Progress Billing Definition

Progress billing is a payment structure where contractors invoice clients based on work completed rather than waiting for full project completion.

How Progress Billing Supports Cash Flow

By breaking payments into multiple installments, progress billing ensures that contractors and subcontractors receive steady cash flow throughout the project. This reduces financial strain and aligns payments with project progress.

Best Practices for Progress Billing

1. Clearly define billing milestones in contracts.
2. Ensure invoices include accurate progress documentation.
3. Maintain open communication with clients to prevent disputes.

FAQs

How often are progress billings submitted?

A: Typically, they are issued monthly or at major project milestones.

Can clients dispute progress billing amounts?

A: Yes, if they believe the invoiced progress does not match the actual work completed.