Progress billing for renovation in the Philippines

The cabinets arrive on Thursday. On Friday the contractor sends the next progress billing. You want to check what the quotation said, and it's buried in a Messenger chat from March.

How progress billing usually works

Most construction and renovation contracts are paid through a downpayment, then progress billings as work is finished, with a portion retained until after turnover. This is one common pattern on a ₱1,500,000 job.

Example only. Your contract sets the real terms, and it wins over this page.

Downpayment and retention

A common scheme is a 20% downpayment, recouped from later billings, progress billings against measured work, and 10% retention held until the defects period ends. Paying much more upfront puts more of your money at risk before anything is built.

Check the contractor's PCAB licence

Under the Contractors' License Law (RA 4566, as amended by RA 11711), no contractor may undertake construction work without a PCAB licence. Unlicensed contracting can draw fines of ₱100,000 to ₱500,000. Ask for the licence number before you sign and check it with the Construction Industry Authority of the Philippines. Renovations that alter the structure generally need a building permit from the local building official, and condos usually need written approval from the admin.

Before each progress billing

• The contract line or bill of quantities for this stage
• Dated photos of the finished work, especially anything about to be covered
• A written change order for any change, with its price
• A punch list with a photo of each item
• The official receipt for the last payment

If it goes wrong

Disputes are usually negotiated first. If your contract has an arbitration clause, construction disputes can go to the Construction Industry Arbitration Commission (CIAC); otherwise to the courts. Either way, your case rests on what you can show: the contract, receipts and dated photos.

Common questions