Progress billing: one contract, billed in stages
Set the job up once. Every application after that picks up where the last one stopped, with retainage held and released for you. Also called milestone billing.
01 / Progress Billing
What is progress billing?
Progress billing, also called milestone billing, is how you invoice a job that runs longer than one invoice: a build, a remodel, a phased project. Instead of one bill at the end, you bill the work completed so far, application by application, against one contract amount.
In Invoice My Clients a job has a schedule of values: one line per stage or milestone, each with its share of the contract. Each application shows how complete every line is, holds back retainage if your contract has it, subtracts what earlier applications already billed, and arrives at the current payment due.
- One job per contract, with up to 40 schedule of values lines.
- Each application subtracts what you already billed, so nothing is billed twice.
- Retainage is held on every application and billed in one step at the end.
- Every application is a draft invoice you review and send yourself.
02 / Capabilities
The arithmetic is done for you
The hard part of billing in stages is carrying the numbers forward without a slip. That is the part this does.
A schedule of values, entered once
List the stages or milestones and what each is worth. They add up to the contract sum, and they carry into every application after the first.
Percent complete per line
On each application you only change how complete each line is. Work billed as complete stays complete: a line cannot go back below what was already billed.
Retainage held, then released
Set a retainage percentage from 0 to 50. It is held back on each application, shown on the invoice, and Release retainage bills the amount held when the job is done.
Less previous applications
Each application subtracts what the earlier ones billed and shows the current payment due. Void an application and it drops out of the job, with its amount.
The whole job at a glance
For every job: contract sum, work completed to date, retainage held, billed, paid, and balance to finish, with every application listed beneath.
A normal invoice at the end of it
An application is an invoice on the construction invoice template. It gets your next invoice number, a PDF, a payment link, reminders and everything else your invoices have.
03 / Process
How to bill a job in stages
Turn on progress billing
In Settings, Invoicing, switch on Progress Billing. It is off until you do, and it is included on the Professional plan and above.
Set up the job
From Invoices, open Progress billing and choose New job. Pick the client, name the project, enter the contract number and retainage, and list the schedule of values.
Bill each application
Choose Bill next application, raise the percent complete on the lines that moved, and create the draft. Review it in the invoice editor and send it like any invoice.
Release the retainage
When the work is done, Release retainage creates one last application for the amount that was held back.
04 / FAQ
Progress billing FAQs
Is progress billing the same as milestone billing?
Yes, for most purposes. Both mean billing one contract in several invoices as the work moves forward. Milestone billing usually bills a stage when it is finished; progress billing can also bill a stage that is partly done. Here each line takes a percent complete, so you can do either: set a milestone to 100 when it is finished, or bill part of it.
How does retainage work?
You set a retainage percentage on the job. Each application holds that percentage of the work completed and shows it on the invoice. When the job is finished, Release retainage creates an application with retainage at zero, which bills exactly what was held. Use 0 if your contract has no retainage.
Are these AIA G702 and G703 forms?
No. An application uses our construction invoice template, which follows the same logic (scheduled value, percent complete, retainage, less previous applications, current payment due) but is not the official AIA document. If your contract requires the licensed AIA forms, you will still need those. Lien waivers and stored materials are not part of this feature.
Are applications sent to my client automatically?
No. Every application is created as a draft invoice. You review it and send it yourself, the same way you send any other invoice.
Which plans include progress billing?
Progress billing is included on the Professional, Business and Enterprise plans, and you switch it on in Settings. It is not part of the Free or Starter plans. The construction invoice template itself is in the template library on every plan, if you only need to fill one in by hand.
Bill the job the way the contract is written
One schedule of values, an application for each stage, and retainage that adds up.
No credit card required to start.