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Can somebody please explain what “progress billings” are, related to long term construction contracts? And how this account is different from “construction in progress”? Becker uses these terms a lot without ever fully explaining what these categories entail.
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Progress billing is billing the customer a certain percentage of the contract at different milestones. Such as when building a house, the contract might say you owe 20% for materials before construction starts, 20% when the foundation is finished, 50% when framed, 10% when completed and inspections are finished. “Construction progress” sounds more like a percent of construction costs incurred/completed. So one is the percent of cost, and the other is percent of billings. Odds are these percent will be different depending on the project.
I can't confirm that is the way Becker uses the terms, but it's how I read it.
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