What Is Progress Billing?
Progress billing is the practice of invoicing for work as it’s completed instead of waiting until the project ends. It provides steady cash flow for contractors and ensures owners only pay for what’s done.
- Flexible format that varies by contract
- Invoices reflect percentage of work completed
- Common on private, residential, and small commercial jobs
- Helps maintain steady cash flow throughout the project
What Is AIA Billing?
AIA billing, sometimes called AIA pay applications, follows standardized forms created by the American Institute of Architects. Contractors use G702 (Application for Payment) and G703 (Continuation Sheet) to request payment and show progress.
- Standardized billing with G702 & G703 forms
- Shows retainage, percent complete, and balance due
- Commonly required on government and large commercial jobs
- Supports lender and audit requirements
Key Differences Between Progress and AIA Billing
The biggest difference is structure. Progress billing can be customized, while AIA billing follows a strict template. Contractors should know which their project requires before invoicing begins.
- Format: Progress billing is flexible; AIA billing uses standard G702/G703
- Use Cases: Progress billing = private jobs; AIA billing = commercial/government
- Documentation: AIA billing requires detailed SOVs and proof
- Compliance: Lenders often require AIA billing for financing
When to Use Each Method
Choosing the right method depends on project type and stakeholder requirements. Small contractors may prefer progress billing for its flexibility, but should be prepared to use AIA billing when lenders, owners, or public contracts mandate it.
- Residential remodels → Progress billing
- Government or publicly funded projects → AIA billing
- Projects with heavy lender involvement → AIA billing
- Small private projects → Progress billing
How Software Handles Both
Werx makes it easy to handle both progress and AIA billing. Contractors can generate flexible progress invoices or automated AIA pay apps (G702/G703) in one system—while syncing with QuickBooks for accounting accuracy.
- Create flexible progress invoices or standardized AIA pay apps
- Track retainage automatically across projects
- Generate professional forms in minutes
- Sync with QuickBooks Online for financial accuracy
Learn more: progress billing software and AIA billing software.
FAQs About Progress vs. AIA Billing
Is AIA billing the same as progress billing?
No. Progress billing is a broad term for billing work as it’s completed, while AIA billing refers to a standardized format using G702 and G703 forms.
Do small contractors need to use AIA billing?
Not always. AIA billing is usually required on large commercial or public projects. Smaller private jobs often use standard progress billing instead.
Can I use software for both billing types?
Yes. Software like Werx supports both flexible progress billing and standardized AIA billing, so contractors can use the right method depending on the project.
TL;DR Recap
- Progress billing = flexible invoicing for work completed
- AIA billing = standardized G702/G703 pay applications
- Progress billing = common on private jobs
- AIA billing = required on large commercial/government projects
- Werx supports both with QuickBooks integration and automated forms
