Free Contractor Invoice Template
About This Contractor Invoice Template
Designed specifically for contractors, construction professionals, and trade workers, this invoice template meets the unique billing needs of the construction industry. Whether you're a general contractor, electrician, plumber, carpenter, or HVAC specialist, this template helps you create professional invoices that comply with industry standards.
The construction and contracting industry has specific invoicing requirements that differ from other businesses. This template includes fields for contractor license numbers, project addresses, materials and labor breakdowns, and progress payment tracking. These features help you maintain transparency with clients while protecting your payment rights.
Used by over 7,000 contractors across the country, this template streamlines your billing process so you can focus on the work you do best. Clear itemization of materials and labor helps prevent payment disputes and ensures clients understand exactly what they're paying for.
Features Built for Contractors
- Contractor License Field: Dedicated space for your contractor license number and business registration
- Project Address Section: Separate fields for billing address and job site location
- Materials & Labor Breakdown: Itemize materials separate from labor charges for transparency
- Permit & Fee Lines: Track permits, inspection fees, and other regulatory costs
- Progress Payment Tracking: Show deposits, progress payments, and remaining balance
- Material Markup Display: Option to show cost plus markup or lump sum pricing
- Subcontractor Fields: Space to note subcontractor work and costs if needed
- Lien Waiver Note: Add text about lien waivers upon payment
- Insurance Information: Include your liability insurance details
- Warranty Terms: Space to note warranty coverage on work performed
- Change Order References: Link invoice to approved change orders
How to Create a Contractor Invoice
- Add Your Business Details: Include your business name, contractor license number, address, and contact information
- Include License & Insurance: Add your contractor license number and insurance policy information as required by law
- Enter Client Information: Fill in the client's name, billing address, and contact details
- Add Project Address: List the job site address if different from the billing address
- Reference Contract/Estimate: Link to the original contract or estimate number for easy reference
- List Labor Charges: Break down labor by task, hours worked, and hourly rate or list as fixed price
- Itemize Materials: List all materials used with quantities, unit costs, and total amounts
- Add Permits & Fees: Include any permits, dump fees, or other project-specific costs
- Show Payment Progress: If using progress billing, show deposit paid, this payment, and balance remaining
- Set Payment Terms: Specify when payment is due and accepted payment methods
- Save and Send: Keep a copy for your records and deliver to client promptly
Contractor Invoicing Best Practices
1. Use Progress Billing for Large Projects
Don't wait until the end of a large project to invoice. Break the job into phases and bill at completion of each milestone. Common structures include 25% deposit, 25% at rough-in, 25% at substantial completion, and 25% final payment. This protects your cash flow and reduces risk.
2. Document Everything
Take photos of work completed at each billing milestone. Attach or reference these photos when invoicing. Good documentation prevents disputes and proves work was completed to standard. Keep copies of all receipts for materials purchased.
3. Be Transparent About Materials
Clearly show material costs and your markup. While some contractors prefer lump sum pricing, itemized materials build trust and make it easier to bill for change orders. Most clients appreciate seeing exactly what they're paying for.
4. Address Change Orders Promptly
When project scope changes, get written approval immediately and invoice for change orders separately or note them clearly on your invoice. Never perform extra work without a signed change order and payment agreement.
5. Include Lien Rights Information
Protect your legal rights by including lien waiver language on your invoices. Many contractors add text like "Payment of this invoice constitutes a conditional lien waiver upon fund clearance." Check your state's lien law requirements.
6. Maintain Professional Records
Keep detailed records of all invoices, payments, and communication. This is essential for tax purposes, warranty claims, and potential disputes. Use a consistent invoice numbering system tied to project numbers.
Common Contractor Billing Scenarios
Time and Materials (T&M) Billing
For jobs where scope isn't fully defined, bill actual hours worked at your hourly rate plus materials at cost plus markup. Provide detailed time logs and material receipts. This protects you when unexpected issues arise but requires excellent documentation.
Fixed Price Contracts
Quote a total price for the entire job. You can still itemize labor and materials on the invoice for transparency, but the total is fixed regardless of actual time spent. Best for well-defined projects where you can accurately estimate costs.
Unit Pricing
Common for repetitive work like flooring, roofing, or painting. Bill per square foot, per unit installed, or per linear foot. Clearly show quantity × unit price = total. This makes scaling easy when quantities change.
Retainage Billing
Many commercial projects hold back 5-10% until final completion. Show the retainage amount clearly on each invoice so both parties track it. Invoice for retainage release upon project completion and final inspection approval.
Frequently Asked Questions
A contractor invoice should include your business license number, contractor details, client information, project address (if different from billing address), detailed description of work performed, materials and labor breakdown, any permits or fees, payment terms, and accepted payment methods. Many states also require insurance information.
Most contractors separate labor and materials on the invoice. Labor is typically billed by the hour (with rate and hours shown) or as a fixed price for the job. Materials can be billed at cost plus a markup (typically 10-20%) or included in the overall project price. Always itemize materials for transparency and easier change order billing.
Yes, most states require contractors to include their business license or contractor license number on all invoices and estimates. This is a legal requirement in many jurisdictions and demonstrates you're properly licensed and insured. Check your state's contractor licensing board for specific requirements.
Common contractor payment terms include progress payments (25% deposit, 25% at milestones, 50% on completion), Net 30 for smaller jobs, or Due Upon Completion for quick work. For large projects, consider milestone-based billing to maintain cash flow. Always require a deposit before starting work.
Reference approved change order numbers on your invoice and itemize change order work separately from the original contract scope. Show the original contract amount, change order additions, and new total. Never perform extra work without a written, signed change order that includes pricing and payment terms.
Yes, it's good practice to include a brief note about your warranty terms on the invoice. This might include your standard warranty period for labor and materials, what's covered, and how clients can make warranty claims. This protects both you and the client by setting clear expectations.