Progress claim (construction)

A progress claim — also called an application for payment — is the contractor's periodic demand for payment for work performed and materials supplied to date. The claim is the contractor's act; the progress payment is the owner's response to it. Getting the claim's form and timing right is what starts the payment clock.

The claim under CCDC 2-2020

CCDC 2 – 2020 (Stipulated Price Contract), the industry-standard prime contract between owner and contractor, assumes monthly progress payments and requires the contractor to submit applications for payment (GC 5.2) to the owner and the consultant as the work progresses; the owner then makes payment on account of the contract price as provided in the payment article of the agreement. In other words, the monthly rhythm of construction cash flow is driven by the contractor's claim: value the work done, certify quantities, apply, get paid, repeat until the final claim reconciles the whole contract price.

The Ontario "proper invoice" rules

On Ontario contracts, the Construction Act's prompt-payment regime wraps strict rules around what a progress claim must look like. A "proper invoice" (s. 6.1) is a written request for payment that contains the contractor's name and address; the invoice date and the period, milestone or other payment entitlement it relates to; information identifying the contract (contract number, line item or purchase order number); a description, with quantities where appropriate, of the services or materials supplied; the amount payable and payment terms; the payee's name, title, address and phone number; and any other information the contract specifies or that is prescribed. Key mechanics: proper invoices are given to the owner on a monthly basis unless the contract provides otherwise (s. 6.3(1)); a contract cannot make the invoice conditional on a payment certifier's prior certification or the owner's prior approval (s. 6.3(2)); an invoice that misses a requirement is deemed proper unless the owner notifies the contractor in writing of the deficiency within seven days (s. 6.1(2)); and the owner must pay no later than 28 days after receiving the proper invoice, unless it delivers a notice of non-payment within 14 days detailing the amount and reasons (s. 6.4).

Claim vs. payment — why the distinction matters

The claim and the payment are different events with different rules. On the federal side, our progress payment definition covers the payment machinery — SACC clauses H1003C and H3007C, monthly payments up to a percentage of costs incurred, holdback, and the historical PWGSC-TPSGC 1111 claim form. The claim side is where contractors lose money in practice: a claim that omits the contract number or payee details, or that is submitted off-cycle where the contract requires monthly invoicing, hands the owner an argument to stop the payment clock. On Ontario contracts the deemed-invoice rule cuts the other way — an imperfect invoice still starts the clock unless the owner objects in writing within seven days — but the only safe assumption is that your claim is perfect when it leaves your office.

Common questions

How often must a progress claim be submitted?

Monthly by default: CCDC 2-2020 assumes monthly progress payments, and Ontario's Construction Act requires proper invoices monthly unless the contract provides otherwise.

Can the owner hold my claim for the consultant's certification first?

In Ontario, no — a contract provision making the giving of a proper invoice conditional on prior certification or the owner's prior approval is of no force or effect (s. 6.3(2)). Certification after the invoice is given is still permitted, and the ban does not apply to provisions about testing and commissioning (s. 6.3(4)).

What happens after the owner pays?

The payment cascades down: a contractor who receives payment must pay each subcontractor included in the claim within seven days of receiving it (Construction Act s. 6.5), with further timing rules down the subcontract chain — and holdback on the claim amount is remitted and released on the statutory schedule covered in our holdback release timing definition.

Related definitions

Progress payment · Retainage vs. holdback · Substantial performance · Holdback release timing (Ontario)