What is a Progress Claim Construction Report?

In construction, cash flow is king. One of the keys to this is the progress claim process, in which contractors and builders get paid for the work done at different stages. This keeps the project moving. Progress claims are important because they provide transparency, time, resource management, and fairness in construction projects. Let’s get into it and look at progress claim construction reports.

How do Progress Claims relate to a Construction Project?

A payment claim, also known as a progress claim in construction, is an invoice that a builder submits to their client for payment for the work done up to a particular stage. Progress claims in construction are essential for cash flow, project sustainability, and getting paid for completed work. The payment schedule is based on the contract.

The difference between a standard home loan and a construction loan is the progressive drawdown. Instead of getting the full loan upfront, the bank releases funds in stages as the build progresses. The builders will then submit progress claims after completing the defined stages of work to get the payments.

Recording the work done is critical to making accurate payment claims and ensuring the payment request matches the original contract sum.

The Progress Claim Process

Here’s how it works:

1. Builder does the work.
2. Builder submits claim with supporting documents to the bank/lender.
3. Bank gets a quantity surveyor to assess the claim.
4. Quantity surveyor visits the site, reviews documents, and assesses progress.
5. Quantity surveyor prepares progress report.
6. Bank reviews the report and pays if approved. The report proves what’s owed for the work done.
7. Builder gets paid and keeps building.

Managing progress claims, tracking progress payments, and ensuring contract compliance are complicated and challenging. Using technology—specifically digital platforms—can simplify the process, improve accuracy, comply with legislation, and enhance financial management.

Independent verification at each stage by the quantity surveyor is the key.

Who Uses Progress Claim Reports?

Several people use progress claim reports:

Stakeholder	Benefits
Homeowners	Ensures payments align with work completed and stay on schedule. Prevents unfair release of funds.
Project Managers	Tracks overall budget and timeline against actual costs and progress. Provides objective project status record.
Builders	Verifies claims match actual progress before releasing loan funds. Reduces risk and liability.
Banks/Lenders	Verifies claims match actual progress before releasing loan funds. Reduces risk and liability.

Progress claims often involve money owed, making them more complicated than regular invoices and requiring detailed documentation to prove the legitimacy of the payment request.

Having an independent quantity surveyor prepare the report is crucial for verification.

Progress claims serve the construction industry by providing transparency and fairness. These reports provide detailed documentation and verification for construction projects to manage and make progress payments.

What Does Duo QS Include in Progress Claim Reports?

Here’s what we include in our progress claim reports:

• Project Contract Statement: We compare the claim to the original contract sum, note approved variations, and show the total work done and remaining budget for proper cost control of the entire project.
• Drawdown Claim Tracking: Our team will track the amount paid to date and remaining bank funds to be released, as well as link the payments to work progress.
• Trade Summary Analysis: We break down the total costs to date and remaining costs by trade for detailed cost analysis.
• Cash Flow Forecasting: Our construction estimators forecast future cash requirements to complete the project on time and budget so you can plan ahead.
• On-Site Assessments with Photos: Includes photos of completed work and a detailed on-site assessment by registered quantity surveyors.

Using the right progress claim form is critical to simplify creating and submitting progress claims. It ensures all necessary documents and information are included for clarity and compliance.

The on-site assessments cover everything: all building works, photographic evidence, comparison against project plans, quality and contract adherence checks, defect identification, percentage completion for each component, and verification of claimed material costs against invoices.

Benefits of Getting a Progress Claim Report

Duo QS reports meet industry standards for detail and accuracy. Key components of our process includes:

• Payments align with building progress; no funds are released for incomplete work
• Costs are tracked against the original budget so you can pick up overruns early
• Claims are justified by independent on-site assessments, so you get paid
• Cash flow forecasting to meet deadlines
• Verification of work completed to justify payments

Beyond progress claims, Duo QS offers full construction cost planning and estimating services, project costing, insurance valuation reporting, and cost plans.

Progress Claim Variations

During a project, changes to the original plans, known as variations, will occur. These can come from owner requests, design changes due to unforeseen issues, material or method improvements, or regulatory requirements.

You need to track these variations against the original contract value for the whole project. Variations that change the original contract value must be documented and included in progress claims.

Duo QS tracks all approved variations against the original contract in the payment schedule reports. This means progress claims show all work done, including the original scope and agreed-upon variations. Everyone can see the project’s true progress and payments.

Get Duo QS on Your Next Project

Get Duo QS to prepare your progress claim reports for your next project. Our qualified quantity surveyors have years of experience producing detailed, independent reports to support fair payment and timely completion. Contact us today for your customised progress claim assessment.

FAQs

What is a progress claim construction report?

A progress claim construction report is an independent assessment of the builder’s work at various project stages. The bank or lender uses this report to verify that the builder’s progress claim matches the work done on-site before releasing the corresponding funds. This ensures fair and on-time payments and keeps the project on track.

Who prepares progress claim construction reports?

Registered quantity surveyors prepare progress claim construction reports. These people have the skills to value the work done, verify claimed costs against invoices and provide an independent opinion on the project’s progress. Quantity surveyors are often involved by the bank or lender to protect their interests and manage risk.

How often are progress claim construction reports required?

The frequency of progress claim construction reports depends on the project and the payment schedule in the construction contract. Typically, reports are required when the builder submits a progress claim, which could be monthly, at project milestones, or as per the contract. The timing should match the progressive drawdown of the construction loan.

What if I don’t agree with the progress claim construction report?

If you don’t agree with the report, first raise your concerns with the quantity surveyor who prepared the report. Provide any additional evidence or documentation to support your case. If it can’t be resolved directly, escalate it to the bank or lender as they make the payment decisions. Sometimes, you may need to seek legal advice to protect your interests and resolve the issue.

Can I use a progress claim construction report for anything else?

While the primary purpose of a progress claim construction report is progress payments, it can also be used for other purposes. It’s a detailed record of the project at various stages and can be used to track progress, identify potential problems or delays, communicate with other parties, resolve disputes, or provide evidence if needed.