What are typical progress payment percentages?

A common split in Australia is Deposit 5%, Base/Slab 10-15%, Frame 15-20%, Lock-up 20-25%, Fix-out 20%, and Completion 10-15%. Some builders front-load slightly more at base or frame. Most states cap the deposit (e.g. 5% in SA, NSW, Vic) to protect homeowners if a builder collapses.

How do progress payments work with a construction loan?

When your builder issues a progress claim, you forward it to your lender. The lender typically sends out a valuer (a small valuation fee usually applies) to confirm the stage is complete, then releases that portion of your loan directly to the builder. Expect 5-10 business days from claim to payment - factor this into your build cash flow.

Can a builder ask for payment before reaching a stage?

No. Each progress payment is tied to a defined stage being completed and inspected. If your builder asks for money outside the agreed schedule, do not pay without independent advice - this is a common warning sign of cash-flow issues that can precede builder collapses.

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By George Giannakakis · M.Arch · RLA300580 · HIA Industry Judge

Last reviewed: 1 March 2026 · How we research

Progress Payment explained in detail

Staged payments made to your builder as construction reaches defined milestones. Standard stages are: deposit, slab/base, frame, lock-up, fixing/fit-out, and completion. Your construction loan is drawn down at each stage. Payment schedules vary between builders but are regulated by state legislation.

Related Terms

Frequently Asked Questions

Common questions about progress payment

Common progress payment stages include Deposit, Base/Slab, Frame, Lock-up, Fixing, and Completion. The percentages at each stage vary by state and contract type - check your state's building regulations for the specific caps that apply. It is a good idea to understand these stages before signing your contract.

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Authoritative Sources

Verify against the binding rules in your state

BuildPilot is an independent home-build CoPilot - we publish guidance, we don't hold a building licence. Every Australian residential build must comply with the National Construction Code plus state-specific Acts and consumer-protection law. The authorities below are the primary sources of truth for the rules that actually apply to your project.

National

National Construction Code (NCC)

Australian Building Codes Board (ABCB)

The primary national set of technical building standards that every Australian build must comply with. Volume 2 covers Class 1 & 10 buildings (most homes).

Australian Standards (AS / AS-NZS)

Standards Australia

Specific material, product and method standards (e.g. AS 3700 masonry, AS 1684 timber framing) referenced by the NCC.

Housing Industry Association (HIA)

HIA

National peak body for residential builders. Publishes the most widely used home-building contracts and consumer guidance.

Master Builders Australia (MBA)

Master Builders Australia

National peak body for general builders. Publishes commercial and residential contracts and industry guidance.

By state & territory

South AustraliaSA

Consumer and Business Services (CBS)

VictoriaVIC

Victorian Building Authority (VBA)

New South WalesNSW

NSW Building Commission (within Department of Customer Service)

QueenslandQLD

Queensland Building and Construction Commission (QBCC)

Western AustraliaWA

Building and Energy (within Dept of Energy, Mines, Industry Regulation and Safety)

TasmaniaTAS

Consumer, Building and Occupational Services (CBOS)

Australian Capital TerritoryACT

Access Canberra (Construction Occupations Registrar)

Northern TerritoryNT

Building Practitioners Board / NT Worksafe (Building)

Links above open the public website of each authority. BuildPilot is not affiliated with these bodies and does not act on their behalf. Information on this page is general - check the current edition of the NCC and the relevant state Act for binding requirements.