What to include on a contractor invoice
Construction invoices are usually reviewed carefully, sometimes by a lender or a property manager as well as the owner. Clear references and a separate line for each cost category make approval faster.
- Project name and job site address
- Job, contract, or permit number
- The work period this invoice covers
- Materials and labor as separate lines
- Equipment rental and disposal fees
- Deposits and earlier payments, with the balance remaining
Deposits and progress payments
Many jobs start with a deposit and continue with progress payments. Save your invoice, then use “Record payment” each time the client pays. Each payment creates its own receipt, and the invoice keeps a running balance.
The generator won't let a payment exceed the remaining balance unless you confirm it, so totals stay consistent between the invoice and its receipts.
Change orders
When the scope changes, list approved change orders as their own lines, such as “Change order #2 – upgrade to tile flooring”. That way the client can match each charge to what they approved.
This tool doesn't create lien waivers or other legal forms. Those rules vary by state, so check what's required where you work.
Example: bathroom remodel progress invoice
A contractor billing for the first phase of a bathroom remodel, with 6.5% tax on materials only and a $1,500 deposit already received.
| Description | Qty | Price | Amount |
|---|---|---|---|
| Demolition and haul-away(not taxed) | 1 job | $950.00 | $950.00 |
| Framing and blocking labor(not taxed) | 14 hr | $68.00 | $952.00 |
| Cement board and fasteners | 1 lot | $412.60 | $412.60 |
| Plumbing rough-in (subcontractor)(not taxed) | 1 job | $1,350.00 | $1,350.00 |
| Dumpster rental(not taxed) | 1 week | $425.00 | $425.00 |
| Subtotal | $4,089.60 | ||
| Tax (6.5%) | $26.82 | ||
| Total | $4,116.42 | ||
After you save it, record the $1,500 deposit as a payment and the invoice shows the balance due.
Frequently asked questions
How do I show a deposit on a contractor invoice?
Save the invoice and record the deposit as a payment. The invoice then shows the total, the amount paid, and the balance due. You can also give the client a receipt for the deposit.
Should materials and labor be on separate lines?
Usually, yes. It's clearer for the client, and in many places materials and labor are taxed differently. Each line has its own taxable setting.
Can I invoice in stages?
Yes. You can create a separate invoice for each milestone, or one invoice for the whole contract and record each progress payment against it.
Does this create lien waivers?
No. Lien waivers and other construction documents have specific legal requirements that vary by location, so use the forms required in your area.