Before work begins on a construction project, it’s important to establish how and when the contractor will be paid. Clear payment terms reduce the risk of delays and disputes and help keep projects running on schedule. Since billing methods in construction vary depending on the type of contract, project scope, and client requirements, contractors need to understand how each one works.
Billing methods are more than administrative details—they directly impact cash flow, forecasting, and decision-making. Choosing the right billing structure for the job is key to effective construction accounting and financial planning. In this guide, we’ll cover common construction contract types and how they influence billing, as well as explore popular construction billing methods like progress and milestone billing.
