Progress Billing

Last Updated: Jun 7, 2019

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Progress Billings are a series of billings, usually following the percentage of completion of a large project under a long-term contract. This is common in the construction and software development/installation industries where it is usually impossible for a contractor to fully finance and fund a project to completion before getting paid. Prior agreements between the buyer and contractor usually provide that billings will be accepted upon completion of certain parts or milestones. In the construction industry, the buyer pays the invoices but usually holds back, or "retains", a portion of the billing, known as retention, pending satisfactory completion of the project. Disputes may arise in determining what is "satisfactory" and may ultimately result in the retention or even any unpaid progress billings not being paid.