Free Contractor Invoice Template (Fillable PDF, Word, Excel)

What is on the page

Job / site address

Where the work was done, which is often not the billing address. Lien rights, permits and the customer's records all key off the property address.

License and EIN

Most states require the contractor license number on invoices and contracts. Put it next to your business name on every document.

Labor

Hours by worker or task at the agreed rate. Listing the lead and helper separately at their own rates is clearer and cheaper for the customer than one blended rate.

Materials and markup

What you bought, where, how much, and the markup (10 to 20% is typical for residential work). Pass-through items such as permit fees go at 0%. Customers who can see the markup rarely argue about it; customers who find it hidden always do.

Scheduled value and percent complete

On a progress invoice, each phase has a value from the contract's schedule of values; you bill the share completed, less what was billed before.

Retainage

A percentage (5 to 10%) the owner holds back from each draw until the job is complete and accepted, then releases on the final invoice. Many states cap it and set release deadlines.

Change orders

Written, priced, signed changes to scope. They appear as their own lines so the final contract sum is traceable to the original plus each approved change.

Lien waiver

A document the contractor signs on receiving payment, giving up the right to lien the property for that amount. Owners and lenders expect one with each draw and a final waiver at the end.

Which invoice to send

• Labor and materials: repairs, service calls, small remodels, time-and-materials contracts. Also the right one for a change order billed separately.
• Progress (draw): fixed-price projects over a few weeks, billed at milestones or monthly. Follows the logic of the AIA G702/G703 forms without the formality, so owners, banks and architects recognize it.
• Final: the closing invoice on any project with change orders or retainage. It reconciles everything paid against the final contract sum and documents acceptance.

Progress billing in plain terms

Before the job starts, the contract price is split into phases, each with a dollar value: the schedule of values. At each draw you estimate the percentage of each phase completed, multiply by its value to get the amount earned to date, subtract what you've already billed for that phase, and the difference is this draw. The owner holds back retainage (say 10%) from each payment and releases it on the final invoice after the punch list is done. The Excel version calculates earned, this-draw and retainage from the percentages you enter; the previously-billed column is copied from the last draw's earned column.

Bill on the schedule in the contract (monthly, or at named milestones), attach lien waivers for the previous payment, and get the owner's or architect's approval signature. Banks funding a construction loan will not release a draw without those three things.

How to fill in the labor and materials invoice

1. Enter the job address, your license number and the customer's billing details.
2. Labor: one line per worker per day, or per task. Hours × rate; Excel sums.
3. Materials: one line per receipt or supplier group with quantity, unit cost and markup. Permit fees and other pass-throughs at 0% markup.
4. Sales tax: most states tax materials sold to the customer but not labor; a few tax both. Enter the materials tax rate and Excel applies it to the materials subtotal only.
5. Subtract any deposit, fill payment details, state the warranty in the notes, and send with receipts attached or available.

Avoiding the usual disputes

• Never do changed work without a signed change order, even a one-line one on your phone. The final invoice is only as clean as the change orders behind it.
• Keep a photo of every materials receipt. The markup is defensible; an unreceipted charge is not.
• State retainage and the release condition in the contract, and show it on every draw.
• Invoice promptly. A draw sent three weeks after the milestone is paid three weeks later.
• Match the due date to the contract's payment terms, and know your state's prompt-payment and lien deadlines (often 60 to 90 days from last work).

Editing the Word and Excel versions

The Excel files calculate labor and materials totals with markup and materials-only tax, progress billing (earned, this draw, retainage), and the final reconciliation. Add rows inside a table and the sums follow. Replace the payment block with your own and save as your master. Start the project with the estimate template, whose line items become the schedule of values for progress billing, and chase late draws with the payment reminder.

Questions

Should a contractor charge sales tax on labor?

Depends on the state. Most tax materials and not labor on real-property improvements; some (for example Texas on remodelling, Connecticut, Washington, New Mexico, Hawaii) tax labor too, and rules differ for new construction versus repair. The labor and materials version taxes materials only; change the formula or ask your accountant if your state differs.

What is retainage and is it required?

A hold-back (usually 5 to 10%) from each progress payment until completion. It's a contract term, not a legal requirement, but many owners and all construction lenders insist on it. Several states cap it at 5% and require release within a set time after completion.

What is the difference between a draw and a progress invoice?

Nothing in practice. "Draw" comes from construction loans, where each invoice draws funds from the loan. A progress invoice, payment application and draw request are the same document.

Do I need to give a lien waiver with each invoice?

Owners and lenders usually require a conditional waiver with the invoice (effective when paid) and an unconditional one after payment clears. Forms vary by state; several states have statutory forms you must use.

How long do I have to file a lien if I am not paid?

State deadlines range from about 60 to 120 days after your last work on the project, and some require a preliminary notice at the start of the job. Check your state's rules early; the invoice's job address and dates are what you'll need.