INVOICE GUIDES
Construction Progress Invoices: Period Work, Changes and Retention
A construction progress invoice requests payment for an identified portion of a longer project. Its main risk is mixing cumulative work with the amount payable now. Before using the ToolNivo Invoice Generator, reconcile the current claim to a separate project schedule. The general invoice builder does not automate a schedule of values, retention, payment certificates or cumulative construction billing.
Define the period and the basis of the claim
Start with the project reference, contract reference and claim period. Distinguish work completed during this period from work completed since the project began. A percentage such as “60% complete” is incomplete without the agreed value and scope to which it applies.
Maintain a separate schedule with each work package, its agreed value, previously recognized work, current-period work and cumulative work. Record any approved variation against its own reference. Pending proposals should not silently increase the contract value or be treated as approved work.
A cumulative example without retention
Consider a fictional project priced in USD. The original agreed value is 12,000.00. An approved variation adds 800.00, making the revised value 12,800.00. At this claim date, the reconciled cumulative work value is 7,800.00. Previous claims already accounted for 4,000.00 of work. The new period value is therefore 7,800.00 − 4,000.00 = 3,800.00.
A supporting breakdown could be 3,000.00 of installation work in this period plus the 800.00 approved variation. Those two lines total 3,800.00. Do not enter the entire 7,800.00 as fresh current work and also leave the earlier invoice outstanding: that would duplicate previously billed work.
In this illustration, no tax, retention, shipping or payment against the current invoice is included. The example explains reconciliation, not how a particular contract must be billed. Whether earlier applications, certifications or invoices provide the relevant comparison depends on the actual agreement.
Why retention requires a separate reconciliation
Retention is an amount withheld under an agreed arrangement, not a customer discount and not a payment already received. Suppose a separate fictional agreement withholds 5% of recognized work. On cumulative work of 7,800.00, cumulative retention would be 390.00. If prior cumulative work was 4,000.00 with retention of 200.00, the incremental retention would be 190.00.
On that simplified basis, the current 3,800.00 period value less 190.00 incremental retention equals 3,610.00 currently payable before other adjustments. The 5% is an illustrative assumption, not a recommended or legally applicable rate. Release conditions, exclusions, taxes and certification requirements can change the calculation.
Do not put the 190.00 into ToolNivo’s Amount Paid field: no payment occurred. Do not relabel it as a discount simply to make the balance match. Use a suitable construction billing system or the required project form when the payable document must formally calculate or display retention.
Keep changes and evidence traceable
Reference the approved variation, measurement record or milestone acceptance supporting each claim. A photograph can support progress evidence, but it does not by itself establish an agreed valuation. Record disputes or unapproved changes separately so the recipient can distinguish agreed current work from items still under discussion.
A current-period invoice should not invent a certification signature or approval number. If the buyer requires a prescribed payment application or certificate, confirm that format before preparing a generic PDF. ToolNivo cannot generate a professional certification merely by putting its title in Notes.
When the general generator fits
ToolNivo can present a straightforward, already-reconciled period invoice where the parties accept an ordinary invoice and no unsupported construction calculation is required. Add the project, period and supporting schedule reference in Notes. Enter the current-period charges, not an unchecked cumulative figure.
Review the milestone invoice guide for simple staged deliverables and partial payments for money actually received. These concepts should remain separate from withheld retention. Save the project schedule, issued PDF and subsequent payment allocation outside the tool. Reconcile the next claim against that record rather than rebuilding history from memory.
Frequently asked questions
Can ToolNivo calculate construction retention?
No. It does not provide retention, cumulative claim or certificate automation. Do not disguise withheld retention as Amount Paid or a discount.
Is previous work billed the same as previous money received?
No. Previously billed work may still be unpaid. Track the valuation history and the payment history separately to avoid duplicate claims.
Can I add an unapproved variation?
Do not represent a pending proposal as approved work. Keep its status clear and reconcile the claim with the agreement and approval record before billing.