Construction invoice template

A construction invoice template has to do more than list labor and parts. On a build or a remodel, you are billing a long contract in pieces, often to an owner, a lender or a general contractor who needs to approve each request before paying. This page gives you a free construction invoice template built for that: progress billing by percent complete, retainage shown plainly and change orders kept apart from the base contract. The “Use this template” button on this page opens the free generator prefilled with the sample lines, so you can swap in your own scope and numbers.

Why construction bills differently

A plumber finishes a repair and sends one invoice. A construction project can run for months, cost tens or hundreds of thousands of dollars and involve a bank that releases money in stages. Three habits of the industry shape the invoice.

• Progress billing. Instead of one bill at the end, you invoice at milestones or at the end of each month for the share of work completed. These requests are often called draws or pay applications.
• Retainage. Owners commonly hold back a percentage of each payment until the work is finished or accepted. The rules and typical percentages vary by state and by contract, so read your agreement and check local requirements.
• Change orders. Scope shifts constantly: an extra window, a different tile, a buried pipe nobody expected. Each change should be agreed in writing and billed on its own.

An invoice that mixes these together gets rejected or paid late. One that separates them gets reviewed quickly.

What to include on a construction invoice

Start with the basics in our guide on what to include on an invoice, then add the project-specific details.

Construction invoice checklist

• Your business name, address, contact details and contractor license number where your state requires one.
• The project name, the job site address and the contract or purchase order number.
• An invoice or draw number, such as “Draw 2 of 5”, and the billing period it covers.
• The original contract amount, the approved change orders to date and the revised contract total.
• Each schedule-of-values line with its scheduled value, percent complete, work billed this period and the total billed to date.
• Change orders listed separately, each with its number and approval date.
• Materials delivered or stored, if the contract allows billing for them.
• Retainage held this period, retainage held to date and the balance still due on the contract.
• Payment terms, accepted payment methods and where to send payment.
• Any lien waiver or documents the contract requires with the request. Lien rules differ by state, so confirm what applies to you.

Payment terms that work

Construction terms follow the contract, not your preference, so settle them before work starts.

• Net 30 is common on commercial and subcontract work, where the general contractor pays after the owner pays them.
• Net 15 or due on approval is common on residential remodels with a direct homeowner contract.
• Deposit up front covers mobilization and long-lead materials. Bill it as its own invoice and show it as a credit against later draws so it is not lost.

If you are a subcontractor, ask whether payment is tied to the general contractor receiving funds. That clause changes your cash planning more than the number of days on the invoice. For wording, see our guide to invoice payment terms.

Pricing and itemizing tips

Build the invoice from the schedule of values

Break the contract price into lines that match the work: mobilization, foundation, framing, rough-in, finishes and closeout. Each draw then shows what share of each line is done. A reviewer can compare the percentages with what they see on site.

Keep change orders separate

Give every change order a number, a short description, the price and the date it was approved. On the sample below, change order 01 adds two windows and the labor to frame them. They sit apart from the base contract, so the original total never moves.

Show retainage honestly

If the contract holds back 10 percent, show the gross amount earned, then the retainage line, then the net amount due now. Customers and lenders trust invoices that show their own math.

Worked example

This draw shows a base-contract progress line, delivered materials and one change order.

The draw totals $39,042.00 before any retainage the contract requires. If the contract holds back 10 percent, that is $3,904.20 held and $35,137.80 due now. Tax is shown at zero only for simplicity; construction tax rules vary widely, so see how to add sales tax to an invoice and check with your state tax agency.

Common mistakes to avoid

1. Billing more than percent complete. Front-loading a draw invites a dispute and can make a lender reject the whole request.
2. Starting extra work without a signed change order. You may end up unable to collect for it.
3. Burying retainage. If the held amount is not visible, nobody knows what is still owed to you at closeout.
4. Skipping the contract reference. Accounts payable teams match invoices to purchase orders. A missing number slows payment.
5. Sending late. Pay applications often have monthly cutoff dates. Missing one can cost you a full month.
6. Forgetting required paperwork. Some contracts need lien waivers or certified payroll with each request. Check yours.

After the invoice goes out

Follow up on a schedule instead of waiting. Note the approval date, the lender’s funding cycle and the payment terms, then check in a few days before the due date. Our guide to how to get paid faster covers the habits that shorten the wait. PayToMe’s reminders and online payments are in development, so for now the free tools handle the document itself.

This page is general information, not legal or tax advice. Lien, retainage, licensing and tax rules differ by state, so check your local requirements and your contract.