Business FinancesQuestion 1152 of 1605
Progress billing (progress payments) means the contractor:
a.Collects the full price only in cash
b.Bills periodically as portions of the work are completed
c.Is paid only after the one-year warranty expires
d.Bills the entire contract amount before starting work
Explanation
Progress billing lets the contractor invoice the owner periodically for the value of work completed to date (often monthly or by milestone), improving cash flow rather than waiting until the entire project is finished.
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Related questions on this topic
- The primary purpose of retention (retainage) on a construction contract is to:
- On most California public works projects, retention withheld by the public entity is generally limited to a maximum of:
- A contractor completes a $250,000 job on which the owner withheld 10% retention throughout. Assuming no deductions, how much retention should be released at closeout?
- On a home improvement contract, the down payment a contractor may collect is limited by law to whichever is less:
- On a home improvement contract, payments a contractor schedules and collects must:
- Under the schedule-of-values method of progress billing, each payment application is based on:
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)