How should I choose the contract type for the prime contract?

The contract type determines how and when you bill your customer. There are three major contract types in Beam, choose the option that best matches how the project will be delivered and paid for. 

Progress invoicing

Progress invoicing lets you bill incrementally over time against a fixed contract amount. Each invoice represents partial completion of the work (by percentage or dollar amount), until the full contract value is billed.

This is commonly used for residential construction, remodels, and long-running projects where work is completed in phases. Progress invoicing often uses the American Institute of Architects (AIA) billing forms to invoice based on work completed to date.

Milestone invoicing

Milestone invoicing lets you bill when specific project milestones are completed (for example, “Foundation complete” or “Rough-in complete”). Each invoice corresponds to a milestone rather than a percentage of total work.

Typically, the milestones are agreed upon before the project begins. Frequently used for large, schedule-driven projects. 

Cost-plus invoicing

Cost-plus invoicing bills your customer based on actual costs incurred, plus an agreed-upon markup. Invoices grow as costs are added, rather than being tied to a fixed contract total.

This is the most transparent form of invoicing and is often used when there is higher scope uncertainty and project costs are expected to vary.