If you're planning a commercial roofing project, chances are you'll be asked to approve “progress payments” as part of your contract. For many managers, this raises concern: Why am I paying before the job is finished? What if something goes wrong midway? What’s stopping a contractor from disappearing after the deposit?
At Equity Commercial Roofing, we’ve worked on hundreds of large-scale roofing projects where progress payments aren't just industry standard; they’re essential for keeping your job on track, your budget predictable, and your crews accountable.
In this article, you’ll learn what progress payments are, how they’re structured, and how they benefit you as much as your contractor. You’ll also get a sample payment schedule, answers to common concerns, and red flags to watch for before you sign.
Clickable Table of Contents
In simple terms, progress payments are partial payments made as your roofing project moves forward. Instead of one big lump sum at the end, the total cost of the job is divided into smaller, clearly defined stages, or “milestones”.
Behind the scenes, our production manager creates a Schedule of Values (SOV). This is a detailed breakdown of your total project estimate, including:
Each of these milestones has a set dollar value. As we complete a portion of the work, we bill only for the percent that’s actually done (for example, 25%, 50%, or 75% complete). Every invoice you receive clearly lists the percentage of progress and the type of work covered.
Understanding what progress payments are is one thing; understanding why they’re essential is another. Large commercial projects often stretch across several weeks or even months. Material suppliers invoice contractors immediately when products hit your job site, and skilled roofing crews need consistent weekly paychecks.
Consider this timeline: A two-month project with a standard 30-45 day payment cycle could mean contractors wait 75-90 days for any payment. Without progress payments, they'd essentially finance your entire project out of pocket.
When contractors know they'll be paid for completed work each week, they can keep their best crews assigned to your project instead of shuffling workers between jobs to balance cash flow. This consistency is especially important in today’s shortage of skilled roofers; steady payment keeps top-tier crews committed to your project.
The payment structure also creates natural checkpoints. Roof production managers must document completion percentages weekly, which means you receive regular updates with photo evidence of work being done.
Here’s a typical example of how an SOV might be structured:
| Milestone | Description | Typical % of Contract |
| Deposit | Paid at contract signing; covers initial material orders | 25% |
| Mobilization & Materials | Materials delivered, crews and equipment on site | 7–10% |
| Labor Progress Billing | Billed weekly based on actual percent complete | 50–60% |
| Closeout | Final inspection, safety removal, warranty paperwork | 5–8% |
For example:
Each invoice clearly states the percentage of completion and the work performed during that period. Nothing is billed ahead of progress. If your roofers complete pressure washing and install fastener plates across 30% of your roof by Friday, that's exactly what gets invoiced.
Yes, progress payments are a safe business practice—in fact, they add structure and transparency to your project.
This approach allows your internal accounting team to reconcile payments. It also helps you monitor real project progress over time.
Here is a quick FAQ section for progress payments we’ve heard over various projects:
You only pay for work that's actually been completed. If unforeseen circumstances halt a project at 75% completion, you've only paid for that verified 75%.
Yes. Many organizations have specific approval processes or budget release dates. When communicated during contract negotiations, reputable contractors will accommodate reasonable requests. The key is discussing these requirements before signing the contract.
Standard terms allow 30 days for invoice payment. If your system takes 40-45 days, communicate this upfront. Late fees generally apply only when payments fall significantly outside the agreed-upon terms without communication.
Progress payments are common in the construction industry, but that doesn’t mean you should accept any version of them at face value. Be wary if you encounter a roofing contractor who:
These are warning signs of poor financial management or inexperience with commercial-scale projects.
If you’re considering roofing work with a progress payment plan, we recommend taking these five steps to ensure a smooth process:
Progress payments create clarity, accountability, and consistent momentum on your commercial roofing project. If you’re like many building owners or facility managers, your first instinct might be to just pay at the end of a project. Now you understand that milestone billing protects your investment, ensures your crews stay on-site, and gives you real-time visibility into job progress.
Your next step is to review our Commercial Roof Cost Guide for Pennsylvania: 2025 Edition—a comprehensive breakdown of average roofing costs in Central PA, complete with budgeting examples and tips for avoiding hidden expenses. It’s the perfect companion to help you plan your roofing project with confidence.
At Equity Commercial Roofing, we’ll walk you through your customized payment schedule before a single shingle is installed, so you know exactly what you’re paying for, and when, every step of the way. Ready to get started on your next roofing project? Contact a member of our team to schedule a free consultation.