Progress Billing
Progress billing invoices a project in stages as work is completed.
Progress billing issues invoices at intervals during a long project, each reflecting the portion of work done — often as a percentage of completion. It keeps cash flowing on multi-month engagements and is standard in construction. Each invoice shows the period's progress, the running total billed, and the remaining balance.
Example
A contractor invoices monthly at 25%, 50%, and 75% completion, with the balance on handover.
Related terms
Frequently asked questions
How is percent-complete measured?
By an agreed method: cost incurred, labour hours, physical progress, or a certified schedule of values. The contract should name the method so both sides measure the same way.
What is retainage in progress billing?
A percentage of each progress payment held back until completion — commonly 5–10%. It protects the client against defects and is released when the contract's completion terms are met.
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