What is the difference between a progress claim and a payment claim?

A progress claim is the commercial document you issue to claim payment for work done to date under a contract. A payment claim is the same document made under Security of Payment legislation, which attracts fast-track payment and adjudication rights. This generator endorses the claim under the Security of Payment Act that applies in the state you select, so it can serve as a payment claim — provided the Act applies to your contract and you claim and serve it correctly.

Which Security of Payment Act applies in my state?

They are not uniformly named. NSW is the Building and Construction Industry Security of Payment Act 1999, Victoria 2002, South Australia and Tasmania 2009, and the ACT the Building and Construction Industry (Security of Payment) Act 2009. Queensland is the Building Industry Fairness (Security of Payment) Act 2017 and Western Australia the Building and Construction Industry (Security of Payment) Act 2021. The Northern Territory's Construction Contracts (Security of Payments) Act 2004 works differently again — it implies payment terms where the contract is silent rather than running a payment claim and payment schedule process. This generator names the correct Act for the state you select.

How is the amount payable on a progress claim calculated?

The amount of this claim equals the value of work completed to date, less amounts already claimed in previous progress claims, plus GST, less any retention withheld. This generator does that arithmetic for you once you enter the contract value, the work completed and any retention percentage. Check the figures against your contract before you send it.

What can I do if a progress claim isn't paid?

If the respondent does not pay and does not issue a payment schedule within the time allowed under the Act, you may be able to pursue the claimed amount as a debt or apply for adjudication. A formal letter of demand is the cheapest first step and costs $29. Adjudication timeframes are short and strict, so get advice quickly rather than waiting.

Progress Claim & Payment Claim Generator — Free

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Written by Omead Musa, Consultant & Director
Updated June 2026 · General template — not legal advice

Your details (claimant)

Your business name *

Your ABN

Claiming from (respondent)

Head contractor / principal *

State / territory *

The project

Project / site *

Claim number *

The numbers

Total contract value (ex GST) *

% of contract completed to date *

Previously claimed (ex GST)

Retention (%)

Apply GST (10%)?

Payment terms (days)

From your contract. Set to 0 to leave the due date off.

Payment details (optional)

Account name

BSB

Account number

Where you want to be paid. Printed on the claim so the payer has no excuse — leave blank to fill in by hand.

Stay across it

Your email (optional)

Optional — we'll save these details so we can help you chase this later. Privacy.

Before you serve this, check four things. The claim names the right Act for your state, but only you can confirm it applies to your job:

The Act covers your contract — some residential work is excluded.
You're entitled to claim now, on a valid reference date under the contract or the Act.
You serve it the way the contract or the Act requires.
In NSW, a head contractor claiming from a principal must attach a supporting statement.

SydneyCollect is not a law firm and this is general information, not legal advice. For a high-value claim, or if the respondent has disputed previous claims, have a construction lawyer review it before serving.

Get the progress claim right and you get paid faster

A progress claim is the most common payment document in Australian construction — and the most commonly disputed. When a claim is vague, mis-calculated, or missing the Security of Payment endorsement, it gives the paying party room to delay, short-pay, or ignore it. When a claim is clear, correctly totalled and properly endorsed, it starts a statutory clock the respondent cannot simply wait out. This tool does the arithmetic — work completed, less previously claimed, plus GST, less retention — and endorses the claim under the right Act for your state.

The Acts are not uniformly named — and that matters

Security of Payment is state legislation, and the single most common mistake in a DIY payment claim is citing legislation that doesn't exist in that jurisdiction. Most states use some version of the Building and Construction Industry Security of Payment Act, but Queensland's is the Building Industry Fairness (Security of Payment) Act 2017, Western Australia's is the Building and Construction Industry (Security of Payment) Act 2021, and the Northern Territory runs a different model entirely under the Construction Contracts (Security of Payments) Act 2004 — one that implies payment terms where the contract is silent rather than operating a payment claim and payment schedule process.

This generator names the correct Act for the state you select, and drops the endorsement for the NT in favour of a note explaining why it doesn't translate.

What the tool cannot do is confirm that the Act applies to your contract, that you have a valid reference date, or that you have served the claim correctly. Those are the other three ways a claim fails, and they depend on facts only you have. The checklist above the form covers them; if the claim is high-value or the respondent has disputed previous claims, have a construction lawyer review it before serving.

If the claim still goes unpaid, you are not stuck. Our 2026 Australian Debt Collection Report shows the letter of demand is the highest-recovery, lowest-cost next step, and the construction debt recovery guide explains how a letter of demand and Security of Payment work together.

Claim sent and ignored? Escalate it. Send a $29 letter of demand → with the exact amount from your claim.

What makes a payment claim a security-of-payment claim?

Getting the formalities right. Every state and territory has security-of-payment legislation that gives contractors and subcontractors a fast statutory route to payment — but only for a claim that identifies the construction work, states the amount claimed, and is served the way the Act requires.

Get those wrong and it is an ordinary invoice with no statutory teeth. Get them right and the other side is on a clock, with consequences for missing it.

Why does the Act have a different name in every state?

Because each jurisdiction legislated separately. NSW, Victoria, Queensland, South Australia, Tasmania and the ACT run Building and Construction Industry Security of Payment Acts; Western Australia and the Northern Territory have their own Construction Contracts legislation with materially different timeframes.

This matters because the deadlines are not the same, and a claim drafted for the wrong state can be served too late to use. Confirm which Act applies to where the work was carried out before you rely on any timeframe.

Should you send a payment claim or a letter of demand?

A payment claim, if the work qualifies. The statutory route is faster and stronger than a demand, and adjudication is designed to be quicker and cheaper than court.

A letter of demand is what you send when the security-of-payment route is closed to you — the deadline has passed, the contract is out of scope, or the debt is not for construction work at all. You can build one free if that is where you have landed.

How does retention affect what you can claim?

Retention is money already earned but held back, usually a percentage withheld until practical completion and released in stages after. It is your money, not theirs, and it has its own release dates under the contract.

This generator calculates the retention withheld and the amount payable now, so the claim shows both figures rather than one net number. Showing the working makes a claim harder to dispute in part.

When is a progress claim not the right tool?

The security-of-payment deadline has passed. The statutory route closes; an ordinary debt claim is what is left.
The work is outside the Act — some residential owner-occupier work is excluded in several states.
The dispute is about defects, not payment. Adjudication decides what is payable, not whether the work was good.
The head contractor has gone into administration. Lodge with the administrator; a claim will not help.

What other free tools are here?

Letter of demand generator — build and download a formal demand as Word or PDF
ABN lookup — confirm the legal entity before you name it
Limitation checker — whether the debt is still legally recoverable
Debt and interest calculator — what you are owed once interest is added
Payment plan template — a formal instalment agreement

Progress Claim & Payment Claim Generator