Victoria Lock-Up Claims: Check the Contract Stage Before Releasing Payment

CHECK THE WHOLE STAGE BEFORE PAYINGVictoria lock-up claim evidence

An invoice is a request, not the inspection

A lock-up claim often arrives when the site looks dramatically more advanced. The roof line is clear, external work is progressing and the builder wants to book the next trades. That visual momentum can pressure a first-time owner into approving payment from photographs. Treat the claim as the start of an evidence check. The question is whether the relevant stage has been completed under the applicable contract, not whether the builder has spent substantial money or whether the next subcontractor needs a deposit.

Read the payment basis you actually signed

Consumer Affairs Victoria lists usual payment schedules for different contract scopes and advises legal advice before agreeing to different payments. Do not lift a percentage from an online table without checking whether your contract is to build all stages, only to lock-up or another defined scope. Put the signed payment schedule, relevant stage definition, variations and current claim in one file. If two documents appear to set different triggers, ask the lawyer which governs rather than choosing the version that suits the cash balance.

Use a consultant to translate the stage into inspected work

Ask your independent building consultant to make a project-specific inspection list from the contract. It should identify the elements required at this stage and whether they are installed, complete and consistent with the agreed work. Do not instruct a student to decide technical sufficiency from a roadside look. Give the consultant current plans and approved changes, including any changed window or door supply. Ask for observations that refer to locations and contract items, so both parties can understand what needs resolving instead of debating a broad percentage complete.

Separate the surveyor record from the commercial claim

CAV advises checking that the work has passed the building surveyor inspection, meets contract requirements and is complete before each progress payment. These are related checks, not interchangeable pieces of paper. An inspection record for a specified statutory stage should not be expanded into a consultant opinion on every contract item. Obtain the applicable surveyor record and ask your consultant what additional contract checks are needed. Keep the records dated so an earlier inspection cannot be mistaken for a later assessment after design or site changes.

Work through an incomplete-claim scenario

Suppose the builder issues the lock-up invoice with roof photographs, but your consultant identifies unresolved work under the relevant stage wording. Record each issue against the contract item and send the evidence to the builder and your construction lawyer promptly. Ask for a written response and a proposed reinspection date. Do not decide unilaterally that paying an arbitrary smaller percentage is the lawful solution. Equally, do not approve the whole claim solely to maintain goodwill. The appropriate notice, amount and timing depend on the actual contract and legal position.

Keep cash forecasting separate from payment authorisation

Your finance forecast may show a lock-up draw in November, yet the actual entitlement may arise on a different date. Keep an expected draw line for cash planning and a separate release decision tied to checked evidence. Ask the lender how its valuation and draw process interact with your obligations; a bank inspection is not automatically your contract inspection. Avoid using a lender transfer as proof that the stage is complete. If timing changes, update the forecast and funding buffer without rewriting the builder’s underlying entitlement.

TPC deal lens: evidence should travel with the payment

Before approving the claim, retain the invoice, signed schedule, consultant findings, relevant surveyor record, resolved exceptions and authorisation. CAV warns against paying ahead of completed work. The official Act is the legislative source your lawyer should apply to disputed stage questions. You are not expected to solve these yourself. Key takeaway: visible progress supports an inspection; it does not replace one. Your turn: can the person approving your next claim find the evidence for the whole stage in one place?

Practical decision checklist

1. Identify the signed scope and applicable stage trigger.
2. Give current plans and variations to the independent consultant.
3. Obtain the relevant building surveyor inspection record.
4. Resolve incomplete items and payment notices with the lawyer.
5. Save the release authorisation with the supporting evidence.

Image credit: Troy Mortier / Unsplash. Illustrative photograph. Source · Licence Cropped.

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