Progress Payments in Your Building Project: What You Need to Know

Progress Payments

Progress payments aren’t just a formality, they’re a key mechanism to ensure fairness, transparency, and quality during your construction project. This ensures that payments are aligned with the work actually completed. Typically, the contractor submits regular progress claims to the architect, who assesses each claim based on the work undertaken, the materials and labour used, and any other construction costs in accordance with the contract. Once satisfied, the architect issues a progress certificate, confirming the amount due to the contractor at that stage.

Why Progress Payments Matter

This process protects you as the client, making sure you are only charged for work that has been completed and meets the requirements set out in the construction documents. At the start of the contract, the contractor should provide a schedule of expected monthly—or otherwise agreed—progress payments. While actual payments may vary depending on the pace and extent of completed work, having a schedule helps with budgeting and financial planning.

The Architect’s Role

It is important to understand that in preparing and issuing progress certificates, the architect acts as an independent professional assessor. This role is distinct from their usual role as your agent. Both you and the contractor have agreed to rely on the architect’s independent assessment, so it is essential that you do nothing to interfere with this process.

How Progress Payments Work

The usual sequence for progress payments begins with the contractor submitting a progress claim to the architect. The architect then evaluates the claim, determines the amount payable, and issues a progress certificate. The contractor presents the certificate along with a tax invoice for payment. The contract typically specifies a timeframe within which you must make the payment.

By following this process, progress payments remain fair, transparent, and directly tied to the work completed, providing assurance for both you and your contractor throughout the construction period.

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Disclaimer: This blog is intended for general informational purposes only and does not constitute legal, financial, or professional advice. While every effort has been made to ensure the accuracy of the information provided, no responsibility is accepted for any errors, omissions, or consequences arising from its use. Readers should seek professional advice tailored to their specific circumstances before making decisions related to their building project or contract.