How Does a Quantity Surveyor Assess Progress Payment Claims from Builders?

When your builder submits a progress payment claim, a quantity surveyor (QS) acts as an independent expert who verifies that the work claimed has actually been completed to the required standard and that the amount requested is fair and reasonable. This process protects you as the homeowner from overpaying, while also giving your builder confidence that legitimate claims will be paid promptly.

What Is a Progress Payment Claim?

A progress payment claim is a formal invoice submitted by your builder at agreed milestones or intervals during a construction project. Under the Construction Contracts Act 2002, builders have legal rights to make these claims, and there are strict timeframes for responding to them. If you don't respond correctly and on time, you may be legally obliged to pay the full claimed amount — even if it seems too high. This is one of the key reasons engaging a QS to assess claims is strongly recommended.

How the QS Assessment Process Works

1. Reviewing the Contract and Schedule of Values

Before assessing any claim, the QS will carefully review your construction contract and the agreed schedule of values — a breakdown of the total contract price into individual work items or stages. This document forms the baseline against which all claims are measured.

2. Site Inspection

The QS will visit the site to physically verify what work has been completed since the last payment. They check:

• Which stages or items are fully complete
• Which items are partially complete, and to what percentage
• Whether the work meets the quality standards specified in the contract and the NZ Building Code
• Whether materials on-site (but not yet installed) are legitimately claimable under the contract terms

3. Measuring and Quantifying Work Done

The QS applies their measurement expertise to quantify completed work accurately. For example, they might measure square metres of concrete poured, linear metres of framing erected, or confirm that a specific milestone (such as roof completion) has genuinely been reached. This is where their technical knowledge of construction methods and costs is essential.

4. Checking Variations

Variations are changes to the original scope of work — additions, deletions, or substitutions. The QS will check whether any variations claimed have been properly authorised in writing, and whether the costs attributed to them are reasonable. Unverified or overpriced variations are a common source of disputes on building projects.

5. Reviewing Subcontractor and Supplier Invoices

For cost-plus or open-book contracts, the QS may also review invoices from subcontractors and suppliers to confirm that costs passed through to you are genuine and correctly calculated.

6. Issuing a Payment Schedule

After completing their assessment, the QS prepares a payment schedule (sometimes called a progress certificate) that states:

• The amount they recommend be paid
• Any amounts withheld and the reasons why
• Adjustments for variations or disputed items

This document is your formal response to the builder's claim under the Construction Contracts Act, so it must be issued within the timeframes set out in your contract (but check your specific contract for the applicable timeframe).

Why Independent QS Assessment Matters

Without independent assessment, homeowners risk:

BRANZ research consistently highlights that payment disputes are among the most common causes of construction project failures in New Zealand. A QS helps prevent these situations before they arise.

What Qualifications Should Your QS Have?

Look for a QS who is a member of the New Zealand Institute of Quantity Surveyors (NZIQS) or holds a relevant tertiary qualification. While quantity surveying is not a licensed trade in the same way as electrical or plumbing work, professional membership provides assurance of competence and ethical standards. You can find qualified QS professionals on tradedirectory.co.nz.

Costs and Fees

QS fees for assessing progress claims vary depending on project size and complexity. As a broad guide, expect to pay a fee per assessment visit, or a percentage of the contract value for ongoing contract administration. Your QS should provide a clear fee proposal upfront. While this is an additional cost, it is generally far less than the risk of overpaying a builder or becoming embroiled in a payment dispute.

When to Call a Professional

You should engage a qualified quantity surveyor:

• Before signing a building contract — to review the schedule of values and contract terms
• At each payment milestone — to assess and certify progress claims
• When a variation is proposed — to check the cost is reasonable before you agree
• If a dispute arises — a QS can provide expert evidence for adjudication under the Construction Contracts Act

For larger projects, many homeowners appoint a QS to administer the entire contract from start to finish. For smaller projects, you might engage them only for specific claims you're uncertain about. Either way, getting professional advice early is far cheaper than resolving problems later. Find a local quantity surveyor on tradedirectory.co.nz.

Sources & Further Reading

• MBIE Building Performance — Construction Contracts Act guidance
• BRANZ — Building research and best practice
• Licensed Building Practitioners — checking your builder's licence
• Consumer NZ — homeowner rights in construction
• Standards NZ — NZ construction standards