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

If you’re a tradie or subcontractor waiting on money from a head contractor or builder, you’ve probably heard the terms “progress claim” and “final claim” thrown around. They’re not the same thing—and the difference matters when it comes to protecting your right to get paid under the Security of Payment Act.

The good news is that both types of claims have legal teeth in Australia. The bad news is that most tradies don’t use them, which means they’re leaving money on the table. This guide breaks down what each claim type is, when to use it, and how the law backs you up in your state.

What Is a Progress Claim?

A progress claim is what it sounds like: a claim for payment for work you’ve completed during a project, before the job is finished. You’re saying, “I’ve done this much work, here’s what I’m owed.”

Progress claims are the bread and butter of construction cash flow. As a subcontractor, you might lodge a progress claim every week, fortnight, or month depending on the contract terms and the size of the job. You’re basically saying: I’ve earned this, pay me now, don’t wait until the whole project is done.

Under most state Security of Payment Acts—including the NSW SOP Act 1999, QLD Building Industry Fairness (BIF) Act 2017, and VIC SOP Act 2002—you have the right to lodge a progress claim if your contract allows it. The head contractor or principal contractor then has a set timeframe to respond with either payment or a payment schedule.

For example, in NSW, a head contractor has 10 business days to issue a payment schedule if they’re not paying in full. In Queensland, it’s similar. Miss that deadline, and you’ve got grounds for fast-track adjudication—a quick legal process to force the issue.

What Is a Final Claim?

A final claim is lodged when your work is complete. It’s the last claim for the job, covering any remaining amounts you’re owed. It’s the closure—the moment you’re saying, “I’m done, here’s the full picture, pay me everything outstanding.”

Final claims often include:

• The last tranche of work completed
• Any variations or extra work agreed upon
• Retention amounts (if they’re due back to you)
• A final accounting of everything owed

Legally, a final claim is treated the same way as a progress claim under the SOP Act in most Australian states. The head contractor still has to respond within the statutory timeframe. It’s not a free pass to ignore you—the law protects you just as much on the final claim as on claim number three of the project.

The practical difference is psychological and financial. A final claim often feels more urgent because you’re not expecting more work on that job. You want closure. And from a cash flow perspective, you’re waiting for the last of your money to land.

Key Legal Differences (State by State)

The Security of Payment Act operates slightly differently depending on where you are. Here’s the practical breakdown:

New South Wales (SOP Act 1999): You can lodge a progress or final claim. The respondent (usually the head contractor) has 10 business days to issue a payment schedule. If they don’t, or if you dispute their schedule, you can apply for fast-track adjudication within tight timeframes.

Queensland (BIF Act 2017): Progress and final claims follow similar rules. The respondent has 10 business days to respond. Queensland’s legislation also sets out clearer rules about what counts as a valid claim, so make sure your claim includes all required details.

Victoria (SOP Act 2002): The respondent has 10 business days to respond to a progress claim with a payment schedule. Final claims are treated the same way. Victoria also has specific rules about when a claim is “served”—so timing matters.

Other states (WA, SA, ACT, TAS): Each has its own Act, but the core principle is the same: you have the right to lodge a claim, the other party must respond within a set timeframe, and if they don’t or you disagree, you can pursue adjudication.

The key takeaway: both progress and final claims are legally protected. The SOP Act doesn’t favour one over the other. What matters is that you lodge them correctly, on time, and with all the required information.

When Should You Use Each Type?

Here’s the practical playbook:

1. Use progress claims regularly during the job. Don’t wait until the end. Lodge a claim every time you’ve completed a defined stage, finished a section, or reached a milestone. This keeps your cash flow moving and puts the head contractor on notice that you’re tracking what you’re owed.
2. Use a final claim only when the work is genuinely complete. Don’t lodge a final claim, then come back with more work. If variations or extra work happen, either include them in the final claim or lodge a fresh progress claim before finalising.
3. Keep records of what you’ve claimed. If you lodge a progress claim for $50,000 of work, and later lodge a final claim, make sure the final claim doesn’t double-count the same work. Head contractors will use that against you.
4. Check your contract. Some contracts specify when and how you can claim. Stick to the contract timeline, but remember: the SOP Act overrides unfair contract terms in most states.

If you’re unsure whether you’ve got a valid claim or how to structure it, PayClaim makes it straightforward to file a payment claim that meets your state’s legal requirements. Flat fee, no surprises.

The Bottom Line

Progress claims keep money flowing during a job. Final claims close it out. Legally, they’re both protected by the Security of Payment Act in your state. Both give you the right to a response within a set timeframe, and both are your gateway to fast-track adjudication if the head contractor won’t play ball.

The real power isn’t in choosing one over the other—it’s in using them both, consistently, and making sure every claim is documented, on time, and compliant with the law.

Don’t leave money on the table. Lodge your claims, meet the requirements, and hold the head contractor to account. That’s what the SOP Act is there for.