Commercial construction billing follows the application-for-payment pattern: work completed this period against a schedule of values, materials stored on site, approved change orders, less retainage and prior payments. This template carries that structure in plain invoice form.
For residential jobs the same skeleton works with simpler language — most homeowners just need to see phase, amount, and running percentage. The notes block holds the payment-application math; edit the bracketed figures per draw.
Billing against a schedule of values
Break the contract into line items once (sitework, foundation, framing, MEP, finishes), then bill each period as a percentage complete per line. Your invoice line reads “Work completed this period per SOV” with the detail attached or itemized — GCs and lenders approve faster when this month’s number reconciles to last month’s.
Stored materials deserve their own line and photographic backup: billing for delivered-but-uninstalled material is normal and cash-flow-critical, but it is the line most often questioned, so document it.
Lien rights and waivers
In most US states your mechanic’s lien rights are tied to billing and notice deadlines. Reference the waiver you will provide on payment — conditional on receipt, unconditional on cleared funds — directly in the terms; sophisticated clients expect it and it signals you run a tight paper trail.
Never issue an unconditional waiver before funds clear. If a GC’s pay-when-paid clause governs your payment, mirror its timing in your terms so your invoice and the contract can’t contradict each other.
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Frequently asked questions
What is retainage and how much is normal?
Retainage is an agreed amount withheld from progress payments until a contract milestone or closeout. The percentage, release conditions and permitted amount depend on the contract and local law; show the actual deduction on each application.
Can I bill for materials before installing them?
Yes — “materials stored on site” is a standard payment-application line. Expect to substantiate with supplier invoices and photos, and insure stored materials until incorporated.
How are change orders invoiced?
Only after written approval, as separate lines referencing the CO number. Unapproved “extra work” lines are the most-rejected item on construction invoices — get the signature first.
Is construction work subject to sales tax?
It varies by state and by job type: many states tax the contractor on materials purchased, others tax the customer invoice, and repair vs capital-improvement rules differ. Confirm your state’s treatment before setting the tax field.