Progress payment
A progress payment is a partial payment made while a construction job is underway, for the work completed so far, rather than one payment at the end. Larger jobs bill monthly against a schedule of values; home jobs usually pay at milestones, like rough-in or drywall.
Updated November 9, 2026 · 1 min read
How it works
- The contractor submits a pay application or invoice for the period.
- The owner (or architect, or lender) checks it against the work in place.
- The owner pays, less any retainage.
- Lien waivers change hands: a conditional one with the request, an unconditional one once the money clears.
Deadlines set by law
- California owners (Civil Code § 8800): unless agreed otherwise in writing, pay an undisputed progress payment within 30 days of the contractor's demand, withholding no more than 150 percent of any disputed amount.
- California contractors (Bus. & Prof. Code § 7108.5): pass each sub's share on within 7 days of receiving a progress payment, unless otherwise agreed in writing.
- Federal jobs (FAR 52.232-5): progress payments are made monthly as the work proceeds, and up to 10 percent can be retained until progress is satisfactory.
In SignMaster
The roofing contract template has a progress payment tied to a milestone you name, the conditional lien waiver form has a progress payment box, and the change order form records how a change affects progress payments.
Questions? Answers.
Is a deposit a progress payment?
No. A deposit is paid before work starts; a progress payment pays for work already done. Some states cap home improvement deposits.
Sources
- California Civil Code § 8800, progress payments from the owner · leginfo.legislature.ca.gov
- California Business and Professions Code § 7108.5, paying subcontractors within seven days · leginfo.legislature.ca.gov
- Federal Acquisition Regulation 52.232-5, payments under fixed-price construction contracts · acquisition.gov