Business glossary
Progress billing
Invoicing portions of a project as measurable work is completed.
Example
A $20,000 project reaches an agreed 40% completion point. Cumulative earned value is $8,000. If $3,000 has already been billed, the current amount is $5,000 before any retainage or other contractual adjustment.
How it differs from related terms
Progress billing should distinguish cumulative work value from this period's invoice. Track prior billings, approved changes and retained amounts to avoid charging for the same work twice.
Frequently asked questions
What is an example of progress billing?
A $20,000 project reaches an agreed 40% completion point. Cumulative earned value is $8,000. If $3,000 has already been billed, the current amount is $5,000 before any retainage or other contractual adjustment.
How should progress billing be interpreted?
Progress billing should distinguish cumulative work value from this period's invoice. Track prior billings, approved changes and retained amounts to avoid charging for the same work twice.