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Invoice Template for Contractors

Contractor invoices are more involved than a freelancer's — you need to separate labor from materials, include your license number, and bill on a milestone schedule. This contractor invoice template covers all of it so payment never gets held up over a missing detail.

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What to put on a contractor invoice

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

  • Labor — hours × rate, per task
  • Materials — quantity × unit cost
  • Subcontractor work
  • Equipment rental
  • Permits and inspection fees
  • Deposit / mobilization
  • Change order (referenced separately)

Pro tips for contractors

Payment terms

Use a milestone schedule — a 30–50% deposit, progress payments at rough-in and drywall, and the balance on completion — never a single Net 30 at the end.

Tax

In most US states materials are taxable while construction labor is exempt — separating the two lines keeps your tax calculation correct.

Contractor invoice FAQ

Should a contractor invoice separate labor from materials?

Always. They are taxed differently in most states, and clients expect the breakdown. Bundling them invites disputes and tax errors.

Do I need my license number on a contractor invoice?

In most US states, yes — licensed contractors must show their license number on invoices and contracts. It also signals professionalism to the client.

How do I handle change orders?

Issue a signed written change order before doing the extra work, then add a referenced line item like "Change Order #1 (CO-001)". Never absorb extra scope into the base invoice.

What payment schedule should contractors use?

A deposit of 30–50% before work begins, progress payments tied to milestones, and a final 10–15% on sign-off. You should never have more than one payment period of work at risk.