Progress Billing Template
Progress billing invoices a project in stages as work is completed, rather than waiting until the end. Each invoice shows the percentage of work done, the amount due for this period, and the running total billed to date. It is the standard approach in construction and other long, multi-phase projects.
When to use this
- When a project spans months and you need cash flow along the way
- When the contract pays in installments tied to completion stages
- When working under construction or engineering contracts with scheduled payments
- When you need to document percent-complete for the client or a lender
- When retainage or holdbacks apply to each billing period
Key fields to include
- Contract total and this invoice's billing period
- Percent complete and amount billed this period
- Total billed to date and remaining contract balance
- Breakdown by work category or schedule of values
- Retainage withheld this period, if any
- Certification or sign-off line for the client's approval
Frequently asked questions
What is retainage in progress billing?
Retainage is a percentage of each progress payment (commonly 5–10%) held back by the client until the project is complete. It protects the client against unfinished or defective work and is released when the contract's completion conditions are met.
How do I avoid billing disputes with progress invoices?
Attach evidence of completion — photos, inspection sign-offs, or a certified schedule of values — and keep the percent-complete math visible. Disputes usually come from unclear progress claims, not from the invoice format.
Can progress billing apply outside construction?
Yes. Any long project with defined phases — software development, design, consulting — can use progress billing. The key is having measurable milestones or completion criteria both sides accept.
More use cases
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