Payment Claim Template

What is a Payment Claim?

A Payment Claim or sometimes a 'Progress Claim', is a formal request for payment, mostly issued by general contractors or subcontractors for work completed, based on the terms outlined in their contract.

The Payment Claim, or sometimes called Progress Payment, is used to facilitate regular payments throughout the duration of the project, ensuring that contractors receive compensation in alignment with the progress they have achieved.

Payment Claim are essential for managing cash flow and are typically submitted at regular intervals, as agreed in the contract.

What Construction Contracts use Payment Claim?

Nearly all construction contracts, whether it be from a General Contractor submitting a Payment Claim to a Project Owner / Client-Side Project Manager, or Subcontractor submitting a Payment Claim to a General Contractor, use Payment Claim methodologies and 'Progress' Claim methodologies.

You can read about standard forms of contracts in Australia here, and standard forms of contracts in North America here. It's important to read and understand your specific contract and how this Payment Claim template can help.

What is a Payment Claim Template?

Since Payment Claims are regular and repetative throughout the life of a construction project, standardizing the format through a template helps maintain consistency and ensures all key information is captured accurately.

A standardized Payment Claim Template becomes a crucial document for requesting payments and documenting the work completed during a specific period and ensure compliance, such as with the Security of Payments Act in Australia.

How to Write a Payment Claim

Writing an effective Payment Claim involves accurate, detailed, and clear documentation. We've written a detailed article on how you can submit a Progress / Payment Claim under the Security of Payments Act, but here are the basic steps to follow:

1. Describe the Completed Work: List all the tasks that have been completed since the last claim or the start of the project. Include detailed descriptions of the work, referencing the original contract or project plans.
2. Quantify the Work: Clearly specify the amount of work completed in measurable terms, and align this with the schedule of values in the contract. This might include quantities, hours, or milestones reached.
3. Attach Supporting Documents: Include any necessary documentation such as photographs, timesheets, receipts, and other records that verify the work completed and materials used.
4. Calculate the Payment Amount: Based on the contract terms, calculate the amount due for the reported period. This should include adjustments for retained amounts or previous payments.
5. Certification and Approval: Include sections for the necessary approvals from supervisors, project managers, or client representatives, confirming that the work has been satisfactorily completed according to the contract.
6. Submission Instructions: Outline how and when the claim should be submitted, and to whom, ensuring compliance with contract stipulations.

What is a Payment Certificate or Schedule?

A Payment Claim, depending on the contract, may be responded to with a Payment Certificate / Schedule.

How to Use This Payment Claim Template

This Payment Claim Template is designed to streamline the payment request process during a construction project. Here's how to effectively use this template:

• Download and Customize: Download the template and modify it to fit the specific needs of your project. This might include adding branding elements like your logos.
• Fill in the Details / Schedule of Values: Populate the template with comprehensive details about the work completed, using the sections provided on both tabs.
• Review and Approve: Have all relevant parties review the completed Progress Claim. This review process helps prevent misunderstandings and ensures agreement on the work completed and payment due.
• Submit the Progress Claim: Once reviewed and approved, submit the Progress Claim according to the outlined process in the contract, ensuring all submission deadlines are met.
• Keep Records: Maintain copies of each submitted Progress Claim as part of the project’s official documentation for audits, disputes, or future reference.
• Payment Certificate: If applicable, seek a Payment Certificate / Schedule in response to your Payment Claim.

Payment Template Highlights:

• Detailed Format: Ensures all aspects of the work and payment request are thoroughly documented.
• Ready-to-Use: Pre-formatted for immediate use by subcontractors or general contractors.
• Customizable: Flexible design to meet specific project or contractual requirements.
• Professional Layout: Suitable for formal settings and legal purposes.
• Compliant: Works with the Security of Payments Act in Australia.

What’s Included:

• 1 x Microsoft Excel Progress / Payment Claim Template: Ready for download and use for Progress / Payment Claims.