Subcontractor invoices bill the GC against the subcontract: progress applications with scope-line percent complete, retainage withheld (typically matching the GC's 5–10%), numbered change orders, and conditional lien waivers exchanged at payment. Subs invoice by the GC's application cutoff date to make each month's draw, track retainage to closeout, and should know their state's prompt-payment statute and the enforceability limits of pay-when-paid clauses. Labor-only subs bill crew-hours or unit prices (per square, per fixture, per opening).
Subcontractor Invoice Template
Reviewed by the Agiled editorial teamUpdated June 2026
A subcontractor's invoice has a tougher audience than almost any other trade's: a GC project manager reconciling it against the subcontract, the schedule of values, the change-order log, and their own draw to the owner. Invoices that don't line up with that paper trail don't get rejected — they get parked, which is worse. This template is built to match the trail: scope lines with percent complete, retainage carried visibly, change orders by number, and the waiver exchange handled in the right order. 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 |
|---|---|---|---|
| Subcontract labor | 40 | $65.00 | $2,600.00 |
| Materials provided | 1 | $1,200.00 | $1,200.00 |
| Equipment usage | 5 | $80.00 | $400.00 |
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, by the GC's cutoff date
- Retainage
- 5 – 10%, mirroring the prime contract
- Terms
- Net 30+; prompt-pay statutes apply
- Change orders
- Signed and numbered before the work
What to include on a subcontractor invoice
Subcontract and project references
Project name, subcontract number, application number, and billing period — the header data the GC's PM needs to route the invoice without a phone call.
Scope lines with percent complete
Your subcontract scope broken into lines, each with contract value, % complete to date, previously billed, and this-period amount. Mirror the GC's schedule-of-values format.
Retainage as a running, visible deduction
The withheld percentage on every application plus cumulative retained-to-date. Subs who don't track it on paper end up negotiating for their own money at closeout.
Change orders by number, after signature
"SCO #2 — added blocking per RFI 014, signed 4/22 — $1,860." Extra work performed on a verbal go-ahead is the most-disputed money in subcontracting.
Unit-price or labor-only lines where applicable
"Hang/finish drywall — 214 sheets @ $34" or "crew labor — 96 hrs @ $58." Unit-price subs invoice measured quantities; field-measure sign-offs referenced.
Conditional lien waiver with the application
Conditional waiver submitted with each invoice; unconditional only after the check clears. Many GCs won't process payment without the conditional attached.
Certified payroll / compliance notes on public work
Prevailing-wage jobs reference the certified payroll submission for the period. Public-work invoices missing compliance paper sit unpaid by rule, not choice.
Common subcontractor billing structures (U.S., 2026)
| Structure | Typical terms | Notes |
|---|---|---|
| Progress application | Monthly vs. % complete | By GC cutoff, often the 20th–25th |
| Retainage | 5 – 10% | Mirrors prime; some states cap at 5% |
| Unit-price billing | Measured quantities × unit rate | Field measure sign-off referenced |
| Labor-only crews | $45 – $90 / person-hour | Trade and market dependent |
| Change orders | Quoted + signed before work | Billed as numbered lines |
| Payment terms | Net 30 – 45 after approval | Prompt-pay statutes set outer limits |
| Closeout / retainage release | At punch completion | Against final unconditional waiver |
Pay-when-paid and pay-if-paid clauses are limited or unenforceable in several states; retainage caps and prompt-payment deadlines also vary by state and by public vs. private work.
How subcontractor billing actually works
Monthly applications on commercial jobs
The rhythm: walk your scope before the GC's cutoff, agree percent-complete with the PM (a five-minute conversation that prevents a thirty-day dispute), submit the application with the conditional waiver, and track approval. Your invoice feeds the GC's own draw to the owner — applications that arrive late, unformatted, or inflated stall the GC's billing too, which is exactly why clean ones get processed first.
Change orders and the paper-first rule
Extra work surfaces constantly — RFIs, field conflicts, owner changes. The sub who prices the change, gets the signed order (or at minimum a written directive), and then performs it gets paid; the sub who works on 'we'll take care of you' funds the GC's contingency. Bill each signed change as its own numbered line on the next application, and keep a change-order log that reconciles against your billings to date.
Closeout and getting retainage out
Retainage on a 10% job is often the entire profit margin sitting in someone else's account. At punch completion, invoice it specifically — a retainage-release application referencing the contract terms — alongside closeout deliverables (warranties, as-builts, final certified payroll on public work) and the final unconditional waiver dated to exchange against payment. Know your state's retainage-release deadline; several set statutory clocks with interest.
Invoicing mistakes that cost subcontractor professionals money
Missing the application cutoff
An invoice submitted the day after the GC's cutoff waits a full extra cycle — thirty to forty-five days of float you're lending interest-free. Calendar every project's cutoff date.
Working unsigned changes
Verbal extras are donations until signed. Written directive minimum, signed change order standard — and stop work that nobody will put in writing.
Signing unconditional waivers early
An unconditional waiver before funds clear surrenders lien rights on unpaid money. Conditional with the application, unconditional after the check clears — never the reverse.
Letting retainage go untracked
If your own paperwork can't state retained-to-date, closeout becomes the GC's version of the number. Carry the cumulative figure on every application.
Accepting pay-when-paid as gospel
Many states limit or void pay-if-paid clauses, and prompt-payment statutes set deadlines with interest regardless. Know the rules in your state before writing off a stalled invoice as 'waiting on the owner.'
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 the project/subcontract references.
- 03
Break your scope into lines and bill percent complete against each, crediting prior applications.
- 04
Deduct retainage visibly and carry the cumulative retained total.
- 05
Bill signed change orders as numbered lines, and attach the conditional lien waiver.
- 06
Submit by the GC's cutoff; at punch completion, invoice retainage release against the final unconditional waiver.
Skip this template if…
- Prime contractors billing owners — the construction template's owner-facing application structure fits better.
- 1099 individuals invoicing for personal labor without a subcontract — a contract-labor or freelance invoice is simpler and sufficient.
FAQs
How does a subcontractor invoice a general contractor?
With a monthly progress application: scope lines showing contract value, percent complete, previously billed, and amount due this period, less retainage, plus numbered change-order lines and a conditional lien waiver. Submit by the GC's billing cutoff so it makes that month's draw to the owner.
What is retainage on a subcontractor invoice?
A percentage (typically 5–10%, mirroring the prime contract) withheld from each payment until project completion. Show it as a labeled deduction with a running retained-to-date total, and invoice its release specifically at punch completion — several states cap retainage and set statutory release deadlines.
What is a pay-when-paid clause?
Subcontract language making the GC's payment to you contingent on the owner paying the GC. Courts in many states read 'pay-when-paid' as a timing provision (payment within a reasonable time regardless) and several states void true 'pay-if-paid' risk-shifting entirely. Prompt-payment statutes often set deadlines with interest on top.
Should a subcontractor sign a lien waiver with every invoice?
A conditional waiver, yes — it's standard and takes effect only when payment arrives. Unconditional waivers should be signed only after funds clear. The sequence protects your lien rights, which are the strongest collection tool a sub has.
How do labor-only subcontractors bill?
Crew person-hours ($45–$90 depending on trade and market) with daily counts, or unit prices — per sheet hung, per square installed, per opening trimmed — against field-measured quantities with the GC's sign-off referenced. Unit-price billing scales better and disputes less.
What if the GC doesn't pay on time?
Start with the paper: confirm the application was approved and when the prompt-payment clock started — most states require payment within a set period after approval (often 7–30 days), with interest accruing after. A preliminary notice filed at project start preserves lien rights; the mechanics lien deadline is the real backstop, and it expires fast in some states.
Pair it with the subcontractor agreement template
Invoices collect; contracts protect. Get the matching agreement in Word or PDF — free, like this template.
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