Standard Progress Payment Schedule

What is a Standard Progress Payment Schedule?

A standard progress payment schedule is a structured framework used in construction contracts to ensure contractors are paid as construction milestones are completed. Each milestone has a percentage of the contract value attached, giving both owners and contractors a transparent payment framework.

In Australia, the industry-standard progress payment schedules for NSW and the industry-standard progress payment schedule for VIC are the most common references. Both of these payment schedules are designed to protect project owners and builders under relevant legislation.

What’s Included in an Industry Standard Progress Payment Schedule?

A progress payment schedule captures all the financial and contractual information needed to track staged payments across a construction project.

Typical inclusions in a construction industry standard progress payment schedule are:

• Project and contract details: Information such as project name, contractor, and client details, contract title, purchase order, and invoice references to link each payment request to the correct agreement.
• Progress payment data: Dates for submission, certification, due payment, and the covered work period to keep all stakeholders aligned on payment timelines.
• Financial breakdown: Figures for submitted and approved amounts, total contract sum, tax, and balance remaining to provide transparency on overall cash flow.
• Variation records: Documentation of approved or pending changes to ensure the schedule reflects real-time changes to contract scope and value.
• Work item details: Line items for specific construction activities such as foundations, steel framing, and interior fit-out, showing contract amount, completion percentage, payment history, and balance remaining.
• Certification and authorisation: The superintendent or project manager signs off, verifying that requested amounts align with actual progress on site, making the schedule both auditable and compliant.

💡 Pro Tip: Always ensure work items in the schedule are broken down into enough detail to match construction milestones. Granular tracking reduces disputes and helps validate each payment against visible progress.

Why Use a Template for a Standard Progress Payment Schedule?

A template for a standard progress payment schedule should be used to bring clarity, consistency, and compliance to construction payments. It ensures every progress payment is tied to verified work, protects both owners and contractors, and keeps projects aligned with legislation in Australia.

• Dispute reduction: Clear milestone definitions minimise disagreements between project owners and contractors.
• Fair and timely payments: Contractors receive payments for verified work only, while owners avoid overpaying too early.
• Legal compliance: Templates following the industry-standard progress payment schedule keep projects aligned with local building legislation.
• Financial transparency: Every submitted and approved payment request links back to the contract value, change orders, and the balance remaining.
• Consistency across projects: A standardised format makes it easier to compare payment schedules, track performance, and maintain a reliable audit trail.

Always use a progress payment schedule template aligned with state legislation and your contract terms. It ensures payment schedules are defensible in disputes and fully auditable.

Who Should Use a Standard Progress Payment Schedule?

A standard progress payment schedule should be used by anyone involved in managing or approving staged payments on a construction project. It ensures that all parties have a shared framework for when payments are due, reducing disputes and improving accountability.

A progress payment schedule is especially useful for:

✅ Project Owners and Developers: Gain visibility into staged payments and confidence that funds are released only when work is delivered.

✅ Project Managers or Client-side Project Managers: Rely on the schedule to monitor construction milestones and enforce contract compliance.

✅ Contract Administrators and Quantity Surveyors: Use it to certify payments, track changes, and keep financial records accurate.

✅ Construction Superintendents and Consultants: Validate that completed work matches the requested amount before authorizing payments.

✅ Contractors and Builders: Depend on the schedule to secure timely and fair payments for each construction stage.

✅ Financiers and Lenders: Reference the schedule to ensure loan drawdowns align with actual progress on site.

How to Create a Progress Payment Schedule in Mastt

Creating a standard progress payment schedule doesn’t have to mean drafting payment letters manually or formatting spreadsheets. With Mastt’s Cost Module, contract standards and payment letters automate the process, generating schedules, certificates, and recommendations in just one click.

Build your payment schedule in Mastt to easily:

📑 Configure construction contracts with the correct standards, roles, and terms.

✅ Link each progress payment to milestones, changes, and contract rules.

📎 Attach supporting files such as QS reports, invoices, and approval letters.

📥 Generate payment schedules, certificates, or recommendations instantly.

⚡ Bulk-download multiple payment documents in a single step.

Because everything is connected to contract standards, your payment schedule is always accurate, compliant, and consistent across all projects.

Here’s how to use Mastt’s Cost Module to generate a payment schedule:

1. Set Up Contract Standards: Navigate to your project dashboard, go to Cost → Contracts, and use + Add Contract to create or edit a contract. Select the appropriate contract standard from the dropdown. This ensures the right payment clauses and rules apply.
2. Configure Roles and Terms: In the contract, define roles (Principal/Client, Project Manager, Superintendent) and set jurisdiction under the Security of Payment Act. Update GST percentages and payment clauses if needed.
3. Complete Contract Setup: Finalise the contract by entering the title, value, budget allocation, and line items. Save the setup to lock in the schedule framework.
4. Add Payments: Go to the Payments tab, select + Add Payment, and enter payment details such as amount, dates, and references. Upload supporting attachments like invoices or QS reports.
5. Generate Payment Documents: For any payment, click the Action (...) button and choose Payment Certificate, Payment Schedule, or Payment Recommendation. The document downloads instantly with the correct formatting.
6. Include Attachments: When generating letters, select which attachments to include and reorder them if required.
7. Bulk Download: From the Payment Register, select multiple payments, click Letters, and generate a .zip file with all schedules and certificates in one go.

When to Use a Standard Progress Payment Schedule

A standard progress payment schedule should be used throughout the entire lifecycle of a construction contract, from the first payment to final completion. It is most useful whenever payments need to be linked to certified progress on site.

The most critical phases to use a payment schedule include:

• Stage completion: When a contractor reaches milestones such as base, frame, lock-up, or completion, a payment schedule ensures payments are tied to certified progress.
• Contract changes: Whenever scope changes occur, the schedule should be updated to reflect adjusted contract values and payment entitlements.
• Monthly or periodic payments: For projects with recurring payment cycles, a schedule keeps all payments, approvals, and balances aligned across reporting periods.
• Dispute resolution: In NSW and VIC, the industry standard progress payment schedule provides legal standing under the Security of Payment laws, giving both owners and contractors a reliable reference.
• Final payment: At project closeout, the schedule confirms that all payments, changes, and retentions have been properly processed before release of final funds.

💡 Pro Tip: Always keep your payment schedule live and updated. A current record protects against disputes, ensures compliance, and gives financiers and stakeholders confidence in project cash flow.

Challenges with Manual Building Progress Payment Schedules

Relying on manual tools like Excel or basic spreadsheets to manage a building progress payment schedule often creates more problems than solutions. While these formats are familiar, they struggle to keep pace with contract changes and compliance requirements in Australia.

Common issues with manual payment schedules include:

⚠️ Data errors: Complex formulas in Excel are prone to mistakes, leading to incorrect totals and disputes over payment amounts.

⚠️ Outdated records: Static spreadsheets don’t update automatically, so progress payments, change orders, and approvals can quickly fall out of sync with the live project.

⚠️ Version conflicts: Multiple stakeholders may work from different copies of the schedule, creating inconsistencies across the project team.

⚠️ Compliance risks: Without the structure of an industry-standard progress payment schedule for NSW or VIC, manual schedules may not meet legislative requirements.

⚠️  Poor transparency: Disconnected files make it hard for owners, contractors, and financiers to see a clear picture of payments, balances, and remaining contract value.

💡 Pro Tip: If you must use Excel, double-check formulas and share one master file only. Better yet, shift to a connected system that links progress payment, contracts, and change orders in real time.

Start Your Standard Progress Payment Schedule in Mastt

A standard progress payment schedule is too important to leave to static spreadsheets or scattered Excel files. Manual methods often lead to errors, disputes, and compliance risks, especially in states like NSW and VIC, where legislation requires precision.

With Mastt, you can set up a payment schedule in seconds, tailored to your contract and compliant with industry rules.

⚡ Build your standard progress payment schedule in Mastt today and keep cash flow accurate, fair, and compliant.