NSW progress payment calculator

How progress payments work on NSW residential jobs

Most new homes and major renovations in NSW are paid in stages. The owner pays a deposit, then one payment as each stage of the work is finished. Every payment schedule goes in the contract, so it is worth getting the schedule right before the contract is signed. The Home Building Act 1989 (NSW) sets several rules that affect it.

The deposit: 10% maximum

Section 8 of the Act caps the deposit at 10% of the contract price. Asking for or taking more is an offence. The calculator warns you if the deposit row goes over 10%. For work over $20,000 there is one more step. You need Home Building Compensation (HBC) cover, and the owner must get the certificate before you ask for or take any deposit or payment.

Stages must match work actually done

For contracts over $20,000, section 8A says progress payments must be for work already done. That is either a fixed amount or percentage once a stage is complete, or, under a cost-plus contract, payment as costs are incurred. Describe each stage in plain language, for example: “Lock-up: external walls, roof cover, windows and external doors installed”. A clear description stops arguments about whether a claim is due. Claims based only on time (“week 6”) or front-loaded stages invite disputes.

A typical schedule

The defaults above are a common pattern for a single new dwelling. Deposit 10%, base or slab 15%, frame 20%, lock-up 25%, fixing 20% and practical completion 10%. They are a starting point only. Change them to suit the job. A renovation, a knock-down rebuild or a job with a large pool or landscaping package will need different stages. If the owner has a construction loan, check the lender’s stage schedule early. Banks often fix their own percentages and will only release funds at those stages.

Variations change the numbers

Approved variations change the contract price. Keep a running register so each claim uses the current figure. Get every variation in writing and signed before you do the work. The Act requires residential contract variations to be in writing and signed by both parties.

Payment claims

Builders can also serve payment claims under the Building and Construction Industry Security of Payment Act 1999 (NSW). Note that it does not apply to contracts with a resident owner for their own home. Check whether it applies to your contract before relying on it.

General information only, not legal or financial advice. This calculator doesn’t check your contract and doesn’t replace it. Use the NSW Government / Building Commission NSW contract templates or your industry association contract. Get advice for your situation. Legal references are to NSW legislation as checked in October 2026.