Free Progress Billing Invoice Template

Bill a long job in stages: list each line of work, the share completed this period, retainage held, and the amount due now.

Fill it in below and download a PDF, or download the blank printable PDF. Prefer the full tool? Open the Invoice Generator.

What this template is for

On a long job, waiting until the end to bill ties up your cash for months. Progress billing lets you invoice each period, usually monthly, for the work actually completed. The template above is preloaded with a sample progress invoice: each line of the contract is billed for the work completed this period, and the discount line is renamed Less retainage and set to 10%.

Use it for construction, remodeling, and any project with a fixed contract price split into lines. For a one-off job billed at the end, the contractor invoice template is simpler.

Key terms

• Schedule of values. The contract price broken into lines of work, such as site prep, framing, electrical and finishes, each with its own scheduled value. Agree on it with the client before work starts.
• Percent complete. How much of each line is finished as of the end of the billing period.
• Billed this period. The value of work completed since the last invoice: scheduled value times percent complete now, minus what was already billed for that line.
• Retainage. A share of each payment the client holds back, commonly 5% or 10%, until substantial completion or another point in the contract. Rates, caps and release timing depend on your contract, and some states set limits for certain projects. Check your contract and your state’s rules, or ask a professional.

About AIA G702 and G703

Many general contractors and owners use the AIA G702 (Application and Certificate for Payment) and G703 (Continuation Sheet). They are a common industry format published by the American Institute of Architects, and they track the full schedule of values, previous applications, retainage and balance to finish on every pay application.

This template is not the official AIA form. It is a simplified progress invoice for smaller jobs and for clients who just need a clear bill for each period. If your contract or lender requires the AIA forms, use those.

How to fill in a progress invoice

1. Add your business and the client. Include the project name and address in the notes.
2. Reference the period. Note the billing period and the application number, for example “Pay application #2, work through Oct 31.”
3. Add one line per schedule of values item billed this period. In the description, give the line name, the scheduled value and the percent complete, for example “Framing (scheduled value $20,000), 60% complete to date.”
4. Enter the amount for this period as the price, with quantity 1.
5. Check retainage. The “Less retainage” line takes 10% off the subtotal. Change the rate to match your contract.
6. Set payment terms. Use what the contract says, often Net 30. See Net 30 payment terms for how due dates work.
7. Download or print in Classic, Modern or Compact, on Letter or A4.

The retainage line works like a discount, so it is taken off before any tax. Whether sales tax applies to construction work or materials depends on your state and locality, so check with your state revenue agency or a tax professional.

Worked example: second monthly invoice

A contractor has a remodel with a schedule of values. This period’s work:

• Framing: $20,000 scheduled value, 60% complete (nothing billed before). Billed this period: $12,000.00
• Electrical rough-in: $10,000 scheduled value, 40% complete (nothing billed before). Billed this period: $4,000.00
• Site prep: $8,000 scheduled value, now 100% complete, 65% billed last period ($5,200). Billed this period: $8,000 − $5,200 = $2,800.00

Invoice:

• Framing, this period: $12,000.00
• Electrical rough-in, this period: $4,000.00
• Site prep, this period: $2,800.00
• Total billed this period: $18,800.00
• Less retainage (10%): −$1,880.00
• Amount due: $16,920.00

In the notes, keep a running retainage total, for example “Retainage held this invoice: $1,880.00. Retainage held to date: $2,400.00.” Here, last period’s $5,200 site prep billing had $520 held, so $520 + $1,880 = $2,400. That figure is what you will invoice when retainage is released.

Tips for progress billing

• Agree on the schedule of values first. Disputes usually start when the client and contractor measured “percent complete” differently.
• Bill on a fixed date. Same day every month, matching the contract.
• Attach backup. Photos, inspection sign-offs or a short progress note make approval faster.
• Track change orders as their own lines once they are approved in writing.
• Keep every invoice. Download the PDF each period. The tool runs in your browser and keeps drafts and numbering in local storage only, nothing is sent to our servers, so your saved PDFs are your record.
• Know your lien and prompt-payment rules. They vary by state, and deadlines can be short. Check your state’s rules or ask an attorney.

Related tools

Price the job up front with the estimate generator, then bill it in stages here. If a payment runs late, the payment reminder template has follow-up wording.

Written by Legit50 Editorial Team· Updated Oct 26, 2026

Legit50 provides free document tools for general business use. They are not legal, tax or accounting advice, and you are responsible for the accuracy of the documents you create. Sales tax rules vary by state and locality. Learn more.