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Progress claims are a big headache for you and

EVERYONE in construction. Here are five ways to get

paid faster when working in construction.

Well-crafted contracts (and subcontracts) will clearly highlight the agreed

deadlines for submission and approval of claims. Be sure you know these

dates and hit them, same time every time. Informal arrangements will

inevitably lead to misunderstandings and avoidable aggro.

Whilst most pro-forma contracts (and subcontracts) set out the broad

content of information to be supplied with each claim, many do not

specify the form of the claim. Before work is commenced, agree on a

precise format. If you are the contract writer, provide a template at the

tender stage and confirm the requirement for it to be used before

awarding the contract. If you are the contract recipient be sure you

understand precisely what is required and that your staff and systems can

cope efficiently and effectively.

Revisit the awarded tender price and agree on a way to break down the

cost that works for both contract parties. Assessors will need sufficient

information to be able to assess a claim effectively. The tender

submission may have only required one figure, which will make it

impossible to make an effective judgement. A 20-page, full Bill of

Quantities breakdown may similarly be of little use as the level of

information may be too cumbersome to measure efficiently.

Always claim and approve on a project-to-date basis and never treat

variations separately. Many contractors and subcontractors fall into the

trap of issuing and accepting periodic tax invoices (only) in lieu of

correctly presented contract reconciliations. As a consequence of this

short-cut they inevitably suffer problems related to variation claims and

retention, much of which could have been avoided.

Building is a process of team work. It is in everyone’s interest that

everyone else gets paid on a timely basis for the work that they have done

(properly). The responsibility for payment administration should be

shared equitably; each party has an obligation to

provide sufficient information in respect of a claim and an equal and

opposite right to receive sufficient information in respect of that claim.

These top tips are brought to you by Progressclaim.com. Progressclaim.com is a unique platform specific to the Australian

construction industry that enables contract parties to administer payment

claims collaboratively online. It’s cloud based, can be accessed anywhere

and is super simple to use.

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