Contractor invoice template with materials & labor (free PDF)

Contractor invoices have more moving parts than most: materials, labor, equipment, permits, change orders and progress payments. A clear layout protects your margin and makes the invoice easy for the customer to approve.

This free template separates materials and labor, supports deposits and progress billing, and lets you mark exactly which lines are taxable.

What to include on a contractor invoice

• Your business details, including any license number your state requires on invoices or contracts.
• Customer and job site: billing address and, if different, the job site address (use Ship to for the site).
• Invoice number, issue date and due date.
• Job reference: the estimate, contract or PO number.
• Materials, labor and equipment as separate lines.
• Change orders as their own lines, referencing the approved change.
• Previous payments, the amount due now, and how to pay.

Example line items

Description	Qty	Rate
Labor — framing, 2 carpenters	32 hrs	$65.00
Lumber and fasteners (per supplier invoice)	1	$1,240.00
Dumpster rental, 10-yard, 1 week	1	$395.00
Change order #2 — add closet framing	1	$480.00

For materials, many contractors add a markup; either include it in the materials price or show it as a separate line, depending on your contract.

Deposits and progress billing

For larger jobs, bill in stages instead of all at the end:

1. Deposit when the contract is signed, to buy materials.
2. Progress invoices at agreed milestones.
3. Final invoice on completion, minus everything already paid.

Each progress invoice should say what stage it covers and how much has been invoiced so far. Our guide to partial payments and deposits shows how to word them.

Payment terms

Residential customers often pay on completion or within 7–14 days; commercial customers may expect Net 30. Set the due date clearly, and offer fast payment options — ACH details, a payment link, or a QR code.

Sales tax for contractors

Contractor sales tax rules differ more from state to state than almost any other trade:

• Some states tax repair, maintenance and installation labor — North Carolina, for example, taxes RMI services (see our North Carolina guide).
• Some states tax specific real property services — Texas taxes services such as landscaping and janitorial work (see our Texas guide).
• Many states treat contractors as the consumer of the materials they install, so the contractor pays tax when buying them and doesn't charge it separately.

Because the rules depend on the state and on whether the work is new construction, repair or installation, keep labor and materials on separate lines and confirm the rules for your state before you add tax. Invoice Native lets you tick Tax line by line and split the rate into state and local parts.

Common mistakes on contractor invoices

• One lump sum for a whole job, which makes the invoice hard to approve and tax correctly.
• Change orders billed without reference to the customer's written approval.
• Progress invoices that don't show what's been billed so far, leading to over- or under-billing.
• Missing job site address, so the customer can't tell which project the invoice is for.
• Charging sales tax the same way in every state, when the rules for labor and materials differ.

Lien waivers and final invoices

On many construction projects, customers or general contractors ask for a lien waiver when they pay. If that applies to your work, reference the waiver on the final invoice so payment and paperwork line up. The rules for lien waivers vary by state, so follow your contract and local requirements.

Keeping good records

Save a PDF of every invoice you send, and keep your invoice numbers in order with no gaps or duplicates. Record when each invoice was paid and how. At tax time, those records make it simple to total your income and — if you charge sales tax — to report exactly what you collected. Signing in to Invoice Native (coming soon) will keep your invoices, customers and payments together in one place.

Checklist

• ✅ Materials, labor and equipment on separate lines
• ✅ Job site address and contract or PO reference
• ✅ Change orders referenced to written approvals
• ✅ Billed-to-date shown on progress invoices
• ✅ Sales tax treatment checked for your state