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Invoice Template for Construction

Construction billing runs on draw schedules and progress payments, not a single invoice at the end. This construction invoice template separates labor, materials, equipment, and subs, supports progress draws, and accounts for retainage held until project close.

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What to put on a construction invoice

These are the line items construction businesses bill most often. Add the ones that apply to your job — the generator totals them automatically.

  • Labor by trade — hours × rate
  • Materials — quantity × unit cost
  • Equipment rental
  • Subcontractor work
  • Permits and inspection fees
  • Progress draw (% of contract)
  • Less retainage held

Pro tips for constructions

Payment terms

Bill on a progress-draw schedule tied to completed milestones, and account for any retainage (commonly 5–10%) held back until final acceptance.

Tax

Materials are generally taxable while construction labor is often exempt; retainage and progress draws don't change how tax applies to each line.

Construction invoice FAQ

What is a progress draw on a construction invoice?

A progress draw bills a percentage of the contract as defined milestones are completed — foundation, framing, rough-in — instead of one lump sum at the end.

How does retainage work?

Retainage is a percentage (often 5–10%) the owner holds back from each draw until the project is complete and accepted. Show it as a deduction line so the net due is clear.

Should labor and materials be separated?

Yes — they're taxed differently in most states and clients expect the breakdown. Add equipment and subcontractor costs as their own lines too.

What payment schedule suits construction projects?

A deposit to mobilize, progress draws at milestones, and a final payment (less released retainage) at acceptance keeps cash flow aligned with work completed.