Progress invoicing is the most common way that jobs in construction are invoiced. In cases where the contractor has submitted (and the customer has accepted) a fixed-price quote for a job, she/he will most likely bill it in increments based on timings specified in the contract or based on how far along she/he is at the end of each month. Not surprisingly, this billing based on progress is called progress invoicing.
Progress invoicing is only for fixed-price contracts; the term should not be used for Time and Materials invoices.
Also known as: Percent-complete invoicing, Progress billing, Percent-complete billing
A contractor quotes a job for $20,000, to be billed based on percent-completion at the end of each month. At the end of the first month, she/he’s completed approximately 20% of the job; accordingly, she/he submits an invoice for 20% of the quoted total, or $4,000.
Knowify supports progress billing in all of its forms. Whether you want to bill and track just a single line item every month or compile and send a highly detailed Schedule of Values showing the billing progress of each line item in a multi-item contract, Knowify will have you covered.