Progress claims help streamline cash flow in construction projects by ensuring that contractors and subs get paid for work completed to date.
It seems simple enough on paper, but submitting and managing these claims isn’t always straightforward. From unclear documentation to payment approvals, certain issues can lead to delays or disagreements. This guide breaks down how to master progress claims and keep project payments on track.
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A progress claim is a formal request for payment for work completed up to a certain date on a construction project. Sometimes referred to as “construction progress claim,” “progress payment claim,” or “payment application,” a progress claim details the work completed, materials supplied, and costs incurred during a specific billing period.
It allows contractors and subcontractors to receive payment for that portion of the project. As such, it serves as a key tool for managing cash flow throughout the construction process.
There are laws around progress claims that protect contractors and subcontractors from delayed or unfair payments.
In Australia and New Zealand, for example, there’s the Construction Contracts Act and state-specific Security of Payment laws, which outline how and when progress payment claims must be made and responded to.
In the US, the Prompt Payment Acts, Mechanic’s Lien laws, and the Miller Act serve a similar purpose. These regulations ensure that contractors can submit progress claims confidently, because there are legal frameworks that support timely and transparent payments.
Progress claims are a key part of managing cash flow in construction. Rather than paying the full contract amount upfront, clients make milestone-based payments as work is completed. Each claim represents a portion of the total contract value, reflecting progress on the project to date.
Most construction contracts outline specific milestones or stages that trigger progress payments. Depending on the project, such milestones could include foundation completion, framing, or electrical installation.
Once a milestone is reached, the contractor submits a progress payment claim (or payment application) detailing the percentage of work done, the materials used, and any adjustments.
The timing and approval process for progress claims are typically defined in the construction contract. Payment schedules outline when claims can be made (often monthly or at key project phases) and how long clients have to respond.
Many contracts also specify retention amounts, which are withheld until project completion to guarantee quality and compliance.
For example, a contract may allow progress claims to be submitted on the 25th of each month, with payment due within 14 business days after approval. If the client disputes any portion of the claim, they must issue a payment schedule identifying the amount they intend to pay and why.
Here’s what the progress payments process looks like in practice:
| Progress Claim | Invoice | |
| Purpose | Requests payment for work completed to date on an ongoing construction project. | Requests payment for completed goods or services in a single transaction. |
| Industry Use | Specific to construction projects. | Used across all industries. |
| Payment Timing | Submitted at project milestones or on a scheduled basis (e.g., monthly). | Issued after goods or services are fully delivered. |
| Documentation Required | Requires detailed progress claim documentation—breakdown of work, % complete, materials, photos, and approvals. | Typically includes only basic details such as products/services, quantities, and total cost. |
| Legal Framework | Governed by contract terms and legislation (e.g., Construction Contracts Act, Security of Payment laws). | Generally follows standard commercial payment terms with no specific legal structure. |
| Complexity | Highly detailed and regulated; must align with project scope and milestones. | Simple and straightforward billing format. |
| Goal | Ensures fair, timely, and transparent payments throughout the construction project. | Facilitates payment for completed, one-time transactions. |
A progress claim and a construction invoice both request payment, they’re not the same thing. Here are their main differences.
An invoice is a general request for payment after goods or services are delivered. It’s used across many industries and usually reflects a single, completed transaction. A progress claim, on the other hand, is specific to construction and used to request payment for partially completed work at a certain stage of a project.
A construction progress claim demands more supporting information than a standard invoice. It must include progress claim documentation such as:
Meanwhile, an invoice usually provides only a summary of goods or services delivered, along with quantities, unit prices, and the total amount due, without necessarily requiring detailed proof of progress or supporting documentation.
Another major difference lies in compliance. Progress payment claims are governed by contract terms and, in many regions, legislation such as the Construction Contracts Act or Security of Payment laws. These define submission dates, payment schedules, and dispute processes.
By contrast, invoices follow standard business terms without legal requirements tied to construction timelines or adjudication rights.
What does a well-prepared progress claim look like? Here are the key components to include.
This is the total agreed contract amount for the entire project. It sets the baseline for all progress claims, allowing both the contractor and client to measure how much of the total value has been earned and paid to date.
Here, you’ll record the total financial value of all work completed up to the claim date. This may include labor, materials, and equipment costs, as well as any materials stored on-site that are part of the project scope. This section helps verify that the claim reflects real progress in the field.
Retention refers to the portion of payments withheld until the project or certain milestones are fully completed. Including retention in your progress claim keeps all parties aligned on how much is being held back and when it will be released.
This section compares the total amount earned (based on completed work) with the total amount already received. It highlights payment history and ensures accurate reconciliation across multiple progress claims.
The amount currently due represents the payment being requested in this claim. It’s calculated by taking the total earned to date, minus amounts previously paid and any retained funds.
Finally, the form should show the remaining balance to complete the project. This figure provides visibility into what’s left in the contract and helps forecast future claims or payments.
Beyond the core financial details, a strong progress claim includes supporting documentation that verifies accuracy and builds trust between all parties. Consider the following:
A schedule of values (SOV) lists every major work item in the project along with its associated cost or value. For each progress claim, the SOV highlights what portion of each item has been completed during that billing period. It’s one of the most critical tools for verifying the percentage of work completed.
Include any approved change orders—written agreements detailing scope changes, material updates, or schedule adjustments. These ensure the claimed work aligns with the latest project terms agreed upon by owners, architects, and contractors.
Add photos, diagrams, and drawings that visually confirm completed work or stored materials. This evidence reduces the chance of disputes and strengthens your claim’s credibility.
Lien waivers act as proof of payment in construction. Attach signed waivers from subcontractors and suppliers when applicable to show that previous payments have been distributed properly.
The timing and frequency of progress claims can vary depending on the project and contract type. Most construction projects follow one of two methods: monthly claims or milestone-based claims.
Monthly progress claims are common on long-term projects, providing consistent cash flow and predictable billing cycles. Milestone-based claims, on the other hand, are tied to specific stages—like foundation completion or electrical installation—triggering payment when key deliverables are met.
No matter which approach you use, it’s crucial to align submissions with your contract terms. Missing a deadline or submitting outside the approved schedule can delay payments or even void your claim rights under applicable laws.
To stay on track, try these tips:
Even the most experienced contractors can run into issues when preparing and submitting progress claims. Small errors can quickly snowball into payment delays, disputes, or cash flow problems—all of which can be avoided with careful planning and attention to detail. Here are the most common mistakes to watch out for and how to prevent them:
Timing is everything when it comes to progress claims. Submitting even a few days late can delay your payment cycle or, worse, cause your claim to be rejected under contract or legislation. Always double-check submission deadlines and set automated reminders so you never miss a cut-off date.
Incomplete progress claim documentation is one of the most common causes of delayed approvals. Make sure to include all required attachments, such as schedules of values, change orders, lien waivers, and visual proof of work completed.
Even small math errors can cause disputes or confusion with the client. Double-check totals, retention percentages, and previous payments before submitting. Using construction management software can help automate these calculations and reduce human error.
Submitting a claim is only half the process. Failing to confirm receipt or check on approval status can leave you in the dark about payment timelines. So, make sure to follow up within the timeframe specified in your contract, and keep written records of all communications.
Every project has its own rules for progress claims. Submitting outside of those terms or using the wrong format can invalidate your claim.
Here are some best practices to help you streamline your progress payment claim process and maintain full visibility across every project.
Switching from manual paperwork to standardized, digital progress claims can dramatically reduce errors and delays. When claims can be submitted and approved anytime, anywhere, and from any device, you eliminate bottlenecks caused by outdated processes. Digital templates also ensure consistency in format and data entry, making it easier for both project managers and clients to review and approve payments quickly.
Keep all progress claim documentation in one centralized platform. This makes it easier to track work completed, manage retention amounts, and reference past claims when needed. A centralized system also supports audit trails, so you can quickly verify approvals and maintain compliance throughout the project’s duration.
Build compliance verification—such as insurance certificates, licenses, and safety documentation—directly into your claim approval workflow. When these checks are automated and integrated, you can ensure all required documents are up to date before approving payments, reducing risk for both contractors and project owners.
Use integrated tools that sync progress claims with your existing project management, accounting, or ERP systems. This lets you enter data once, and minimize double work. Integration also provides real-time visibility into project finances, helping teams make more informed decisions.
Managing progress claims manually can slow projects down and lead to costly errors. If you’re looking to streamline your processes, these two solutions can help with all things progress claims.
Payapps is an award-winning construction payment claim software designed to simplify collaboration between main contractors and subcontractors. It standardizes payment claims in a consistent digital format that can be submitted and approved anytime, anywhere, and from any device.
With Payapps, you can:
Used by over 70% of Australia’s top 20 builders, Payapps helps teams build better together by improving visibility, reducing paperwork, and ensuring faster, fairer payments.
For U.S.-based contractors, GCPay offers a fully automated solution for managing pay applications between general contractors and subcontractors. It streamlines every stage—from creating and exchanging lien waivers to collecting compliance documents and processing electronic payments.
With GCPay, you can:
Trusted by more than 50 of ENR’s Top 400 Contractors, GCPay saves accounting teams hours of manual work while improving accuracy, compliance, and cash flow visibility.
What does success look like in the realm of construction progress claims? These real-world examples show how contractors and subcontractors are transforming their payment processes with digital progress claim solutions.
Australian construction leader Buildcorp transformed its payment process by integrating Payapps with its existing Jobpac system. Managing over 600 monthly payment claims, Buildcorp needed a more efficient, compliant, and transparent way to handle submissions and approvals.
With Payapps, claims that once took hours are now processed in as little as two minutes. The platform’s real-time visibility, automated compliance checks, and cloud-based access have boosted subcontractor satisfaction and reduced administrative workload. Aside from helping Buildcorp save time, it also strengthened client relationships, and scaled operations without adding extra staff.
Cityscape Residential, a luxury multifamily builder based in Carmel, Indiana, transformed its subcontractor payment process with GCPay.
Before implementation, the team relied on spreadsheets, emails, and paper files. It took nearly a week each month to process pay applications.
With GCPay’s integration with Sage 300 Construction & Real Estate, Cityscape cut that down to just 4 to 6 hours. The platform automated lien waivers, compliance tracking, and approvals, giving all stakeholders real-time visibility into billing status. The result? Faster draws, fewer errors, and stronger subcontractor relationships built on transparency and collaboration.
If a progress claim is rejected, it’s usually due to missing documentation, calculation errors, or discrepancies between the claim and the actual work completed. The client or project manager will issue a payment schedule outlining the reasons for the rejection or partial payment. Contractors should review the feedback, correct the issues, and resubmit promptly. In some regions, such as under the Construction Contracts Act or Security of Payment laws, contractors also have the right to dispute an unjustified rejection through formal adjudication.
Yes. Subcontractors can—and should—submit progress payment claims directly to the main contractor or project manager, depending on the contract structure. These claims detail the portion of work completed and are assessed against project milestones or schedules of values. Using digital tools like Payapps or GCPay allows subcontractors to submit claims online, track approval status, and reduce errors or delays caused by manual submissions.
Retention and variations are two critical components that impact progress claims. Retention refers to the percentage of payment withheld until project completion to ensure quality and compliance. This amount should always be clearly stated in the claim form. Variations, on the other hand, reflect approved changes to the project’s scope, cost, or materials. These must be included with supporting documentation and approvals to ensure full and accurate payment. Managing both correctly helps maintain transparency and prevents disputes later in the project.
Mastering progress claims keeps your projects financially healthy, transparent, and dispute-free. When contractors and subcontractors manage claims efficiently, they don’t just improve cash flow, they also strengthen relationships and free up valuable time to focus on building instead of chasing paperwork.
Digital tools make this process faster, simpler, and more reliable by standardizing submissions, automating approvals, and ensuring compliance at every step.
Ready to streamline your payment process and get paid on time, every time? Explore Payapps or GCPay today and take the stress out of progress claims.
