The way you bill a job shapes your cash flow more than almost any other decision. Two structures come up over and over — progress billing and lump-sum — and the right answer depends on the job, not on a global policy.
Lump-sum billing
You quote one number for the whole job, and you invoice against milestones you and the client agreed on: contract signed, halfway, substantial completion, punch list.
- Good for: well-scoped jobs, short jobs, fixed-scope trade work.
- Client feel: predictable, feels like a "product."
- Risk: any scope drift eats your margin unless you're rigorous with change orders.
Progress billing
You invoice for the percentage of work completed to date. On a large remodel you might bill weekly or bi-weekly, each invoice tied to the actual work in place.
- Good for: longer jobs, jobs with material-heavy phases, jobs with an unpredictable finish date.
- Client feel: fair but requires trust — clients need to see what they're paying for.
- Cash flow: much smoother, because you're not carrying the job.
The draw-schedule hybrid
Most small contractors end up somewhere in the middle: a fixed draw schedule tied to milestones (deposit, rough-in, drywall, final). It's technically progress billing, but the client sees it as predictable installments.
This is almost always the right answer for residential remodels. See invoicing in SiteView for how draw schedules work in practice.
Cash-flow math
Take a $120,000 remodel that runs 12 weeks. Lump-sum with two invoices (50/50) means you carry roughly $60,000 of costs before the second payment lands. A 4-draw schedule keeps you inside $15,000 of exposure at any point. Same job, same margin — very different bank balance.
How to pick per-job
- Under 3 weeks and fully scoped → lump-sum with 50/50.
- 3–8 weeks residential remodel → 4-draw schedule tied to milestones.
- Over 8 weeks or big material buys → progress billing every 2 weeks.
- Long service contracts with unpredictable scope → time-and-materials with weekly billing.
Documentation matters more than the choice
Every model works if the paperwork is clean. The estimate spells out the schedule, the client signs it, invoices reference the milestone, and change orders update the total. The model you pick matters — but consistency and documentation matter more.