Glossary
Progress billing
Also called: progress payments · pay application · schedule of values
Progress billing is invoicing a job in stages as the work is completed, rather than billing the full amount at the end.
On larger jobs the contract usually includes a schedule of values — the contract broken into line items — and each bill claims a percentage complete against each line. On residential work, progress payments are more often tied to visible milestones, such as rough-in passed or cabinets set.
Billing on progress keeps a long job from being financed out of your own account. It also means that what you have billed and what you have earned drift apart, which is exactly what a work-in-progress schedule measures.
Why it matters to a contractor
A job billed only at completion is a job you pay for up front — materials, subs and payroll for weeks before any money comes in. Progress billing is what keeps long jobs cash-positive.
Work it out on your numbers