Construction Invoice Template
Purpose-built for contractors, builders, and construction companies. This template supports progress billing (percentage-of-completion), time-and-materials billing, and fixed-price contracts. Includes fields for labor hours by trade, material costs with markup, equipment rental, subcontractor costs, change orders, and retention holdback calculations.
What This Template Includes
- Labor hours by trade
- Material costs & markup
- Equipment rental
- Subcontractor costs
- Change orders
- Retention holdback %
How to Create Your Construction Invoice
- 1
Describe your work
Type a plain English description of the services you provided, the client, and the amount.
- 2
AI generates your invoice
InvoiceQuickly's AI fills in all fields with industry-specific formatting, tax calculations, and proper payment terms.
- 3
Review, download, and send
Check the details, download as PDF, and send directly to your client via email or a payment link.
Recommended Payment Terms
Construction invoicing typically follows progress billing (monthly applications for payment). Payment terms of Net 30 are standard, with 5-10% retention holdback until project completion.
Need help writing payment terms? Read our guide to invoice payment terms for best practices and templates.
Tax Information
Construction services have complex tax rules that vary by jurisdiction. Some states exempt materials from sales tax when installed as part of a construction project, while others tax them. Always consult local tax requirements.
Industry context (2026)
US residential construction rates in 2026 vary widely by trade and region. Finish carpentry: $55-$130/hr; rough framing $40-$80/hr; full-service GC markup is typically 15-25% on materials + labor. Major remodels run $200-$400/sq ft for kitchens/baths in urban markets, $80-$150/sq ft for general residential. Construction is licensed at the state level; California requires CSLB license for any job over $500. Materials are typically taxable; pure labor is exempt in most states but taxable when 'installation' bundled in TX, OH, WV.
Worked example
Javier owns a residential remodel company. He's invoicing the third milestone of a $80K kitchen renovation. Invoice itemizes: 'Phase 3 (Cabinet install, countertop placement, plumbing connect): Materials — cabinets ($12,400), countertops ($4,200), hardware/fixtures ($1,800) = $18,400 / Labor — 65 hours @ $85/hr = $5,525 / Disposal & permits — $340 / Phase 3 total: $24,265'. Includes a deductive change order: 'CO-04: Switched from quartz to butcher-block on island per 4/12 email — credit $850'. Net amount Phase 3: $23,415. Workmanship warranty footer: '12 months on installation; manufacturer warranties pass through to homeowner.'
Common mistakes to avoid
Lump-sum 'construction services' invoice
Always itemize materials separately from labor with quantities. Lump-sum invoicing prevents homeowners from understanding cost breakdowns and triggers disputes when costs run over.
No progress billing on multi-week jobs
For projects over 5 days, issue weekly or bi-weekly progress invoices. Single end-of-project invoicing creates cash flow gaps and risks if the homeowner stops paying mid-project.
Verbal change orders
Document every scope change as a written Change Order invoice with the homeowner's signed approval before starting. Verbal changes lead to disputes that small-claims court rarely resolves in your favor.
Missing warranty terms
Workmanship warranties should be on every final invoice (typically 12 months). Without explicit terms, you may face indefinite warranty exposure under state implied-warranty laws.
Invoicing Tips
- 1Use progress billing for projects lasting more than one month
- 2Clearly list change orders separately from the original contract scope
- 3Include retention holdback calculations per local requirements
- 4Attach supporting documentation (timesheets, material receipts) for large invoices
Related Resources
Frequently Asked Questions
How does progress billing work in construction?
Progress billing invoices clients based on the percentage of work completed. For example, if a $100,000 project is 30% complete, you invoice $30,000 (minus any retention). This method aligns payment with actual work done.
What is retention holdback on a construction invoice?
Retention (or retainage) is a percentage of the invoice amount (typically 5-10%) that the client withholds until the project is substantially complete. This protects the client and ensures the contractor finishes the work.
Should I charge markup on materials?
Yes, a 10-20% markup on materials is standard in construction to cover procurement, handling, storage, and waste. Always disclose your markup policy in your contract.