Contractor Invoice Template: Free Download + What to Include

What to include in a contractor invoice

A contractor invoice needs more detail than a basic freelancer invoice. Depending on your trade, you may be legally required to include certain fields — and omitting them can delay payment or create legal exposure.

• →Contractor license number — required for electrical, plumbing, HVAC, and most general contractors in US states. Include it prominently.
• →Project address — for trades and construction, identify the physical site clearly. Clients with multiple properties need this.
• →Work completed description — be specific: phases, tasks, or deliverables. "Labor" alone isn't enough for a dispute-proof invoice.
• →Materials vs labor breakdown — separate line items for materials and labor help clients reconcile costs and simplify your own bookkeeping.
• →Retention amount — construction typically withholds 5–10% until project completion. Show "Retention held: $X" as a line item deduction.
• →Lien waiver reference — in US construction, note whether a conditional or unconditional lien waiver will be provided on payment. Protects both parties.
• →Change orders as separate line items — reference each CO number (e.g., CO-001) and agreed price. Never bundle COs into the base contract amount.
• →Payment terms and accepted methods — state Net 14 or Net 30 clearly, and list how you accept payment (bank transfer, check, card).

Contractor invoice by trade type

Different trades have different billing norms. Here's what's standard for the most common contractor types.

Building / construction contractor

Use phase billing or progress invoices: foundation, framing, finishing. Include retention deductions on every invoice, and issue a final retention release invoice at the end of the defect period. Always reference the project contract number.

IT contractor

Reference the SOW (Statement of Work) or contract number on every invoice. Clearly separate hourly work (with hours logged) from fixed-fee milestone deliverables. If billing against a project, tie each line item to a milestone.

Electrical / plumbing contractor

Must include your contractor license number. If you've pulled permits for the job, include permit numbers on the invoice. Inspections and sign-offs can also be referenced as line items.

Cleaning / maintenance contractor

For recurring contracts, include the service period on every invoice (e.g., "Weekly cleaning services: May 1–31, 2026"). Monthly or weekly invoices are typical — keep them simple but reference the service agreement.

Free contractor invoice template

Chaser's free invoice tool is built to handle contractor billing. It takes 2 minutes to fill out and generates a professional PDF with all the fields you need — including separate line items for materials, labor, retention, and change orders.

No spreadsheet wrestling. No formatting headaches. Just a clean, professional invoice your clients can pay instantly.

The template includes fields for: your business name and license number, client name and project address, line items for labor, materials, change orders, and retention, plus your payment terms and bank details.

Getting paid as a contractor

Contractors often deal with complex payment schedules. Here's how the most common structures work.

Progress billing

Invoice at defined project milestones — typically 30/30/40% or at phase completion. Always tie the invoice to a specific deliverable or inspection point so there's no ambiguity about what triggers payment.

Retention release invoices

After the defect or warranty period ends, issue a final invoice specifically for the retained amount. Reference the original contract, the retention held on previous invoices, and any defect rectification work completed.

Final invoice after project completion

Issue the final invoice immediately on practical completion — don't wait. Include a summary of all previous invoices, the outstanding balance, and the retention release if applicable.

Payment terms

Contractors typically use Net 14–30. Net 7 is reasonable for smaller residential jobs. For large commercial projects, terms may be dictated by the general contractor or client's AP department — confirm this before you start.

Automating contractor payment reminders

Contractors juggle multiple projects, sites, and clients simultaneously. Manual invoice chasing — remembering who owes what, drafting follow-up emails, tracking responses — eats hours you don't have.

Chaser's 4-stage escalation sequence handles it automatically:

1. Stage 1Friendly reminder — sent automatically on the due date
2. Stage 2Firm follow-up — 7 days overdue, noticeably firmer tone
3. Stage 3Formal notice — references your late fee policy
4. Stage 4Final notice — escalation warning before collections or legal action

Set it once per invoice. Chaser handles the rest while you're on site.

Frequently asked questions