed variation forms. Photos of the stage if appropriate. Subcontractor schedule if required.

How to issue the claim

Three practical points keep the claim defensible.

Issue on or after the reference date, not before

A claim served before the reference date is invalid. Lodge it on the day or shortly after.

Serve through the contract's notice mechanism

Most contracts specify how notices are served (email, registered post, hand delivery). Use that method. SoP timing starts ticking from valid service.

Keep proof of service

A read receipt on email, a delivery slip on post, or a signed acknowledgement on hand delivery. The respondent's payment schedule deadline runs from service.

When the respondent does not pay

If the respondent provides a payment schedule for a lesser amount and then does not pay it, the claimant can apply for adjudication. If the respondent does not provide a payment schedule at all within the statutory time, the claimant can apply for adjudication on the full amount, or in some states obtain a judgment debt for the full amount. Tight deadlines apply in every state.