Contractor Invoice Template
A contractor invoice template pre-filled with the eleven fields your invoice actually needs to clear AP — itemized labor and materials, retainage, lien-waiver status, project reference, and a late-fee clause. Download as PDF, Word, Excel, Google Docs, or Google Sheets. No signup, no watermark, generated in your browser.
Part of our free invoice template library — 80+ industry-specific templates in five formats.
- Best for
- General contractors, builders, and licensed trades billing per project
- Typical line items
- Labor hours, materials with markup, equipment, permits, retainage
- Standard terms
- Net 15 or Net 30; 1.5% monthly late fee; 5–10% retainage held
- Doesn't fit if
- You bill hourly to one client weekly — use a hourly invoice template instead
Download this invoice template
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Create onlineWhat to include on a contractor invoice
Eleven fields. The first nine are what every US invoice needs to clear AP and satisfy state tax rules. The last two — retainage line and lien-waiver reference — are what separate a contractor invoice from a generic one. Skip them on a $50K project and the owner's lender won't release the funds.
- 01
Contractor business details
Legal business name, license number where applicable (CA, FL, OR, WA, NV all require this on the invoice for licensed trades), address, phone, EIN.
- 02
Client / property owner details
Legal entity name, billing address, and the project address if different. AP departments reject invoices that miss the property address.
- 03
Unique invoice number
Sequential (INV-0042) or date-keyed (2026-04-25-01). Never reuse a number — auditors flag gaps as missing invoices.
- 04
Invoice date and due date
Most contractor invoices use Net 15 or Net 30. Trades with material outlays often invoice 'Due on receipt' for the deposit and Net 15 for the balance.
- 05
Project / job reference
Project name, change order number if applicable, and the original contract or PO number. Required for any client with formal AP.
- 06
Itemized labor
Hours worked × hourly rate, broken out by trade or phase. Construction average is $40.55/hr (BLS CES, Jan 2026); skilled trades like electricians and plumbers run higher.
- 07
Itemized materials with markup
List each material at cost, then add a separate line for markup. Industry standard markup is 15–35% depending on materials and risk.
- 08
Subtotal, sales tax, retainage, total
Show each as a separate line. Retainage is the percentage withheld until project completion — usually 5% on public projects (per state caps) and up to 10% on private contracts.
- 09
Payment terms and accepted methods
ACH, check, card, or financing. Include a late-fee clause — 'Late payments are subject to a 1.5% monthly interest charge' is the typical legal cap in most US states.
- 10
Lien waiver reference (if applicable)
Mark whether this invoice is conditional or unconditional, partial or final. On larger projects, a separate signed waiver accompanies each progress payment.
- 11
Signature block (optional but useful)
Adds a paper trail for change-order acceptance. Required by some property owners as proof the work was approved before invoicing.
The numbers your invoice needs to defend
Whether your invoice gets paid on time often comes down to whether the rates and markups look reasonable to the person cutting the check. These are the benchmarks AP departments and owners compare against in 2026.
| Field | 2026 benchmark | Source |
|---|---|---|
| Construction labor average | $40.55/hr (all employees) · $38.26/hr (non-supervisory) | BLS CES, January 2026 |
| Skilled trades comp (electricians, plumbers, carpenters) | $65,000–$85,000/yr median (≈$31–$41/hr) | BLS occupational data, 2026 projections |
| Materials markup | 15%–35% above cost; higher for risk or fast turnaround | Industry standard |
| Retainage (private projects) | 5%–10% of each progress payment | Industry norm; cap varies by state |
| Retainage (public projects, most states) | Capped at 5% | e.g. Washington RCW 60.28.011 |
| 1099-NEC threshold for paying subs | $600/yr (rises to $2,000 for payments after Dec 31, 2025) | IRS Instructions for 1099-MISC/NEC, April 2025 rev. |
| Late-fee clause (typical legal cap) | 1.5% per month (18% APR) | Most US state usury statutes |
The most common reason a contractor invoice is held up: materials markup looks high but isn't itemized as such. Show the raw cost, the markup percentage, and the marked-up total as three separate fields, not a blended rate. AP departments process the visible line; they query the blended one.
How to invoice across a multi-phase project
The deposit-progress-final-with-followups pattern that keeps cashflow healthy and protects your lien rights.
- 1
Send the deposit invoice up front
For projects over $1,000, invoice 30–50% before materials are ordered. This covers your float on materials and signals seriousness to the client. Mark it clearly as 'Deposit — to be applied against final invoice'.
- 2
Bill in progress payments at agreed milestones
Tie each progress invoice to a contract milestone (foundation poured, framing complete, drywall up). On each invoice, show: contract value, percent complete, prior billings, retainage held this period, current amount due.
- 3
Apply retainage on every progress invoice
Subtract the retainage percentage as a separate line. Public projects in most states cap retainage at 5%; private contracts commonly run 5–10%. Track retainage as a receivable, not income, until released.
- 4
Issue change-order invoices separately
Never bury an extra into the next progress invoice. Issue a separate invoice referencing the signed change-order number, with its own labor and material breakdown.
- 5
Send the final invoice with a final lien waiver
On project completion, the final invoice includes the released retainage and a signed unconditional lien waiver. Owners and lenders won't release final payment without it.
- 6
Follow up on Day 16, Day 31, and Day 45
If terms are Net 15: send a reminder Day 16, a formal collection notice Day 31, and notice of intent to lien Day 45. Most state mechanic's-lien deadlines are 60–90 days from the last day worked, so don't drift past Day 45.
Lien waivers: the four-square reference
A lien waiver is the document that gives up your right to file a mechanic's lien against the property in exchange for payment. There are four kinds and which one you sign matters more than most contractors realize.
| Type | Effect | Use it when |
|---|---|---|
| Conditional partial | Waives lien rights for one progress payment, only once that payment clears | Default for every progress invoice — sign and send with the invoice itself |
| Unconditional partial | Waives lien rights for one progress payment immediately, cleared or not | Sign only after the payment has cleared your account |
| Conditional final | Waives all lien rights for the entire project, contingent on receipt of the final payment | Send with the final invoice and released retainage |
| Unconditional final | Waives all lien rights for the entire project, immediately | Sign only after the final payment has cleared |
Owners and lenders require a final unconditional waiver from every contractor and material supplier on the project before releasing retainage. Build that into your final-invoice workflow — don't treat it as a one-off.
State-specific compliance notes
The federal government doesn't regulate invoice content for contractors, but several states do. The big three to know:
California
CSLB §7030.5 requires every contract, bid, advertisement, and invoice to display the contractor's CSLB license number. Penalties for omission run up to $1,000 per occurrence.
Washington
RCW 60.28.011 caps retainage on public projects at 5% and creates a labor-and-materials lien on the retained funds. The contractor can substitute a bond in lieu of cash retention.
Texas
Texas Property Code requires owners to retain 10% on private projects with statutory lien protection on the retained amount. Recent legislative updates cap retention release timing — verify current rules with your project attorney.
If you work in more than one state, keep a one-page rules cheat sheet attached to your invoicing process — license number, retainage cap, sales-tax-on-labor rule, and lien deadline by state. Issuing a non-compliant invoice in California is a fixed $1,000 problem; missing your lien deadline in Texas can be a six-figure one.
When this template is the wrong tool
- You bill the same client every week with the same hours. Use a hourly invoice template — the line items repeat and you don't need retainage logic.
- You manage 20+ active projects with multiple change orders per week. A static template will lose track of retainage balances. Switch to job-costing software (FreshBooks, QuickBooks Contractor, Buildertrend, or Agiled) that tracks open retainage by project.
- You take card payments on every invoice. A flat PDF invoice can't carry a Pay button. Use online invoicing software with Stripe or PayPal embedded so the client clicks once and the funds settle.
- You're a subcontractor invoicing a GC. Use the subcontractor invoice template — fields for the GC's project number and sub-tier matter more than retainage.
Contractor invoice questions
What should a contractor invoice include?
A contractor invoice needs eleven elements: contractor business details (with license number where required), client and property owner info, a unique invoice number, invoice + due dates, project or job reference, itemized labor (hours × rate), itemized materials with markup shown separately, subtotal + sales tax + retainage + total, payment terms with a late-fee clause, lien-waiver status, and an optional signature block. The retainage line and lien-waiver reference are what separate a contractor invoice from a generic one — without them, large clients and lenders won't process payment.
How do I invoice for retainage?
Show retainage as a separate line item that subtracts from the subtotal — for example: Subtotal $10,000, Retainage (10%) -$1,000, Sales tax $90, Total due this invoice $9,090, Retainage held to date $1,000. Track the retainage as a receivable, not income. On the final invoice (after substantial completion and a signed unconditional lien waiver), bill the released retainage as its own line. Most state public-project laws cap retainage at 5% of each progress payment; private contracts commonly run 5% to 10% as negotiated.
What's the difference between a conditional and unconditional lien waiver?
A conditional waiver only takes effect once payment actually clears — it protects you if the check bounces. An unconditional waiver gives up your lien rights immediately, regardless of whether you've been paid. Rule of thumb: send a conditional waiver with the invoice (waives lien rights conditional on receipt of payment), and only sign an unconditional waiver after the payment has cleared your account. There are also 'partial' (covers one progress payment) and 'final' (covers the entire project) versions of each.
Do I need a contractor's license number on the invoice?
Yes, in California (per CSLB §7030.5), Florida, Oregon, Washington, Nevada, and several other states with mandatory licensing for trades over a dollar threshold. The license number must appear on every contract, bid, advertisement, and invoice. In states without that requirement, including the license number is still good practice — it builds trust and short-circuits the AP department's vendor-verification step.
What payment terms should a contractor offer?
Net 15 is the default for residential contractor work and small commercial jobs. Net 30 is standard for invoices to general contractors and large commercial AP departments. For a deposit invoice, use 'Due on receipt' or 'Due before materials ordered'. Always include a late-fee clause — '1.5% monthly interest on overdue balances' is the typical cap in most US states; without that line, you can't legally charge the fee even if the client is months late. For projects over $5,000, offer ACH as a free alternative to credit-card processing fees.
Do contractors need to send a 1099 to subcontractors?
Yes — if you pay an unincorporated subcontractor $600 or more in a calendar year for services, you must issue them a Form 1099-NEC by January 31 of the following year. The threshold rises to $2,000 for payments made after December 31, 2025 (per IRS instructions for 1099-MISC/NEC, April 2025 revision). Collect a Form W-9 from every subcontractor before the first payment so you have their TIN on file. Your invoice records — yours and theirs — are the supporting documentation if either of you is audited.
Outgrown the template?
Agiled tracks retainage by project, sends progress invoices on a schedule, and reminds clients before each Net 15 deadline. Free plan, no card required.