Progress Invoicing

Long projects shouldn't mean long cash gaps. Kantivo lets you bill against an approved estimate in stages — by percentage or dollar — with retainage handling and a running tally of what's billed, paid, and still on the contract.

Overview

Progress invoicing (also called progress billing) is the practice of issuing multiple invoices across the life of a project instead of one at the end. Each invoice covers a slice of the contract value that corresponds to work delivered so far.

It's the standard billing model in construction, consulting, agency work, and IT services — anywhere a project spans weeks or months. The point is to keep cash flowing in step with the work, instead of carrying months of unbilled receivables.

In Kantivo, progress invoices anchor to an estimate. The estimate sets the contract ceiling. As you reach milestones, you generate invoices against it for whatever amount or percentage applies, and Kantivo keeps the running total of billed, collected, and remaining.

Creating a Draw

Every progress invoice starts from an estimate:

1. Open Customers → Estimates and pick the project's estimate
2. Click Create Progress Invoice in the header
3. The new invoice form opens with customer, project, and terms pre-filled
4. Set the invoice date and due date
5. In Billing Amount, pick a draw method:

By Percentage

Enter a percentage of the estimate total. Kantivo computes the dollar amount and allocates it proportionally across the estimate line items.

• 30% of a $50,000 estimate = a $15,000 invoice
• Each line item shows its individual draw
• Right when billing is tied to project-phase completion

By Dollar Amount

Type a specific dollar figure. Kantivo allocates it proportionally across the estimate's line items.

• Bill $12,500 regardless of what percentage that is
• Right when your contract spells out milestone amounts instead of percentages

Click Save and Send to deliver to the client, or Save as Draft to review first.

Billing From a Draw Schedule

When a job is written around fixed draws — deposit, foundation, framing, completion — you can put that schedule on the estimate itself and bill each draw as its stage finishes, instead of working out percentages every time.

1. Lay out the draws on the estimate

On the estimate, add a payment (draw) schedule: one row per draw, each carrying a name (e.g. "Draw 3 — Framing complete"), a dollar amount, and an optional condition for when it's due. Save it.

2. Bill the draw(s) you've finished

1. Open the accepted estimate under Customers → Estimates.
2. Press Invoice Draws.
3. Tick the draw you're ready to bill — or tick several to combine them on one invoice, each as its own line.
4. Add an optional note for the client and choose Create Invoice for Selected Draws.

Kantivo builds an invoice with a separate, plainly labeled line for every draw — such as "Draw 3 of 4 — Framing complete: $15,000" — so there's no question about what's being charged.

Billing Progress Panel

Once an estimate has at least one progress invoice tied to it, a Billing Progress panel appears on the estimate. Open it from Customers → Estimates.

What the Panel Shows

A progress bar shows the percentage of the contract that's been invoiced. When it hits 100%, you'll see a "Fully Billed" indicator.

Retainage

Retainage (sometimes called a holdback) is an amount the client withholds from each progress payment until project completion and final acceptance. It's most common in construction contracts — usually 5–10% per draw.

Setting Retainage on an Estimate

1. Open the estimate, click Edit
2. Scroll to the Retainage section
3. Enter the percentage (e.g., 10 for 10%)
4. Save the estimate

Every progress invoice you create against this estimate will automatically calculate the retainage and split the invoice into gross, retainage withheld, and net amount due.

Releasing Retainage

When the project is substantially complete and the holdback is ready to release:

1. Open the estimate and click Create Progress Invoice
2. In the billing amount section, choose Release Retainage
3. Kantivo pre-fills the invoice with the full accumulated retainage balance
4. Adjust if the client is releasing only part of the holdback
5. Save and send

Invoice History

Kantivo keeps the full billing history per estimate. Open the estimate and click the Invoices tab to see every progress invoice issued against it:

• Invoice number and date
• Gross amount
• Retainage withheld (if any)
• Net billed
• Status (Draft, Sent, Partial, Paid, Overdue)
• Amount collected and last payment date

Click an invoice number to open the full document. You can also generate a Contract Billing Report for the estimate — one document showing the entire draw history, formatted for lender draws, AIA billings, or client review.

Tips That Pay Off

Spell Out Milestones in the Estimate

Use the estimate description to lay out exactly what each billing milestone covers — "25% on signed contract," "50% on Phase 2 delivery," "remaining 25% on acceptance." The client agreed to the schedule when they signed the estimate; disputes get short fast.

Bill the Day You Hit a Milestone

The whole point of progress billing is to keep cash coming in. Waiting three weeks to invoice a completed phase defeats the purpose. Build invoicing into your milestone-completion checklist.

Don't Outpace the Work

Billing 80% of a contract when 40% of the work is done invites disputes — and on some contract types, can be considered overbilling with legal implications. Keep your draw percentage anchored to actual progress, and err slightly low when in doubt.

Use the Panel as a Closeout Check

Before archiving a project, confirm Remaining to Bill is zero. If it's not, you've got unbilled contract value sitting there. A final cleanup invoice almost always belongs.

Document Change Orders Before Billing

Scope grew? Update the estimate total or create a separate change-order estimate before invoicing the additional work. Billing above the approved estimate without documentation slows everything down.

FAQ

Can I bill less than 1% of the estimate?

Yes — any dollar amount up to the remaining unbilled balance works. No minimum draw requirement.

What if I accidentally overbill?

Kantivo warns you before saving a progress invoice that would push cumulative billing past the estimate total. You can adjust down, bump the estimate (for a change order), or override with a stated reason.

Can a client pay a progress invoice partially?

Yes. Enter any amount less than the invoice total — status flips to Partial. The Billing Progress panel reflects partial payments in Total Collected; the remainder stays in Outstanding Receivable.

Does this work with estimates I already have?

Yes. Any existing estimate can be the basis for progress invoicing. Open it and click Create Progress Invoice; the estimate total becomes the billing ceiling.

Can I see all active progress contracts at once?

Yes. Open Reports → Progress Billing Summary for a cross-customer view of every active progress contract — each estimate, billed-to-date, collected, and remaining. A clean picture of your work-in-progress pipeline.