Common progress billing structures
Most contractors use one of these: deposit + milestones + final, or percentage billing for longer projects.
Milestones that reduce disputes
Choose milestones that are easy to verify (e.g., “materials delivered”, “rough-in complete”, “final walkthrough”).
How to invoice each milestone
Reference the milestone, include dates, and keep labor/materials breakdown clear so customers know what changed.
Frequently asked questions
What is progress billing?
Progress billing invoices part of the total job cost as work is completed—usually via deposits and milestone invoices—rather than billing everything at the end.
Is progress billing better than billing at completion?
For many contractors, yes. It improves cash flow and reduces risk on long projects. For small jobs, a deposit + final invoice may be enough.
How do I structure milestone invoices?
Pick clear milestones (e.g., rough-in complete, installation complete) and assign a percentage or dollar amount to each milestone in your contract and invoice.