Progress Payments

Progress Payments

It is important for clients and builder alike to understand the obligations and responsibilities in claiming progress payments for each stage of works completed on a construction project.

But how much?

This is where Auswide QS can help. Working out works completed to date on a construction project is a difficult task that if carried out by an inexperienced person can lead to overpayment or underpayment to the claimant.

As Auswide QS understand the building process in both a technical and financial aspect, the progress claim documentation that we produce is both accurate and detailed. The client should be informed in these matters as discussions relating to finance in some projects are sensitive and must be completed to benefit both parties with special care taken to follow the procedures as outlined in the Securities of Payment act (SOPA) 1999.

Overpayment of progress claims can result in reduced cashflow for client, builder spends excess funds on other other projectsor takes the money and does not finish the work, the builder may not come back to fix defective work, insurance companies may not cover any overpayment if the builder becomes insolvent.

In turn, underpayment of progress claims, while has short-lived positive benefits to the client, will have a lasting detriment to the project if the builder doesn’t have funds to cover the costs of the project before the next progress claim.

It is important to strike a balance with progress payments as the benefits of a fair and reasonable progress claim far outweigh the positives of an unfair one.

In General, information required for a progress claim includes:

Proposed amount be claimed
Construction company’s name and ABN
Proprietor’s name
Project name and address
Date
Progress claim number

 

Contact Auswide Quantity Surveyors for any services relating to progress claims.