Progress Invoice Template
Download a progress invoice template to bill completed construction work, track previous applications, retention, approved changes, tax, and remaining contract value.
Bill Construction Work as It Progresses
A progress invoice gives subcontractors a structured way to request payment for work completed during a defined billing period. Instead of waiting until the end of the project, the contractor bills approved portions of the contract as labour, materials, equipment, milestones, or work packages are completed.
This Progress Invoice Template is designed for subcontractors, specialty contractors, project managers, quantity surveyors, contract administrators, and accounts teams. It can be used for monthly applications, milestone billing, schedule-of-values billing, measured work, stored materials, approved change orders, retention releases, and final account reconciliation.
What Is a Progress Invoice?
A progress invoice is a payment request based on the value of construction work completed to date. It typically shows the original contract value, approved additions and deductions, previous billing, current work completed, stored materials, retention, tax, payments received, and the remaining contract balance.
Progress invoices are often supported by a schedule of values or valuation sheet that divides the contract into measurable activities, phases, trades, cost codes, or work packages. Each billing period updates the percentage complete and amount earned for those items.
When to Use This Template
- Submitting monthly construction invoices
- Billing against a schedule of values
- Requesting milestone payments
- Claiming measured or percentage-complete work
- Billing materials stored on or off site
- Including approved change orders in a progress claim
- Tracking retention withheld and released
- Preparing final progress and closeout invoices
Who Should Use This Template?
This template is suitable for subcontractors, specialty contractors, main contractors, project managers, quantity surveyors, contract administrators, commercial teams, and accounts staff responsible for periodic project billing.
It can be adapted for electrical, plumbing, HVAC, roofing, concrete, steelwork, framing, drywall, painting, flooring, glazing, fire protection, demolition, excavation, landscaping, waterproofing, masonry, civil works, and other construction trades.
What a Progress Invoice Should Include
| Progress Invoice Section | Purpose |
|---|---|
| Contractor and Customer Details | Identifies the billing party, customer, project contacts, and accounts contacts. |
| Invoice and Billing Period | Records the invoice number, application number, invoice date, due date, and valuation period. |
| Contract References | Links the invoice to the project, contract, subcontract, purchase order, work package, and cost codes. |
| Original Contract Value | Shows the value of the original agreed scope before changes. |
| Approved Changes | Records approved additions and deductions that revise the contract value. |
| Schedule of Values | Breaks the contract into line items with scheduled values, prior completion, current completion, and remaining balance. |
| Stored Materials | Captures approved materials purchased or stored for the project but not yet installed. |
| Previous and Current Billing | Separates amounts billed previously from the value being billed in the current period. |
| Retention | Calculates retention withheld, released, and outstanding. |
| Tax | Calculates applicable tax based on the invoice and contract treatment. |
| Payments and Credits | Records payments received, deposits, credit notes, adjustments, and outstanding balances. |
| Supporting Records | References progress reports, photographs, delivery notes, timesheets, inspections, and approved change documents. |
How to Use the Template
- Enter the contractor, customer, project, contract, and billing-period details.
- Record the original contract amount and all approved additions and deductions.
- List each schedule-of-values item or work package with its approved value.
- Carry forward the previous percentage complete and previous billed amount.
- Enter the current percentage complete, measured quantity, or milestone value.
- Record approved stored materials separately from installed work.
- Calculate the current earned value and total earned value to date.
- Apply retention, tax, credits, deposits, and previous payments.
- Attach or reference the supporting evidence required by the customer.
- Review the remaining contract value and confirm no item exceeds 100% completion before submission.
A plumbing subcontractor has a £240,000 contract for a multi-unit residential project. At the end of the month, the schedule of values shows £96,000 billed previously, £34,000 of current installed work, and £8,500 of approved stored fixtures. A £12,000 approved change order has also been added to the contract. After applying 5% retention, deducting a £3,000 prior payment adjustment, and calculating tax, the progress invoice shows the current amount due and the remaining revised contract balance.
Best Practices for Progress Invoicing
- Use the same schedule-of-values structure for every billing period.
- Carry forward previous billing and retention without overwriting historical values.
- Separate original contract work from approved additions and deductions.
- Use measured quantities, verified milestones, or supported percentages complete.
- Do not bill stored materials without the required approval and evidence.
- Match the customer’s billing cutoff, submission format, and supporting-document requirements.
- Check that billed-to-date values do not exceed revised contract values.
- Track retention withheld and released separately.
- Record certification differences and disputed deductions.
- Lock issued invoices and maintain a revision history.
Common Progress Invoice Mistakes
- Failing to carry forward previous invoice values accurately
- Billing more than 100% of a schedule-of-values item
- Including unapproved change orders in the current claim
- Applying retention to the wrong billing base
- Claiming stored materials without delivery records or approval
- Using percentages complete that are not supported by site progress
- Ignoring prior credits, payments, or certification adjustments
- Submitting after the billing cutoff date
- Changing line-item descriptions between billing periods
- Failing to reconcile the remaining contract value before submission
Frequently Asked Questions
What is the difference between a progress invoice and a standard invoice?
A standard invoice may bill a complete job or a specific delivery. A progress invoice bills part of a construction contract based on work completed during a period and usually carries forward previous billing, retention, and remaining contract value.
What is a schedule of values?
A schedule of values divides the contract into line items or work packages with assigned values. It is used to measure progress and calculate the amount earned and billable for each item.
Can stored materials be included?
Yes, when the contract permits it and the customer approves the claim. Supporting evidence may include supplier invoices, delivery records, photographs, storage details, insurance confirmation, and proof that the materials are allocated to the project.
How is retention calculated?
Retention is usually calculated as a percentage of the eligible current work and stored-material value. The applicable rate and calculation basis should match the contract.
How should approved change orders be billed?
Add approved changes to the revised contract value and track their previous, current, and total billed amounts separately. Do not treat pending changes as approved contract value unless the contract permits billing before formal approval.
What happens if the certified amount is lower than the invoiced amount?
Record the submitted amount, certified amount, and difference. Note the reason for the deduction or deferral, then carry the unresolved balance into the appropriate follow-up, revised application, or dispute process.
Keep Each Billing Period Reconciled
A structured progress invoice helps subcontractors show what was completed this period, what was billed previously, how retention and approved changes were handled, and what remains in the contract. This creates a clearer review process and a reliable record from the first application through final account.
An XLSX workbook provides a practical way to prepare and track progress invoices. As projects continue, SimplySub can help subcontractors organise estimates, jobs, change orders, purchase orders, time records, expenses, invoices, documents, and job-cost information.