![]() ![]() However, the steady cash flow and compatibility with long-term projects make it a staple in some industries. Progress billing is helpful for any project that has defined stages and milestones toward completion. It includes the current invoice balance, the balance of work left and any outstanding and overdue invoices. Remaining balance: The remaining balance is how much the customer still owes on the project. Project completion percentage: The project completion percentage is how much of the project is complete and is billed.Īpproved changes and subsequent adjusted price: Includes any approved change orders affecting the cost of the project, along with the price difference. Total paid to date: The total paid to date is how much the customer has paid so far in the project. There may be incentives built in, for example, if the contractor completes the job early or under budget. ![]() Total project amount: This is how much the project is estimated to cost upon completion. Progress billing invoices require some items not found on typical invoices to ensure that payments are accurate. Upon satisfactory completion of the project, customers sign off and make the final payment. The contractor can then fund the purchase of goods and labor for the next phase of construction. ![]() As long as the customer is satisfied with the quality of the product, it makes the payment. Progress billing is calculated on a to-date basis by multiplying the project's percentage complete by the total project price.Īs it meets milestones, the contractor submits an invoice for completed work. The contractor and customer or lender contractually agree to a set of milestones with associated payment percentages, and work begins.
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