What is a progress payment?

A progress payment is a partial payment made during a project based on work completed to date rather than upon reaching a specific milestone. Progress payments might be monthly, biweekly, or tied to a percentage of completion. They provide regular cash flow during long engagements and reduce the risk of large receivables accumulating before project completion.

Progress payment vs milestone payment

Milestone payments require defined deliverables. Progress payments require only demonstrable advancement. Time-and-materials engagements typically use progress billing based on hours worked. Fixed-fee engagements might use either approach. Progress payments offer more flexibility but less clarity about what specifically triggers payment. Choose based on how easily you can define discrete deliverables.

Documenting progress for billing

Support progress payment invoices with evidence of work performed. Include hours by team member and task, status updates on deliverables, and percentage completion estimates. Transparency builds client confidence that payments reflect actual progress; vague invoices inviting challenges slow payment and damage trust.