Disputing a Builder's Progress Claim or Variation in Queensland

When a progress claim or a variation invoice doesn't match what you can see on site, the first instinct is to stop paying. In Queensland, that can put you in breach of your own contract if the claim turns out to be valid. Disputing a builder's invoice starts with three checks: does the claim match the contract, was the variation agreed properly, and what shows the work on the claim date?

This guide covers the rules for progress claims and variations in Queensland, which dispute route applies to you, and how to raise a dispute in writing. It's written for owners building a home to live in, with notes for builders whose claims are being disputed. It's general information, not legal advice.

What a progress claim can include

A progress claim is a request for payment at a stage, or an interval, set out in your contract. Under the QBCC Act, a builder can't claim an amount, other than the deposit, unless it relates directly to the progress of the work on site and is no more than the value of that work.

• The contract defines the stages. The legislation no longer sets payment stages, so each claim is measured against the contract's own definition of the stage, usually base, frame, enclosed, fixing and practical completion.
• A claim can't run ahead of the work. The QBCC's example: a builder can't claim more than 50% of the contract price, including the deposit, until at least 50% of the work on site is done.
• A valid claim is due on time. If the stage is complete as the contract defines it, the claim is generally payable by the due date in the contract.

Our guide to construction loan stages explains what each stage usually includes, and what a lender checks before it releases a drawdown.

When a variation is valid

A variation is a change to the work or the contract price after the contract is signed. The QBCC Act sets out how it has to be done:

• In writing, before the work starts. The builder must give you the variation in writing, and you must agree to it in writing, before the variation work starts. The only exception is urgent work where a written copy first isn't reasonably practicable.
• What it must say. The document has to describe the variation, state the date of the request and the change to the contract price (or how it will be worked out), and give the builder's reasonable estimate of any delay it will cause.
• Your copy. You must get a written copy before the variation work starts, or within 5 business days of agreeing to it, whichever comes first.
• When it can be charged. A builder can't require payment for a variation before the variation work starts.

If a variation turns up on an invoice with no written agreement behind it, raise it in writing before you pay. Whether the builder can still be paid for the work depends on the contract and the circumstances, so get advice before you refuse. Many site-cost variations start as provisional sums in the tender, which Before the Slab explains.

Which dispute route applies to you

Queensland's fast payment-claim adjudication under the Building Industry Fairness (Security of Payment) Act, the BIF Act, generally doesn't apply to a contract for domestic building work where a resident owner is a party. If you're building a home to live in, the route runs through the contract's dispute clause instead:

1. Raise it in writing. Talk to the builder first, then give written notice of the disputed items by email or post, with a timeframe to reply. The QBCC uses 14 days as an example.
2. QBCC early dispute resolution. While the contract is still active, the QBCC can work with both sides to reach an agreement. It can't order anyone to pay.
3. QCAT. The Queensland Civil and Administrative Tribunal can decide the dispute and order payment. It needs a letter from the QBCC showing you've been through its process first.

Investors building to rent or sell, and subcontractors, are usually covered by the BIF Act instead. Under it, a payment schedule answering the claim is due within 15 business days, or sooner if the contract says so, and missing it can make the full claimed amount payable.

If the builder has stopped work altogether, the rules change: our guide to terminating a building contract covers the notices, the home warranty deadlines and recording the site before it changes hands.

Check the claim before you pay it

Most disputes turn on three questions: does the claim match the contract's stage definition, was the variation agreed in writing first, and what evidence is there of the work on the claim date? Work through them below. You'll get the likely next step and a draft notice outline you can copy and fill in.

What was built on the claim date

Most progress-claim disputes come down to one question: what stage had the work reached on the day it was claimed? By the time it's argued about, the next trade has been through and the frame is behind plasterboard. Photos rarely settle it, because they're partial, hard to place in the house, and easy to argue about.

A dated 3D record of the stage being claimed shows the whole site as it was on that day, room by room. For owners, it's evidence to attach to a written notice. For builders, it's proof that the claimed stage was reached. That's what the pre-plaster audit records at frame stage, and the Builder Assurance Bundle adds a second record at handover. Our as-built guide covers how a frame-stage record is captured and used. It doesn't replace the certifier's inspections.

Disputing a builder's claim: FAQs