Contractor invoices go wrong in the same three places: materials lumped into one line, extra work billed without a change order, and deposits that vanish from the final total. A clear invoice prevents all three.
Make a contractor invoice free →
| Item | How to show it |
|---|---|
| Job address | The site address, which may differ from the billing address |
| Job or PO number | Whatever reference the client uses to approve the payment |
| Labor | Hours × rate, or a fixed price per phase of work |
| Materials | Itemized, or grouped by trade, with any agreed markup included |
| Equipment rental | Per day or per item |
| Subcontractors | One line per trade, e.g. "Drywall — subcontracted" |
| Permits and disposal | Permit fees, inspection fees, dumpster or skip hire |
| Change orders | Each as its own line, with the change order number |
| Payments received | Deposit and earlier payments, deducted from the total |
Clients compare your invoice with your estimate, and the first thing they check is whether materials went up. Separate lines let them see that quickly. In some places materials and labor are also taxed differently, so keeping them apart makes the tax easier to get right.
On a job that runs for weeks, bill at agreed milestones instead of waiting until the end. A common pattern is a deposit at signing, payments at stages such as rough-in and completion, and a final payment after the walkthrough.
Each progress invoice should make four numbers obvious:
If your contract has retainage — a part of each payment, often 5–10%, held back until the job is finished — show it as its own line so both sides can track it.
Extra work is where most payment disputes start. Put every change on the invoice as its own line and point to the written approval, for example "CO-03: move outlet to island, approved 12 October." If there is no written approval, get one before you invoice.
Kitchen remodel — progress invoice 2
| Description | Qty | Rate | Amount |
|---|---|---|---|
| Demolition and haul-away (complete) | 1 | 1,850.00 | 1,850.00 |
| Rough plumbing — labor (hours) | 16 | 75.00 | 1,200.00 |
| Rough electrical — labor (hours) | 12 | 80.00 | 960.00 |
| Plumbing materials (pipe, fittings, valves) | 1 | 640.00 | 640.00 |
| Dumpster rental | 1 | 425.00 | 425.00 |
| CO-01: add pantry outlet | 1 | 180.00 | 180.00 |
| Deposit received | 1 | −1,500.00 | −1,500.00 |
| Amount due | 3,755.00 | ||
To take off a deposit that was already paid, add it as its own line with a minus rate, for example Deposit received — Qty 1, Rate −1,500. The total updates straight away.
It is not usually required, but offering receipts for large purchases speeds up approval, especially on cost-plus jobs where the client pays actual cost plus a fee.
On the milestone dates in the contract, or as soon as the job is finished. Every day you wait to invoice is another day added to when you get paid.
Net 15 or Net 30 is common for commercial clients. Homeowners are often asked to pay on completion or within a few days. Whatever you choose, write an actual due date on the invoice.
Add a line called 'Deposit received' with a minus amount. The client then sees the full price of the work and exactly what is left to pay.