Building or renovating a home on the Gold Coast is exciting, yet the thrill can fade quickly once progress payment claims begin to arrive. Homeowners often ask the same questions. How much do I pay at each stage. Is the deposit legal. What happens if the builder wants money before the job reaches a milestone. Queensland law supplies very clear answers, and the Queensland Building and Construction Commission, usually called the QBCC, enforces those answers. Understanding the rules, aligning your contract with them and knowing how to respond to claims will protect your budget, your timeline and your legal rights. This guide explains every stage of a standard Gold Coast home build, shows you the maximum percentages allowed under the QBCC framework and offers practical local insight so you can sign and pay with confidence.
Why progress payments matter for your Gold Coast build
Progress payments are contractual amounts paid in instalments as construction moves through defined milestones. They are common because they spread cost and risk between owner and builder. When structured properly they mirror the value of work in place. When structured poorly they front-load the builder’s cash flow and expose the owner to financial and completion risk.
Queensland regulates residential progress payments under Schedule 1B of the Queensland Building and Construction Commission Act 1991. These provisions apply to domestic building contracts worth more than three thousand three hundred dollars, which covers virtually every new home on the coast. The Building Industry Fairness Security of Payment Act 2017 sets timeframes for responding to payment claims and supplies an adjudication pathway if disagreements arise.
Ignoring the legal framework can lead to penalties for the builder and a loss of Home Warranty Scheme cover for the owner. For that reason banks, building inspectors and lawyers all insist on QBCC compliant schedules. When you understand the rules you can quickly identify illegal deposits, disproportionate claims and other warning signs before any money changes hands.
QBCC rules for deposits and progress payments in Queensland
Schedule 1B sets deposit limits that depend on the contract price. For contracts that exceed twenty thousand dollars, which includes almost every new build on the Gold Coast, the maximum deposit is five per cent of the contract price. A higher deposit can only be taken if the contract involves substantial custom work fabricated off site that exceeds half of the contract price.
After the deposit no further payment can be demanded until work begins on site. Once construction is underway every claim must relate directly to the value of work that has actually been completed on the lot. Section 34 of Schedule 1B makes clear that a builder must not receive payment that is more than a reasonable estimate of that value.
The QBCC provides a model schedule known as Option A. It allocates percentage caps to five milestones after the deposit. The caps ensure that the owner never pays for more than has been achieved on site.
| Stage name | Maximum share of contract price |
|---|---|
| Deposit | 5 per cent |
| Base | 15 per cent |
| Frame | 20 per cent |
| Enclosed also called Lock up | 25 per cent |
| Fixing | 20 per cent |
| Practical completion | 15 per cent |
The percentages in the table exclude the deposit figure for clarity yet the combined total will always add to one hundred per cent of the contract price including GST. The builder can offer an alternative schedule if Option A does not suit the project, however the same proportionality rule applies. A key protection exists that total payments cannot exceed fifty per cent of the contract price until more than half of the on site work has been completed.
Time limits for owners also exist. If a contract does not set a due date the BIF Act default makes a progress payment payable ten business days after the claim is received. If you dispute the amount you must issue your own payment schedule within that same ten business day window or within any shorter period stated in the contract. Failing to respond can place you in default and strengthen the builder’s position during any dispute.
The six main stages of a Gold Coast home build and when to pay them
Every site has its own variables yet most detached dwellings on the coast follow a familiar sequence of six stages. Understanding what physical work defines each milestone allows you to verify completion yourself or through an independent inspector before releasing funds.
Stage one Deposit and pre start
The deposit is paid after the contract is signed and financing is in place but before the builder commences activity on the lot. During this window design finalisation, engineering, energy assessments and council approvals take place. Before you transfer the deposit confirm that the written contract is QBCC compliant, presents a fixed or clearly itemised price, lists all inclusions and variations, and records the progress schedule exactly as negotiated. Always check that the builder holds a current QBCC licence and appropriate insurance.
Stage two Base or slab
Construction begins with site preparation, earthworks, footings and the concrete slab. The slab must be poured, finished and certified by the registered building certifier. On many Gold Coast builds the slab is complete by the end of the second or third month depending on weather and trade availability. The builder may claim up to the fifteen per cent base stage payment at this point. Before paying you should view the engineer’s certificate, the certifier’s inspection report and, if possible, an independent inspector’s notes confirming that the slab thickness, termite barrier and set-downs match the plans.
Stage three Frame
Timber or steel wall frames along with roof trusses and tie downs are erected. Structural bracing and truss engineering are also installed. This stage often concludes in the third or fourth month. The claim for the frame stage can equal up to twenty per cent of the contract price. Verify that the certifier has completed the frame inspection and issued the frame stage approval document. An independent inspector can cross-check wall alignment, nailing patterns and hardware. Only after those confirmations should you pay the claim.
Stage four Enclosed or lock up
The roof sheeting or tiles, external cladding, windows and doors are fitted so that the dwelling can be locked and made weather tight. Because materials like roofing, glazing and cladding represent high value this stage often carries the biggest percentage claim at up to twenty five per cent. On the coastal strip salt air accelerates corrosion, so ask the inspector to focus on flashings, roof fixings and waterproof membranes around window penetrations. If large openings remain unsecured or roofing is incomplete the stage has not been reached. Refuse or reduce payment until genuine lock up is achieved.
Stage five Fixing
Internally the builder installs plasterboard, cabinetry, waterproofing membranes, architraves, skirtings, internal doors and the first services fit off that includes electrical cabling and plumbing rough ins. The QBCC allows up to twenty per cent of the contract price here. Timing varies but a typical Gold Coast family home spends six to eight weeks in fixing depending on the trade queue and the complexity of finishes. Prior to payment read the inspection report that confirms waterproofing to Australian Standard 3740, check that critical tiling set outs, cabinetry and windowsills are straight and confirm that no major cracking or gaps exist in plasterboard joints.
Stage six Practical completion
Practical completion is legally defined as the point at which the home can be occupied and only minor defects or omissions remain. The builder must provide a formal notice of practical completion together with a defects list and a certificate of classification or final inspection certificate from the private certifier. The final claim captures the remaining balance of the contract price which can be as much as fifteen per cent. Before releasing the funds undertake a full pre-handover inspection. Make sure the builder signs the minor defects list and agrees in writing to rectify each item within the defects liability period, usually six or twelve months depending on the contract.
How to negotiate a fair progress payment schedule
Negotiation starts before signing. Ask the builder to present the proposed schedule in writing. Compare each percentage against the QBCC caps in the earlier table. If any stage exceeds the cap, request an adjustment. Emphasise proportionality rather than quoting legal jargon. Builders who work regularly on the Gold Coast will already understand the need to keep claims in line with cost outlay.
Tie each payment to measurable milestones rather than vague statements such as lock up complete. A better description is external windows and doors installed roof covering completed and dwelling capable of being secured. That language removes debate about what lock up means.
Independent progress inspections represent a modest cost relative to the contract price and give objective evidence about stage completion. Banks often require them for construction loans. Even if you fund the build yourself the reports can prevent thousands of dollars in rectification later.
What to do if a progress payment claim looks wrong
A claim can appear wrong for two reasons. The percentage may exceed the QBCC cap or the work on site may not yet match the milestone description. In either case first communicate with the builder in writing and attach photographs or inspection reports to support your position. Refer to the contract clause that links the payment to the milestone and explain why the milestone is incomplete.
If the builder insists, issue a formal payment schedule within ten business days that sets out the amount you propose to pay, which can be zero, and the reasons for withholding the balance. The BIF Act gives you this right. If the dispute remains unresolved either party can seek adjudication. The QBCC also provides an early dispute resolution service for residential matters. Maintaining polite written communication often resolves the issue before formal steps are needed.
Gold Coast specific considerations
The Gold Coast climate delivers high humidity, salt laden winds and occasional intense rain events in summer. These conditions affect both scheduling and material performance. Wet spells can delay slabs, frames and roof installations. A realistic contract program will build in float time rather than squeeze trades into overlapping slots. When negotiating think about the local weather calendar. Starting site works at the end of the dry winter often shortens the overall build.
Construction in coastal exposure zones requires stainless steel fixings, additional waterproofing attention and careful selection of external cladding. Independent inspections at lock up can pay for themselves many times over because water ingress issues are hardest to fix once lining covers the frame.
Finally, choose local builders with a craft history on the coast. Check licence history, past dispute records and references in suburbs from Coolangatta to Pimpama. Familiarity with local regulations and suppliers improves timeline certainty and workmanship.
Before you sign a quick homeowner checklist
Read the entire contract including special conditions to ensure that the maximum deposit is five per cent unless a statutory exception applies.
Match every progress percentage to the QBCC Option A limits or, if using a custom schedule, confirm that each claim is proportional to cost.
Require that every claim be triggered only after certification of the stage by the building certifier and after an optional independent inspection.
Confirm that payment must be made within a set period after the claim is issued, not before. Ten business days is the statutory default if no period is specified.
Add a clause stating that any disputed claim will be met with a payment schedule within ten business days and that unresolved disputes will be referred to BIF Act adjudication or the QBCC’s dispute service.
Budget for at least three independent inspections at slab, frame and pre-handover.
Ensure the builder carries current QBCC licence, public liability and home warranty insurance.
Frequently asked questions
What are the standard progress payment stages for a new home in Queensland
Deposit, Base or slab, Frame, Enclosed or lock up, Fixing, Practical completion. These stages align with QBCC Option A and reflect the usual physical order of construction tasks.
What is the maximum deposit my builder can ask for in Queensland
For residential building contracts that exceed twenty thousand dollars the maximum deposit is five per cent of the contract price unless more than half of the contract involves off site fabrication.
How much should I pay at each progress stage under QBCC rules
Refer to the table earlier in this guide. The caps are fifteen per cent for Base, twenty per cent for Frame, twenty five per cent for Enclosed, twenty per cent for Fixing and fifteen per cent for Practical completion in addition to the five per cent deposit.
Do I have to pay a progress claim immediately
If your contract sets a payment period you must follow it, provided it aligns with statutory limits. If the contract is silent you have ten business days from receiving the claim to pay or to issue a payment schedule.
What is practical completion and when is the final payment due
Practical completion occurs once the home can be occupied and only minor defects remain. The builder issues a notice of practical completion and a defects list at this point. The final payment, which cannot exceed fifteen per cent of the contract price under the standard schedule, becomes payable when you accept that the stage has been reached or after any dispute process concludes.
Can my builder claim more than fifty per cent of the contract price before the home is half finished
No. Schedule 1B requires that progress payments remain proportionate to the value of completed work. A claim that exceeds fifty per cent before half the work is done is almost certainly a breach.
What should I do if I disagree with a progress payment claim
Write to the builder immediately. If you still disagree issue a payment schedule within ten business days stating the amount you will pay and explaining your reasons. Seek advice from a construction lawyer or the QBCC if the matter does not resolve.
Should I get independent inspections before paying each stage
Independent inspections are not mandatory but are highly recommended. They confirm that hidden elements, such as slab engineering and waterproof membranes, meet standards before they become inaccessible.
Are progress payment rules different for Gold Coast builds compared to the rest of Queensland
The legal framework is identical across Queensland. The only differences are practical considerations such as coastal corrosion, trade availability and wet season delays.
Final thoughts on paying your Gold Coast builder safely
A well drafted progress payment schedule turns a complex construction process into manageable, legally compliant steps. By anchoring each payment to QBCC caps and real on site achievement you keep cash flow aligned with progress. Combine that structure with regular inspections, clear communication and prompt use of the payment schedule mechanism if needed and you will minimise conflict, protect your warranty rights and move into a high quality finished home with confidence. Always remember that you are not just paying for building work; you are paying for peace of mind that the work has been done properly, at the right time and under the protection of Queensland’s robust consumer laws.
