Definition of 'Progress Billings'
A series of invoices prepared at different stages in the process of a major project, in order to seek payment for the percentage of work that has been completed so far. Progress billing will show the original contract amount, any changes to that amount, how much has been paid to date, what percentage of the job has been completed to date, what payment is currently due and the total amount remaining to be paid by the project's completion. Progress billing is common in the construction industry.
Investopedia explains 'Progress Billings'
For example, in the construction business, the client or recipient of the finished project does not want to pay for the entire job up front because it is an expensive, long-term task with the potential for many financial miscalculations along the way. The construction company does not want to wait to be paid until the project is completed because it needs to pay its employees and purchase materials as the project is carried out.
Progress billings meets the needs of both the construction company and its client by providing for payment at several stages during the process.