Back to Glossary
Financial

Progress Payment

In Plain English

A payment made by the owner to the contractor each billing cycle for work completed so far.

Definition

A progress payment is an installment payment made by an owner to a contractor during construction in exchange for a payment application representing work completed to date. Construction contracts specify the billing cycle, payment period (commonly 30 days from billing), and retention amount withheld from each payment. Timely progress payments are essential for contractor cash flow and subcontractor solvency.

Related Terms

Frequently Asked Questions

Need more than definitions?

Get AI-powered bid alerts, automated form filling, and proposal drafting.

Start Free Trial

© 2026 ConstructionBids.ai — A LaderaLabs Product