Free template

Contractor invoice template.

Contractor jobs rarely get paid in one go. This template handles the deposit already received, progress billing against the contract, and change orders, so the balance due is always right.

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Your business

Customer

Details

Items

Adjustments

Tax applies only to items with Taxable switched on.

Notes

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Preview

Total$0.00

A worked example.

Bathroom remodel — contract price $14,000; progress invoice at rough-in complete.

Harbor Build & Remodel
S. Okafor, 51 Lakeview Dr
Invoice

JobBathroom remodel — contract price $14,000; progress invoice at rough-in complete

DescriptionQtyRateAmount
Progress payment: demolition and rough-in complete (50% of $14,000 contract)
1 ea × $7,000.00
1 ea$7,000.00$7,000.00
Change order #1: relocate shower valve 18 in (signed Oct 9)
1 ea × $380.00
1 ea$380.00$380.00
Change order #2: upgrade to 12×24 porcelain tile — material difference
62 sq ft × $4.50
62 sq ft$4.50$279.00
Subtotal$7,659.00
Total$7,659.00
Deposit received−$3,500.00
Balance due$4,159.00

NotesDeposit of $3,500 received Sep 28 is credited against this invoice. Remaining contract balance after this invoice: $7,000 (due at substantial completion). Payment due within 10 days.

Illustrative prices; use your own rates. Totals are calculated by the same code as the generator.

How the numbers add up

  1. The progress line states which milestone was reached and what share of the contract it represents. That’s the part customers and lenders check.
  2. Each change order is its own line with the date it was signed. Unsigned change orders are where payment disputes start.
  3. The deposit taken at signing is entered as "paid", so the balance due on this invoice already accounts for it.
  4. No tax is applied in this example. Tax treatment of construction contracts varies a lot by state; materials are often taxed at purchase instead.

Progress billing in plain terms

On larger jobs you invoice at agreed milestones (for example deposit, rough-in, completion) rather than at the end. Each invoice should name the milestone, the share of the contract it represents, any approved change orders, and what has already been paid. The customer can then always see the remaining balance.

What to include on a contractor invoice

  • Licence number, if your state requires it on contracts and invoices.
  • The contract or job reference and the job address.
  • Milestone or work completed this period.
  • Approved change orders, each with its own line and date.
  • Payments received so far, and the balance due now.
  • Payment terms (for example, due in 10 days) and accepted payment methods.

Lien waivers and retainage

Some customers, lenders and general contractors ask for a lien waiver with each payment. Others hold back a percentage of each invoice (retainage) until completion. The rules on both vary by state. If they apply to your job, say so in the invoice notes and track the retained amount so it doesn’t get forgotten.

Questions and answers.

How do contractors invoice for a deposit?

Either send a deposit invoice at signing, or record the deposit and credit it on the first progress invoice, as the example shows. Some states cap deposits on home-improvement contracts, so check yours.

How do I show a change order on an invoice?

Give each approved change order its own line with a number, a short description and the date the customer signed it. Don’t fold it into the original contract line.

What payment terms should a contractor use?

Common choices are due on receipt, net 10, net 15 or net 30. Shorter is better for cash flow. Whatever you pick, put it on the contract and on every invoice.

Is this template suitable for subcontractors?

Yes. Put the general contractor as the customer and reference their job or PO number in the job description.

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