What is an invoice submitted by a contractor known as during the project?

An invoice submitted by a contractor during a project, known as progress billing, is typically used to request payment for work completed up to that point in the project. This method allows contractors to receive partial payments as the work progresses, which helps manage cash flow and ensures that they have the necessary funds to continue their work without waiting for the project’s completion.

Progress billing involves a schedule that outlines the stages of the project, detailing the work completed and the corresponding amount due based on the percentage of work completed. This makes it a practical approach for both contractors and project owners, as it provides regular financial reporting and accountability as work is underway.

In contrast, other types of invoices serve different purposes. For example, a retainage invoice pertains to the portion of the contract price withheld until the project is fully completed and all contractual obligations have been met. A final billing statement occurs at the end of a contract once all work has been finished, while a completion invoice may imply a request for payment specifically at project completion. These distinctions are important as they relate to the management of financial transactions throughout the lifecycle of a construction project.