Contractor invoices: progress claims, variations and retention

A progress claim invoices what has been completed to date rather than the whole contract. The clearest way to write it is one line per stage with the stage named, the agreed stage value, and the percentage being claimed this time — so the client can check it against the same schedule you both signed.

Keep the claim number and period on the document. 'Progress claim 3, period to 31 May' means the client can file it in sequence, and it means you can answer 'what have we billed on this job' without adding up PDFs.

A variation is work outside the original scope, and it should never be folded into a stage line. Give it its own line with a reference — 'Variation VO-04, additional trenching 12m, approved 14 May' — and the approved amount.

Where a variation is not yet approved in writing, it is not on the invoice. Chase the approval as its own conversation, because an unapproved amount on a progress claim is the fastest way to have the entire claim held up rather than just that item.

If the contract holds back a retention percentage, show it: gross claim, less retention, equals amount payable now. Hiding retention in the arithmetic produces an invoice total that does not match what the client intends to pay, and a payment that looks short when it is correct.

Retention released later is its own invoice, referencing the job and the release condition. Two documents, two payments, no ambiguity — the same principle that applies to deposits and balances.

Ferrow Contracting issues progress claim 3 on a fit-out. Invoice INV-2026-0288, 'Progress claim 3 — period to 31 May', issued 2 June, due 2 July per the contract's 30-day terms.

Lines: 'Stage 2 — MEP rough-in, stage value 60,000.00, 100% claimed to date, 40% claimed previously — 1 × 24,000.00'; 'Stage 3 — ceilings and partitions, stage value 45,000.00, 50% claimed — 1 × 22,500.00'; 'Variation VO-04, additional trenching 12m, approved 14 May — 1 × 3,200.00'. Gross claim 49,700.00, less 5% retention (2,485.00), amount payable now 47,215.00 AED. The terms note states that retention is released on practical completion and will be invoiced separately, and the payment block asks for the invoice number as the transfer reference.

Claiming a stage as complete when it is not signed off. One optimistic percentage can freeze an entire claim while it is argued.

Bundling variations into stage lines, which makes the stage value look wrong and invites a line-by-line audit of everything.

Invoicing unapproved variations. Get the approval in writing first; put the reference on the line when you do.

Omitting retention so the total does not match what will be paid, then treating the difference as a late payment.

No claim number or period, leaving both sides unable to say what has been billed to date on the job.