Progress Payments

Monthly Progress Payments

Converting ABIC milestone payments to monthly progress claims, practical payment structures for residential building contracts across Australia

The standard ABIC SW 2018 H contract uses a milestone payment structure - the builder claims payment when defined stages of work are reached. For many residential projects, this doesn’t reflect how construction actually progresses. Monthly progress payments provide a more practical alternative.

Monthly progress payments allow the builder to claim for work completed in each calendar month, assessed and certified by the architect as contract administrator. This aligns cash flow with actual progress, reduces the financing burden on builders, and gives owners regular visibility into how their money is being spent, whether the project is in Sydney, Melbourne, Brisbane, Perth, Adelaide, Hobart, Canberra, or Darwin.

Converting ABIC contracts to monthly progress payments requires carefully drafted special conditions. The conditions must establish the claim procedure, the certification timeline, the valuation methodology, and the interaction with security of payment legislation in the relevant state. Poorly drafted conditions create payment disputes, precisely what the amendment is designed to prevent.

Christopher Larcos has drafted monthly progress payment special conditions for ABIC contracts across New South Wales, Victoria, Queensland, Western Australia, South Australia, and Tasmania. His pre-drafted conditions for NSW are available for immediate licence in the shop. For other jurisdictions and bespoke requirements, he drafts custom conditions on instruction.

Buy Progress Payment Conditions (NSW)Request Bespoke Drafting

Progress Payment Services

Specialist drafting and advisory for monthly progress payment structures in ABIC residential building contracts across all Australian states and territories.

Monthly Progress Payment Conversion

Special conditions converting the ABIC SW 2018 H milestone payment structure to monthly progress payments, aligning cash flow with actual work completed rather than pre-defined stages. Available for projects in NSW, Victoria, Queensland, Western Australia, and all other Australian jurisdictions.

Payment Certification Framework

Structured payment certification procedures ensuring the architect (as contract administrator) can properly assess and certify monthly progress claims, with clear timelines, documentation requirements, and interaction with security of payment legislation.

Cash Flow & Retention Management

Progress payment structures that manage cash flow risk for both parties, including retention mechanisms, payment milestones for key deliverables, and practical completion payment provisions suited to residential projects in Sydney, Melbourne, Brisbane, Perth, or Adelaide.

Legislative Compliance

Ensuring progress payment provisions satisfy the payment requirements of the Home Building Act 1989 (NSW), Domestic Building Contracts Act 1995 (Vic), Home Building Contracts Act 1991 (WA), and equivalent legislation in Queensland, South Australia, Tasmania, ACT, and NT.

Milestone Payments vs Monthly Progress Payments

Under the standard ABIC SW 2018 H milestone structure, the builder claims when work reaches a defined stage, typically base, frame, lock-up, fixing, and completion. While simple in concept, milestones create problems:

  • Cash flow gaps when stages take longer than expected: the builder finances the gap
  • Disputes about whether a milestone has been 'reached' when work is substantially but not entirely complete
  • Front-loading risk, where early milestones represent disproportionate value to protect cash flow
  • Incompatibility with security of payment legislation, which contemplates regular payment claims
  • Difficulty accommodating variations that don't fit neatly within a stage-based structure

Monthly progress payments eliminate these issues by paying for work as it’s completed. The builder claims monthly, the architect certifies, and the owner pays. This is standard practice on commercial projects in Sydney, Melbourne, Brisbane, Perth, and Adelaide, and increasingly expected on higher-value residential projects across Australia.

Who Benefits from Monthly Progress Payments?

Builders wanting regular cash flow on ABIC residential projects in NSW, VIC, QLD, WA, or SA

Owners seeking monthly visibility into construction progress and expenditure

Architects administering ABIC contracts who prefer structured monthly certification

Projects with extended timelines where milestone gaps create financing pressure

Higher-value residential builds where commercial-style payment structures are appropriate

Parties in any Australian jurisdiction requiring progress payment special conditions

Need Progress Payment Conditions?

Pre-drafted monthly progress payment special conditions for NSW are available for immediate licence. For other jurisdictions or bespoke requirements, get in touch to discuss your project.

Browse Special Conditions ShopContact Christopher Larcos

Specialist Credentials

  • Fellow of the Australian Institute of Architects (FRAIA)
  • Dual-qualified solicitor and registered architect
  • 40+ years in the construction industry
  • Adjudicator across five Australian jurisdictions
  • Former NSW Editor, Building & Construction Law Journal