Construction Invoice Example: Annotated Template with Line Items
See a complete construction invoice example with annotated fields, sample line items, and explanations of what to include and why.
Sample construction invoice
| Field | Details |
|---|---|
| From | Hawkins Building Group LLC, 2200 Riverside Dr, Nashville, TN 37216, License #CBC-048271, invoices@hawkinsbg.com |
| To | Sunridge Homeowners Association, Attn: Property Manager Dave Kowalski, 1400 Sunridge Pkwy, Franklin, TN 37067 |
| Invoice # | HBG-2026-0089 |
| Invoice Date | April 4, 2026 |
| Due Date | May 4, 2026 (Net 30) |
| Project | Clubhouse Renovation -- Contract #SR-2025-14 |
| Billing Period | March 1 -- March 31, 2026 (Progress Bill #3 of 5) |
| # | Description | Qty | Rate | Amount |
|---|---|---|---|---|
| 1 | Framing labor -- crew of 4, 8-hr days | 12 days | $2,800.00/day | $33,600.00 |
| 2 | Lumber and framing materials (see attached material list) | 1 lot | $14,220.00 | $14,220.00 |
| 3 | Electrical rough-in -- licensed subcontractor | 1 | $8,500.00 | $8,500.00 |
| 4 | Plumbing rough-in -- licensed subcontractor | 1 | $6,200.00 | $6,200.00 |
| 5 | Dumpster rental and debris removal | 2 | $650.00 | $1,300.00 |
| 6 | Change Order #2 -- additional beam reinforcement per engineer report | 1 | $3,400.00 | $3,400.00 |
| Subtotal | $67,220.00 |
| Sales Tax on Materials (9.25%) | $1,315.35 |
| Total This Invoice | $68,535.35 |
| Previous Payments Received | $124,000.00 |
| Total Contract Value | $340,000.00 |
| Remaining Balance | $147,464.65 |
Payment Terms: Net 30 per contract. Checks payable to Hawkins Building Group LLC. Retainage of 10% held until project completion and final inspection.
Notes: Progress photos uploaded to project portal. Next milestone: drywall and insulation (estimated April 15). Change Order #2 approved by Dave Kowalski on March 12, 2026.
Field-by-field breakdown
- From: Include your contractor license number -- many states require it on every invoice.
- Project and contract reference: Ties this invoice to a specific job. Critical when you have multiple projects running.
- Billing period: Construction invoices often cover a month of work on a progress-billing schedule.
- Labor vs. materials: Always separate these. Tax rules differ (labor is often exempt; materials are taxable).
- Subcontractors: List major subs as separate lines so the client sees exactly where money goes.
- Change orders: Reference the approved change order number and the authorizing person.
- Retainage: Note the holdback percentage. This is standard in construction and reduces the current payment.
- Running totals: Show previous payments, total contract value, and remaining balance for transparency.
Common line items for construction
| Line Item | Typical Rate Range |
|---|---|
| General labor (crew per day) | $1,500 -- $4,000 |
| Framing materials (per project) | $5,000 -- $30,000+ |
| Electrical rough-in (subcontractor) | $3,000 -- $15,000 |
| Plumbing rough-in (subcontractor) | $2,500 -- $12,000 |
| Concrete / foundation work | $5,000 -- $25,000+ |
| Permit fees (pass-through) | $500 -- $5,000 |
| Dumpster and waste removal | $400 -- $1,200 |
| Equipment rental (weekly) | $500 -- $3,000 |
Variations
- Time and materials vs. fixed price: T&M invoices list actual hours and receipts; fixed-price invoices bill by milestone percentage.
- Residential vs. commercial: Commercial jobs often require AIA-format billing documents (G702/G703) in addition to a standard invoice.
- With retainage: Show the gross amount, retainage withheld, and net amount due.
- Multi-trade projects: Add a summary section grouping line items by trade (framing, electrical, plumbing, HVAC).
Tips for construction invoicing
- Invoice at each milestone or monthly -- never wait until project completion to bill.
- Attach lien waivers with each progress payment to protect both parties.
- Photograph completed work before invoicing to support the billing.
- Track change orders meticulously and invoice them as they are approved, not at the end.
FAQ
Q: Do I charge sales tax on construction labor? A: In most states, labor for real property improvements is exempt from sales tax, but materials are taxable. Some states (like Hawaii) tax everything. Check your state rules.
Q: What is retainage and how do I show it? A: Retainage is a percentage (typically 5-10%) withheld from each progress payment until the project is complete. Show it as a deduction line on your invoice.
Q: How do I handle disputed change orders? A: Never perform change-order work without written approval. Reference the signed change order document on your invoice to prevent disputes.
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