1. Field Name and Definition

Progress Percentage is a critical field in NSW Payment Claims that indicates the overall completion percentage of the construction project at the time of making the claim. This percentage represents the proportion of total contracted work that has been completed up to the reference date of the payment claim.

This field appears on Payment Claims to provide transparency about project advancement and helps both parties understand the current state of the project in relation to the total scope of work. It serves as a quick reference point for assessing whether the project is progressing according to schedule and helps validate the claimed amount against the overall project value.

2. Legal Requirements

Statutory Framework

While the Building and Construction Industry Security of Payment Act 1999 (NSW) ("the Act") does not explicitly mandate the inclusion of a progress percentage, Section 13(2) requires that a payment claim must:

• Identify the construction work or related goods and services to which the progress payment relates.
• Indicate the amount of the progress payment that the claimant claims to be due.

The progress percentage helps satisfy these requirements by clearly demonstrating the relationship between completed work and the claimed amount.

Consequences of Incorrect Completion

Incorrectly stating the progress percentage can:

• Create inconsistencies that may invalidate the payment claim.
• Provide grounds for a payment schedule disputing the claimed amount.
• Undermine credibility in adjudication proceedings.
• Lead to delays in payment while clarifications are sought.

3. Practical Guidance

Step-by-Step Instructions

1. Calculate Total Work Completed: Review all work completed up to the reference date. Include only work that is genuinely complete, not partially finished tasks. Consider both on-site and off-site work if applicable.
2. Determine Total Contract Value: Use the current contract sum including all approved variations. Ensure you're working with the most up-to-date contract value.
3. Calculate the Percentage: Use the formula: (Value of Completed Work ÷ Total Contract Value) × 100. Round to one decimal place for clarity.
4. Ensure Consistency: Check that the calculated percentage aligns with other fields in your payment claim, such as the detailed work breakdown.

Where to Find This Information

• Contract Documents: Original contract and approved variation orders.
• Site Records: Daily site diaries and progress photographs.
• Project Management Systems: Electronic tracking systems.
• Quantity Surveyor Reports: Professional assessments of work completed.
• Superintendent's Reports: Progress certificates or assessments.

4. Common Mistakes and How to Avoid Them

Mistake 1: Overestimating Completion

Error: Including work that is only partially complete or not yet approved.

Solution: Only count work that meets the definition of "complete" under your contract. Be objective and have evidence to back up your assessment.

Mistake 2: Inconsistency with Claimed Amount

Error: The progress percentage doesn't mathematically align with the value of work claimed.

Solution: Double-check all calculations. Ensure the narrative description of work, the value claimed, and the percentage all tell the same story.

Mistake 3: Ignoring Variations

Error: Using the original contract value instead of the current, adjusted value including all approved variations.

Solution: Always update the 'Total Contract Value' in your calculation to include all approved variations before calculating the percentage.

Mistake 4: Rounding Errors

Error: Inconsistent or excessive rounding that leads to material differences over the life of the project.

Solution: Adopt a consistent rounding rule (e.g., to one decimal place) and apply it uniformly across all claims.

5. Risks of Inaccurate Information

Failing to provide an accurate or defensible progress percentage carries significant risks that can jeopardise your cash flow and contractual standing.

6. Examples

7. Related Fields

The Progress Percentage must be consistent with other key information in your payment claim. Always cross-check for alignment.

• Amount Claimed: The mathematical relationship between the percentage, contract value, and claimed amount should be clear and correct.
• Work Description: The narrative description of completed tasks must support the stated percentage.
• Previous Claims: There should be a logical and justifiable progression from the percentage claimed in the previous period.
• Variation Claims: The total contract value used in the calculation must be adjusted to reflect all approved variations.

8. Frequently Asked Questions