🇦🇺Australia

Unbilled Work and Missed Progress Claims

3 verified sources

Definition

Manual processes fail to capture all billable work within the monthly claim window. Equipment delivery dates, installation hours, or materials supplied may not be matched to contract line items in time for claim submission. Over a year, missed claims or underbilled work accumulate. Additionally, contractors may not be aware of contract-specific claim windows or escalation clauses.

Key Findings

  • Financial Impact: 2–5% annual revenue leakage. For a contractor with AUD 5M annual revenue, this represents AUD 100,000–250,000 in unrecovered billings annually.
  • Frequency: Monthly (per progress claim cycle)
  • Root Cause: Manual matching of work completion to contract line items, lack of visibility into contract milestones, delayed or forgotten claim submission before month-end

Why This Matters

The Pitch: Building equipment contractors in Australia lose 2–5% of annual revenue through unbilled work and delayed claim submission due to manual milestone tracking. Automation of work-to-claim reconciliation against contract schedules recovers this revenue.

Affected Stakeholders

Project Managers, Finance/Accounts Receivable, Site Supervisors

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Financial Impact

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Current Workarounds

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

Progress Payment Cash Flow Drag

15–20 business day delays per claim cycle = 3–4 week cash flow impact. For a contractor with AUD 500,000/month revenue and 8 progress claims/year, this represents AUD 60,000–80,000 in tied-up working capital annually (assuming 10% of monthly revenue per claim, 3-week delay × cost of capital ~8–12%).

Adjudication Dispute and Legal Enforcement Costs

AUD 5,000–15,000 per adjudication dispute (including ANA appointment fees, adjudicator costs, legal review). For a contractor with 10–15 active contracts, 1–3 disputes per year = AUD 5,000–45,000 annual compliance cost.

Manual Progress Claim Administration Overhead

25–40 hours/month × AUD 50–70/hour (finance/admin labor) = AUD 1,250–2,800/month or AUD 15,000–33,600 annually per contractor. For a mid-sized contractor with 5–10 active projects, this scales to AUD 75,000–336,000 annually.

Unbilled Change Order Work Due to Incomplete Documentation

Estimated 2-5% of contract value per change order; typical commercial fit-out project: AUD $50,000-$150,000 in unbilled work per year

Delayed Change Order Approval and Payment Hold-Up

15-30 day payment delay per change order; interest cost @ 6% p.a. on average AUD $300,000 WIP = ~AUD $5,000/month opportunity cost for mid-sized contractor

AS 4000 Non-Compliance Risk: Verbally Agreed Changes Without Written Documentation

Estimated legal defense cost AUD $25,000-$50,000 per dispute; potential loss of AUD $50,000-$500,000 in unbilled/disputed work; state building regulator audit penalties: AUD $5,000-$20,000 per non-compliant project

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