Construction invoice template (progress billing)

Larger construction projects aren't billed in one go. They're billed in stages as the work progresses, against an agreed budget, with part of each payment held back until the end. The invoice has to show where the project stands, not just what's owed this month.

This free template is built for that kind of billing. It works for general contractors, subcontractors and builders billing monthly or at milestones. If you're billing a small repair or remodel with a simple materials-and-labor breakdown, the contractor invoice template is a better fit.

What to include on a construction invoice

• Your business details, including any contractor license number your state requires.
• Owner or general contractor you're billing, with their billing address.
• Project name and job site address — use Ship to for the site.
• Contract or PO number, plus the pay request number (for example "Pay request #4").
• Billing period, such as "Work through October 31, 2026".
• Work completed this period, by line of the schedule of values.
• Approved change orders, each on its own line.
• Retainage held, previous payments and the amount due now.

Example line items

Description	Qty	Rate
Site work — 20% of $38,000 this period, less 10%	1	$6,840.00
Concrete foundations — 35% of $52,000, less 10%	1	$16,380.00
Framing — 20% of $64,000, less 10%	1	$11,520.00
Change order #3, added footing — 50% of $4,400, less 10%	1	$1,980.00

Each line bills only the increase in percent complete since the last pay request, minus 10% retainage. Here that's $40,800 of work completed this period, $4,080 held back and $36,720 due. Put those three figures in Notes, along with the retainage held to date, so the owner can check the math at a glance.

Schedule of values

A schedule of values breaks the contract sum into parts of the work — site work, foundations, framing, roofing, electrical and so on — each with a dollar value. It's agreed at the start of the job and becomes the basis for every progress invoice. On each pay request, you report how far along each line is, and the owner pays for the work completed since last time.

Keep the line names identical from one invoice to the next. When the lines change, owners and lenders have trouble reconciling what's been billed.

Pay applications in plain terms

Many commercial owners, architects and lenders ask for pay applications on the AIA G702 and G703 forms. The G702 is the summary page: the original contract sum, net change orders, total completed to date, retainage, previous payments and the current amount due. The G703 is the continuation sheet listing each schedule-of-values line with its value, work completed and percent complete.

Invoice Native doesn't produce AIA forms. If your contract requires them, attach them to the invoice. If it doesn't, an invoice laid out like the example above — scheduled values, percent complete, retainage and previous payments — gives the owner the same information.

Retainage and change orders

Retainage is money held back from each payment until the job is finished, usually released after final completion or punch-list sign-off. Invoice Native doesn't have a separate retainage field, so bill each line net of retainage, as in the example, and track the total held to date in Notes. When the job is done, send a final invoice with a line such as "Release of retainage" for the full amount held.

Change orders add to or reduce the contract sum. Give each one a number, reference the written approval, and bill it by percent complete like the original lines.

Payment terms and deposits

Commercial projects often pay monthly, on terms set in the contract — commonly Net 30 after the pay request is approved. See Net 30 explained. If the contract includes a mobilization payment or deposit, record it as a payment so it shows against the balance; our guide to partial payments and deposits covers the wording. Offer ACH or check details on the invoice.

Sales tax on construction

Sales tax on construction depends heavily on the state and the type of contract. Many states treat contractors on new construction as the consumer of the materials they install, so the contractor pays tax when buying materials and doesn't charge it on the invoice. Other states tax some repair, maintenance or installation work — North Carolina, for example, treats real property contracts differently from repair and installation services (see our North Carolina guide). Check your state's rules before adding tax, and use the Tax checkbox only on lines that are taxable.

Lien waivers

Owners and general contractors often ask for a lien waiver with each payment. A conditional waiver takes effect only once the payment clears; an unconditional waiver takes effect when signed, so sign it only after you've been paid. Some states prescribe the waiver forms and wording, so follow your contract and state law. Reference the waiver in Notes so the payment and paperwork match.

Common mistakes on construction invoices

• Billing total percent complete instead of only the work since the last pay request.
• Forgetting retainage, or not tracking how much has been held to date.
• Billing change orders before written approval.
• Changing the schedule of values from one invoice to the next.
• Signing an unconditional waiver before the payment has cleared.

Keeping good records

Save a PDF of every pay request, and keep numbering in order. Signing in with Google or Apple keeps your invoice numbering, customers and payment tracking together in one place.

Checklist

• ✅ Project name, job site and contract or PO number
• ✅ Schedule of values lines with percent complete
• ✅ Only this period's work billed
• ✅ Retainage held shown on every invoice
• ✅ Change orders numbered and approved in writing
• ✅ Lien waiver referenced with the payment