Late progress payment: what to do before the cash gap spreads

The job is done, but the money is not in

You have already paid for labour and materials, so a late progress payment is not just an inconvenience. It is a live cash gap that can quickly turn into missed supplier dates, stressed wages, and a scramble for short-term cover. Construction work is often paid in stages, which is exactly why the timing matters. ([business.gov.au](https://business.gov.au/planning/industry-information/construction-industry?utm_source=openai))

Security of payment laws are designed to help contractors recover payment for work they have done, and each state and territory has its own rules. Business.gov.au says those laws set timeframes for progress claims and payment schedules, and in most places they give the hirer a strict time to pay or respond. ([business.gov.au](https://business.gov.au/people/contractors/laws-affecting-contracts?utm_source=openai))

Chase it in writing today

Send a short written demand today. State the contract, the progress stage, the amount due, the date it became payable, and the bank details for payment. Keep it factual and dated. If you have only spoken by phone so far, follow up in email so there is a record of the chase and the response. ([business.gov.au](https://business.gov.au/finance/financial-trouble/what-to-do-when-you-havent-been-paid?utm_source=openai))

If the job falls under your state’s Security of Payment Act, consider a formal payment claim under that process. In Victoria, the payment schedule is generally due within 10 business days after service of the claim, and the claim must comply with the statutory process. That timing is why service details matter so much. ([business.vic.gov.au](https://www.business.vic.gov.au/__data/assets/pdf_file/0004/1916455/Getting-paid-in-construction.pdf?utm_source=openai))

Source: Official guidance

Keep the file tight while the facts are fresh

Do not rely on memory. Put the contract, progress claim, invoices, delivery dockets, site diary entries, and all payment emails into one folder. Business.gov.au says clear contract terms and written records help when payment is late or disputed, because they show what was agreed and when payment was due. ([business.gov.au](https://business.gov.au/finance/financial-trouble/what-to-do-when-you-havent-been-paid?utm_source=openai))

If the builder starts raising reasons for non-payment, ask for them in writing. A clean paper trail helps you separate a real dispute from delay. Business.gov.au also notes that contract disputes can move to adjudication if the claim is not answered properly, which is another reason to keep the record neat from the start. ([business.gov.au](https://business.gov.au/people/contractors/laws-affecting-contracts?utm_source=openai))

Tell your own creditors before their dates pass

If the builder still has not paid, call your suppliers before your own due dates arrive. Tell them the timing problem, not a story. Business Victoria encourages businesses to use clear payment terms, payment options and reminders to manage cash flow, and that same discipline helps when you are the one on the back foot. ([business.vic.gov.au](https://business.vic.gov.au/business-information/finance/manage-suppliers/manage-payments-to-suppliers?utm_source=openai))

If tax debt is part of the squeeze, contact the ATO early rather than leaving it until the file hardens. The ATO says early engagement matters, and if you do not engage it may move to firmer recovery action. That is why the safest move is to speak before the debt turns into a new problem. ([business.gov.au](https://business.gov.au/guide/guide-to-managing-cash-flow?utm_source=openai))

Avoid expensive stopgaps and choose the next move

Be careful about borrowing at a high cost just to bridge one overdue progress payment. A short-term loan can buy time, but it can also deepen the hole if the builder still does not pay when promised. Before you borrow, test whether the expected payment is realistic and whether the paperwork is strong enough to enforce. ([business.gov.au](https://business.gov.au/finance/financial-trouble/what-to-do-when-you-havent-been-paid?utm_source=openai))

If the gap is spreading, tighten the plan now. Confirm the claim, chase the payment in writing, warn your suppliers, and line up the next enforceable step rather than waiting for the account to empty. If you need help sorting the claim, the follow-up and the cash plan, contact CRP today about turnaround support. CRP coordinates independent qualified professionals and this is general information only. ([business.gov.au](https://business.gov.au/people/contractors/laws-affecting-contracts?utm_source=openai))