4.3Progress Claim Reference Dates
The reference date for progress claims is the 25th day of each month only. Claims lodged after the reference date will not be assessed until the following month. Payment is conditional on head-contract receipt.
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Critical Risk
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51
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4.3Progress Claim Reference Dates
The reference date for progress claims is the 25th day of each month only. Claims lodged after the reference date will not be assessed until the following month. Payment is conditional on head-contract receipt.
Initial Risk Analysis
High
Subcontractor — Round 1
AI Analysis
This clause imposes non-standard reference dates which may breach the Security of Payment Act. Accepting this as written significantly increases cashflow risk.
AI Suggested Response
Win-Win
Propose a 'Deemed Acceptance' clause: if no Payment Schedule is issued within 5 Business Days of a valid claim, the claim is deemed accepted in full.
Hard Amendment
Reject and strike. Breach of Security of Payment Act 1999 (NSW). Insert statutory reference dates — not the Head Contractor's internal processing schedule.
11.2Liquidated Damages
If the Subcontractor fails to achieve Practical Completion by the Date for Practical Completion, the Subcontractor must pay liquidated damages of $18,500 per calendar day.
Initial Risk Analysis
Critical
Subcontractor — Round 1
AI Analysis
Daily LD rate equates to roughly 0.22% of contract value — materially above typical NSW electrical subcontract benchmarks (0.05–0.10%). No cap on aggregate LD exposure.
AI Suggested Response
Win-Win
LD rate of $9,500/day, aggregate cap at 5% of subcontract sum, shared delay register updated weekly.
Hard Amendment
Reject uncapped LDs. Propose $7,500/day with aggregate cap at 5% of contract sum and exclude delays caused by head-contractor access restrictions.
Contract Document
Tower Electrical Package
Can you spot any unfair clauses?
The Subcontractor indemnifies the Builder for all consequential loss, without mo...
Notice of delay must be provided within 24 hours of the delaying event, otherwis...
Payment of progress claims will be made 45 days after the end of the month.
The Builder may set-off amounts owed on this project against disputed amounts on...
The Subcontractor assumes all risk and liability for errors in the Builder's des...
Liquidated Damages apply at $10,000 per day, regardless of concurrent delays by ...
Directed variations must proceed immediately, even if the price and EOT are not ...
Progress payments will be made within 20 Business Days of a valid tax invoice.
An EOT will be granted for Builder-caused delays, provided notice is given withi...
The Subcontractor must rectify any defective work at their own cost during the 1...
The Builder may set-off amounts owed on this project against disputed amounts on...
The Subcontractor assumes all risk and liability for errors in the Builder's des...
Liquidated Damages apply at $10,000 per day, regardless of concurrent delays by ...
Directed variations must proceed immediately, even if the price and EOT are not ...
Progress payments will be made within 20 Business Days of a valid tax invoice.
An EOT will be granted for Builder-caused delays, provided notice is given withi...
The Subcontractor must rectify any defective work at their own cost during the 1...
The Subcontractor indemnifies the Builder for all consequential loss, without mo...
Notice of delay must be provided within 24 hours of the delaying event, otherwis...
Payment of progress claims will be made 45 days after the end of the month.
Directed variations must proceed immediately, even if the price and EOT are not ...
Progress payments will be made within 20 Business Days of a valid tax invoice.
An EOT will be granted for Builder-caused delays, provided notice is given withi...
The Subcontractor must rectify any defective work at their own cost during the 1...
The Subcontractor indemnifies the Builder for all consequential loss, without mo...
Notice of delay must be provided within 24 hours of the delaying event, otherwis...
Payment of progress claims will be made 45 days after the end of the month.
The Builder may set-off amounts owed on this project against disputed amounts on...
The Subcontractor assumes all risk and liability for errors in the Builder's des...
Liquidated Damages apply at $10,000 per day, regardless of concurrent delays by ...
Payment of progress claims will be made 45 days after the end of the month.
The Builder may set-off amounts owed on this project against disputed amounts on...
The Subcontractor assumes all risk and liability for errors in the Builder's des...
Liquidated Damages apply at $10,000 per day, regardless of concurrent delays by ...
Directed variations must proceed immediately, even if the price and EOT are not ...
Progress payments will be made within 20 Business Days of a valid tax invoice.
An EOT will be granted for Builder-caused delays, provided notice is given withi...
The Subcontractor must rectify any defective work at their own cost during the 1...
The Subcontractor indemnifies the Builder for all consequential loss, without mo...
Notice of delay must be provided within 24 hours of the delaying event, otherwis...
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