What is a Progress Payment?

A progress payment is a staged payment made during a construction project to cover work that has been completed up to that point. Instead of paying the full contract price at once, the client pays the builder or contractor in instalments—often tied to milestones like reaching slab, framing, lock-up, or completion of specific trades. Progress payments help manage cash flow for both parties: contractors receive funds to continue work, and clients only pay for what has been done. These payments must align with the contract, the builder’s claims, and—especially in NSW—the requirements of the Security of Payment Act (SOPA), which sets strict timelines and rules around claiming and disputing payments.

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