Secure Your Cash Flow: Importance of Submitting Accurate Progress Claims

Are you tired of chasing payments when you should be focused on your craft? Progress claims are your lifeline to a healthy cash flow, but if they’re full of errors, you’re not just delaying your income, you could be losing out on legal protections designed for your business.

In the construction industry, progress claims are crucial for subcontractors, acting as formal requests for payment for work completed within a specified timeframe. Ensuring these payment claims are accurate and valid is essential for maintaining cash flow and securing the protections provided by legislation such as the various state-based Security of Payments Act (SOP Acts) in Australia or the Construction Contracts Act 2002 in New Zealand. This legislation guarantees that anyone engaged in construction work or who has supplied materials or services under a construction contract is paid. Accurate progress claims also support project transparency, assisting subcontractors and their clients in monitoring project timelines and promptly addressing any discrepancies or disputes.

Why Accuracy in Progress Claims Matters

Progress claims must be detailed and precise, accurately reflecting the work completed and materials provided. They form the basis for payment schedules and are crucial for maintaining the financial health of subcontractors. Errors or omissions in these claims can lead to delayed payments, disputes, or even the loss of legal protections under the SOP Act, jeopardising the subcontractor’s cash flow and project viability.

Claire Jenkin, Product Manager from Payapps, highlighted in a recent customer training session the critical elements of a successful claim: “These requirements vary from state to state, but generally include the amount expected to be paid for that month, an accurate and detailed work breakdown, and crucial claim details like the period and reference date of the claim.” Ensuring these elements are accurately reported is fundamental for the claim’s acceptance and processing.

Leveraging Technology for Compliance and Efficiency

Using a platform like Payapps can significantly streamline the creation and management of progress claims. Payapps assists subcontractors in adhering to the necessary legislative requirements, protecting them from submitting invalid claims. Claire Jenkins highlighted that “Payapps provides a standard claim template and payment schedule template, reducing the administrative burden on subcontractors. The platform ensures that all necessary details, such as the organisation’s legal entity information and contract work breakdown versus construction variations, are correctly captured and consistently applied to all relevant documents.”


The Benefits of Using Payapps for Progress Claims

Payapps enhances progress transparency by allowing the subcontractor and the client to view the same information in real time. This shared view minimises the risk of misunderstandings and disputes over the progress, as all parties have access to the same data regarding work completed and the corresponding claims. Additionally, Payapps includes automatic references to the SOP Act in claims, safeguarding subcontractors from inadvertently invalidating their claims by omitting this crucial information.

Furthermore, Payapps centralises all claim-related documentation, making it easy for subcontractors to manage and retrieve their claim histories and supporting documents, such as delivery dockets or receipts for materials. This centralised data repository ensures that all necessary information is readily available, should it be needed for reference or in case of a dispute.


For subcontractors in the construction industry, the accuracy of progress claims is not just about ensuring payment but also about maintaining legal protections and project transparency. Platforms like Payapps play a crucial role in supporting subcontractors through technology that simplifies the claims process, ensures compliance with legislation, and enhances overall project management. By leveraging such tools, subcontractors can focus more on their core work and be secure in the knowledge that their financial and legal interests are protected.

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