%20(1).png)
Contractor Invoice Template for Construction (Free, Word + Google Docs)
A contractor invoice template for construction should show your business and license details, the client, job address and contract, the milestone you're billing, each line of work, approved change orders, materials, sales tax, retainage, deposits applied and the balance due. Copy the free template below or download the Word version.
Construction invoices are harder than service invoices because most jobs are paid in pieces. You take a deposit, bill a draw when framing is done, add a change order for extra lights, hold back retainage and apply the deposit at the end. If the invoice only says "Kitchen remodel, payment 2," the homeowner or general contractor has to guess how you got the number. If it shows the contract, what's been billed and what's left, they can approve it and pay.
Key Takeaways
Tie every invoice to the contract: show the original amount, approved change orders, what's been billed and what's left to bill.
Bill progress payments against a payment schedule, and only for work done or materials delivered.
Put each signed change order on its own line with its number, never folded into a draw.
Track retainage and deposits on every invoice, so nothing gets lost at closeout.
Check your state's rules on deposits, lien waivers and sales tax. California caps most home improvement down payments, and Texas taxes materials differently depending on how the contract is written.
What should a contractor invoice include?
Every construction contractor invoice needs these 12 parts:
Your business details: business name, address, phone, email, website and your contractor license number.
Client details: the client's name, billing address, email and phone. For a general contractor or property manager, add the company name and the PO or subcontract number.
Project name and job address: where the work happened. Builders and property managers often pay for many jobs from one account.
Contract reference: the contract date and number, so the invoice points back to the terms the client signed.
Invoice number and dates: the invoice date, the billing period or milestone, and the due date.
Contract summary: original contract amount, approved change orders, revised contract amount, billed to date and remaining to bill.
Line items for this invoice: the progress draw or completed work, with a clear description, quantity or percent complete, and amount.
Change orders: one line per signed change order, with its number and date.
Materials, subcontractor work, equipment and permits: each on its own line.
Sales tax: a separate line, if it applies to your job and state.
Retainage and deposits: retainage held on this invoice, retainage held to date and any deposit applied.
Balance due, how to pay and terms: the amount due, the due date, payment options, and any late fee your contract allows.
Keep a copy of every invoice once it's paid. The IRS lists invoices among the supporting documents for both a business's gross receipts and its purchases.
Free contractor invoice template (construction)
Copy this into a document, or download the Word template. For Google Docs, save the Word file to your Google Drive and double-click it to open it in Google Docs.
[YOUR LOGO]
[YOUR BUSINESS NAME] [Address] · [Phone] · [Email] · [Website] · Contractor license no. [number]
INVOICE
Invoice details | |
Invoice number | [0001] |
Invoice date | [Date] |
Billing period or milestone | [For example: Draw 2 of 5, rough framing complete] |
Due date | [Date] |
Bill to | [Client name, company, billing address, email, phone] |
Project name and job address | [Project name, property address] |
Contract date and number | [Date, contract or PO number] |
Contract summary | Amount |
Original contract amount | [amount] |
Approved change orders to date (CO #[1] to #[3]) | [amount] |
Revised contract amount | [amount] |
Billed on previous invoices | [amount] |
Billed on this invoice | [amount] |
Remaining to bill | [amount] |
Description | Qty or % | Rate | Amount |
Progress draw: [milestone, for example rough framing complete], per payment schedule | [% complete] | [scheduled value] | [amount] |
Change order #[1]: [add 6 recessed lights, kitchen], signed [date] | [1] | [price] | [amount] |
Materials: [item, brand, model or size] | [qty] | [price] | [amount] |
Materials: [lumber package delivered [date]] | [qty] | [price] | [amount] |
Subcontractor work: [trade and scope, for example electrical rough-in] | [1] | [price] | [amount] |
Equipment rental: [dumpster, lift or other] | [days] | [rate] | [amount] |
Permit and inspection fees (pass-through) | [1] | [cost] | [amount] |
Subtotal | [amount] | ||
Sales tax, if it applies | [amount] | ||
Total | [amount] | ||
Less retainage held, [%] (if your contract has it) | -[amount] | ||
Less deposit applied | -[amount] | ||
Balance due by [date] | [amount] |
Retainage held to date: [amount]. Released on [final completion, or as your contract states].
Lien waiver: [Conditional waiver for this payment attached, if your contract or state requires one.]
How to pay: [Payment link, card, ACH or bank transfer, or check instructions].
Terms: Balance due by [date], per the contract dated [date]. Late payments: [your contract's late fee, if any].
Notes: [Photos of completed work attached. Next milestone: drywall complete, expected [date].]
Thank you for choosing [business name].
Delete any line you don't use. A small repair job may need three lines and no contract summary; a remodel billed in draws needs all of it.
How do you bill progress payments on a construction job?
Bill each progress payment against a payment schedule in your contract, and only for work completed or materials delivered. Break the contract price into stages (deposit, demolition, rough-in, drywall, finishes, final walkthrough), give each a dollar value, and invoice each stage when it's done.
On commercial jobs, the owner or architect may ask for the AIA forms. According to AIA Contract Documents, the G702 Application and Certificate for Payment is the form where "the contractor can apply for payment and the architect can certify that payment is due," and the G703 continuation sheet breaks the contract sum into portions of the work, using a schedule of values the contractor prepares. The template above follows the same logic for residential work: a contract summary at the top, and the line items for this draw below it.
On home improvement jobs, check your state's limits before you invoice a deposit. In California, the Contractors State License Board says a home improvement down payment "should never exceed 10 percent of the contract price or $1,000, whichever is less," with one exception noted on the same page. Write the payment schedule into your contract first, so the invoice follows it, and spell out the stages in your construction scope of work.
How do you add change orders and retainage to an invoice?
Put each signed change order on its own line, with its number, a short description and the date it was signed, and add it to the revised contract amount in the summary. Never roll a change order into a progress draw. When the client sees "Change order #2: upgrade to quartz countertops, signed March 4," there's nothing to argue about.
Retainage (also called holdback) is a share of each payment the client keeps until the job is finished. If your contract has it, show three things on every invoice:
Retainage line | What it shows |
Retainage held on this invoice | The amount withheld from this payment, at the rate in your contract |
Retainage held to date | The running total across all invoices |
Retainage release | When you'll bill it, for example on final completion |
The running total is the line that matters. Retainage is easy to forget at closeout, and a final invoice that leaves it out leaves money on the table.
Should a contractor invoice include a lien waiver?
Often, yes. Check your contract and your state's rules, because a general contractor, lender or owner may ask for a lien waiver with each payment request. The waiver isn't part of the invoice itself; it's a separate signed form you send with it.
In California, the Contractors State License Board lists four statutory waiver and release forms: conditional and unconditional, each for progress payments and for final payment. A conditional progress waiver goes out before you're paid and only takes effect once you are paid. The unconditional version states that you've received the payment, so send it only after the money clears.
Lien rules and forms vary by state, so check your state's forms and have an attorney review your contract. This post isn't legal advice.
Do contractors charge sales tax on materials?
It depends on your state and on how your contract is written, so check with your state tax agency or your accountant. Texas shows why the invoice layout matters. The Comptroller's guide to real property repair and remodeling says that under a lump-sum contract, you pay tax on your supplies and materials when you buy them and don't charge the customer tax. Under a separated contract, you collect sales tax from the customer on the amount you charge for materials, and the construction labor charge isn't taxable.
The same guide says labor to repair or remodel residential property isn't taxable, while the total charge for remodeling nonresidential property is. So one template can need different tax lines for a homeowner and for an office tenant. Keep labor and materials on separate lines, and set up the right tax setting for each kind of job.
When should a contractor send an invoice?
Send each progress invoice the day the milestone is complete, and the final invoice the day of the final walkthrough. Late invoices push your payment later, and on a job with five draws, a few days' delay on each one adds up. Use these suggested targets to measure your own routine:
Step | Suggested target |
Photos and notes from the site logged | The day the milestone is complete |
Progress invoice sent | Within 1 business day of the milestone |
Change order billed | On the next invoice after it's signed and the work is done |
Lien waiver sent with the invoice | Same day as the invoice, if required |
First reminder | 3 days before the due date |
Overdue follow-up | 1 business day after the due date |
Retainage release invoiced | The day of final completion |
Here's a short email to send with a progress invoice:
Hi [First name], we've finished [milestone] at [job address], and photos are attached. Invoice [number] for draw [2] of [5] is attached: [amount] due by [date], with the conditional lien waiver for this payment. Next up is [next milestone], expected [date]. You can pay here: [link]. [Your name]
For more on timing and follow-up, see our guide on how to send an invoice.
How do you save this template for every job?
Set it up once as a master file, then make a copy for each job, so no client gets an invoice with another project's contract numbers on it.
In Word:
Open the template and add your logo, business details, license number and standard terms.
Go to File, then Save As, and choose Word Template in the file type list.
For each job, open a new document from that template and save it as the job name plus the invoice number, for example "Smith Kitchen, Draw 2."
In Google Docs:
In Google Drive, double-click the Word file to open it in Google Docs, then add your logo and details.
For each invoice, start from a copy of the job's last invoice, so the contract summary carries over.
Once you're running several jobs with draws at the same time, a template gets hard to keep in sync with your books. That's when invoicing software takes over. We cover that side in contractor invoicing software and how a virtual assistant takes it off your plate.
Who should handle your contractor invoicing?
If you're building draw invoices at night after a day on site, invoicing is the first thing to hand off. Your Startup Operations places full-time virtual assistants for home service businesses who work inside the tools you already use, like Buildertrend, Jobber, Housecall Pro or QuickBooks. Your assistant can:
Build each progress invoice from the payment schedule, site photos and your project manager's notes
Add signed change orders to the contract summary and the next invoice
Track retainage and deposits on every job, and bill the retainage release at closeout
Send conditional lien waivers with invoices and collect unconditional ones once payments clear
Send reminders and overdue follow-ups by email and text
Match payments in QuickBooks and keep your unpaid list current
You keep your pricing, your contract terms and any decision about a dispute. Before any assistant starts, we map how you work and turn it into SOPs you own, because you cannot hand off what's never been written down.
Frequently Asked Questions
How do I write a contractor invoice for construction work?
Add your business and license details, the client, job address and contract number, an invoice number and dates. Show the contract summary, list this invoice's work, change orders, materials and any tax, subtract retainage and deposits, and state the balance, due date and how to pay.
What is a progress invoice in construction?
A progress invoice bills part of the contract price when a stage of the work is done, following the payment schedule in your contract. On commercial jobs, the owner may require AIA G702 and G703 forms instead.
Should change orders go on a separate invoice?
They can. A simple approach is to add each signed change order as its own line on the next progress invoice and update the revised contract amount in the summary.
What is retainage on a contractor invoice?
Retainage is a share of each payment the client holds back until the job is finished. Show the amount held on each invoice and the running total, then bill its release at closeout.
Do I need to send a lien waiver with my invoice?
Many general contractors, lenders and owners require one before they pay. Send a conditional waiver with the invoice and an unconditional one only after the payment clears. Forms vary by state.
Can I use this template in Google Docs?
Yes. Save the Word file to Google Drive, double-click it to open it in Google Docs, then make your own copy.
Spend your nights off the paperwork
A clear invoice gets each draw paid. A system gets every draw out the day the milestone is done. Your Startup Operations runs a time audit, documents your billing process and places a trained assistant to run it, with 90 days of support.
About Your Startup Operations
Your Startup Operations (YSO) is a Women-Owned Small Business (WOSB) certified, white-glove operations agency co-founded by Jenna Henao and Alexis Schomer. YSO helps event business owners and other service-based companies step out of daily operations by installing a dedicated Ops Assistant trained specifically for their business, typically helping owners reclaim 30–40 hours per week.
YSO has been featured in Forbes, Voyage LA, Authority Maximizer, EIN Presswire, and AP News.
Explore our event vendor ops services, see client outcomes on our case studies page, or get in touch to talk through what your business needs.
About the Author
Alexis Schomer is the Co-Founder and Marketing & Operations Expert at Your Startup Operations. She works with business owners to optimize operations, improve delegation, and build scalable systems that support sustainable business growth. Drawing on her experience in marketing, entrepreneurship, and business operations, Alexis believes effective delegation is about more than hiring a virtual assistant. It starts with selecting the right person, creating efficient workflows, establishing clear expectations, and providing the training and support needed for teams to succeed. This practical, systems-first philosophy guides every client partnership at YSO. Connect with Alexis on LinkedIn.
Reviewed by
Jenna Henao is the Co-Founder and Operations Expert at Your Startup Operations. She partners with business owners to streamline operations, strengthen workflows, and build reliable teams that drive long-term growth. With a background in entrepreneurship and business operations, Jenna has led initiatives across HR, finance, recruitment, operations, sales, marketing, and team leadership. She has helped businesses grow from six to seven figures by developing scalable systems, recruiting outstanding talent, and implementing processes that support lasting success. Connect with Jenna on LinkedIn.
Free Resources
Access practical tools, templates, and SOPs designed to simplify operations, improve delegation, and support business growth.
25 Tasks You Can Offload To Your VA Today
Your day fills up fast with follow-ups, inbox replies, scheduling, and admin.
This guide
shows exactly
what to hand
off first so
you can
stop doing it all yourself and
free up
real time.
The Ultimate Productivity Toolkit for Event Professionals
Managing clients, coordinating vendors, and handling daily administrative tasks can quickly fill your schedule. This toolkit shares five practical ways a virtual assistant can help streamline your workload so you can spend more time growing your business.
How to Send a Certificate of Insurance (COI)
Submitting a Certificate of Insurance doesn't have to be complicated.
This SOP
provides a clear, step-by-step process to help you submit accurate COIs, avoid delays, and keep approvals moving forward.
