Guide
Progress claims and retention for subcontractors
On a long job you get paid as you go, by claiming for the work done each period. The builder usually holds some back as retention. Both have rules worth knowing, because the deadlines are short and the money is yours.
Updated · General information, not legal advice. Check your contract, the official source and, if it matters, a lawyer.
Progress claims in a sentence
A progress claim asks the builder or client to pay for the work done so far, usually monthly on a date set in the contract. Each claim shows the contract value, what is done to date, what was claimed before, and this claim, less any retention, plus GST.
NSW Government guidance says everyone who carries out construction work or supplies related goods and services under a construction contract has the right to progress payments. Every Australian state and territory has its own security of payment law, and they differ in the detail.
The basic process
- You serve a payment claim, on or after the date your contract allows, setting out the work and the amount.
- The builder replies with a payment schedule if they intend to pay less, saying how much they will pay and why.
- The builder pays by the due date, which comes from the contract or, if the contract is silent, from the Act.
- If they do not respond in time, or do not pay, the Act may let you recover the claimed amount or apply for adjudication: a fast, low-cost decision by an independent adjudicator.
The time limits are where people get caught. Two examples from the regulators: in Victoria, a respondent who does not provide a payment schedule within 10 business days of receiving the claim, or sooner if the contract says so, becomes liable for the full amount claimed. In Queensland, the QBCC says a payment schedule is due within 15 business days of the claim, or earlier if the contract sets a shorter time. Other states have their own numbers. Check the Act in your state before relying on any of them.
What a good claim looks like
Progress claim checklist
- Claim number and the period it covers
- Each stage or item with its value, percent or amount complete, and previous claims
- Approved variations on their own lines
- This claim, retention held, net amount, GST and the total
- The statement your state's Act expects, where it applies
- Your ABN and the tax invoice details, if the claim is your tax invoice
- Supporting evidence: photos, dockets, test results
Claim on the date your contract sets, every period, even if the amount is small. A missed claim date can push your money back a month.
Retention: what it is
Retention is money the builder holds back from each claim as security for your work, usually a percentage of each claim up to a cap, both set in your contract. It is still your money. Under most contracts part of it is released at practical completion and the rest at the end of the defects liability period.
The trouble is that retention is easy to forget. The defects period can run a year or more, by which time you are three jobs on. Diary the dates the day the work reaches practical completion.
Retention rules worth knowing
Some states require head contractors to hold retention in a trust account on bigger projects. In New South Wales, the NSW Government says head contractors must hold retention money in trust for projects valued over $20 million. Victoria and Western Australia have their own retention rules, and they have changed recently, so check your regulator for the current position.
When it is time, claim it back in writing like any other claim, with the dates from your contract and the practical completion certificate.
Progress claims and retention in the app
In Crewzy, projects on the Connected and Unlimited plans carry stages, a budget and a contract value. From the Claims tab you claim each period stage by stage; each claim takes off what you claimed before and the retention held, at your contract's rate and cap, and prints the security of payment statement for the project's state. When you are registered for GST the claim is your tax invoice, numbered in your invoice series. Home lists claims coming due a week ahead. The Retention tab keeps a ledger of what is held, and reminds you before it can be claimed back. The wording in the app has not been reviewed by a lawyer; check your contract. See Progress claims and Retention held and released.
Common questions
What happens if the builder does not respond to my payment claim?
Under most state security of payment Acts, a respondent who does not provide a payment schedule in time may become liable for the full amount claimed, and you may be able to apply for adjudication. The deadlines differ by state, so check your Act.
When do I get retention back?
Usually as your contract sets out: often part at practical completion and the rest at the end of the defects liability period. Claim it in writing when each date arrives.
Sources
Official pages this guide relies on, read on 23 October 2026. Rules change; check them before you rely on anything here.