Owner Protection

Understanding Progress Payments

How building progress payments work, what they should be tied to, and how to protect yourself at every stage.

Typical Progress Payment Schedule

1

Deposit

On signing contract

5–10%
of contract price

Capped by law in most states. Never pay more than 10%.

2

Base / Slab

When slab is poured and inspected

10–15%
of contract price

Verify slab is complete and inspected before paying.

3

Frame

Frame erected, inspected, approved

15–20%
of contract price

Frame inspection by private certifier required.

4

Lock Up

Roof on, windows and external doors in

20–25%
of contract price

Home is now weather-tight and lockable.

5

Fixing

Internal fitout complete, linings in

20–25%
of contract price

Kitchen, bathroom fit-off, flooring, painting.

6

Practical Completion

All works complete, final inspection passed

5–10%
of contract price

Hold final payment until you're satisfied. This is your leverage.

Golden Rules for Progress Payments

Only pay when the stage is demonstrably complete — inspect before paying.
Never pay ahead of the construction stage — you lose leverage and protection.
Request a statutory declaration confirming subcontractors have been paid before each progress payment.
Keep your final payment (5–10%) until all defects are rectified and you have all certificates.
Payments should only go to the builder's business account — never a personal account.
Document all payments in writing with receipts.

Warning: Paying ahead of stage is one of the most common ways homeowners lose money in building projects. If a builder asks you to pay ahead because of cash flow problems, this is a serious red flag.

Build with Full Financial Protection

Our consultants guide you through every payment stage to ensure you're protected.