On most construction jobs in Malaysia you are paid in stages, not at the end. Each month, or at each stage in the contract, you send a claim for the value of the work done so far. The client’s QS or consultant checks it, the architect or S.O. issues a certificate, and the client pays within the period the contract states.
A clear claim gets checked and paid faster. A claim that mixes up this month’s work with the total to date, or forgets the retention, gets sent back. The template below keeps every line in the same order a QS checks it.
What goes on a progress claim
- Claim detailsClaim number, date, the period it covers, your company, the client, the project and the contract or LOA reference.
- Contract sumThe original contract value, plus approved variations, so the client sees what the claim is measured against.
- Work done to dateEach work item with its contract amount and the percentage done so far. The template multiplies them for the value to date.
- Less previous claimsThe total of every claim already made. What is left is the value of this claim.
- Less retentionThe percentage held back on this claim, up to the limit in your contract. See how retention works.
- Amount dueWhat you are asking the client to pay now, with your bank details and the payment terms.
How to fill in the template
- Fill in the headerYour company, the client, the project, the claim number and the period this claim covers.
- List the work itemsUse the same items and amounts as your contract or BQ, so the QS can match them line by line.
- Type the percentage doneFor each item, the total done so far, not just this month. The value to date works itself out.
- Check the previous claimsType what you have already claimed. The template takes it off and holds back the retention.
- Attach your proofSite photos, diary entries and delivery orders for the work claimed. Then send it before the cut-off date.
Mistakes that delay payment
- Claiming this month only. Most contracts value the work done to date and then take off the previous claims. Claiming only this month’s work confuses the check.
- Forgetting retention. If the contract holds back retention, show it on the claim. A claim without it will be corrected and may be sent back.
- Mixing in variations. Show approved variations on their own lines. Work that is not yet approved should not be claimed as contract work.
- No proof. A claim with dated site photos and diary records is harder to cut. Keep them from day one, not when the claim is disputed.
- CIPAA. If you may later need to recover payment under the Construction Industry Payment and Adjudication Act 2012, the payment claim has to be in writing and contain what the Act requires. Check the Act or ask a lawyer before you rely on it.
Do it in Raul instead
In Raul you issue the claim from the job. Press Issue invoice, choose a percentage of the contract or an RM amount, and Raul works out what is left to claim from the invoices already issued.
See progress claims and invoices- Retention is held back on every invoice, up to the limit you set.
- Approved variation orders are billed on their own with Bill it.
- Record each payment, part payments too, and see who owes you and how late.
Common questions
What is a progress claim in construction?
A progress claim is a contractor’s request for payment for the work done so far on a job. It is usually made monthly or at stages set in the contract, checked by the client’s QS or consultant, and paid after a certificate is issued.
How do you calculate a progress claim?
Work out the value of all work done to date, take off the total of your previous claims, then take off the retention for this claim. What is left is the amount due.
Is a progress claim the same as an invoice?
Not always. On many jobs the claim is checked and certified first, and the invoice is issued for the certified amount. On smaller jobs the claim and the invoice are often the same document.
Do I need to issue an e-invoice for a progress claim?
LHDN has published FAQs on e-invoicing for the construction industry, including progress claims. Check the latest LHDN guidance or your accountant for what applies to your company.