Definition
Progress tracking records the actual work completed on-site, and billing is issued to match the project’s real progress.Progress billing is a payment approach method in contracting and construction where payments are made the client pays in stages as the work advancesprogresses, rather than in a single lump sum at the end. The typical process includesfinal payment.
The process involves:
Agreeing on the total contract amount value and work schedule.
Breaking Dividing the project into phases or percentages of completion.
Submitting progress documentation reports at regular agreed intervals (e.g., monthly) to verify confirm completed work.
Receiving payment from the client for the portion completed portion, instead of the full contract amount upfrontnot the entire project, upfront.
Billing is directly linked to the actual work completed on-site, ensuring that payments accurately reflect the project's progress.
In FirstBit
In FirstBit Contracting, a progressive invoice is generated through a series of linked documents, reflecting the portion of work completed, after adjusting for advance payments and retention.
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