Construction contract administration
We get 80 subcontractor progress claims a month as PDFs. Can AI do the first check?
Last updated
Yes. AI can read each subcontractor progress claim, match every line to the contract schedule and approved variations, compare claimed percentages with the previous claim and site records, and flag over-claims or missing documents. It then drafts the payment schedule, and a contract administrator checks and approves it before anything is sent to the subcontractor.
Who this is for
This page is for contract administrators, commercial managers, project controls and systems leads at mid-sized and tier 2 builders and civil contractors running several projects at once. Claims arrive as PDFs and spreadsheets in shared mailboxes, SharePoint libraries or your project system, and approved amounts flow to Business Central, SAP, Microsoft Dynamics 365 or your finance system.
Solve8 does this work with project teams in Sydney, Brisbane, Melbourne, Perth and across Australia and New Zealand, in fixed-fee phases: discover the claim check on one project with a measured baseline, prove it in shadow mode on live claims, build it on your infrastructure in Australia, then support it or hand it over. You can stop after any phase and keep the work.
How the AI claim check works
Read the claim
AI reads each claim as it arrives by email or through the project system, whether it is a PDF, a spreadsheet or a claim form, and pulls out the claim number, period, line items, percentages and amounts.
Match to the contract
Each line is matched to the subcontract schedule of values and to variations that have been approved. Lines that match neither are marked as unapproved or unknown.
Compare with history and site records
Claimed percentages are compared with the last approved claim and with site diaries, progress photos and quantity records, so a jump in progress that the site has not recorded stands out.
Flag over-claims and gaps
AI lists over-claims, duplicated items, arithmetic errors, retention errors and missing supporting documents such as a statutory declaration or current insurance certificate.
Draft the payment schedule
AI drafts the payment schedule with the scheduled amount and a reason for every line that is reduced or withheld.
Contract administrator approves
A contract administrator reviews the flags, changes what needs changing and approves the schedule. Nothing goes to the subcontractor or into the finance system without that sign-off.
What gets checked, and who does what
| Check | What it looks for | AI does | Person does |
|---|---|---|---|
| Schedule match | Claimed items against the subcontract schedule of values | Matches each line and flags items not in the contract | Decides how to treat items outside the schedule |
| Variations | Claimed variations against approved and pending variations | Separates approved, pending and unknown variations | Approves or rejects variations under the contract |
| Progress | Percentage complete against the last claim and site records | Highlights jumps not supported by diaries, photos or quantities | Confirms progress with the site team |
| Arithmetic and retention | Totals, previous payments, retention and GST | Recalculates and flags any difference | Approves the corrected figures |
| Supporting documents | Statutory declarations, insurance and other contract requirements | Lists what is missing or expired | Decides whether to withhold under the contract |
| Payment schedule | Scheduled amount and reasons for any reduction | Drafts the schedule in your format | Signs and issues the schedule within the statutory time |
Security of payment timeframes mean a person signs off
Payment claims under security of payment laws run on fixed clocks. The NSW Government says a respondent must get a payment schedule to the claimant within 10 business days after receiving the payment claim, and that a respondent who does not is liable for the full amount claimed. The QBCC says that in Queensland a payment schedule must be given within 15 business days after the payment claim, or earlier if the contract sets a shorter time, and that it must state all reasons for paying less. Victoria has its own legislation and timeframes.
Because reasons left out of a payment schedule can be hard to rely on later, the AI's job is to make sure nothing is missed in the time available. It logs the date each claim is received, shows the response date set for that state and contract, and drafts reasons for every reduction. The decision to pay, reduce or withhold stays with a contract administrator or commercial manager, and the rules for each state are confirmed with your own legal advisers during setup.
Subcontractor compliance checked on upload
Insurance certificates
AI reads certificates of currency, checks insured name, cover amount and expiry against your subcontract requirements, and flags shortfalls.
Licences
Trade and high-risk work licences are read for holder, class and expiry, and matched to the workers and scope on site.
SWMS
AI checks a SWMS has been submitted for the high-risk work in the subcontractor's scope and that it names the right project and activity. Your safety team still reviews the content.
Inductions
Induction records are matched to the site roster so the team sees who is cleared to work.
Expiry reminders
Reminders go out before a document expires, and the subcontractor register updates itself.
Where it does not work well
Handwritten claims
Handwritten or photographed claim forms are read less reliably. They can be processed, but expect more items to be sent to a person, or ask subcontractors to use a standard template.
Unclear schedules
If the subcontract schedule of values is a lump sum or loosely described, there is little to match against. Tidy the schedule on new subcontracts first.
Variations agreed verbally
AI can only match variations that are recorded. If variations are agreed on site and written up later, the AI will flag them as unapproved.
Inconsistent site diaries
Progress checks depend on site diaries. Free text that differs by project lowers accuracy, so one diary template helps.
Very low volume
A handful of claims a month may only need a good checklist.
How Solve8 runs it in phases
Discover
Map the claim check on one project with your contract administrators and measure time per claim and errors found.
Prove
AI checks live claims in shadow mode. Your team compares its flags with their own and sets the accuracy bar.
Build
Connected to your project, document and finance systems with approvals and logs, on your infrastructure in Australia.
Run
We support it, or hand over code, documentation and training.
Proof from Solve8's work
Solve8 built AI that categorises defect records and suggests quote lines for a national fire protection provider, in the client's own cloud in Sydney and entering shadow mode beside the quoting team. Claims follow the same pattern: AI does the first pass and your people approve.
Related work
- Construction and infrastructureSubcontractor compliance, ITPs and progress claims taken off project teams.
- Mining prequalification packsPrequalification answers drafted from one controlled document library.
- AI agentsAI that reads documents, checks them and hands decisions to people.
- Process automationManual steps between documents and systems removed, with approvals kept.
Sources
NSW Government, Responding to a payment claim: https://www.nsw.gov.au/housing-and-construction/compliance-and-regulation/security-of-payment/responding-to-a-payment-claim
Queensland Building and Construction Commission, Respond to payment request: https://qbcc.qld.gov.au/running-business/getting-paid/respond-payment-request
Questions
What accuracy should we expect from AI on subcontractor progress claims?
It depends on how consistent your claims and schedules are, so we measure it rather than promise it. In the prove phase the AI checks live claims beside your contract administrators, and your team compares every flag with their own check. You set the accuracy bar, and the AI only takes on more once it meets it.
What happens when a subcontractor claims for a variation that has not been approved?
The AI marks the line as unapproved, shows any pending variation that looks related, and drafts a reason for withholding that amount in the payment schedule. The contract administrator decides whether to pay, hold or ask for more information, because only they can approve a variation under the contract.
Can AI check certificates of currency against the insurance minimums in our subcontracts?
Yes. The AI reads the insured name, policy type, cover amount and expiry date from each certificate and compares them with the minimums in that subcontract. Shortfalls and expiries are flagged to the project administrator, who decides whether the subcontractor can stay on site.
Do subcontractors have to change how they submit progress claims?
No. They can keep sending PDFs, spreadsheets or claim forms by email or through your project system. Accuracy improves if claims follow your schedule of values line for line, so many builders ask for a standard claim template on new subcontracts, but it is not needed to start.
Who is accountable if the AI misses an over-claim?
Your contract administrator, in the same way as today. The AI does the first check and shows its working for every flag, but a named person approves each payment schedule. Logs record what the AI flagged and what the reviewer changed, which helps with audits and claim disputes.
Can one setup handle claims on projects in NSW, Queensland and Victoria?
Yes. The claim check is the same everywhere, and the response dates and payment schedule wording are set per state and per contract. Your legal advisers confirm those rules during setup, and the AI applies the right ones based on where the project is.
Related
- Construction and infrastructureClaims, reporting and site data.
- Every mining client wants a different prequalification pack and tender response. Can AI cut the paperwork?How AI drafts mining prequalification and tender answers from a controlled document library, flags expired certificates and keeps every answer consistent.
- AI agents for Australian organisations, built inside your systemsAn AI agent is software that reads incoming work, decides within your rules and acts across your systems. A person approves the result.
- Process automationLess retyping, chasing and manual checks.
Checking every claim by hand?
A 30-minute review with a senior consultant. You leave with a written one-page summary you can share internally.
Fixed-fee phases, agreed before we start. Stop after any phase.