Business FinancesQuestion 1155 of 1605
Under the schedule-of-values method of progress billing, each payment application is based on:
a.A flat monthly fee regardless of progress
b.The contractor's overhead rate
c.The percentage of each line item of work completed to date
d.The sales tax collected that month
Explanation
A schedule of values breaks the contract price into line items. Each progress billing states the percentage of each item completed to date, and payment is the earned value less previous payments and retention. This ties billings directly to actual progress.
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)