List the whole contract here, plus each approved change order on its own line. The Progress tab then bills the share finished so far. For a one visit job, leave percent complete at 100.
Drafts save in this browser only and are never uploaded. Default amounts illustrate a sample remodel. Overwrite them freely.
A contractor invoice bills one client for one project. Put your company name, contractor license number and contact details at the top, then the client, the project name, job site address, contract number and the work period. List labor, materials, subcontracted work and equipment, with every approved change order on its own line. On a larger job, bill the percent complete less what you billed before, hold back any agreed retainage, add tax where your state calls for it, and finish with the amount due, the due date and how to pay.
How the amount due on a contractor invoice is worked out
The contractor invoice generator first builds the contract sum, then bills only the work finished since your last invoice, and holds back retainage from that amount.
| In plain words | The math | |
|---|---|---|
| Line amount | One part of the contract: labor, materials, a subcontract, equipment or a change order | Qty × unit price (crew hours × hourly rate for labor) |
| Contract sum | The original contract plus every approved change order | Original lines + change order lines |
| Completed to date | The value of the work finished so far | Contract sum × percent complete |
| This invoice | Work done since the last bill | Completed to date minus previously billed, less any discount |
| Tax | Sales tax, if your state and contract type require you to charge it | Tax % × this invoice × materials share (or the whole amount, or nothing) |
| Retainage | A slice the client keeps until the project is substantially complete | Retainage % × this invoice |
| Amount due | What the client pays on this invoice | This invoice + tax minus retainage minus any deposit applied |
Worked example: a $22,000 kitchen remodel at 60% complete, with one change order, 10% retainage and no sales tax on the bill
Sales tax starts switched off, because in many states a contractor improving real property pays tax on materials when buying them and bills the client none. Turn on Tax applies to only when your state, or a retail sale plus installation contract, has you collect it from the client.
How to use this contractor invoice template
Start with your company and end with progress and payment. Each change you type shows up straight away on the sample invoice beside the form.
- Fill in your company: the legal name you trade under, office address, a phone number or email, plus your tax ID and contractor license.
- Add the client and the project: client name and company, billing address, project name, contract number, the job site if it differs from the billing address, and the dates the work covered. Logos are optional and stay on your own device.
- Enter the contract as lines: crew labor in hours, materials, each subcontractor and any equipment rental. Tag approved change orders as Change order so the client can see how the contract grew.
- Set progress and retainage: type the percent complete, what you billed on earlier invoices and the retainage your contract allows. Leave percent at 100 and previously billed at 0 to bill a small job in one go.
- Choose tax, terms and notes.
- Download the PDF: press Download PDF, pick Save as PDF, and only the invoice itself prints.
Which details belong on an invoice template for contractor services?
Read cold, the bill should tell the client which project it covers, what got finished and how you arrived at the amount due.
| Block | Details to show |
|---|---|
| Your company | Legal trading name, office address, a phone line or email, your tax ID, and the license number in any state that licenses general contractors. |
| Client details | Client name, company if it is a business, billing address and a contact. |
| Invoice information | Its own sequential number, the date you raised it, when payment falls due, and the currency. |
| Project information | Project name, job site address, project or contract number and the work period this bill covers, so the client can match it to the right job and the right month. |
| Labor | Crew hours and rate, or a fixed price for each stage of work. |
| Materials and equipment | Lumber, cabinets, fixtures and finishes with quantity and unit price, plus rented equipment such as a dumpster or lift. |
| Subcontracted work | Each trade you brought in, like the electrician or the drywall crew, as its own line. |
| Change orders | Every approved change, numbered and priced, kept apart from the original contract. |
| Progress and retainage | Contract sum, percent complete, amount billed before, retainage held and the share billed now. |
| Taxes and totals | Tax where it applies, any discount, deposits applied and the amount due. |
| Payment terms and notes | Due date, accepted payment methods, late payment policy, workmanship guarantee and any thank you note. |
What does a good invoice do for contractor work?
On a contract job the invoice is a legal record of the work, the agreed price and the terms, and it is the paper your client's lender or accountant will ask to see.
- Faster paymentsClients pay a bill they can follow. When every stage is itemized, there is no reason to sit on it.
- Proof of work completedDates, the job site and the percent finished document what was done if a dispute, an insurance claim or a compliance check comes up.
- Tax and accounting supportBills in number order, each with the tax amount broken out, keep the books clean all year and shorten year end reporting.
- Professional credibilityA branded invoice shows a client you run a tidy business.
- Fewer billing errorsThe generator does the math on progress, retainage and tax, so a missed change order or a wrong total does not slip through.
- Records for every projectKeep one invoice per stage and you have the full payment history of the job in order.
How do contractors bill by percent complete?
Instead of one bill at the end, you invoice the value of the work finished so far, minus what you have already billed. Many contracts let the client hold back a retainage until the job is done.
| Term | What it means on the invoice |
|---|---|
| Contract sum | The original price plus approved change orders. It is the number every percentage is taken from. |
| Percent complete | Your honest measure of how much of the contract is finished. Federal construction contracts pay monthly on estimates of the work accomplished, and private jobs often copy that rhythm. |
| Previously billed | The total of your earlier invoices on this job, taken off so nothing gets billed twice. |
| Retainage | A percentage the client keeps back from each payment as a safeguard. On federal contracts it may not exceed 10 percent of the approved amount, and the remaining withheld funds are released once the work is substantially complete. |
| Final invoice | Bills the last of the contract and asks for every retained amount back. |
Private contracts and state laws set their own retainage limits, so use the figure written in your contract.
How should change orders appear on a contractor invoice?
A change order is a written, signed change to the scope or price of the contract. Bill it only after the client has approved it, and keep it visible on its own line.
- Number each oneCO 1, CO 2 and so on, matching the signed change order form.
- Describe and price itSay what changed, for example an added pantry wall or an upgraded tile, and the agreed price. Keeping the wording identical to the signed form saves an argument later.
- Add it to the contract sumApproved changes raise the contract sum, so your percent complete is measured against the new total.
- Treat removed work as a creditWhen the client takes work out of the contract, agree the credit in writing first. Then lower the original line, or enter the agreed amount in the Discount box so the reduction shows on the bill.
Do general contractors charge sales tax on an invoice?
In many states a contractor who builds or improves real property pays tax when buying the materials and does not add sales tax to the client's bill. The rules turn on the state and on how the contract is written.
| State | How contract work is treated |
|---|---|
| Pennsylvania | The contractor pays tax on the materials, equipment and supplies it furnishes and installs, and does not charge sales tax to the customer on that construction work. The tax can be built into the bid, but not shown as a separate item. |
| Ohio | A contractor buying materials to incorporate into real property is the consumer of those materials and pays sales or use tax on their purchase price. |
| Florida | Real property contractors are generally the ultimate consumers of their materials and supplies. Under a retail sale plus installation contract, where materials are itemized and priced before work begins, tax is collected from the customer on the materials instead. |
Other states use their own rules, and some tax repairs differently from new work. Confirm with your state revenue department, then set Tax applies to in the generator, or pick No sales tax.
What payment terms work for a contractor invoice?
Agree the terms before the project starts and print them on every invoice. Small jobs are usually billed as soon as they are finished, and longer projects are billed at agreed milestones.
| Term | What it means | Typical use |
|---|---|---|
| Due on receipt | Payable the day the invoice arrives | Short repair jobs and a final bill after a walkthrough |
| Net 10 or Net 15 | The client has 10 or 15 days from the date on the bill | Homeowner progress invoices on a remodel |
| Net 30 | The client has 30 days from the date on the bill | Commercial clients, property owners and developers |
| Deposit, draws and final | A share up front, progress invoices at milestones, the rest at completion | Additions, remodels and any job running longer than a few weeks |
For comparison, federal agencies owe construction progress payments 14 days after a proper payment request arrives, and the final payment 30 days after the later of the invoice or acceptance of the work.
What is the difference between a contractor quote, invoice and receipt?
The quote comes before the work, the invoice asks for payment once work is done, and the receipt confirms the money arrived.
| Paperwork | Timing | Job it does |
|---|---|---|
| Quote or estimate | Ahead of any work | Gives the client a price to approve. |
| Change order | During the job | Records an agreed change to scope or price. |
| Progress invoice | At each milestone or month | Bills the share of the contract finished since the last invoice. |
| Final invoice | At completion | Bills what is left, including retainage. |
| Receipt | After payment | Confirms the client has paid, for both sets of records. |
Industry specific tips for contractor invoicing
Contract jobs have stages, several trades and moving deadlines. A few habits keep each bill easy to approve.
- Separate labor and materialsShow crew hours and rates apart from material costs. The client sees where the money went, and tax is easier to get right.
- Include project identifiersProject name, site address and contract number on every page.
- Use milestone paymentsSplit a big project into a deposit, progress invoices and a final invoice. It keeps cash coming in while you are still paying crews and suppliers.
- State warranties or guaranteesWrite the workmanship guarantee and how long it lasts in the notes.
- Itemize subcontracted workName each trade you hired. On federal jobs the payment request has to list amounts owed to subcontractors, and private clients increasingly ask for the same detail.
- Track retainage owed to youNote the retainage on each invoice, then add it all back on the final bill.
Running a contracting business? The invoice comes after the job you actually won.
Homeowners ready to remodel tend to call two or three contractors, and the one who answers usually gets the walkthrough. When you are on a ladder or in a client meeting, that call goes to voicemail. ServiceAgent picks up every inquiry day or night, asks about the project, the address and the timeline, and books the site visit on your calendar, so more estimates turn into contracts worth billing.
Book a free demoFrequently asked questions
Straight answers on contractor invoices, progress billing and this generator.
Book a free demoWhat should a contractor invoice include?
Your company and license details, the client, an invoice number, issue and due dates, the project name, site address and contract number, itemized labor, materials, subcontracted work and equipment, approved change orders, tax where it applies, payment terms and the total due.
When should a contractor send an invoice?
As soon as a small job is finished. On a longer project, send one at each agreed milestone or at the end of each month, so cash keeps pace with the work.
What's the difference between a contractor quote and an invoice?
You give the quote up front, as an offer the client can accept. An invoice is the bill for labor, materials and tax once the project, or a stage of it, is finished.
What is the difference between a contractor invoice and a receipt?
The invoice asks the client to pay for the work, and the receipt is your proof that the money came in. Keep both for your financial records.
How do I format a contractor invoice correctly?
Company details and invoice number across the top, the client and project block beneath, then the contract lines with change orders kept separate. Progress, retainage and the amount due go at the bottom right, with terms and a short guarantee note beside them. The generator above uses that layout.
Should I use a contractor invoice template or generator?
A template is fine if you are happy to type every total yourself. A contractor invoice generator works out the contract sum, progress, retainage and tax for you and hands you a PDF, which saves time on each bill and removes math mistakes.
How does a contractor invoice generator work?
Enter your company, then the client and project details, add the contract lines and change orders, then enter percent complete, retainage and tax. It calculates the amount due and lets you download a ready to send PDF.
How long does a contractor invoice take to make?
Usually a few minutes with the generator. Your business details stay saved in the browser, so the next invoice on the same project only needs the new percent complete and amount previously billed.
What is retainage on a contractor invoice?
A percentage of each payment the client holds back until the project is substantially complete. Federal construction contracts cap it at 10 percent of the approved amount. Your own contract sets the figure on private work.
Does this generator store my figures anywhere?
Only in the browser on this computer, so a half finished bill is still there tomorrow. No server ever receives it, logo included. Press Reset to clear the lot.
Leads growth and product marketing for ServiceAgent at SaaS Labs, where he has worked in product marketing since 2020. Writes ServiceAgent's coverage of AI call answering, CRM and home services operations.
Published by ServiceAgent, the AI front office for home service teams. Use this generator to prepare bills; it does not replace tax, legal or contract advice. Retainage, payment timing and sales tax depend on your contract and your state, so check them with your state revenue department, your attorney or an accountant.