SOP Templates > Home Builder > Finance & Accounting > Progress Billing & Invoicing Process

Progress Billing & Invoicing Process for Home Builder

The Progress Billing & Invoicing Process workflow helps home builders and remodelers manage cash flow and client payments with precision. It includes preparing invoices tied to project milestones, verifying completed work, and securing client approvals. Managers reconcile invoices with budgets and contracts, ensuring accuracy and timeliness. By standardizing this process, builders reduce disputes, protect profitability, and strengthen client relationships. Clients benefit from transparent billing linked to progress, fostering trust and confidence. Teams gain accountability with documented approvals and payment tracking. With this workflow in place, home builders can improve efficiency, enhance financial stability, and deliver projects more reliably while maintaining cash flow.

Review contract billing terms (schedule of values, milestones, or % complete)

Confirm current work progress with field team or site walk

Calculate percent complete for each line item or milestone

Draft the billing application or invoice with updated totals

Include approved change orders and any required documentation

Apply retainage according to contract terms

Attach backup documentation (photos, timecards, material receipts, etc.)

Review draft billing with project manager or leadership

Submit invoice or pay app to client or GC by required date

Confirm receipt and follow up on approval status

Track invoice aging and update accounts receivable records

Log payment once received and update job cost tracking

File billing documents and confirmations in project records

Communicate payment status with internal team