Progress payments for building a house are the instalments you pay your builder as construction reaches defined stages, rather than one lump sum at the end. Understanding how progress payments home building schedules work protects you from paying for work that hasn’t actually been done.
In WA, progress payments are regulated by law, not left entirely to the builder’s discretion. This guide breaks down exactly what you pay, when, and what legal protections apply throughout your build.
At Pioneered Modern Engineering (PME), every progress payment is tied to a verified, completed stage of construction, with full transparency at every claim. It’s a standard part of how we structure our residential construction services from contract through handover.
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What Are Progress Payments in Home Building Contracts?
A progress payment is a partial payment made at a defined point in construction, reflecting the value of work genuinely completed up to that stage. Rather than paying your full contract price upfront or entirely at the end, building progress payments spread the cost across the construction timeline as milestones are reached.
This structure protects both parties. You only pay for work that’s actually been done, and your builder receives cash flow to cover materials and labour as the build proceeds.
The Typical Progress Payment Schedule for a New Home in WA
WA doesn’t mandate a single standardised schedule, but Building and Energy publishes common construction progress payment stages used across the industry. Most WA building contracts follow this general structure.
Standard Construction Stages
- Slab: concrete slab, footings, and underground drainage completed
- Plate height: wall framing erected, window and door frames installed
- Roof cover: roof structure, flashings, and guttering installed, making the home weathertight
- Lock up: external doors and windows fitted, first fix plumbing and electrical complete, plastering installed
- Secondary finishing: tiling, cabinetry, and fit-off trades complete their work (used in some contracts)
- Practical completion: the home is ready for occupation, with only minor omissions remaining
Two-storey builds typically add extra progress payment stages beyond this list to reflect the additional construction phases involved. Our guide on how long it takes to build a house in Australia maps these stages against realistic timeframes for each one.
What Each Stage Actually Means for Payment
Your builder cannot legally claim a stage payment before that stage is genuinely complete. As the homeowner, you’re entitled to inspect the work at each stage during the builder’s ordinary working hours, before authorising payment.
How to Verify a Progress Payment Claim
Before paying any progress claim, it helps to check a few things directly rather than relying on the invoice alone.
- Confirm the described stage matches what you can physically see on site
- Ask for photos if you can’t inspect in person before the payment deadline
- Check the claimed amount against the percentage or dollar figure set out in your contract’s payment schedule
- Query anything vague, such as a claim for “general progress” rather than a defined stage
Minor omissions or small defects at an early stage shouldn’t hold up a legitimate payment, since the process is meant to reflect substantial completion of that stage, not perfection. This kind of stage-by-stage verification is built into our construction project management process, so claims and inspections stay aligned throughout the build.
Legal Protections for Homeowners Making Progress Payments
The Home Building Contracts Act 1991 regulates progress payments for WA contracts valued between $7,500 and $500,000, and it sets real limits on what a builder can ask you to pay.
Deposits are capped at 6.5 percent of the total contract price. Every progress payment after that must represent a genuine claim for work already performed or materials already supplied, not for work the builder plans to do in future.
This “genuine payment” rule is the core protection in the legislation. It means a builder cannot claim the lock up stage payment before the home is actually weathertight and lockable, regardless of how the contract is worded.
Progress Payment vs Final Payment: What’s the Difference?
A progress payment covers a specific completed stage during construction, while the final payment is made at practical completion, once the home is ready to occupy. The final payment typically also releases any retention amount withheld under the contract, if your contract includes one.
Home progress payments accumulate throughout the build, so by the time you reach final payment, the vast majority of the contract price has already been paid across earlier stages. The final payment closes out the remaining balance rather than representing a large lump sum.
Can a Builder Charge More After the Contract Is Signed?
Generally, no, not without a formal variation. Your fixed price contract locks in the total cost, and any additional charge must go through a documented variation process, with the cost and reason clearly stated before you approve it in writing.
Legitimate additional costs typically arise from unforeseen site conditions, such as rock encountered during excavation, or from changes you request after signing. A builder claiming extra money outside this process, without a written variation, is not acting in line with WA’s contract requirements.
What Happens If a Progress Payment Isn’t Paid on Time?
Once a claim genuinely reflects completed work, you’re contractually obligated to pay within the timeframe set out in your contract. Late or unpaid progress payments are a breach of contract, and most contracts allow the builder to charge interest on overdue amounts or, in serious cases, suspend work until payment is made.
This is why sorting out your finance approval and drawdown process before construction begins matters. If your lender is slow to release funds against a construction loan, that delay becomes your responsibility under the contract, not your builder’s, so confirm your bank’s turnaround times before signing.
Red Flags to Watch For in a Progress Payment Schedule
A few warning signs are worth checking for before you sign your building contract.
- Front-loaded schedules that claim a disproportionate percentage early, before much visible work has occurred
- Vague stage descriptions that don’t clearly define what’s actually been completed
- Requests for payment before a stage inspection has occurred
- Deposits exceeding the 6.5 percent legal cap
If a progress payment claim doesn’t match what you can see has actually been built, raise it with your builder before paying, not after. Choosing a builder with a transparent, well-documented payment process from the outset is the best way to avoid this situation altogether, which our guide on how to choose the right construction partner in Australia covers in more detail.
Build With Transparent Progress Payments
Progress payments for building a house should never feel like a mystery. At PME, every claim is tied to verified, completed work, with clear communication at every stage.
Call PME today on 0480 452 067 or visit pioneeredme.com.au to book your consultation.
Frequently Asked Questions
What Are Progress Payments in Home Building Contracts?
Progress payments are partial payments made at defined construction stages, reflecting work genuinely completed at that point, rather than one payment at the start or end of the build.
What Is the Typical Progress Payment Schedule for a New Home Build in Australia?
While schedules vary by contract, WA’s common stages are slab, plate height, roof cover, lock up, and practical completion, with some contracts adding a secondary finishing stage. Two-storey homes typically include additional stages.
How Do Progress Payments Work When Building a House?
Your builder claims payment as each construction stage is completed and verified. You’re entitled to inspect the work before authorising payment, and each claim must genuinely reflect the value of work actually done.
What Is the Difference Between Progress Payment and Final Payment?
Progress payments are made throughout construction as stages are completed. The final payment is made at practical completion, closing out the remaining contract balance once the home is ready for occupation.
Can a Builder Charge More After the Contract Is Signed?
Only through a properly documented variation that you approve in writing. Unforeseen site conditions or requested changes can justify additional costs, but a fixed price contract otherwise locks in your total.
What Happens If You Don’t Pay a Progress Claim on Time?
A genuine, correctly claimed progress payment left unpaid is a breach of contract. Most contracts entitle the builder to charge interest on the overdue amount, and in serious cases, to suspend work until payment is received.