Set clear progress claim terms for your construction contract

Payment problems in construction often come from unclear trigger points rather than a complete lack of agreement. If the contract does not say when a claim can be made, what supporting detail is required, or how variations affect the amount payable, arguments can start early in the job. Clear progress claim terms help set the payment rhythm for the project. They can also clarify whether claims are tied to dates, milestones, percentages of completion, signed-off work, or another method that matches how the project is actually being delivered.

These terms commonly deal with the claim schedule, payment milestones, what information must accompany a claim, how the claimed amount is calculated, and what happens if work changes during the project. They may also address retention-style arrangements if relevant, supporting records, site responsibilities connected to payment triggers, and the process for raising disagreements. The right drafting depends on whether you are a builder, subcontractor or principal, and whether the contract uses staged pricing, measured work, lump sum pricing or another commercial structure.

Useful information includes the draft contract, quote or scope of works, the payment model being used, the project stages, and how variations are expected to be approved and priced. It also helps to know whether claims will be linked to calendar dates, practical milestones, third-party sign-off, or completion percentages. If there are site-specific requirements that affect when work is treated as complete, those should be flagged as well. The more clearly the commercial process is described, the easier it is to draft terms that match the reality of the job.

Generic templates can leave gaps where the commercial model, customer journey or risk profile is more specific than the precedent assumes. However, it often leaves gaps where the project has unusual milestones, fast-moving variations, mixed labour and materials pricing, or site conditions that affect completion. Generic wording may also sit awkwardly with the rest of the contract if the scope, timing and payment mechanics were quoted in a different way. Tailored drafting is often worthwhile where payment timing is commercially sensitive or where multiple subcontractors and approval steps are involved, because small wording issues can have a large effect once claims start being submitted.

Once engaged, you send through the contract or draft terms you want us to work from, along with any quote, scope or payment schedule that explains the commercial deal. We review the material, clarify the key payment and variation mechanics, and then draft or mark up the progress claim terms. After you review the wording, we can make amendments to reflect agreed changes. Timing depends on the state of the draft and the complexity of the project, especially where the payment structure is tied closely to technical milestones or layered approvals.

Submit an enquiry on this page or click 'Get started'. One of our legal consultants will review it within 1 business day and get in touch to understand what you need.

Your consultant will then email you a fixed-fee quote setting out the cost, scope and timing. If you're happy with it, you can accept the quote and sign our engagement letter online.

Once you've accepted, one of our Australian-qualified lawyers will work with you to complete your project. They'll contact you by email or phone if they need anything.

Sprintlaw works on fixed-fee pricing wherever possible, so you can review the scope and cost before you decide whether to proceed. For the Progress Claim Terms service, pricing starts from $900.00.

After you enquire, a legal consultant will confirm what is included, the expected timing and whether any extra work is needed before you engage us.

We work online, so we can help wherever you are in New Zealand. Our team works remotely, mainly from Australia.

Your work is done by our Australian-qualified lawyers, who hold Australian practising certificates and specialise in business law. None of them are New Zealand lawyers or hold a New Zealand practising certificate.

Sprintlaw NZ Limited is a legal consultancy, not a law firm, and is not regulated by the New Zealand Law Society. We don't act in court or tribunal matters, conveyancing (including leases and business sales) or other reserved areas of work. Communications with Sprintlaw are unlikely to be protected by legal professional privilege. We still keep everything confidential under our engagement letter.