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Financial

Progress Billing

In Plain English

The practice of billing the owner each month for only the work completed during that period.

Definition

Progress billing is the practice of invoicing an owner periodically (typically monthly) for the percentage of contract work completed and materials stored during that period, rather than billing for the entire project upon completion. It aligns payments with construction progress, improving cash flow for both contractor and owner. Each billing cycle is supported by a payment application and schedule of values.

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