Progress Payment
Periodic payments made as the work advances, not all at the end.
What it means
Progress payments are periodic payments — usually monthly or at milestones — made as construction work advances, rather than one lump sum at the end. Each payment is typically requested through a pay application, calculated from the schedule of values, and reduced by retainage. The contract sets the billing cycle, the review period, and when payment is actually due.
Why it matters before you sign
The gap between doing the work and getting the progress payment is the cash-flow risk you carry — add up the billing cycle, approval time, and payment terms to see how long your money is really out.
In a contract, it looks like this
The subcontract provided monthly progress payments due 30 days after the owner approved each pay application, less 10% retainage.
This definition is a general, educational explanation — not legal advice. XOsign provides AI-assisted document tools and does not provide legal advice; consider consulting a qualified attorney for guidance on your specific situation. Requirements vary by state.
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