Construction invoices bill against a schedule of values: each line shows the contract value, percent complete this period, amount previously billed, and amount due now. Standard structure includes retainage withheld (5–10%, released at completion), change orders as separately numbered lines, stored materials where allowed, and lien waiver exchange at each payment. Residential jobs run deposit + milestone billing; commercial work uses monthly progress applications (AIA G702-style) on Net 30 terms with retainage.
Construction Invoice Template
Reviewed by the Agiled editorial teamUpdated June 2026
A construction invoice isn't a receipt — it's a progress claim. The question it answers is not "what do I owe?" but "how much of the contract value has been earned to date, what's already been paid, and what's due this period?" That's why real construction billing runs on a schedule of values, percent-complete math, retainage tracking, and numbered change orders — and why a generic services invoice falls apart on any job longer than a week. This template carries the full structure without requiring AIA software. Download it in PDF, Word, Excel, Google Docs, or Google Sheets, or generate a pre-filled version below.
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Your Company Name
123 Business St, City, State 12345
billing@yourcompany.com
INVOICE
INV-0001
Bill to
Client Company
Due
Net 30
| Description | Qty | Rate | Amount |
|---|---|---|---|
| Labor | 40 | $65.00 | $2,600.00 |
| Materials | 1 | $3,500.00 | $3,500.00 |
| Equipment rental | 5 | $200.00 | $1,000.00 |
Download this invoice template
Pick a style, choose a format, and download — generated locally in your browser.
Style
Format
Fixed layout for sending and printing
Word
Editable in Word or Google Docs
Excel
Live formulas for recurring invoices
Or create and send invoices online
Create online- Billing cycle
- Monthly progress, or milestones
- Retainage
- 5 – 10%, released at completion
- Payment terms
- Net 30 typical; prompt-pay laws apply
- Change orders
- Numbered, signed, billed as own lines
What to include on a construction invoice
Schedule of values lines
Each trade or phase as a line: contract value, % complete to date, previously billed, billed this period. The four-column math is the entire grammar of construction billing.
Retainage shown, not buried
"Less 10% retainage — ($4,250)" as its own labeled deduction, with the running retained total. Track it visibly or you'll chase it invisibly at closeout.
Change orders by number
"CO #3 — Upgraded exterior doors per signed order 5/14 — $2,180." Numbered, dated, referencing the signature. Unbilled change orders are where margin goes to die.
Stored materials, when contract allows
Materials purchased and stored on site or bonded off site can often be billed before installation — listed separately with documentation noted.
Application period and project references
Application number, billing period, project name/address, contract date, and owner/GC references — the metadata that lets an invoice survive a paper trail audit.
Lien waiver exchange terms
"Conditional waiver furnished upon payment; unconditional waiver follows clearance." Conditional-then-unconditional sequencing protects both directions.
License and insurance references
License number where required, plus bonding/insurance certificates noted as available. Owners and lenders increasingly verify before releasing draws.
Common construction billing structures (U.S., 2026)
| Structure | Typical terms | Notes |
|---|---|---|
| Residential remodel | Deposit + 2–4 milestones | Deposit capped by law in many states |
| Custom home | Monthly draws vs. % complete | Lender-administered draws common |
| Commercial GC progress billing | Monthly, Net 30 | AIA G702/G703-style application |
| Retainage | 5 – 10% | Some states cap at 5%; released at completion |
| Cost-plus | Cost + 10 – 20% fee | Backup documentation attached |
| Time & materials | Labor rates + materials + markup | For undefined-scope work |
| Final / closeout invoice | Retainage + punch completion | Against unconditional final waiver |
Retainage caps, prompt-payment deadlines, and deposit limits are set by state statute and vary significantly. Public work carries its own prompt-pay and certified-payroll rules.
How construction billing actually works
Residential remodels: deposit and milestones
A kitchen or addition bills deposit at signing (within state caps), then milestone invoices tied to observable progress — rough-in complete, drywall, cabinets set, final walk-through. Each invoice names its milestone, credits everything paid, lists signed change orders as numbered lines, and states the remaining contract balance. The running-balance habit is what keeps a six-figure remodel from ending in an accounting argument.
Commercial progress applications
GC and commercial sub work bills monthly: an application with schedule-of-values lines (contract value, % complete, previously billed, this period), retainage deducted, stored materials documented, and a conditional lien waiver attached. Submit by the contract's cutoff day — miss it and payment slips a full cycle. Prompt-payment statutes in most states start a clock once the application is approved; reference them politely when payment stalls.
Closeout: where the margin hides
The final invoice collects retainage — often 5–10% of the whole contract, which on many jobs is the entire profit. It bills punch-list completion, releases retainage per contract terms, and exchanges against the unconditional final waiver and closeout documents (warranties, O&M manuals, as-builts). Invoice it promptly and completely: retainage left unbilled for months has a way of becoming negotiable.
Invoicing mistakes that cost construction professionals money
Billing without a schedule of values
'Progress billing — $48,000' gives the owner's accountant nothing to approve against and invites a haircut. The four-column SOV math gets approved because it can be checked.
Working change orders before signing them
Verbal change orders performed and billed later are the most-disputed line in construction. Price it, sign it, number it, then build it — and bill it by number.
Losing track of retainage
Retainage that isn't shown on every application accumulates invisibly and gets 'forgotten' at closeout. Carry the running retained total on every invoice.
Casual lien waiver handling
Signing an unconditional waiver before the check clears waives your leverage on money you haven't received. Conditional on payment, unconditional after clearance — in that order, every draw.
Missing the billing cutoff
Commercial pay cycles run on application deadlines; an invoice submitted on the 26th against a 25th cutoff waits thirty extra days. Calendar the cutoffs for every project.
How to use this template
- 01
Download the template in your preferred format, or generate a pre-filled version with the download studio above.
- 02
Add your business details, license number, and project references.
- 03
Build the schedule of values: one line per phase or trade with contract value.
- 04
Each period, bill percent complete per line, credit prior billings, and deduct retainage visibly.
- 05
Add signed change orders as numbered lines and stored materials where the contract allows.
- 06
Exchange conditional lien waivers at payment, and invoice retainage promptly at closeout against the final waiver.
Skip this template if…
- Single-trade service calls — electrician, plumbing, and HVAC templates handle dispatch-style billing better.
- Handyman and small-repair work — per-task billing without SOV structure fits the handyman template.
FAQs
What is a construction progress invoice?
An invoice that bills a portion of the contract as work completes: each schedule-of-values line shows contract value, percent complete to date, amounts previously billed, and the amount due this period, less retainage. Commercial projects typically format this as an AIA G702/G703-style payment application submitted monthly.
What is retainage and how is it invoiced?
Retainage is 5–10% withheld from each progress payment as completion security, shown as a labeled deduction on every application with a running retained total. It's billed on the final closeout invoice once punch-list work completes — several states cap retainage at 5% and set deadlines for its release.
How are change orders billed?
As separately numbered lines referencing the signed order: 'CO #3 — per signed order 5/14 — $2,180.' The discipline is sequencing — priced and signed before the work happens, billed by number after. Unsigned change orders are the single most-disputed item in construction billing.
What is a schedule of values?
A breakdown of the contract price into line items by trade or phase — sitework, foundation, framing, mechanical, finishes — agreed at project start. Every progress invoice bills percent-complete against these lines, giving the owner or GC an objective basis to approve payment.
Should I sign a lien waiver to get paid?
Sign a conditional waiver with your application — it takes effect only when payment actually arrives. Sign the unconditional waiver only after funds clear. Signing unconditional waivers in advance gives away lien rights on money you may never see.
What payment terms are standard in construction?
Net 30 from approved application on commercial work, with state prompt-payment statutes setting deadlines (and interest penalties) once payment is due. Residential work runs deposit-plus-milestones with the balance at final walk-through. Public projects layer on their own prompt-pay and certified-payroll requirements.
Pair it with the construction contract template
Invoices collect; contracts protect. Get the matching agreement in Word or PDF — free, like this template.
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