Construction Invoicing for Progress Claims & Retention
My Trade Hub’s invoicing feature turns the pricing you’ve already built up in an estimate or tender into progress claims, variation invoices, retention releases and final claims, with retention tracked against every project. Rather than retyping figures into a separate, general-purpose accounting tool, invoices are built from the same priced schedule of works, and overdue payments are followed up on a set reminder cadence.
Key takeaways
- My Trade Hub’s invoicing feature generates progress claims, variation invoices, retention releases and final claims from the pricing already set up on a project.
- Retention is tracked against each project — the percentage withheld, the amount released, and what still sits with the client.
- Every client and project carries its own payment terms, retention percentage and payment history, so you can see who pays on time and who doesn’t.
- Overdue invoices are followed up on a set reminder cadence, from an upcoming-due notice through to a formal overdue notice.
- Invoicing sits alongside estimating and tendering in My Trade Hub, so the figures you priced at tender stage carry straight through to what you actually claim.
What is My Trade Hub’s invoicing feature?
My Trade Hub’s invoicing feature is a construction-specific billing tool that turns the priced work on a project into progress claims, variation invoices and final claims, rather than a generic invoice built from scratch every time. It sits alongside estimating and tendering, so the schedule of values you already priced becomes the basis for what you actually bill.
Where general-purpose invoicing tools assume a single lump-sum bill for a one-off sale, construction work is claimed in stages against a contract value, with retention withheld along the way and reconciled at completion. My Trade Hub’s invoicing feature is built around that reality — progress claims, variations, retention and the defects liability period — rather than treating a building job like any other transaction.
Every invoice is tied to a project and a client record, so payment terms, retention percentage and running totals — invoiced, paid and outstanding — update automatically as claims go out and payments come in, instead of living in a separate spreadsheet someone has to remember to maintain.
In plain terms
Instead of retyping your priced schedule into a separate invoice, My Trade Hub turns the work you’ve already measured and priced into a progress claim — with retention, variations and payment terms all tracked against the one project.
Progress claims, variations, retention releases and final claims
Construction billing isn’t one invoice type — it’s several, each used at a different point in a project, and treating them as distinct is what keeps a job’s billing history readable months after the fact. My Trade Hub supports the main invoice types used on a typical building contract:
- Progress claim — bills the value of work completed against the schedule of values for that claim period.
- Variation-only invoice — bills an approved variation separately from the regular progress claim.
- Retention release — releases retention held earlier, typically at practical completion or at the end of the defects liability period.
- Final claim — the last claim on a project, reconciling everything claimed, paid and retained.
- Credit note — corrects an invoice that was raised incorrectly or needs to be wound back.
How a progress claim is built up
A progress claim starts from the schedule of values — the priced breakdown of the contract, typically carried over from the estimate or Bill of Quantities — and asks what percentage of each item is complete this period. That percentage, multiplied by the item’s value, builds up the claim amount before any deductions are applied.
From the raw claim value, retention is withheld at the agreed percentage, and any amount already paid in earlier claims is deducted, leaving the net amount payable for that period. GST and any approved variations for the period are added on top of the base progress claim before the invoice is issued.
| Item | Amount |
|---|---|
| Contract value | $420,000 |
| Work complete to date (65%) | $273,000 |
| Less retention withheld (10%) | -$27,300 |
| Less previously claimed | -$180,000 |
| This claim (excl. GST) | $65,700 |
Retention and the defects liability period
Retention is a percentage of each progress claim withheld by the client as security that the contractor will fix any defects that show up after the work is handed over. My Trade Hub tracks the retention percentage against each project and keeps a running total of what’s been withheld and what’s still owed back.
That retained money is normally released in two stages — part at practical completion, with the balance held through the defects liability period and released once that period ends, provided any defects have been made good. Tracking a defects liability period end date against the project means a retention release doesn’t get overlooked months after the job is finished.
Tracking payment status and chasing overdue invoices
Every invoice moves through a clear status — draft, approved, sent, viewed, overdue, partially paid, paid, disputed or voided — so it’s obvious at a glance where each claim sits without digging back through email threads to find out.
Overdue invoices are followed up on a set reminder cadence: an upcoming-due notice before the due date, a due-today notice, then escalating overdue reminders at 7, 14 and 30 days, plus a formal notice option that references the timeframes under the Building and Construction Industry Security of Payment Act. Payments themselves are recorded against bank transfer, BPAY, cheque, credit card, cash or other methods, so the outstanding balance updates as money actually comes in.
Who uses My Trade Hub’s invoicing feature
Invoicing is built for the people who currently chase progress claims out of a spreadsheet or a general accounting package that wasn’t built for construction — company admins, project managers and owner-builders managing several projects and clients at once.
Because every client record carries its own payment terms, retention default and payment history — developer, builder, owner-occupier, government or body corporate — it also suits businesses juggling different client types with genuinely different payment behaviour, where knowing who pays on time and who doesn’t matters for cash flow planning.
Construction invoicing vs generic accounting software
General-purpose accounting software is built to invoice a sale, record it against a ledger and help with tax reporting — and most construction businesses still need that for BAS, payroll and overall bookkeeping. What it typically isn’t built for is the construction-specific billing cycle: progress claims against a schedule of values, retention withheld and released, and variations tracked separately from the base contract.
My Trade Hub’s invoicing feature isn’t trying to replace your general ledger — it’s built to handle the construction-specific part of billing well, with the priced schedule of works as the starting point, and to give you a clean record of claims, retention and variations that you can hand to your bookkeeper or accountant.
Common invoicing mistakes to avoid
Most invoicing disputes on a construction job trace back to a handful of avoidable gaps rather than genuine disagreement about the work itself:
- Not tracking retention separately, so nobody notices it’s due for release until the client raises it.
- Billing a variation inside a regular progress claim instead of as its own invoice, making it hard to prove what was agreed and when.
- Letting an overdue invoice sit without a reminder, past the point where a formal notice under the Security of Payment Act would have kept your options open.
- Losing track of which client type — and which payment terms — apply to a project, and applying the wrong terms out of habit.
How My Trade Hub helps with invoicing
Because invoicing sits alongside My Trade Hub’s estimating and tendering tools, a progress claim doesn’t start from a blank invoice — it starts from the schedule of values you already priced, with retention, variations and payment terms tracked against the same project record.
That means less retyping, a clearer record of what’s been claimed, withheld and paid, and a follow-up reminder cadence that helps overdue invoices actually get chased rather than quietly forgotten. Invoicing is available as an add-on within My Trade Hub — get started with My Trade Hub — no lock-in contract — and add it as your business needs it.
Frequently asked questions
what is a progress claim in construction?
A progress claim is an invoice that bills the value of work completed against a contract to date, for a defined claim period, rather than one lump sum at the end of the job. It typically deducts retention and any amount already paid, leaving the net amount payable for that period.
how does retention work in construction contracts?
Retention is a percentage of each progress claim that the client withholds as security against defects. It’s usually released in two stages: part at practical completion, and the balance at the end of the defects liability period once any defects have been fixed.
should I invoice a variation separately from my progress claim?
Yes, in most cases. Billing a variation as its own invoice keeps a clear, separate record of what was approved, when, and for how much, which makes it far easier to prove later if the variation is ever queried or disputed.
what happens if a construction invoice isn’t paid on time?
An overdue invoice should move through a reminder cadence — an upcoming-due notice, a due-today notice, then escalating overdue reminders — and, if it stays unpaid, a formal notice referencing the timeframes under the Building and Construction Industry Security of Payment Act, which sets out a contractor’s rights to recover payment.
does My Trade Hub invoicing replace my accounting software?
No. My Trade Hub’s invoicing feature handles the construction-specific part of billing — progress claims, retention and variations — built from your priced schedule of works. Most businesses still use general accounting software alongside it for the wider ledger, BAS and payroll.
is invoicing included in every My Trade Hub plan?
Invoicing is available as an app you can add to your My Trade Hub account. Check the pricing page or the app store inside your account for which plans include it by default.
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