Simplify Progress Payments: A Contractor's Guide to AIA Billing (and Alternatives)

Managing progress payments and AIA billing effectively is crucial for maintaining steady cash flow in construction projects. Most contractors rely on staged contractor payments to keep up with payroll, materials, and job costs over the life of a project. But if your billing process is slow or overly manual, even one delay can throw off your entire timeline. Truss streamlines progress payments, making it easier to receive contractor payments, track project revenue, and maintain consistent cash flow. It’s construction banking done right, designed with the realities of your business in mind.

Key Takeaways

• Learn how progress payments and AIA billing work in construction.
• Understand the common challenges contractors face with billing and revenue delays.
• Explore Truss as an alternative to traditional billing systems.
• Get practical tips to improve progress payment flow and reduce financial bottlenecks.
• Discover how integrated tools give you instant access to project revenue.

Why Progress Payments Are Critical in Construction

Most construction projects span weeks or months. Waiting until the end of a project to bill—and get paid—isn’t just unrealistic; it’s financially dangerous. Progress payments allow contractors to invoice for work completed at specific milestones, helping stabilize cash flow, cover costs, and keep subcontractors paid.

The problem? Traditional progress billing systems—especially AIA billing—can be complex, paperwork-heavy, and slow.

ProTip #1: Don't wait until you're short on cash to think about billing. Set up your payment schedule and documentation before breaking ground. Truss allows you to align your invoicing with project phases and automate the entire workflow.

What Is AIA Billing?

The AIA (American Institute of Architects) billing format is commonly used in commercial construction. It relies on two forms: the G702 (Application for Payment) and the G703 (Continuation Sheet). These documents allow contractors to:

• Itemize work completed for progress payments
• Track retainage in contractor payments
• Show progress against the full contract value for project revenue tracking
• Submit documentation for architect or owner approval

AIA billing is standardized—but it’s also time-consuming, detail-heavy, and often handled manually or with third-party software that doesn’t integrate well with the rest of your financial systems.

That’s where contractors lose time, accuracy, and control over their project revenue and progress payments.

Challenges Contractors Face with Traditional Progress Billing

While AIA billing is widely accepted, it isn’t always contractor-friendly. Common challenges with progress payments include:

• Complex formatting and approval chains in AIA billing
• Delayed signatures from architects or project managers affecting contractor payments
• Limited visibility into what’s been paid and what’s pending
• Manual data entry between systems for progress payments
• Difficulty matching invoices to specific project milestones

These hurdles not only delay contractor payments but can also affect your relationships with vendors and subcontractors if cash flow is impacted.

How Truss Simplifies Progress Billing and Cash Flow

Truss offers an easier, more modern way to receive progress payments without getting stuck in the paperwork. Here’s how:

• Invoice by Milestone: Create invoices tied to specific project phases or milestones.
• Attach Documentation: Upload photos, contracts, or sign-offs with each contractor payment request.
• Real-Time Tracking: Know when your progress payment invoice is opened, approved, and paid.
• Instant Access to Funds: Get contractor’s payments directly via ACH or check—no login required for your client.
• Integrated Records: Sync your project revenue billing data with accounting software for clear, up-to-date books.

You get paid faster and avoid administrative bottlenecks—all within a platform designed specifically for the payments within the construction industry.

Alternatives to AIA Billing (and Why They Work)

Not all projects require strict AIA formatting. For smaller commercial jobs, residential projects, or direct-owner contracts, you can use more flexible formats that still keep your documentation professional and complete.

Truss supports various progress payments methods:

• Simple milestone billing and payments
• Percent-complete progress payment invoicing
• Deposit-based payment schedules for project revenue
• Automatic payment reminders and receipts

The key is to match your billing format to the job’s size and scope—without losing professionalism or tracking.

ProTip #2: Use branded invoice templates for non-AIA jobs. Truss lets you create consistent, contractor-branded documents that make your business look sharp and instill trust with clients.

Tracking Retainage and Final Payments

One of the most overlooked components of progress payments is retainage—the percentage withheld until the job is finished. If you're not tracking retainage properly, your books can get messy fast.

With Truss, you can manage progress payments retainage by:

• Flagging retainage amounts on each progress payments invoice
• Scheduling final contractor payment reminders
• Linking retainage to close-out documentation
• Tracking payments in real-time through your dashboard

This reduces the chance of missed payments and helps maintain trust during project close-out.

Integrated Tools for Better Financial Visibility

Knowing where your money is—and when it’s coming—is essential for planning your next job, paying your team, and investing in growth. Truss brings everything together with:

• Truss Business Checking for real-time project revenue cash tracking
• Seamless accounting software integration (like QuickBooks)
• Job-by-job contractor payments income reporting
• Easy-to-read financial dashboards for project revenue oversight

This is construction banking done right: simple, fast, and built for your business.

A Contractor’s Toolkit for Billing

Contractors can’t afford to guess when it comes to getting paid. Whether you’re using AIA billing or your own progress schedule, the key is having a system that’s reliable, easy to use, and tailored to construction workflows.

Truss gives you the flexibility to handle any type of billing—while keeping your cash flow strong, your books clean, and your clients happy.

Receive large progress payments easily and get instant access to funds. See how Truss handles your incoming project revenue.
Streamline your billing and financial tracking with integrated software.

Disclaimer: Truss provides tools to help contractors manage and streamline payments. However, Truss is not responsible for financial, legal, or employment decisions made by its users. Always consult with an accountant or legal professional for personalized advice.

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