Free Invoice Template for Contractors
Professional invoice template for general contractors, subcontractors, and construction professionals. Track materials, labor hours, and project milestones.
A contractor invoices either for a completed job or, on larger projects, through progress billing, where each line of the schedule of values shows its contract value, percent complete, amount previously billed, and balance remaining. The invoice also carries the job site address and contract number, labor separated from itemized materials, change orders referenced by number and approval date, retainage as an explicit deduction, and lien waiver status where the payer requires it.
Construction invoicing carries obligations that most trades never encounter. Payment often flows through several parties before it reaches you, each with its own approval step, and documents such as lien waivers and certified payroll can be conditions of release rather than paperwork you file afterward. An invoice that is arithmetically perfect but missing a required waiver form will sit unpaid. Knowing what the payer needs attached is as much a part of getting paid as the work itself.
Progress billing changes the shape of the document. Rather than a list of items and a total, a progress invoice is a running account: the contract value, the percentage of each scheduled item completed to date, what was billed previously, and what is due now. Clients and lenders read it as a snapshot of the whole job, not just this month. Getting the schedule of values right at the outset makes every subsequent invoice a simple update rather than a negotiation.
Then there is retainage, which is unique to this field in how routinely it appears. A portion of every approved invoice is withheld until the project is complete and accepted, sometimes for months after your crew has left the site. If your invoice does not show retainage as an explicit deduction, the payment will look short and the discrepancy will consume time to resolve. Tracking the accumulated withheld balance across invoices means you can request its release with figures already reconciled.
Common Line Items on a Contractor Invoice
Labor by Trade and Crew Hours
Broken out by role, with hours and rate shown. Prevailing wage jobs require the applicable classification to be named.
Materials with Markup
Itemised by quantity and unit cost. State whether markup is included in the unit price or shown as a separate line.
Equipment Rental
Excavators, lifts, scaffolding, and dumpsters, billed by day or week with the rental period stated.
Subcontractor Work
Billed through with the trade named and the subcontract or purchase order referenced for the general contractor's records.
Permits and Inspection Fees
Passed through at cost with the permit number listed, sometimes with a modest administrative fee for handling filings.
Approved Change Order
Each change order billed on its own line referencing its number and approval date, never folded into base contract amounts.
Site Preparation and Debris Removal
Demolition, grading, and disposal, including dump fees which are often billed by weight.
Retainage Withheld
Shown as a negative amount so the invoice total matches what will actually be paid this cycle.
What to Include on Your Invoice
| Field | Why It Matters |
|---|---|
| Job Site Address and Contract Number | Payers frequently run several projects at once, and the site address is how accounting routes the cost to the right job. |
| Schedule of Values with Percent Complete | Progress payments are approved against completion percentages, so each line needs its contract value and current completion state. |
| Previously Billed and Balance Remaining | It lets the reviewer confirm you are not double-billing a line and shows exactly how much contract value is left. |
| Retainage Calculation | Stating the withheld percentage and the running total prevents the payment shortfall from looking like an error. |
| Change Order References | Extra work paid outside the base contract must be traceable to a signed authorisation, or it will be disputed. |
| Lien Waiver Status | Many payers will not release funds until a conditional or unconditional waiver accompanies the invoice. |
How Contractors Set Their Rates
Contractors work mainly from three structures. Fixed price, or lump sum, quotes the whole job for one number and suits well-defined scopes where the drawings are complete. Time and materials bills actual labor hours plus material cost with an agreed markup, and it fits renovation work where conditions behind the walls are unknown. Cost plus, often with a guaranteed maximum price, sits between them and is common on larger custom builds. What drives the figure is scope definition, site access and complexity, material volatility, schedule pressure, and whether the job carries prevailing wage or union requirements. Material markup, typically stated as a percentage in the contract, compensates for procurement, storage, hauling, and waste. Showing that markup policy on the invoice, rather than burying it in inflated unit prices, tends to reduce disputes rather than create them.
Payment Terms for Contractors
Payment in construction is slower and more conditional than in almost any other trade. Monthly progress billing is standard, with invoices submitted against a cutoff date and paid on a cycle that may run thirty to sixty days after approval. Retainage, commonly around five to ten percent, is withheld from each payment and released only after final completion and acceptance, so a meaningful part of your margin arrives at the very end. Subcontractors frequently face pay-when-paid or pay-if-paid clauses that tie their payment to the owner paying the general contractor. Deposits or mobilisation payments before starting are normal on residential work, less so on commercial. Mechanics lien rights exist as a statutory backstop but carry strict deadlines, so track submission dates carefully from the first day on site.
Invoicing Tips for Contractors
- ✓Separate labor and materials on every invoice so clients can see the cost breakdown clearly.
- ✓Include the job site address and permit numbers on each invoice for record-keeping.
- ✓Use milestone or progress billing for large projects — invoice at agreed completion percentages.
- ✓Keep material receipts and attach them as backup documentation with your invoice.
Frequently Asked Questions
How should contractors format their invoices?
Contractor invoices should separate labor costs (hours x rate) from materials (itemized with quantities and unit costs). Include the job site address, project name, and any relevant permit or contract numbers.
What is progress billing for contractors?
Progress billing invoices clients at project milestones (e.g., 30% at foundation, 60% at framing, 100% at completion). Each invoice shows the total contract value, percentage complete, previously billed amounts, and the current amount due.
Should contractors mark up materials?
Yes, a 10-25% markup on materials is standard in the industry. This covers procurement time, storage, transportation, and waste. Be transparent about your markup policy in the contract.
How do subcontractors invoice general contractors?
Subcontractors should reference the purchase order or subcontract number, describe work completed, include lien waiver information if required, and follow the payment terms in the subcontract agreement.
Related Invoice Templates
Explore More
Free Business Tools
Country Invoicing Guides
How to Invoice in United States
Sales Tax compliance, USD formatting, and legal requirements.
How to Invoice in United Kingdom
VAT compliance, GBP formatting, and legal requirements.
How to Invoice in India
GST compliance, INR formatting, and legal requirements.
How to Invoice in Australia
GST compliance, AUD formatting, and legal requirements.
How to Invoice in Singapore
GST compliance, SGD formatting, and legal requirements.
How to Invoice in European Union
VAT compliance, EUR formatting, and legal requirements.