Contractor Invoice Template
Invoice template for general contractors and construction professionals. Track materials, labor, and project phases with detailed cost breakdowns.
Create Your Contractor InvoiceWhat should a Contractor invoice include?
A Contractor invoice should include your business name, client details, invoice number, date, itemized services with rates, subtotal, applicable taxes, payment terms, and total amount due. Typical line items for Contractor invoices include labor — crew hours at specified rates, materials — lumber, hardware, supplies (with markup), and subcontractor costs — specialized trades (plumbing, electrical).
Typical Line Items for Contractor Invoices
- ● Labor — crew hours at specified rates
- ● Materials — lumber, hardware, supplies (with markup)
- ● Subcontractor costs — specialized trades (plumbing, electrical)
- ● Equipment rental — daily or weekly rates
- ● Permits and fees — building permits, inspection fees
- ● Project management — coordination and supervision
- ● Waste disposal and cleanup — dumpster rental, site cleanup
Payment Terms Best Practices
Residential: draw schedule based on milestones (30% start, 30% framing, 30% rough-in, 10% completion). Commercial: progress billing per AIA schedule. Material deposits before ordering. Retain 10% until final inspection/approval.
Tax Considerations
Contractor services and materials are subject to sales tax in many states. Some states require contractors to pay sales tax on materials and include it in the bid. Mechanic's lien rights may apply for unpaid invoices. Maintain proper licensing and insurance documentation.
Note: Tax rules vary by state and jurisdiction. Always consult a tax professional for advice specific to your situation.
Professional Tips for Contractor Invoices
- ✓ Separate labor and materials as distinct line items for transparency
- ✓ Include material markup (typically 15-30%) and disclose it in your contract
- ✓ Document change orders with signed approvals before performing extra work
- ✓ Photograph work progress and reference photos on invoices for milestone billing
- ✓ Include your license number and insurance information on every invoice
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Frequently Asked Questions
What is a standard markup on materials?
Material markup typically ranges from 15-30% depending on the project type and your market. This covers procurement time, delivery coordination, storage, and waste. Always disclose your markup policy in the contract.
How should I handle change orders?
Document every change order in writing with the scope change, cost impact, and timeline adjustment. Get signed approval before starting the work. Bill change orders separately or add them to the next progress invoice.
What if a client disputes the invoice?
Keep detailed records: signed contracts, change orders, daily logs, and photos. Address disputes in writing. If resolution fails, mechanics lien rights may protect you on real property improvements. Consider mediation before litigation.