Contractor Invoice Template

A contractor invoice that has the lines a general contractor actually looks for: labor and materials split, change orders itemised, retainage shown as its own deduction, and room for the lien notice your state may require.

Download the contractor invoice template

DOCXContractor invoice template (.docx) (10 KB)Job/project field, license number line, Labor/Material/Equipment column, change orders, retainage and lien notice block.

Free to download and use. No sign-up, no email, no watermark.

How to use this contractor invoice template

Fill in the job or project field at the top. On a multi-job client this is the first thing the office looks at, and an invoice without it goes to the bottom of the pile.
Put your contractor license number in the From block. Several states require it to appear on invoices, and a GC's accounts payable will often reject an invoice without one.
Enter one line per item and mark each as Labor, Material or Equipment in the Type column. This is what makes the sales tax line defensible later.
List approved change orders separately, by number and date. Anything not approved in writing does not belong on this invoice — put it on the next one after you have the approval.
Enter retainage as a deduction, not by quietly reducing your line items. The client needs to see the full value of work completed and the amount being held.

What makes a contractor invoice different

Three things that a general invoice template has no room for. First, the labor and material split: most states tax tangible materials but not installation labor, so an invoice that lumps them into one line makes the tax figure impossible to justify and invites a query. The Type column exists so the split is visible without a separate schedule.

Second, retainage. On commercial work it is normal for the client to hold back five or ten percent until the job is signed off. Showing it as an explicit deduction — rather than shrinking your line items — keeps the record of what you actually earned intact, which matters when you invoice for the retainage release months later.

Third, change orders. Extras are the single most common cause of a contractor invoice being disputed. Listing them by number and date, separate from the base contract work, turns "why is this more than we agreed" into a one-line answer. Anything not approved in writing should stay off the invoice until it is.

The template also carries a lien notice block. Many states require preliminary or conditional lien notice wording on contractor invoices, and the exact text is set by statute. The block is there so you do not forget it; the wording has to come from your state.

Example

A licensed electrician invoices a general contractor for the rough-in on a commercial tenant improvement. The contract holds 10% retainage, and one approved change order added two circuits.

Rough-in labor (contract)	48 hrs × $110.00 = $5,280.00
Wire, conduit, boxes (material)	1 × $2,340.00 = $2,340.00
CO-03 — two added circuits, approved 10/14	1 × $890.00 = $890.00
Subtotal	$8,510.00
Sales tax — 8.25% on materials only	$193.05
Retainage withheld (10% of $8,510.00)	−$851.00

Total due this invoice: $7,852.05 — Net 15. Retainage of $851.00 payable on final acceptance.

The tax figure is 8.25% of the $2,340.00 in materials, not of the $8,510.00 subtotal. Labor is untaxed in most states, and installation labor on real property is untaxed in nearly all of them. An electrician who taxes the whole subtotal overcharges the GC by roughly $500 on this invoice and will hear about it.

Retainage is calculated on the full subtotal including the change order, since the change order is part of the contract once approved. Whether retainage applies before or after tax varies by contract — read yours, because on a large job the difference is real money.

The change order carries its own number and approval date. On a job with six change orders that is the difference between getting paid and spending a week reconstructing who agreed to what.

Net 15 rather than Net 30 because subcontractors carry the material cost up front. Whether you get it is another matter, but asking for the terms you need is free.

Limits and things to watch for

The tax line applies one figure. Because labor and materials are usually taxed differently, work the amount out on the material lines and enter the dollar figure rather than a rate.
No AIA billing. If your GC requires G702/G703 continuation sheets, this template will not substitute for them — it works for smaller commercial and residential jobs.
The lien notice block is empty on purpose. The required wording is set by state statute and getting it wrong is worse than leaving it out, so it has to come from your state or your attorney.
Retainage is a single line. Multi-tier retainage schedules and stored-material billing are beyond what a one-page form can carry.

Disclaimer. This template is a business document, not legal or tax advice. Lien notice requirements, license disclosure rules, retainage limits and the taxability of labor and materials all vary by state and by contract. Confirm with your attorney or accountant.

Frequently asked questions

Do I charge sales tax on labor?: In most states, no. Installation labor on real property is untaxed almost everywhere, and services generally are too. Materials usually are taxed. A few states tax certain repair or fabrication labor, so check yours — and either way, keep labor and materials on separate lines so the figure can be explained.
How do I show retainage?: As an explicit deduction after the subtotal, with the percentage and the base it was calculated on. Do not reduce your line items to make the total come out right — you will need the full contract value on record when you bill for the retainage release.
Does my license number have to be on the invoice?: In several states yes, and many general contractors require it regardless so they can verify you are covered. Putting it in the From block costs nothing and removes a reason to hold your payment.
What about change orders that were only agreed verbally?: Keep them off the invoice until you have written approval. A verbal extra on an invoice is the most common way a contractor invoice ends up in dispute, and you are the one carrying the cost while it is argued.
Can I use this for progress billing?: Yes for smaller jobs — state the period the invoice covers in the payment terms block. For jobs where the GC requires AIA G702/G703 forms, you will need those instead.