Contracts
What is a progress payment in a building contract?
Short answer
A progress payment is a scheduled instalment paid to your builder as each construction milestone is completed. Standard South Australian residential building contracts use five stages: deposit (5%), base (15-20%), frame (20-25%), lock-up (20-25%), fixing (20%), and practical completion (5-10%). Each stage must be independently inspected before payment is released.
The longer answer
Progress payments protect both parties: the builder gets paid as work is done, and you only pay for work actually completed. Never pay ahead of the schedule.
Practical steps: (1) inspect the work yourself before signing off; (2) don't rely on the builder-appointed surveyor - consider an independent inspector; (3) release payment via your bank only after verifying the stage claim.
If the builder is asking for progress payments beyond the schedule or for extras not documented as variations, stop and get contract review advice before paying.
Building contracts can be full of hidden traps and confusing jargon. In this episode, we break down the five clauses that trip up most homeowners - covering prime costs, provisional sums, payment schedules, special conditions, build time frames and utility connections.
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