Progress Claims vs Final Claims Under the SOP Act: What Tradies Need to Know

If you’re a tradie or subcontractor waiting on money from a builder or head contractor, you’ve probably heard the term “Security of Payment Act claim” thrown around. But not all claims are the same. Progress claims and final claims operate under different rules, have different deadlines, and serve different purposes in construction. Getting this right matters, because it affects when you can legally demand payment and what your next steps are if the money doesn’t arrive.

Let’s break down the difference and why it’s worth your time to understand.

What’s a Progress Claim?

A progress claim is exactly what it sounds like: a claim for work you’ve completed and materials you’ve supplied during the project, not at the end. You lodge it while the job is still on site, still in progress.

Under the Security of Payment legislation in each state—NSW SOP Act 1999, QLD Building Industry Fairness (BIF) Act 2017, VIC SOP Act 2002, and so on—you have the right to serve a progress claim on the person who owes you money (usually your direct contractor) for work done. This is a core protection of SOP law: you don’t have to wait until the whole project wraps up to get paid for what you’ve already delivered.

The head contractor or builder then has a set timeframe to respond with a payment schedule. In NSW, that’s 10 business days. In Queensland, it’s slightly different. The point is, SOP legislation gives you a defined process and tight deadlines for getting an answer about whether they’ll pay, how much, and by when.

Progress claims keep cash flowing during long jobs. On a 12-month project, you’re not sitting around waiting until month 12 to see a cent. You’re claiming every month (or every fortnight, depending on your contract).

What’s a Final Claim?

A final claim is lodged after practical completion or the end of your work on the project. It’s the last payment claim you’ll make for that job. It should capture any remaining work, any variations, and any final adjustments.

Here’s where it gets important: the rules for final claims can be slightly different depending on your state’s legislation. In some jurisdictions, there are specific timeframes within which you must lodge a final claim after completion—miss that window, and you might lose your right to use the SOP process for that claim.

A final claim is still protected by SOP law. The head contractor still has to respond within the statutory timeframe, and you still have the right to pursue fast-track adjudication if they don’t pay or issue a valid payment schedule. But the timing is critical. You need to know your state’s rules about when a final claim must be served.

Key Differences That Actually Matter

Here are the practical distinctions that affect how you handle each type of claim:

1. Timing: Progress claims happen during the job. Final claims happen after you’ve finished your work.
2. Frequency: You can lodge multiple progress claims. You lodge one final claim per project.
3. Deadlines for lodging: Progress claims can usually be served anytime. Final claims often have a “cut-off” deadline—typically 12 months after you finish, depending on your state. Miss it, and you lose SOP protection for that claim.
4. What they cover: Progress claims cover work to date. Final claims cover remaining work, defects rectification costs, variations, and anything else outstanding.

The timeframe issue is the big one. If you don’t lodge your final claim within the required period, you lose the ability to use adjudication to force a quick decision. You’ll have to pursue other remedies, and that’s slower and more expensive.

Why This Matters for Your Cash Flow

Understanding the difference between progress and final claims is about protecting yourself. Progress claims keep money moving while you’re still on the tools. Final claims wrap up the account once the job is done. Both are powerful tools under SOP law—but only if you use them correctly and within the deadlines your state sets.

If a head contractor refuses to pay a progress claim, you can pursue fast-track adjudication under the Act. If they refuse to pay a final claim, the same process applies—but only if you’ve lodged it within the statutory window. Once that window closes, you’re outside the SOP process.

This is why many tradies and small construction businesses use a service like PayClaim to file a payment claim that ticks all the legal boxes. A properly drafted and served claim ensures you’re protected under the Act, you’re meeting deadlines, and you’re positioned to escalate to adjudication if the money doesn’t appear.

Get the structure right from the start—progress claims for work in progress, final claims when you’re done—and you’ll know exactly where you stand and what your options are if payment is late or withheld.