What To Expect: Progress Invoices

When working on a construction project, keeping track of payments is essential. That’s where Progress Invoices come in. These invoices ensure that payments are made in stages, keeping the project on track while maintaining financial transparency. In this guide, we’ll walk you through everything you need to know about Progress Invoices, including when they are due, how they are completed, and who is responsible for them.

What Are Progress Invoices?

Simply put, a Progress Invoice is a billing document used in construction projects to request payment for work that has been completed up to a certain point. Instead of billing for the entire project at once, contractors submit Progress Invoices at agreed-upon intervals.

These invoices provide a snapshot of the work completed and help maintain steady cash flow, ensuring that contractors, suppliers, and workers get paid on time. This system benefits both the contractor and the client by offering transparency and preventing financial strain.

Typically, Progress Invoices are based on:

• Percentage of completion – A portion of the total contract amount is invoiced as work progresses.
• Costs Incurred – Payments are requested based on costs incurred at specific project stages.
• Time intervals – Invoices may be submitted every other week or at other agreed-upon intervals.

No matter the structure, Progress Invoices ensure that payments align with the actual work performed, making them a crucial part of construction project management.

When Are Progress Invoices Due?

The due dates for Progress Invoices vary depending on the contract terms. However, many construction projects follow a biweekly billing cycle, meaning invoices are submitted every other week.

This regular schedule helps maintain steady payments and ensures that all parties involved can plan accordingly. Contractors and subcontractors should submit invoices on time, and clients should process payments promptly to avoid delays in project progress.

Late payments can disrupt the entire project, leading to delays in material orders, subcontractor payments, and overall progress. That’s why setting clear expectations upfront is key to maintaining a smooth workflow.

How Are Progress Invoices Completed?

At Kimball Construction, we make the Progress Invoice process simple and efficient for our clients. We generate and submit a Progress Invoice through Buildertrend, our project management software. This system allows clients to review, approve, and pay invoices seamlessly.

Here’s how the process works:

1. Invoice Creation – Kimball Construction prepares the Progress Invoice for the work completed.
2. Submission Through Buildertrend – The invoice is submitted through Buildertrend, ensuring easy access for the client.
3. Client Review – The client can log into Buildertrend to review the invoice and verify details.
4. Payment Processing – Once reviewed, the client submits payment directly through Buildertrend, ensuring a smooth and secure transaction.
5. Confirmation & Record Keeping – Payments are recorded, and both parties receive confirmation for their records.

Using Buildertrend streamlines the invoicing process, reduces paperwork, and ensures that payments are processed efficiently. This system helps keep projects on schedule while providing full transparency for both Kimball Construction and our clients.

Who Is In Charge of Progress Invoices?

Managing Progress Invoices is a team effort. Multiple parties play a role in ensuring timely and accurate billing:

• Contractor or Subcontractor – Responsible for preparing and submitting invoices.
• Project Manager – Reviews the invoice to confirm that the work matches project progress.
• Accounts Payable Department – Processes payments according to the agreed terms.
• Client or Owner – Approves invoices and ensures funds are available for payment.

Clear communication between these roles is essential to keeping Progress Invoices on schedule. Delays in approval or payment can slow down the entire project, so coordination is crucial.

Frequently Asked Questions

1. Why are Progress Invoices necessary?

Progress Invoices ensure steady cash flow throughout a construction project. They allow contractors to get paid for completed work instead of waiting until the entire project is finished.

2. What happens if a Progress Invoice is late?

If a Progress Invoice is submitted late, payments may be delayed, which can slow down the project. In some cases, late payments may also result in penalties or interest charges, depending on contract terms.

3. Can Progress Invoices be disputed?

Yes. If a client disagrees with the amount billed, they can request clarification or adjustments. Keeping clear records and providing detailed documentation helps resolve disputes quickly.

4. How do retainage and Progress Invoices work together?

Retainage is a portion of the payment withheld until the project is near completion. It helps ensure that final details are completed before full payment is released. Progress Invoices typically account for retainage deductions.

5. Do all construction contracts use Progress Invoices?

Most large projects use Progress Invoices, but smaller jobs may use lump-sum billing instead. The type of invoicing depends on contract agreements.

Final Thoughts

Understanding Progress Invoices is essential for anyone involved in a construction project. These invoices keep payments organized, maintain financial stability, and ensure that work progresses smoothly. By knowing when they are due, how to complete them correctly, and who is responsible for managing them, both contractors and clients can avoid payment delays and keep projects running efficiently.

For more guidance on managing Progress Invoices, contact Kimball Construction today!