The progress claim is also a payment claim

On most Australian building contracts the contractor serves a progress claim each month. Under AS 4000 or AS 2124 that claim is a contractual valuation of work done. Under the relevant Security of Payment Act it is also a payment claim, and the two roles pull the same document in different directions.

What the reference date does

A payment claim can only be served on or after a reference date. The reference date is the point the contract or the Act fixes as the earliest you may claim, usually the same day each month. Serve before it and the claim may not be a valid payment claim at all, which strips away the statutory timing and the right to adjudication.

So the first discipline is calendar discipline. Know the reference date, do not claim ahead of it, and serve the claim promptly once it arrives.

Valuing the work

The claim is cumulative. You value everything done to the claim date, deduct what has already been certified, and the difference is this month's movement. That means the build up runs across the whole contract sum, not just the current activity.

• Measured work. Value against the schedule of rates or the priced bill, at the percentage genuinely complete.
• Variations. Include approved variations at agreed value, and flag claimed variations separately so the Superintendent can see them.
• Materials on site. Include unfixed materials where the contract allows, supported by delivery records.
• Retention. Deduct the retention percentage on the certified value, not on the gross claim.

GST sits on top

The claim is built net, then GST of ten per cent is added to the taxable supply. Keep the net valuation and the GST line separate so the certificate and the tax invoice agree. A claim that muddles the two invites a payment schedule that disputes the arithmetic rather than the work.

Make it identifiable

Most Acts require a payment claim to identify the work and state the claimed amount. Vague claims give the respondent an argument that it was never a valid payment claim. A claim tied to the schedule, itemised, and clearly stating the amount claimed closes that door before it opens.

Then the clock starts

Serve a valid claim and the respondent must reply with a payment schedule within the statutory window, which differs by state. Miss that reply and, in most jurisdictions, the claimed amount becomes the amount owed. The valuation you did this month is what you get paid, so do it properly.