Contractor invoicing guide
Progress invoicing for contractors
A progress invoice bills an agreed portion of a longer project while keeping completed value, previous payments and the current balance understandable.
Start from the agreed billing schedule
Use the signed scope, schedule of values or milestone plan that governs the project. Name the billing period or completed milestone so the customer can connect the invoice to the agreement.
- Project and service address
- Billing period or milestone
- Relevant contract or change-order reference
- Customer approval requirements
Measure completed value consistently
Apply the same method from one invoice to the next. Bill completed units, an agreed milestone or a supportable percentage instead of changing methods without explanation.
- Scheduled value
- Previously completed value
- Current completed value
- Stored materials only when the agreement allows them
Reconcile every payment and credit
Show deposits, earlier progress payments, credits and any approved retainage separately. The current amount due should reconcile without forcing the customer to reconstruct prior invoices.
Close the project with a final invoice
On the final invoice, reconcile the approved contract amount, change orders, all earlier payments and any remaining balance. Identify incomplete or disputed work instead of silently billing it as complete.
Frequently asked questions
What is a progress invoice?
It is an invoice for an agreed portion of a longer project, commonly tied to a billing period, completed milestone, units or percentage of work.
Should I show previous payments?
Yes. Showing earlier payments and credits helps the current balance reconcile and reduces duplicate-payment confusion.
How should retainage be shown?
If retainage applies, show how it is calculated and withheld according to the agreement. Requirements vary, so confirm the governing terms.
Keep each project payment traceable
Create an itemized invoice for the current stage and credit every earlier payment clearly.
Create a progress invoice