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Invoice for Trades

Free Contractor Invoice Template

A contractor invoice bills a project in stages, so it carries more structure than a repair ticket: the draw it belongs to, what the contract budgeted, what changed by change order, and what the owner still owes. This contractor invoice template is laid out for progress billing on residential and light-commercial jobs, with room for supervision hours, subcontracted work and retainage. Fill in the draw, download the PDF, and send it on schedule.

Sample contractor invoice

Billed to Fairview Ave ADU, draw No. 3, framing complete. Rates are illustrative, not quotes.

DescriptionQtyUnitRateAmount
Progress draw, framing milestone per contract schedule1job$14,800.00$14,800.00
Project supervision and subcontractor coordination24hr$85.00$2,040.00
Permit and impact fees, passthrough at cost1job$1,240.00$1,240.00
Total$18,080.00

What a contractor invoice carries

A contractor invoice is the money half of the construction contract, and it should read alongside the draw schedule without anyone needing to decode it. Put the contract or job number, the draw number, and the phase being billed at the top, then show the value of work completed to date, the amount previously billed, and what this draw is asking for now. That running-total shape is what an owner, and any lender funding the project, expects to reconcile.

Subcontracted work belongs on the invoice as its own lines, described the way the contract describes it (drywall, siding, electrical) rather than bundled into a single mysterious figure. If your agreement marks up sub bills, the invoice should say so on the line itself. The goal is an invoice an owner can check against the signed bid in five minutes and pay without a phone call.

Progress billing on a contractor invoice

Progress billing (invoicing a percent of the contract as work completes) is how general contractors stay solvent on months-long jobs. The draw schedule in the contract sets the milestones and the amounts: mobilization, foundation, framing, rough-ins, finishes, close-out. Bill each draw when its milestone is genuinely complete, and attach enough description that the owner can walk the work and match it to the number on the invoice.

Lenders and construction-loan inspectors usually review draws before funds release, so the line descriptions should match the schedule word for word. If a milestone ran long or a phase was split, say that on the invoice instead of letting the owner discover it against the contract. Draws that track the work get approved in days; draws that get ahead of it sit in a loan officer's inbox for weeks.

Change orders before they become arguments

A change order is work the contract never priced, and the invoice is where an unapproved one turns into a collection problem. The discipline is simple: no change proceeds without a signed scope and amount, and the invoice shows the change order on its own line with its number and its approval date. An owner who approved a change in writing never disputes the line that carries their signature reference.

Keep the same rule when the change comes from the owner's own ideas at the kitchen table. Rewrite the scope, restate the price, get the signature, then invoice it. A contractor invoice with three extra undocumented lines reads as a pattern; a contractor invoice with a numbered change order attached to each one reads as a business.

Retainage, subcontractors and final payment

Retainage is the percentage an owner holds back from each draw (five to ten percent is common) until the job reaches final completion. It is the owner's insurance that the punch list gets finished, and it is your reason to close out promptly: the last invoice should itemize the retainage held across all draws, the amount being released, and the punch-list items completed to earn it.

Mirror the same terms downstream to subcontractors where your contract allows it, so a holdback you are carrying is not money you have already paid out. At close-out, send the final invoice, the punch-list sign-off and the warranty paperwork in one packet; owners who receive a complete close-out packet pay faster and refer more.

Taxes on contractor invoices

Sales tax treatment for general contracting depends on the state and on how the contract is written. Some states treat a lump-sum construction contract as entirely taxable, others tax only the materials a contractor supplies, and a few treat real-property improvements differently from shop fabrication. Because the same job can be taxed differently under different contract structures, keep materials and labor separated on every contractor invoice, and confirm the treatment for your contracts with your state's department of revenue or an accountant.

This is general information, not legal or tax advice. Rules vary by location.

Frequently asked questions

What is a draw on a contractor invoice?

A draw is a progress payment: a percent of the contract billed as milestones complete, on the schedule written into the construction contract. Each draw invoice should show work completed to date, what was billed on earlier draws, and the balance remaining, so the owner always knows where the project stands against the signed bid.

How does retainage work on each invoice?

Retainage is a holdback (commonly five to ten percent) taken from each progress payment until the project reaches final completion. The percentage and release conditions live in the contract, not in your preference. On the final invoice, itemize the retainage withheld across every draw and the amount being released, so the close-out payment is one clear number.

Can I invoice a change order before the regular draw?

Yes, and many contractors do when the change unlocked the next phase. The change order still needs written approval before the work proceeds, and it gets its own line with the number and date of that approval. Bundling an unapproved change into a draw is the fastest way to hand an owner a reason to hold the whole payment.

How should subcontractor bills appear on my invoice?

The way your contract says: either passed through at cost as clearly labeled lines, or marked up with the percentage stated on the line itself. Avoid stapling a sub's invoice to yours; the owner hired you, and the invoice should read as one account of the job. Keeping sub bills in the job file supports every number you did show.

What payment schedule do owners expect between draws?

Typically net 15 to net 30 from the invoice date, with construction lenders often reviewing draws before funds move. Print the due date on every invoice and note when the next draw is expected. Consistent draw dates train owners and lenders to expect your paperwork on a rhythm, which is most of what on-time collection requires.

Other trade invoice templates