Example
30% when demolition and rough-in are complete, invoiced that day, due in 7 days.
Also called stage payments, phased billing, or staged invoicing.
What it means in practice
Milestone billing ties each payment to something the client can see: rough-in passed, tile complete, walkthrough done. It is the form of progress billing that suits remodels and installs, where a monthly percentage would be arbitrary.
Agree the stages and their values on the quote before the work starts. Each stage is then invoiced the day it is reached, with a short due date because the schedule was already accepted.
Covered in full in the guide to progress billing.
Where it shows up on the paperwork
The stages and their values live on the quote. Each one becomes its own invoice when reached, referring back to the schedule so the client can see where the payment sits.
What goes wrong
- Naming a milestone nobody can verify, such as 60% complete. Tie it to something visible.
- Loading the last milestone with your margin, which lets a punch list hold your profit.
- Reaching a milestone on Tuesday and invoicing it on Friday.
Common questions
What makes a good milestone?
Something the client can see is finished: rough-in passed inspection, tile complete, walkthrough done. If it takes an argument to establish whether it happened, it is the wrong milestone.
How many milestones should a job have?
Enough that you are never funding the client for long, and few enough that each one is worth invoicing. Three or four covers most remodels.