Progress claim vs invoice: how contractors get paid on a project
On a small job you do the work, send an invoice, and get paid. On a bigger project that can stretch over months, waiting until the end to get paid would wreck your cash flow. That's where the progress claim comes in — and understanding how it differs from a plain invoice is key to staying solvent while the work is still going on.
What's the difference?
An invoice is a demand for payment for work or goods delivered — often the whole job, or a fixed item. A progress claim is a request for payment for the portion of a larger contract completed so far. You submit claims periodically — say monthly — each one covering the work done since the last, until the project is finished.
Think of it this way: the invoice is the final receipt for a transaction; the progress claim is how you draw down a long contract in stages so money keeps flowing while you build.
What a progress claim contains
A claim is cumulative, which trips up a lot of contractors. Each one works from the total value of work done to date, not just this month, then subtracts what was already certified. A typical claim shows:
- Contract value — the full value of the works.
- Percentage complete to date — how far along the work is now.
- Value of work done to date — contract value × percentage.
- Retention held — a slice kept back as security (more below).
- Previously certified — what earlier claims already covered.
- Amount due this claim — the new money owed now.
Don't forget retention
Most contracts hold back a small percentage of each claim — retention — until the job is signed off and any defects fixed. It's your money, just released later. Getting it right on every claim keeps your numbers honest and your cash flow predictable. We walk through the maths in our guide to retention in progress claims.
From claim to invoice
Once a claim is agreed and certified, it becomes the basis for a progress invoice — the actual document you raise to collect the certified amount. So claim and invoice aren't rivals; they're two steps in the same chain: you claim for the work, it gets certified, and the certified figure turns into an invoice you get paid on.
How MORTAR helps
MORTAR does the cumulative maths for you. Enter the contract value and the percentage complete, set your retention rate and cap, and it works out the value to date, retention held and the net due on this claim — keeping your claim history consistent from one period to the next so the totals always add up. Certify the claim and it converts straight into a progress invoice. No spreadsheets, no double-counting.
Want progress claims that calculate themselves and become invoices in a tap? Join the MORTAR early list.