How to Send progress invoices

Progress invoicing is essential for construction businesses because most projects span weeks or months and require significant upfront material and labor costs. Waiting until completion to invoice creates serious cash flow problems that can jeopardize your ability to pay subcontractors, purchase materials, or cover payroll.

Sending regular progress invoices provides several critical benefits:

• Steady cash flow: Receive payments throughout the project lifecycle to cover ongoing expenses
• Risk mitigation: Reduce exposure if a client relationship deteriorates or disputes arise
• Client transparency: Keep owners informed about costs and work completed, building trust
• Lender compliance: Meet construction loan requirements for documented draw requests with supporting details
• Accurate job costing: Track actual costs against estimates in real-time to identify budget issues early

Most construction contracts specify a progress billing schedule tied to completion percentages, project milestones, or calendar dates.

Here's how to send progress invoices effectively using standard construction billing practices:

1. Review your contract terms: Confirm the billing schedule, payment milestones, retainage percentage (typically 5-10%), and any lien waiver requirements specified in your agreement
2. Calculate work completed: Assess the percentage of work finished for each line item or cost code. Walk the jobsite, review schedules, and consult with your project manager or superintendent
3. Document progress: Take photos, gather material receipts, and compile subcontractor invoices that support the work you're billing for
4. Prepare the invoice: Create a detailed invoice showing the original contract amount, previous payments, current work completed, retainage held, and current amount due
5. Include supporting documents: Attach the schedule of values, lien waivers from subcontractors and suppliers, change orders, and progress photos
6. Submit through proper channels: Send to the client, owner's representative, or construction lender according to contract requirements
7. Follow up: Track payment due dates and send reminders if payment is delayed beyond terms

BuildTrack streamlines the entire progress invoicing workflow, eliminating manual calculations and paperwork that consume hours each billing cycle. The software automatically tracks costs against your budget in real-time, so you always know exactly what to bill.

Key features that simplify how to send progress invoices include:

• Automated invoice generation: Create professional progress invoices in minutes using your schedule of values, with automatic calculation of completed percentages, retainage, and amounts due
• Integrated documentation: Attach photos, change orders, and supporting documents directly to each invoice without managing separate files
• Lien waiver management: Generate conditional and unconditional lien waivers for all payment tiers, ensuring compliance before releasing payments
• Client portal access: Let clients review invoices, approve draws, and track project financials online, reducing back-and-forth communication
• Payment tracking: Monitor invoice status, send automated reminders, and maintain a complete payment history for every project

BuildTrack integrates with QuickBooks and other accounting systems, ensuring your financial records stay synchronized without duplicate data entry.