There doesn’t seem to be an absolutel definition of Levels 1, 2, 3 etc -it depends on the organisation you are working with.
My prefered description is:
Level 1: Project Milestones / Engineering, Procurement, Construction Hammocks
Level 2: Discipline (Civil, Mechanical, etc)
Level 3: Area
How to measure the progress depends on the type of work, tracking systems in place, and often the demands of the client.
For engineering deliverables, you might have agreed progress weightings for each document stage (Draft, issued for comment, issued for cposntruction, etc), and a weighting of each document lniked to manhours.
For Construction, you might measure progress by physical completion (cubes of concrete poured, length of pipe layed, etc), and weight it by manhours or total cost.
One thing I would say is that tracking progress in terms of duration is generally a bad idea.