Is an electronic WIP Code legally binding?

Yes. Electronic signatures and records are legally equivalent to handwritten ones under the ESIGN Act (15 U.S.C. ch. 96) and UETA where adopted, provided intent, consent, attribution, and record retention requirements are met.

When do I need a notarized WIP document?

Notarization is only required if the WIP record is attached to a document that state law requires notarization for (for example, certain deeds or powers of attorney). Check state notary rules before notarizing.

How do I correct an incorrectly entered WIP Code?

Create an amendment or credit entry referencing the original WIP Code, obtain the same level of approvals as the original entry, and retain both original and corrective records for audit purposes.

Can signatures be captured remotely?

Yes. Remote electronic signatures are valid under ESIGN and UETA when the process documents intent and consent. Use appropriate authentication strength where required by policy or law.

How long must I keep WIP Records?

Follow retention guidance: retain for the contract term plus at least 3 years; follow IRS, HIPAA, SEC, or state rules for specific document types and industry obligations.

What if a signer cannot access electronic documents?

Provide an alternative paper process that captures the same evidence of intent and retention; document consent to the paper option and preserve the signed record per retention rules.

Work In Progress Code

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

WORK IN PROGRESS CODE AGREEMENT

Parties

Client Name Client Address Contractor Name Contractor Address

Recitals

WHEREAS, Client engages Contractor to develop, modify and deliver software code and related components that are currently in active development and not yet finalized ("Work In Progress Code");

WHEREAS, Contractor possesses specialized skills in software development and will provide development services, milestones and deliverables as described in this Agreement; and

WHEREAS, the parties intend to define ownership, payment, confidentiality, and acceptance terms that apply to Work In Progress Code until final delivery and full payment are completed.

Scope of Work

Contractor shall perform the development, testing and delivery activities described below. The work shall include iterative development of code, interim builds, documentation of outstanding issues, and delivery of source code and binaries as set forth in the accepted deliverables schedule.

Detailed Scope of Work

Payment Terms

Client shall pay Contractor the fees described below in consideration for services and for delivery of Work In Progress Code. Unless otherwise agreed in writing, invoices shall be issued in accordance with the payment schedule and are due as set forth below.

Total Contract Amount (USD) Payment Schedule and Milestones Late Payment Fee

Term and Termination

This Agreement commences on and continues until unless earlier terminated in accordance with this Section.

Either party may terminate this Agreement for material breach by the other party if the breach is not cured within days after written notice. Upon termination, Client shall pay Contractor for all work performed and reasonable costs incurred through the effective date of termination. Termination shall not extinguish any rights or obligations accrued prior to termination, including payment obligations and confidentiality duties.

Confidentiality

Each party shall maintain in confidence all Confidential Information disclosed by the other party in connection with this Agreement. "Confidential Information" includes source code, technical specifications, non-public business information, and other material identified as confidential. Confidential Information does not include information that: (a) is or becomes generally available to the public other than through a breach of this Agreement; (b) was lawfully known by the receiving party prior to disclosure; or (c) is independently developed without use of the disclosing party's Confidential Information.

Each receiving party shall use Confidential Information solely for performance of its obligations under this Agreement and shall restrict disclosure to employees, contractors or agents who have a need to know and are bound by confidentiality obligations at least as protective as those herein.

Intellectual Property and Work In Progress

Unless otherwise agreed in writing, Contractor retains ownership of Work In Progress Code, underlying libraries, frameworks, development tools, and components that are pre-existing or generally reusable across clients. Client is granted a limited, non-exclusive, non-transferable license to use Work In Progress Code solely for evaluation and testing during active development. Final ownership and assignment of deliverables shall be determined as follows:

(a) Upon Client's payment in full of all amounts due for a specific deliverable, Contractor shall assign to Client all right, title and interest in the completed deliverable that is custom and exclusive to Client, excluding Contractor's pre-existing code and third-party components; and (b) Contractor shall retain copies of Work In Progress Code for backup, compliance and archival purposes, provided Confidential Information protections apply.

Acceptance; Defects

Delivery of each milestone shall be accompanied by documentation of outstanding issues. Client shall have a reasonable review period, not to exceed days, to accept or reject a delivered milestone. Rejection must identify material nonconformities. Contractor shall remedy reported defects and re-submit for acceptance under the same acceptance period.

Representations and Warranties; Limitations

Contractor represents that it will perform services in a professional manner consistent with industry standards. EXCEPT AS EXPRESSLY SET FORTH HEREIN, ALL WARRANTIES, EXPRESS OR IMPLIED, INCLUDING MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, ARE DISCLAIMED. IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR INDIRECT, INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES, AND THE AGGREGATE LIABILITY SHALL NOT EXCEED THE TOTAL AMOUNT PAID OR PAYABLE UNDER THIS AGREEMENT FOR THE APPLICABLE DELIVERABLE.

Governing Law

This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to its conflict of law principles.

Entire Agreement

This Agreement, together with any attachments and accepted statements of work, constitutes the entire agreement between the parties with respect to the subject matter and supersedes all prior understandings and agreements, whether written or oral. Any amendment must be in writing and signed by authorized representatives of both parties.

Miscellaneous

Neither party may assign this Agreement without the prior written consent of the other, except that either party may assign to an affiliate or successor in connection with a merger or sale of substantially all of its business. Notices shall be in writing and delivered to the addresses listed above.

If any provision of this Agreement is found unenforceable, the remainder shall remain in full force and effect. Headings are for convenience only and do not affect interpretation.

Acknowledgement

By checking the box below, the undersigned representative certifies that they are authorized to bind the respective party and that the party agrees to the terms set forth in this Agreement.

I acknowledge and agree

Client:

By:

Date:

Contractor:

By:

Date:

What the Work In Progress Code is and why it exists

The Work In Progress Code is a standardized record used to identify and track ongoing tasks, time, materials, and costs tied to a specific project or job. Organizations use a WIP Code to link labor, invoices, change orders, and approvals to a single accounting and project-management identifier, which improves job costing, billing accuracy, and auditability across finance, operations, and project teams. When used with electronic records and e-signatures, the code helps maintain an unbroken audit trail for approvals, substitutions, and post‑completion reconciliation.

Why a consistent Work In Progress Code matters

A consistent WIP Code reduces billing errors, simplifies month‑end close, helps allocate costs to the correct client or project, and creates an auditable link between work performed and invoiced amounts.

Who typically completes and relies on a Work In Progress Code

Several roles touch WIP Codes; assign responsibility for entry, review, and reconciliation to avoid divergence.

Project Managers — Create and assign codes for new jobs, review time and materials, and approve cost transfers.
Accounting / Finance — Use WIP Codes for cost allocation, invoicing, revenue recognition, and month‑end reconciliations.
Field / Operations Staff — Record hours, materials, and status updates against the assigned code in the field system.

Clear role boundaries save time, reduce disputes, and make it easier to tie work to revenue and compliance records.

Core elements every professional Work In Progress Code record should include

A clear, complete WIP Code record combines identifiers, scope, unit economics, status, and authorization so downstream systems and auditors can interpret the work without ambiguity.

WIP Identifier

A short, unique alphanumeric code linked to the client, contract, and internal project ID for systems mapping and reporting.

Project Description

A concise description of the scope, deliverable, or task that the code represents; include SOW or phase references where applicable.

Quantity / Hours

Units or labor hours recorded against the code with timesheet references and hourly rates for cost calculations.

Cost Elements

Material costs, subcontractor amounts, and overhead allocations associated with the code; include currency and tax treatment.

Status

A defined status value (e.g., Draft, In Progress, Pending Approval, Completed) to drive workflows and triggers.

Approvals

Designated approver names, signature blocks, and timestamps to validate work and authorize billing or change orders.

Required information fields and security attributes

Code: Alphanumeric ID

Project: Client and project name

Amount: Currency and totals

Signer: Approver identity

Audit Trail: Timestamped history

Encryption: TLS 1.2/1.3 & AES-256

Step-by-step: complete and finalize a Work In Progress Code

Follow this sequence to create, validate, and publish a WIP Code record so it flows correctly to billing and accounting systems.

01

Prepare Source Docs: Gather contract, SOW, and change orders.
02

Create Code: Assign unique WIP identifier and enter fields.
03

Attach Evidence: Upload timesheets, receipts, and approvals.
04

Authorize & Publish: Obtain signatures and confirm routing to finance.

How to configure an online WIP Code workflow

Set up automated rules that enforce required fields, approvals, and storage so entries remain consistent and auditable.

Field	Configuration
Auto-numbering	Enable sequential WIP IDs per client or project grouping.
Conditional Fields	Show subcontractor fields only when subcontractor box checked.
Notifications	Email/SMS alerts to approvers on submission.
Storage	Save signed PDFs to central archive with metadata.

Typical routing: where a completed Work In Progress Code goes

A completed WIP Code record should flow to a small set of recipients and systems so billing and audits proceed without manual handoffs.

Project System: Updates project dashboard and timelines.
Accounting: Feeds cost and revenue schedules.
Client Package: Includes signed change orders for invoicing.
Archive: Stores final signed PDF and metadata.

Technical considerations for electronic completion and sharing

Choose platforms and file formats that preserve signatures, metadata, and audit trails when you export or share WIP Code records.

File Formats: PDF and DOCX supported; preserve embedded audit trail.
Authentication: Email link, SMS code, or KBA per workflow policy.
Integrations: CRM/ERP connectors (Salesforce, NetSuite, Microsoft 365).

Typical eSignature vendor pricing and feature snapshot

Compare common pricing and capability criteria for eSignature platforms used to finalize WIP Code records; signNow appears first for parity.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	Varies by vendor	Varies by vendor	Varies by vendor	Varies by vendor
Bulk Send	Yes	Yes	Yes	Yes	Yes
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No
Envelope Cap	No cap	100 envelopes/user/year	Varies by plan	Varies by plan	Varies by plan

Penalties and risks if WIP Code records are incorrect or incomplete

Tax Penalties: IRC §6721 fines for incorrect information returns

Invoice Delays: Billing holds and delayed cash flow

Contract Disputes: Disagreements over scope or compensation

Data Breach: HIPAA or PII exposure penalties

Invalid Signatures: Signature defects can void approvals

Audit Failures: Regulatory scrutiny and remediation costs

Common mistakes when preparing a Work In Progress Code

Entering inconsistent project names across systems, which prevents accurate aggregation and reconciliation in accounting and project reports.
Failing to attach supporting documents like timesheets or receipts, leaving approvers unable to verify charges and delaying processing.
Using ambiguous descriptions or vague cost allocations that create scope disputes during invoicing or audits.
Omitting required signatures or using initials where a full signature is required, which can invalidate approvals for billing.

Practical tips for accurate and efficient WIP Code management

Adopt consistent rules and automation to reduce manual work and support reliable financial reporting.

Standardize naming conventions

Create a central naming policy for projects and codes, include client short codes and numeric sequences, and enforce it through templates and field validation to avoid duplicates and reduce reconcile time.

Require supporting evidence

Mandate attachments for hours, materials, and subcontractor invoices. Attach receipts or ticket IDs so approvers can verify entries quickly and the accounting team can process invoices without follow-up.

Use role-based approvals

Define approvers by role and amount thresholds. Route low-dollar items to supervisors and high-dollar items to finance to prevent bypassing controls and ensure separation of duties.

Preserve audit trails

Keep signed PDFs, timestamps, IP logs, and change histories. Retain finalized records in a read-only archive to support audits and dispute resolution.

Real-world examples of WIP Code usage

These short examples show how teams use WIP Codes to accelerate approvals and maintain compliance across different settings.

Optica Ventures — COO

The team standardized codes across portfolios to reduce reconciliation time by consolidating entries.

Implementation focused on template fields and mandatory attachments.
As a result, month‑end close required fewer journal adjustments and finance teams matched project revenues to contracts more reliably.

Martin Properties — Founder

Field crews used mobile entry tied to WIP Codes to record materials and labor on-site.

Mobile entries synchronized with approvals.
This eliminated paper tickets, shortened invoice cycles, and produced a complete audit trail for client disputes and property accounting.

Typical timelines and processing expectations for WIP Code records

Establish clear submission and approval timeframes to keep billing cycles on schedule and reduce backlog.

Submission Window:

Submit WIP entries within 5 business days of work completion.

Approval SLA:

Approvers review and sign within 10 business days of submission.

Invoicing Cycle:

Include approved WIP entries in the next scheduled billing run (typically monthly).

Adjustment Period:

Allow 30 days for corrections and reallocation before final close.

Retention Start:

Retention clocks begin on the record creation or signature date.

Frequently asked questions about the Work In Progress Code

Answers to common questions about validity, signatures, storage, and corrections when using WIP Codes in U.S. workflows.

Need help? Contact support

Is an electronic WIP Code legally binding?
Yes. Electronic signatures and records are legally equivalent to handwritten ones under the ESIGN Act (15 U.S.C. ch. 96) and UETA where adopted, provided intent, consent, attribution, and record retention requirements are met.
When do I need a notarized WIP document?
Notarization is only required if the WIP record is attached to a document that state law requires notarization for (for example, certain deeds or powers of attorney). Check state notary rules before notarizing.
How do I correct an incorrectly entered WIP Code?
Create an amendment or credit entry referencing the original WIP Code, obtain the same level of approvals as the original entry, and retain both original and corrective records for audit purposes.
Can signatures be captured remotely?
Yes. Remote electronic signatures are valid under ESIGN and UETA when the process documents intent and consent. Use appropriate authentication strength where required by policy or law.
How long must I keep WIP Records?
Follow retention guidance: retain for the contract term plus at least 3 years; follow IRS, HIPAA, SEC, or state rules for specific document types and industry obligations.
What if a signer cannot access electronic documents?
Provide an alternative paper process that captures the same evidence of intent and retention; document consent to the paper option and preserve the signed record per retention rules.

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