Sign 1: Progress Claims Arriving Early

A builder who submits progress claims early, or claims amounts above the contractual milestones, is often managing cashflow rather than reporting progress. It is the single most reliable early warning sign on a domestic build.

Why It Matters

Once you have paid ahead of works completed, your leverage is gone. If the builder then fails, you are an unsecured creditor for the difference.

What To Do

Tie every claim to verified works. Do not release payment until the milestone described in the contract has actually been reached and inspected.

Is an early claim always a problem?

Not always, but it warrants an immediate check against the contract milestones.

What should I do before paying?

Inspect the works described, confirm the milestone is genuinely reached, and record it.

Can I withhold payment?

You can withhold amounts not yet earned under the contract; put the reason in writing.