Progress Payment Template

What is a Progress Payment Template?

A progress payment template is a structured document used to certify staged payments to contractors as construction work is completed. It provides a consistent format for recording contract details, valuing completed works, and calculating the amount payable at each stage.

For project owners and managers, the template offers a practical way to align payments with actual progress on site. Instead of relying on ad hoc spreadsheets or manual calculations, the template standardises how progress payment requests are submitted, reviewed, and approved.

What’s Included in a Construction Progress Payment Template?

A progress payment template includes all the essential details needed to certify and approve payments against a construction contract. It ensures payments are calculated consistently, with complete visibility for both project owners and contractors.

Typical inclusions in a progress payment template are:

• Project and contract details: Project name, contract title, consultant, and client information.
• Payment record: Payment reference, purchase order, and invoice number for tracking.
• Payment period: Start and end dates showing the timeframe covered.
• Submitted and approved amounts: The contractor’s requested payment and the certified amount.
• Breakdown of works: Approved contract amount, total completed to date, percentage progress, and remaining balance.
• Variations: Any approved adjustments or changes to the contract value.
• Retention and tax: Deductions or withholdings, as well as applicable GST or VAT.
• Authorisation: Signature or approval from the superintendent, project manager, or contract administrator.

By consolidating these elements, the template provides a clear, auditable record of each progress payment while reducing manual errors.

Why Use a Template for Construction Progress Payments?

Using a structured construction progress payment template ensures payments are consistent, transparent, and aligned with the contract. A standardised format makes every stage of payment straightforward and defensible.

Key benefits of a progress payment template include:

• Consistency across projects: Every payment schedule follows the same structure, reducing confusion and ensuring compliance with contract requirements.
• Reduced errors: Automated calculations within a template minimise mistakes that often occur in manual Excel sheets or Word tables.
• Improved transparency: Owners, contractors, and financiers can all see exactly how payments are calculated and certified.
• Audit readiness: Templates provide a clear record of approved amounts, changes, and retentions, making it easy to meet reporting and compliance obligations.
• Faster processing: With pre-set fields, payments can be reviewed, certified, and approved more quickly than manually prepared documents.
• Better cash flow control: Each payment stage is tied directly to progress, helping teams forecast remaining contract values and manage funding drawdowns.

💡 Pro Tip: Keep one standard progress payment template for all projects. Using the same structure across contracts makes reviews faster, reduces training time for teams, and ensures every payment is consistent.

Who Should Use Progress Payment Templates in Construction?

A progress payment template for construction is essential for every role involved in managing, approving, or funding staged payments. It ensures each payment is tied to verified progress, reduces disputes, and creates a reliable audit trail across projects.

• Project Owners and Developers: Gain visibility into whether payments reflect actual progress and protect against overpayment.
• Project Managers or Client-Side Project Managers: Use the template to keep delivery aligned with milestones and contract terms.
• Contract Administrators and Construction Superintendents: Record valuations, variations, and retentions in a clear, consistent structure.
• Commercial and Finance Teams: Reconcile payments against budgets and forecast remaining contract commitments with confidence.
• Program and Portfolio Managers: Apply the same format across multiple projects, making performance easier to compare.
• Financiers and Lenders: Depend on structured payment schedules before releasing funds, ensuring accuracy and compliance.
• Auditors and Compliance Officers: Reference the template as a transparent record of approvals, deductions, and retentions.

Using a construction progress payment template gives every role a consistent framework, making payment processes easier to manage and verify.

How to Create a Progress Payment Template in Mastt

Setting up a progress payment template in Mastt is fast and eliminates the hassle of formatting spreadsheets or drafting letters manually. Mastt’s Cost Module uses contract standards to automatically generate schedules and certificates, ensuring each document matches the terms of your agreement.

With Mastt, you can:

📑 Establish contracts with the correct payment clauses, roles, and conditions.

✅ Connect progress payments to milestones, change orders / variations, and contract rules.

📎 Upload supporting documentation like QS reports, invoices, and approvals.

📥 Produce payment schedules, certificates, or recommendations in seconds.

⚡ Download multiple payment records at once for portfolio reporting.

Because every template is connected to contract standards, your progress payments are always accurate, compliant, and consistent across projects.

Here’s how to set it up in Mastt:

• Set Up Contract Standards: From your project dashboard, go to Cost → Contracts and select + Add Contract. Choose the correct contract standard to apply payment clauses and rules.
• Configure Roles and Terms: Define roles such as Principal, Project Manager, or Superintendent. Update VAT, GST, or retention terms if required.
• Complete Contract Setup: Enter contract title, value, budget allocation, and line items. Save the setup to establish the payment framework.
• Add Payments: Navigate to the Payments tab, click + Add Payment, and enter details like amount, due dates, and references. Upload attachments such as invoices or QS reports.
• Generate Payment Documents: Use the Action (…) menu to create a Payment Certificate, Payment Schedule, or Payment Recommendation. The document downloads instantly in the correct format.
• Include Attachments: Add and reorder supporting files to keep documentation clear and auditable.
• Bulk Download: From the Payment Register, select multiple payments, choose Letters, and download a .zip file with all payment documents.

With this process, your progress payment template in Mastt becomes an automated workflow that replaces manual effort with accuracy and speed.

When to Use Construction Progress Payment Templates

A template for construction progress payment is most useful at the key points in a project where staged payments need to be certified and documented. Instead of treating payments as ad hoc tasks, using a template keeps everything consistent and transparent.

You’ll want to apply the template during:

• Monthly or periodic payment cycles: Certify payments at regular intervals to align with contractor entitlements and funding releases.
• Milestone completions: Record payments tied to key project stages such as foundations, structural works, or practical completion.
• Approved variations: Capture adjustments to the contract value and reflect them in upcoming payments.
• Retention management: Apply deductions and track withheld amounts consistently across payment periods.
• Final certification: Document the last stage of payment, including release of retention and reconciliation of outstanding items.

The timing of progress payments directly affects contractor cash flow and project funding, so a clear template helps both sides manage expectations and avoid disputes.

Challenges with Progress Payment Templates

Progress payment templates create structure, but when they’re managed manually in Excel or Word, problems often creep in. Small errors or delays can quickly affect cash flow and trust between project stakeholders. Common challenges include:

❌ Calculation errors: Spreadsheets can contain broken formulas or inconsistent formatting, leading to incorrect payment amounts.

❌ Slow approvals: Without a standard format, reviews take longer, and payment cycles can be delayed.

❌ Compliance gaps: Important details such as retentions, deductions, or approved changes or variations may be overlooked when templates aren’t applied correctly.

❌ Limited visibility: Tracking cumulative payments across contracts is difficult when data is scattered in multiple files.

❌ Version conflicts: Multiple people editing the same spreadsheet often result in mismatched records and disputes.

These challenges often push teams to look for more reliable methods. Shifting away from manual tools toward connected systems helps maintain accuracy, speed up approvals, and give stakeholders confidence in every payment.

Make Progress Payments More Accurate with Mastt

Managing contractor obligations doesn’t have to mean chasing spreadsheets or dealing with disputes. A well-structured progress payment template keeps the process clear, consistent, and easy to approve. With Mastt, each stage of work is certified directly from live contract data, ensuring accuracy, compliance, and less manual effort.

⚡ Start building progress payment in Mastt to make the process smoother, faster, and fully compliant across all your projects.