What does Contractor's Progress Billing refer to?

Contractor's Progress Billing refers specifically to invoices submitted by contractors at various stages of a construction project rather than waiting until project completion. This practice allows contractors to receive payment incrementally as work is completed, which helps with cash flow management throughout the duration of the project.

Progress billing typically occurs at predetermined milestones, such as the completion of certain phases of work or when specific deliverables are met. This approach provides both the contractor and the client with continuous monitoring of progress and financial commitment aligned with the work done at each stage. It contrasts with final invoices, which represent the total amount due after the entire project is completed, or invoices for pre-construction costs that do not reflect ongoing project work. Additionally, administrative fees may be a part of the overall billing structure but do not encapsulate the core function of progress billing.