What is a progress payment claim under the Construction Contracts Act?
Short answer
A progress payment claim is a formal demand for payment under the Construction Contracts Act 2002. It must be in writing, state the amount, and identify the contract. Once you receive one, the clock starts: you have to respond with a payment schedule within the time set in the contract (or 20 working days if not specified). If you don't respond, the full amount becomes payable as a default — even if you would otherwise dispute it.
Key facts
- Payment claims are governed by the Construction Contracts Act 2002, sections 20-22
- Missing the response window costs you — silence equals agreement under the Act
- A payment schedule lets you scope down the amount you accept
- Both residential and commercial work is covered if the contract exceeds the prescribed threshold
Why it matters for homeowners
Most homeowners don't know progress claims have a legal response deadline. A claim arrives, the homeowner queries it, the builder waits, the deadline passes — and the full claim becomes legally enforceable.
If you have any objection — variations weren't authorised, quality is poor, materials aren't on site — you must put it in a written payment schedule before the deadline. Verbal queries don't count.
What a valid payment schedule looks like
It must identify the payment claim it responds to, state the scheduled amount (the amount you accept), and explain the difference if you're paying less than the claim.
'I dispute this' on its own isn't a schedule. You need reasons. 'The variation for the kitchen wasn't signed; I deduct $4,200' is a schedule.
Adjudication
If you and the builder can't agree, either party can refer the dispute to an adjudicator under the Act. Adjudication is fast — usually under 30 working days — and binding (though it can be challenged in court for fraud or jurisdiction). Many homeowners don't realise they have this remedy.
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Related questions
Sources: Construction Contracts Act 2002, sections 20-22, 25; Building Disputes Tribunal — buildingdisputestribunal.co.nz. General information for NZ homeowners, not legal advice — building rules change and vary by council, so confirm critical details on the official source before acting. Last updated 2026-05.