Contractor Invoice Template
Bill jobs with an invoice built for construction and trade work. The template prefills the fields contractors actually use — labor hours by rate, materials with markup, equipment, permits and fees, change orders, a deposit and retainage — with room for your license number. Fill it in and download a clean PDF.
Use this template — fill it in nowA contractor invoice has to account for labor, materials and the realities of a job site — markups, permits, progress payments and money held back as retainage. This template starts with those fields so you can bill a milestone or a finished project accurately, with your license number on the document where clients and inspectors expect it.
What a contractor invoice should include
- Labor — hours worked × your hourly rate, broken out by trade or worker where useful.
- Materials with markup — supplies listed separately from labor, at your marked-up price.
- Equipment — rental or use charges for tools and machinery on the job.
- Permits and fees — inspection, permit and disposal costs passed through to the client.
- Change orders — approved scope changes, each as its own labeled line.
- Deposit or progress billing — upfront and milestone payments, deducted from the balance.
- Retainage — the percentage held back until final sign-off, shown as a deduction.
- License number and lien note — your license # with your details, plus any lien-waiver note.
Contractor billing conventions
Progress billing and deposits
On larger jobs, bill in stages rather than all at the end. Take a deposit at signing to cover initial materials, then invoice as the work reaches agreed milestones — for example, at rough-in, at drywall and at completion. Each progress invoice should show the contract value, the percentage complete, what was billed previously and the new amount due, so the running total is always clear.
Retainage
Many contracts let the owner withhold 5–10% of each payment as retainage until the project is finished and inspected. Subtract it as a separate line on each invoice so the withheld amount is visible, and bill the accumulated retainage on your final invoice once the work is approved. Track it carefully — it is money you have earned but not yet collected.
Materials, markup and change orders
Keep materials separate from labor and apply a clear markup, commonly 10–35%, to cover sourcing and waste. When scope changes, issue a written change order with its own price and the client’s sign-off before you do the work, then bill it as a distinct line. This protects the original contract amount and gives you a paper trail if a charge is questioned.
Example
A remodeling contractor sends a progress invoice for a bathroom job: framing labor, marked-up materials and a 5% retainage hold the owner keeps until completion.
| Description | Qty | Amount |
|---|---|---|
| Labor — framing and rough-in (24 hrs × $65) | 24 | $1,560.00 |
| Materials (cost $1,800 + 20% markup) | 1 | $2,160.00 |
| Retainage withheld (5%) | 1 | −$186.00 |
Amount due this invoice: $3,534.00, with retainage billed at final sign-off.
Frequently asked questions
How do I bill for materials and markup?
List materials separately from labor, then add your markup so the invoice reflects what you actually charge. A markup of 10–35% is common and covers sourcing, handling and waste; agree the approach with the client up front. You can show materials at your marked-up price as one line, or list cost plus a stated markup percentage — whichever your contract specifies. Keep supplier receipts in case the client asks.
What is retainage?
Retainage (or retention) is a percentage of each payment the client holds back — often 5–10% — until the job is finished and approved. It gives the owner leverage to ensure the work is completed properly. Show it as a deduction line on your invoice so the amount withheld is clear, and bill the accumulated retainage on your final invoice once the project is signed off.
Should I require a deposit?
For most jobs, yes. A deposit covers your initial materials and confirms the client is committed before you mobilize. Many contractors take a deposit at signing, then invoice the balance through progress billing as the work hits agreed milestones. Some states cap how large a deposit you can ask for on residential work, so check your local rules before setting the amount.
How do change orders work?
A change order documents work added or removed after the contract is signed, with its own price and the client’s written approval. Never absorb extra scope verbally — get it in writing first, then bill it as a clearly labeled change-order line on the invoice. This keeps the original contract amount intact and prevents disputes over what was and was not included.
Do I put my license number on the invoice?
In many states a licensed contractor must show the license number on contracts and invoices, and clients expect to see it. Include your license number with your business details, and if the project involves subcontractors or suppliers, add a note about lien waivers being exchanged on payment. Check your state board’s rules, since requirements and the wording differ by jurisdiction.