Construction Invoice Template: Free + What Contractors Need to Include
Construction billing is more complex than most industries β progress billing, retainage, change orders, lien waivers. Here's exactly what to include on your construction invoice and how to get paid on time, every time.
Construction Invoicing Is Different
Unlike a designer who sends one invoice at project end, contractors typically bill throughout a project. Here's what makes construction invoicing unique:
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Progress billing
You bill for work completed at milestones or monthly β not on project completion. Protects your cash flow on multi-month projects.
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Change orders
Scope changes must be documented and approved before doing extra work. A change order is your paper trail.
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Material costs vs. labor
These are often billed separately and tracked differently. Materials may have supplier invoices attached.
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Retainage
The owner holds back 5-10% of each payment as a performance guarantee. Released on project completion and sign-off.
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AIA billing forms
US standard: AIA G702 (Application for Payment) + G703 (Schedule of Values). Required by many general contractors.
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Lien rights
Unpaid contractors have the right to file a mechanics lien on the property. Track lien filing deadlines β they're strict.
What to Include in a Construction Invoice
Project address
The physical address of the construction project β not your office address.
Contract number
Reference the contract number from your signed agreement. Links the invoice to the legal document.
Work period
The billing period: "Work performed: 1 May β 31 May 2026". Shows what time period is being billed.
Schedule of values
A table of all contract work items, their total contract value, % complete, amount previously billed, amount this invoice, and retainage. This is the core of progress billing.
Previous billings
Total amount billed in all prior invoices for this project. Cumulative billing to date.
Current billing
The amount being billed in this specific invoice.
Retainage held
Usually 5-10% of each invoice held back by the owner. Track cumulative retainage. Include when it's due for release.
Net amount due
Current billing minus retainage = the amount you actually receive with this invoice.
Lien waiver information
Some contracts require a conditional lien waiver with each invoice. Check your contract.
Sample Schedule of Values
The schedule of values is the most important part of a construction invoice. Here's how it looks:
| Item | Contract Value | % Complete | Prev. Billed | This Invoice | Retainage |
|---|---|---|---|---|---|
| Site preparation | β¬8,000 | 100% | β¬8,000 | β¬0 | β¬0 |
| Foundation | β¬22,000 | 100% | β¬22,000 | β¬0 | β¬0 |
| Framing | β¬35,000 | 75% | β¬17,500 | β¬8,750 | β¬875 |
| Electrical rough | β¬12,000 | 50% | β¬0 | β¬6,000 | β¬600 |
| Plumbing rough | β¬11,000 | 40% | β¬0 | β¬4,400 | β¬440 |
| Total this invoice | β¬19,150 | β¬1,915 | |||
| Net due this invoice | β¬17,235 | ||||
Billing Schedule for Construction Projects
Monthly progress billing
Most commonMost common. Bill at the end of each month for work completed during that month. Requires a detailed schedule of values.
Milestone billing
Small projectsBill at predefined project milestones: foundation complete, framing complete, dried-in, etc. Easier to administer but payment is less predictable.
Final billing (with retainage release)
Project closeFinal invoice includes all remaining work plus the accumulated retainage release. Often the largest invoice. Requires punchlist completion and owner sign-off.
Free Construction Invoice Template
Free Invoice Template for Contractors
Includes progress billing fields, retainage calculation, change order section. Download as PDF instantly.
Getting Paid Faster on Construction Projects
- Invoice immediately after each milestoneβ don't wait until the end of the month. Sooner you send, sooner the clock starts on payment terms.
- Track lien deadlines β in most US states you have 20-90 days from last furnishing to file a mechanics lien. Miss the deadline = no lien protection.
- Get retainage release in writing β define in your contract exactly what triggers retainage release (substantial completion, final inspection sign-off, specific date after completion).
- Send reminders automaticallyβ construction invoices are large and often delayed by bureaucracy. Use automated chasers so you're always following up without awkward calls.
Stop chasing construction payments manually ποΈ
Chaser sends 4 automated escalating reminders on every invoice. Perfect for contractors who send large invoices to developers, GCs, and property owners who tend to pay late.
Try Chaser Free βFrequently Asked Questions
What is retainage and how much is typical?
Retainage (or retention) is a percentage β typically 5-10% β withheld from each progress payment as a performance guarantee. It's released on substantial completion and final sign-off. Always get the retainage release terms in writing before starting work.
Do I need to use AIA billing forms?
Only if required by your contract or general contractor. AIA G702/G703 is a US standard for commercial construction but not legally required unless specified. For residential or smaller projects, a well-structured invoice with a schedule of values is usually sufficient.
When can I file a mechanics lien?
A mechanics lien can be filed when you've provided labor or materials to a project and haven't been paid. Deadlines vary by state (typically 20-90 days from last furnishing). File as a last resort β it damages the owner relationship but secures your payment claim against the property.