As mentioned, the Progress Claim Form should be very clear on the work performed, specify the exact amount of money being claimed, detail the basis for this claim, and of course provide the right amount of evidence to accompany the progress claim.Īs for that additional evidence, here is a list of documentation and information that you should include with the progress claim: The key for requesting or indeed honouring a progress claim is clarity of information and compliance with legal requirements.
What further information or documentation should I include in a progress claim? And the remaining balance that will be left to complete the project.The amount of money that’s currently due now.The total amount earned to date, against the total amount received to date.The total financial value of all work completed to date, along with any materials stored on-site to date.The original total contract value amount for the entire project.But before we examine that, let’s summarise the key components of a progress claim form itself. The form should usually be accompanied by further documentation. The centrepiece of a Progress Claim is the‘Progress Claim Form’ which focuses purely on the financial claim in terms of money owed concerning work performed so far. What is a progress claim form and what should it include? Let’s examine the items which typically need to be included with your progress claim. Progress claims require multiple pieces of documentation to prove the legitimacy and validity - or proof - behind the request for payment. The progress claim is more complicated than a simple invoice, and the difference is one of detail. Here, participants in any given building project are required to lodge a progress claim for money owed, also known as a payment application in some jurisdictions. In the construction industry, payment processes usually differ from this well-understood approach. Payment then follows within an agreed period. An agreed amount of work is completed to a satisfactory level, the supplier is owed money, and an invoice for payment is sent to the customer. The way we understand invoicing in most industries is simple. What’s the difference between an invoice and a progress claim? This is to ensure contract compliance and to make sure the progress claim is valid. It’s important that progress claims are submitted by contractors and subcontractors in line with the contract terms and timing, and not before the correct time. Make sure any contracts you sign include these details. While every construction industry contract may include varying agreement terms, it should cover what documents need to be included for progress claims along with details on claim timings and payment deadlines. These may be monthly intervals, for example, or they may be at specific stages of the agreed building work. These progress claims will typically be used to provide remuneration to contractors and subcontractors to assist with cash flow throughout the job until completion using a construction payment schedule. How are progress claims used in the construction industry? īuilding projects in the industry often involve long timeframes with incremental milestones, something that’s often reflected in progress payment construction contracts. The right contract should include contractor payment terms along with the appropriate builder's payment schedule. A progress claim’s validity is only as good as the contract that covers it. Once the project has reached an agreed time interval milestone, the progress claim can be made for financial compensation on the money that’s currently due. The claim brings together documents and evidence in line with terms in the construction contract and asks for payment on the work that has been completed to date. Progress claims refer to a collection of documents, forms and applications that request periodical payments, or a complete payment, for a contractor or a construction subcontractor in the building industry. The good news is a progress claim in construction doesn’t have to be a burden when you’re armed with the right information. Additionally, managing contract compliance or payment security can present another set of challenges for payers and payees. Managing progress claims in the construction industry can be tricky for contractors and subcontractors, largely due to the complexity, time, and size of construction projects.ĭepending on the systems being used, it can be difficult to track where a claim or a construction progress payment is in the approval process. Need to lodge a progress claim in construction? This guide is for you.
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