General and specialty contractors bill differently from everyone else: labor and materials on separate lines, progress draws against a contract price, and retainage held back until punch-out. This template is prefilled with that structure — hours × rate for labor, materials at cost-plus, and progress language in the notes.
For fixed-bid jobs, swap the labor line for milestone descriptions (“Rough-in complete — 40% of contract”). The invoice number sequence, your logo and your terms persist between visits, so the second draw takes a minute.
Progress billing that gets paid on time
Tie every draw to something the client can see: “Foundation poured and inspected — 25% draw” clears faster than “Progress payment #2”. Reference the contract date and the running percentage billed to date in the notes — it answers the client’s bookkeeper before they ask.
If the contract carries retainage, show the agreed percentage: bill the gross amount, then note the withheld retainage and the net due. Clear math helps the client reconcile each draw.
Labor, materials and markup
On cost-plus work, bill materials at documented cost plus the markup stated in the contract and provide supporting records as agreed. Keep equipment rental separate from labor so each charge can be reconciled.
Sales tax treatment on construction varies sharply by state — some tax materials to the contractor, some tax the customer bill, and rules differ for capital improvements vs repairs. Match the tax field to how your state actually treats the job type rather than defaulting.
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Frequently asked questions
Should I invoice labor and materials separately?
Yes — separate lines are the norm on contractor invoices. It supports cost-plus billing, simplifies state sales-tax treatment (which often differs between the two), and gives the client a dispute-proof breakdown.
How do I bill a change order?
As its own clearly-labeled line (“Change order #3 — added exterior outlet, per signed CO dated…”), or as a separate invoice referencing the CO. Never fold change-order work silently into a progress draw.
What payment terms are standard for contractors?
Net 14 for residential clients, net 30 for commercial GCs. Deposits of 10–33% before mobilization are standard; several states cap residential deposits, so check your local rule.
How does retainage appear on an invoice?
Bill the full amount earned, then show retainage withheld as a note reducing the amount due (“Less 10% retainage: −$X; Net due: $Y”). Bill the accumulated retainage as its own final invoice at completion.