Most disputes between owner and contractor revolve around payments: the contractor asks for a payment, saying forty per cent is done, and the owner sees the site but does not know if it is really due, so either pays anxiously or refuses and work slows. Both options are bad. The solution is an independent, methodical progress report prepared by the supervisor or project manager, measuring what has actually been built and accepted at acceptable quality, and linking it to the contract terms. This guide explains methods of calculating progress, the supervisor's role, rules that protect the owner, a model valuation, and payments in off-plan projects.
Methods of Calculating Progress
| Method | How it works | Suits |
|---|---|---|
| Relative weights | Each item has a weight of the contract value, multiplied by its percentage complete | Lump-sum contracts |
| Quantities executed | Measuring actual quantities and multiplying by unit rates | Unit-rate contracts |
| Milestones | A payment on completion of a specific stage | Small projects |
An Illustrative Example Using Weights
| Item | Weight of contract | Percentage complete | Contribution to overall progress |
|---|---|---|---|
| Foundations | 15% | 100% | 15% |
| Concrete frame | 30% | 60% | 18% |
| Blockwork | 10% | 20% | 2% |
| Other items | 45% | 0% | 0% |
| Overall progress | 35% | ||
The figures are illustrative; actual weights are set in the contract and bill of quantities.
The Supervisor's Role
- Verifying quantities and stages on site.
- Excluding works not accepted or non-compliant.
- Approving the valuation before payment.
- Documenting it with photographs in the periodic report. Read: Contents of supervision reports.
Rules That Protect the Owner
- No large advance payment without a guarantee.
- A retention from each payment until handover.
- Materials on site not yet installed are treated with caution.
- The final payment after observations are closed. Read: The handover checklist.
- A payment schedule in the contract linked to progress, not time. Read: Contract clauses that protect the owner.
Warning Signs
- Payment requests running ahead of actual progress.
- Claims for payment for materials not installed.
- Progress announced by the contractor without measurement.
- Repeated requests for exceptional payments.
These are indicators of a struggling project. Read: Causes of project delays.
Off-Plan Projects
In off-plan projects, payments from the escrow account are linked to the consultant's progress reports under Wafi regulations. See our progress reports and escrow account service, and read: The escrow account and buyer protection.
Frequently Asked Questions
Who prepares the progress report?
The supervisor or project manager, independently of the contractor.
What if we disagree on the percentage?
Refer to documented site measurement and the contract terms.
Should I pay for materials delivered to site?
With caution and according to the contract; it is better to pay after installation or with clear guarantees.
What is a typical retention?
The contracts set it; the aim is to secure closing observations and the warranty period.
Can I release payments while out of town?
Yes, based on a report approved by the supervisor. Read: Following a project remotely.
How Abak Engineering Consultancy Helps
Abak is an accredited engineering office in Riyadh that prepares independent progress reports with documented site measurement, approves contractor valuations before payment, and prepares progress reports for Wafi projects. See our periodic technical reports service, or contact us.
Regulatory information is based on the Balady platform and the Ministry of Municipalities and Housing, and procedures may be updated by the competent authority. Last reviewed: October 2026.