Crew hours go in Qty on labor lines. Switch tax to materials only and just the Materials lines get taxed.
These figures come from a sample electrical job; replace them with yours. This draft is kept in your browser only and never uploaded.
A subcontractor invoice bills the general contractor, not the property owner. Put your trade company, license and tax ID at the top, then the GC, the project name, job site, and the GC's PO number and subcontract number so accounts payable can match it. List labor, materials, equipment and other charges for the work period covered, then show the subtotal, tax where it applies, the retainage the GC holds back, any payments already received and the balance due. Say which lien waiver goes with it and that your Form W-9 is on file.
How the invoice total is calculated
Your lines are added up first. The subcontractor invoice generator then removes any credit, adds tax where it applies, and subtracts the retainage the GC keeps and whatever the GC has already paid you.
| Meaning on a sub's bill | Worked out as | |
|---|---|---|
| Each line | One charge for the period: crew labor, a material, an equipment rental or another cost such as a permit | Quantity × unit price; on labor lines, hours × rate |
| Subtotal | Everything billed for this work period, also split into labor, materials, equipment and other | Sum of the line amounts |
| Discount | Any agreed reduction, such as a backcharge credit you accepted | Split pro rata across lines, which lowers the taxed base too |
| Tax | Off to start, because work sold to a GC for resale often carries none. Turn it on for materials or every line where your state taxes your charge | (1 minus discount ÷ subtotal) × taxable lines × tax % |
| Retainage | The share the GC holds until your scope or the project is finished | Retainage % × (subtotal minus discount), tax left out |
| Balance due | What the GC owes you on this invoice | Invoice total minus retainage minus payments already received |
Worked example: electrical rough in on an office fit out, no sales tax charged to the GC, 5% retainage
How to use this subcontractor invoice template
Four tabs: business, GC, lines, then payment. Each change lands on the sample invoice at once, so it can be compared with the subcontract line by line.
- Your business: trade company name, your trade, address, a phone or email, tax ID, contractor license number and the insurance policy the GC has on your certificate. Logos are optional and never leave this device.
- GC and project: the general contractor, who in their office pays the bill, project name, job site, GC site contact, then the GC project number, PO number and subcontract number exactly as the GC wrote them. Set the work period and say in a sentence what got done.
- Labor and materials: one line per charge, tagged Labor, Materials, Equipment or Other.
- Retainage and payment: invoice number, terms, tax, any credit, the retainage percentage from your subcontract and payments the GC already made. Then pick the lien waiver you are sending and note your Form W-9.
- Save it: Download PDF opens the print dialog. Pick Save as PDF and the invoice comes out on its own, with none of this page around it.
What a subcontractor invoice template should include for trade services
A GC's accounts payable desk matches your bill to a subcontract and a PO before anyone approves it. Give them every reference they need on the first page.
| Block | What goes on it |
|---|---|
| Subcontractor details | Trade company name, your trade, address, phone or email, tax ID, and the license number where your state licenses that trade. |
| General contractor | GC company, the person or department that pays, billing address and contact. |
| Project and GC references | Project name, job site address, GC site contact, plus the GC project number, PO number and subcontract number written the way the GC writes them. A bill that cannot be matched usually waits. |
| Invoice information | A unique invoice number, the date issued, the date due, and the currency you bill in. |
| Work period and scope | Start and end dates of the work billed, with a short line on what was installed or finished. |
| Labor, materials and equipment | Crew hours and rate, materials with quantities, rented equipment, and other costs such as permits. |
| Retainage and payments | The retainage percentage held on this bill, payments already received and the balance due now. |
| Paperwork | Which lien waiver is enclosed, a note that your Form W-9 is with the GC, and your insurance details if the GC tracks certificates. |
| Terms and notes | When payment falls due, how to pay you, and any compliance note or thank you. |
Why are invoices so important for subcontractors?
You sit one step away from the money. The owner pays the GC, the GC pays you, and your invoice is the paper that moves your share down that chain.
- Proof of work doneDates, crew hours and the scope line show what you did in the period, which matters when a GC disputes a quantity weeks later.
- Payment on timeBills that carry the PO and subcontract numbers get approved without a call back.
- Contract and compliance supportThe invoice ties each charge to the subcontract, and the waiver and W-9 notes show the GC that its own paperwork is covered. In some states the payment clock only starts once a written payment request is in.
- Retainage you can trackEach bill states what was held back, so the final invoice can ask for all of it.
- Fewer mistakesA generator does the math and keeps the layout the same, so the GC sees one consistent format from the first bill to the last. It also saves time against building each invoice by hand.
- A record for taxesNumbered, dated bills make your own books and year end forms easier.
When does a general contractor have to pay a subcontractor?
Mostly when your subcontract says so, and often only after the GC is paid for your work. Some public rules set a deadline on top of that.
| Where | What the rule says |
|---|---|
| Federal jobs | The prime contractor must put a clause in each subcontract to pay the sub for satisfactory work no later than 7 days after it receives payment from the government, with an interest penalty when it pays late. |
| Federal retainage | The subcontract may let the GC retain a set percentage of each progress payment without owing late payment interest, on terms both sides agreed. |
| Florida private jobs | The GC must pay once you are entitled under the contract and have sent a written request for payment, the GC has been paid for your work, and you have handed over the affidavits or waivers the owner needs. Late amounts earn interest starting the 14th day after payment is due. |
| Florida, incomplete requests | If your request is incomplete or wrong, the GC has 14 days to send it back in writing with the reasons. |
Other states have their own prompt payment and retainage laws. Use the terms in your subcontract, and set Retainage held by GC to the percentage it names.
Do subcontractors send a lien waiver with each invoice?
Very often, yes. Many GCs will not release a payment until they hold a waiver for the amount being paid, and several states fix the exact wording.
| Waiver | When it is used |
|---|---|
| Conditional, progress payment | Sent with a progress invoice. It only takes effect once the payment actually clears, so it is the safe one to hand over before the money arrives. |
| Unconditional, progress payment | Given after that progress payment is in your account. |
| Conditional, final payment | Sent with the last invoice, including the retainage request. |
| Unconditional, final payment | Given once the final payment has been received in full. |
Arizona sets out these four forms in statute, and a waiver that does not follow one of them substantially is unenforceable. Florida law has its own progress and final payment forms, says nobody may require a different form, and bars waiving lien rights in advance. Use your state's form when it has one.
What tax paperwork goes with a subcontractor invoice?
The GC will want your Form W-9 before the first payment, and may send you a Form 1099-NEC after the year ends. Sales tax depends on your state.
| Item | What applies |
|---|---|
| Form W-9 | Gives the GC your correct taxpayer identification number so it can file information returns about what it paid you. |
| Form 1099-NEC | For tax years beginning after 2025, a business files one for each nonemployee it paid at least $2,000 for services, parts and materials included. The threshold may be adjusted for inflation from 2027. |
| Filing date | The GC files Form 1099-NEC and gives you your copy by January 31. |
| Corporations | Payments to a corporation, including an LLC taxed as a C or S corporation, generally do not need a 1099. |
| No W-9 on file | A payer can be required to hold back backup withholding at 24 percent from future payments when you have not given a correct TIN. |
| Sales tax, Washington | Subcontractors on custom construction are doing wholesale work and must get a reseller permit from the prime contractor. With that permit on file, the sub collects no retail sales tax from the GC. |
Sales tax rules differ in every state. Check yours, then set Tax applies to in the generator.
Industry specific tips for subcontractor invoicing
Subs work under someone else's contract and someone else's payment schedule. These habits keep your bills near the top of the GC's pile.
- Always reference contract detailsPut the subcontract number, PO number and any milestone name on every invoice.
- Bill on the GC's cycleIf the GC sends its own pay application to the owner on a set day each month, get yours in before that day. Your work then rides in the same request and the money comes back to you sooner.
- Break down labor and materialsSeparate crew hours from supply costs so a question about one line does not hold up the rest.
- Note retainage every timeShow the amount held on each bill, then ask for the total on the final one.
- Include compliance notesLicense number, insurance details and the waiver type. A GC checking boxes before releasing money will look for exactly these.
- Keep backup readyDaily logs, delivery tickets and signed tickets for extra work.
Running a trade sub? The next GC job starts with a phone call you answer.
General contractors line up subs fast, and a superintendent who reaches voicemail usually tries the next electrician or drywall crew on the list. ServiceAgent picks up those calls while you are on a lift or in a crawlspace, takes down the project and the scope, and books the walkthrough on your calendar, so more bids turn into subcontracts worth invoicing.
Book a free demoFrequently asked questions
Straight answers on billing a general contractor as a sub.
Book a free demoWhat should a subcontractor invoice include?
Start with your trade company, license number, the general contractor's name and billing address, the project and job site, the GC project number, PO number and subcontract number, the work period, itemized labor, materials and equipment, tax if any, retainage held, payments received, the balance due and your payment terms.
When should subcontractors send invoices?
When your subcontract says to: after a milestone, at the end of a monthly billing cycle, or when your scope is finished. If the GC bills the owner on a fixed day, send yours before it.
What's the difference between a subcontractor estimate and an invoice?
The estimate is your price for the scope before the work, usually what the subcontract is based on. The invoice bills the labor and materials actually delivered in a period.
How is a subcontractor invoice different from a receipt?
The invoice asks the GC for money. A receipt, or an unconditional lien waiver, confirms that the money has arrived.
How do I format a subcontractor invoice correctly?
Your details and the invoice number on top, then the GC and the project with every reference number, the work period and scope, the itemized lines, and the totals block with retainage and balance due. Payment terms and the waiver note go at the bottom. Export to PDF so nothing shifts when the GC opens it.
Should I use a subcontractor invoice template or generator?
Templates suit a one off bill. A subcontractor invoice generator works out tax, retainage and the balance for you and keeps every bill to the same GC looking the same, which helps when their office compares this month with last month.
How does a subcontractor invoice generator work?
You type in your business, the GC and project references, the lines for the period, then terms, retainage and payments received. The subcontractor invoice generator totals it all live and Download PDF saves the invoice alone as one page.
How quickly can I make a subcontractor invoice with a generator?
Around five minutes for a first bill. The draft stays in your browser, so the next bill on the same project only needs new dates, lines and payments.
What does a 1099 contractor invoice look like?
Much like this one. Form 1099-NEC is filed by the business that paid you after the year ends, not attached to your bill, so the part to get right is the legal name and tax ID: keep them identical to the Form W-9 you gave the GC.
Can I download a free invoice template in Word?
No Word file here: the tool saves a PDF, which keeps the layout fixed on any device. Your draft stays saved here, so you can come back and edit it instead of keeping a Word file.
Is my invoice data uploaded anywhere?
No. The draft and any logo stay in your own browser. Press Reset to clear them.
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. This template is a general billing tool, not tax, lien or legal advice. Rules on retainage, prompt payment, lien waivers and sales tax change from one state and one contract to the next, so confirm yours with your state agency, an accountant or a construction attorney.