ABIC SW 2018 H · New South Wales
Monthly Progress Payments vs Stage Payments
Why so many NSW residential builders and architects move the ABIC SW 2018 H contract off its stage payment schedule and onto monthly progress claims.
The problem with off-the-shelf stage payments
The standard ABIC SW 2018 H contract is built around a stage payment schedule: the builder claims a pre-set amount when the job reaches a defined stage such as base, frame, lock-up, fixing and completion. It is simple to write down, but it rarely matches the way a residential job is actually built and financed.
Work does not stop and start neatly at each stage. Trades overlap, materials are bought and stored ahead of time, and a build can sit "almost at lock-up" for weeks while the builder carries the cost of labour and materials with no right to claim. On the other side, an owner can be asked to release a large stage payment for work that is only partly done. Both positions breed disputes.
- Cash-flow gaps, where the builder finances wages and suppliers while waiting for the next stage to be "reached".
- Arguments over whether a stage is complete when work is substantial but not quite finished.
- Front-loading pressure, where early stages are priced high to protect the builder’s cash flow.
- Poor fit with security of payment legislation, which is built around regular payment claims.
- Variations that do not fall cleanly within a stage are awkward to value and claim.
How the monthly progress payment Special Conditions fix it
These Special Conditions replace the ABIC SW 2018 H stage payment schedule with a monthly progress payment regime, the approach most widely used across the NSW residential sector. Each month the builder claims for the value of work actually completed since the last claim, the architect assesses and certifies it, and the owner pays. Cash flow follows progress instead of arbitrary stages.
The change is more than a one-line amendment: the whole payment cycle (claim dates, the assessment window, and certification) is restructured to work as a coherent monthly system, and the architect is obliged to certify each progress claim within ten business days so payment timing stays predictable for everyone.
Standard ABIC form vs with Special Conditions
| Aspect | Standard ABIC form | With Special Conditions |
|---|---|---|
| When the builder can claim | Only when a defined stage (base, frame, lock-up, etc.) is reached. | Every month, for the value of work completed that month. |
| Cash flow | Builder finances the gap between stages. | Payment tracks progress, easing the financing burden. |
| Certification | Tied to disputable stage "completion". | Architect certifies each monthly claim within ten business days. |
| Owner visibility | Infrequent, lump-sum stage releases. | A regular monthly picture of progress and spend. |
| Security of payment fit | Awkward against a regime built on regular claims. | Aligns with the monthly claim rhythm the legislation expects. |
Who this protects
Builders
Claim monthly for work done rather than financing the gap to the next stage, giving steadier cash flow to pay subcontractors and suppliers.
Owners & owner-builders
A regular, itemised monthly picture of what has been done and what it costs, instead of large stage releases for partly finished work.
Architects
A structured monthly certification cycle with a defined ten-business-day window, rather than adjudicating whether a stage has been "reached".
Common questions
What is the difference between stage payments and monthly progress payments?
Stage payments are claimed when the job reaches a defined stage such as base, frame or lock-up. Monthly progress payments are claimed each month for the value of work actually completed that month, assessed and certified by the architect. Progress payments track real progress rather than fixed milestones.
Does the standard ABIC SW 2018 H contract use stage payments or progress payments?
In its standard form the ABIC SW 2018 H NSW contract uses a stage payment schedule. These Special Conditions replace that schedule with a monthly progress payment regime while keeping the rest of the ABIC framework intact.
How quickly must a monthly progress claim be certified?
The Special Conditions oblige the architect, as contract administrator, to certify each monthly progress claim within ten business days, so payment timing is predictable for both the builder and the owner.
Are monthly progress payments better for the builder or the owner?
Both. The builder gets cash flow that tracks the work rather than financing gaps between stages; the owner gets regular, itemised visibility of progress and spend instead of large lump-sum stage releases for partly complete work.
The Special Conditions that do this
Licensed, ready-to-use Special Conditions drafted by Christopher Larcos, a solicitor and architect with more than 40 years in the construction industry.
ABIC SW 2018 H NSW, Monthly Payment Structures & Targeted Amendments
ABIC SW 2018 H NSW - Monthly Progress Payments Special Conditions
$170.00AUD
- Locks in monthly billing instead of stage payments.
- Obliges the architect to certify each progress claim within ten business days.