PROGRESS PAYMENTS · VICTORIA
Progress Payments in Victorian Building Contracts Explained
Progress payments should follow the agreed contract structure rather than being treated as informal instalments.
Short answer
Progress payments are staged payments made as construction reaches the milestones set out in the building contract. Before paying a claim, check that the claimed stage matches the contract, the relevant work has reached that stage and any approved variations or adjustments are properly documented. The exact payment structure depends on the contract and applicable Victorian requirements.
The contract sets the payment structure
The building contract should identify the agreed price and how payments are divided across the project.
Homeowners should understand the payment schedule before signing rather than waiting until the first progress claim arrives.
A progress claim should correspond with the agreed stage
When a claim is issued, compare it with the contract stage description and the work completed on site.
If something is unclear, ask for an explanation before assuming that the invoice alone proves the stage has been reached.
Variations should not become unexplained payment surprises
Approved variations can change the contract price and may affect later claims. Keep the variation records with the payment schedule so the running contract total remains clear.
Do not rely only on verbal instructions when a change affects cost or time.
Keep a complete payment record
- ✓Signed contract and payment schedule
- ✓Progress claims and invoices
- ✓Approved variations
- ✓Receipts and payment confirmations
- ✓Relevant stage records or correspondence
- ✓Final account and completion documents
Questions homeowners ask
What is a progress payment in a building contract?+
It is a payment made when the project reaches an agreed construction stage or milestone described in the contract.
Should I pay a progress claim as soon as I receive it?+
Check the contract, due date and whether the claimed stage has been reached. If something is unclear, ask for clarification promptly.
Can variations change later progress payments?+
Yes. Approved variations can change the contract price and may affect the amount payable as the project continues.
What records should I keep for building payments?+
Keep the contract, payment schedule, invoices, receipts, variation documents and important correspondence together.
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Related EBC pages
- Building Contract Checklist
- Building Variations Explained
- Prime Cost Items and Provisional Sums
- Building Handover in Victoria