Free Builder Payment Plan Agreement Generator — Australia
Create a professional payment plan agreement tailored for builder businesses in Australia. Set up instalment payment plans with clear terms and schedules.
Create Your Payment Plan Agreement Now →Common Payment Plan Agreement Line Items for Builders
Here are typical items you might include on a builder payment plan agreement:
| Description | Unit |
|---|---|
| Labour — carpenter | hour |
| Labour — labourer | hour |
| Concrete supply and pour | m³ |
| Timber framing | lot |
| Roofing materials and install | m² |
| Scaffolding hire | week |
| Skip bin hire | each |
| Site supervision | day |
Typical Builder Pricing in Australia
Rates vary by state and job complexity, but these are the kinds of ranges builders commonly charge:
| Item | Typical range |
|---|---|
| Labour — carpenter | $70–$110 per hour |
| Concrete supply and pour | $180–$300 per m³ |
| Roofing materials and install | $60–$150 per m² |
| Scaffolding hire | $150–$400 per week |
| Skip bin hire | $300–$700 per bin |
Compliance Tips for Builders
- State building licence number must appear on contracts and invoices.
- Home building compensation (HBC) insurance is required for residential work over the relevant state threshold.
- GST registration is mandatory at $75,000 turnover.
- Taxable payments annual report (TPAR) must be lodged if you pay subcontractors for building services.
How to Create a Builder Payment Plan Agreement
Follow these steps to put together a builder payment plan agreement with our free generator:
- Enter the total amount owed and the client's details.
- Set the instalment amount, frequency, and number of payments needed to clear the balance.
- Note any late fees or interest that apply if an instalment is missed.
- Download the agreement as a PDF for both parties to sign before the first instalment is due.
What to Include on a Builder Payment Plan Agreement
A builder payment plan agreement should cover these fields, plus a few billing norms specific to how builders typically operate in Australia.
Fields to include
- Instalment schedule: List every instalment amount and due date so both parties can track progress against the plan.
- Default consequences: State what happens if a payment is missed — for example, the full balance becoming due immediately.
- Signatures: Have both parties sign the plan before it starts, so the agreed terms are clearly evidenced.
How Builders typically bill
- Larger builds are billed via progress payments at agreed milestones (e.g. slab, frame, lock-up, completion), each with its own tax invoice.
- Quotes are broken into sections (demolition, structural, fit-out, finishes) so clients can see cost allocation clearly.
- A variations clause is standard, since unexpected site conditions are common in construction.
- Subcontractor and supplier purchase orders are kept on file to reconcile against progress claims.
Builders must show their state licence number and ABN on invoices and quotes, register for GST at $75,000 turnover, and lodge a Taxable Payments Annual Report for any payments made to subcontractors.
Common Mistakes to Avoid
Watch out for these common errors when preparing a builder payment plan agreement:
- Starting a payment plan on a verbal agreement rather than a signed document.
- Leaving out what happens on a missed payment, which weakens your position if the client defaults.
Frequently asked questions
What are progress payments and how should a builder invoice them?
Progress payments are partial payments made at defined project milestones (e.g., slab, frame, lock-up, completion). Issue a separate tax invoice at each milestone referencing the stage and contract amount.
Does a builder need to be licensed to invoice?
In most states, builders must hold a current licence to carry out residential building work over a certain value. The licence number should appear on all invoices and contracts.
How should a builder handle variations?
Document every variation with a written instruction, revised quote, and client approval before starting the extra work. Invoice variations separately or as a clearly labelled line item on the next progress claim.
What should a payment plan include?
A payment plan should specify: total amount owed, instalment amounts and dates, any interest or late fees, consequences of default, and signatures from both parties.
Can I charge interest or fees on a payment plan?
Yes, as long as the fees are clearly disclosed and agreed in writing before the plan starts — silently adding fees later can make the plan unenforceable.
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