Free Construction Invoice Template

Construction jobs are rarely billed in one go. A remodel, an addition or a new build is invoiced in stages as the work is completed, often with a percentage held back as retainage until the end, plus change orders when the plans move. The invoice has to show where the job stands, not just what is owed today.

The construction invoice template in the editor below is set up as a progress bill: each line is a phase of the contract billed by percent complete, a change order has its own line, and 10% retainage is withheld from the amount due. Two contractor templates for labor and materials and for deposits sit beside it. Replace the sample job with yours and download a PDF.

Construction invoice templates

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  1. $19,200.00
  2. $4,500.00
  3. $5,500.00
  4. $1,850.00

Tip: copy rows from Excel or Google Sheets and paste them into any line.

Show on invoice

Total$27,945.00

What to include on a construction invoice

On top of your company details, the owner's details, an invoice number and dates, a construction invoice needs to tie the payment to the contract and the job.

Project, job address and contract
Name the project, the job site address and the contract or job number as custom fields in the invoice header. On a job with several invoices, this is how everyone finds the right one.
Which progress payment this is
Say where the invoice sits in the schedule, for example “Progress bill 2 of 4” or “Billing period: October”, so the owner or lender can match it to the payment schedule in the contract.
Work by phase or percent complete
Bill each phase from your schedule of values. Put the share completed this period in the quantity column (0.6 for 60%) and the phase value as the rate, and the amount works itself out.
Change orders, separately
Approved change orders get their own lines with the change order number, never folded into the original phases. Owners check them against the signed change orders, not against the base contract.
Permits, materials and equipment
Permit fees, dumpsters, equipment rental and materials billed outside the phases go on their own lines. Stored materials that the contract lets you bill before installation should be described as stored.
Retainage and lien waivers
Show the retainage withheld as its own line so the net amount due is clear. If your contract or lender requires a lien waiver with each payment, mention it in the notes and attach it; the forms and rules differ by state.

Example: progress bill 2 of 4 on a home addition

Three phases billed by percent completed this period, one approved change order, and 10% retainage withheld.

Description Qty Rate Amount
Framing, 60% this period (of $32,000) 0.6 $32,000.00 $19,200.00
Rough plumbing, 50% this period (of $9,000) 0.5 $9,000.00 $4,500.00
Rough electrical, 50% this period (of $11,000) 0.5 $11,000.00 $5,500.00
Change order #3: added egress window 1 $1,850.00 $1,850.00
Work completed this period $31,050.00
Retainage withheld (10%) −$3,105.00
Amount due this period $27,945.00

In the editor, the retainage line is the discount line renamed to “Retainage withheld”, so it comes off before any tax. Whether construction labor and materials are taxed depends on your state or country.

How progress billing works

Most construction contracts split the price into a schedule of values: a list of phases or trades, each with a dollar amount, that adds up to the contract sum. Each billing period, usually monthly or at agreed milestones, the contractor bills the share of each phase completed since the last invoice. The owner, architect or lender checks the percentages on site before approving payment.

On larger commercial jobs in the US, owners often ask for the AIA G702 application for payment with a G703 continuation sheet, which track the original contract, change orders, work to date, retainage and previous payments on one form. This template is not a copy of those forms. It suits residential and small commercial work where a clear progress invoice is enough; for AIA jobs, use it for your own records or check what the owner requires.

  • Agree on the schedule of values before work starts.
  • Bill only work completed since the last invoice, and say which period it covers.
  • Keep previous invoices in sequence so billed-to-date totals are easy to check.
  • Add approved change orders as separate lines with their numbers.

Retainage, change orders and lien waivers

Retainage is a percentage of each progress payment, often 5% or 10%, that the owner holds back until the job is substantially complete and the punch list is done. It protects the owner, but it can tie up a lot of the contractor's cash, and many states set rules on how much may be withheld and how fast it must be released. Check your contract and your state's rules, and send a separate invoice for the retainage release when the time comes.

Change orders should be written, priced and signed before the work is done. The quotation generator is a quick way to price one and get it approved, and when the owner signs, convert it to an invoice or copy the line into your next progress bill. Lien waivers, where they are used, are separate documents; the invoice only needs to say that one is enclosed.

  • Show retainage as its own line so the net amount due is obvious.
  • Invoice the retainage release separately at completion.
  • Price and sign change orders before doing the work.

Payment terms for construction

Payment terms come from the contract, so repeat them on each invoice: the billing date, the due date and anything the owner needs to approve payment. Residential progress payments are often due within 7 to 15 days; commercial jobs frequently run on Net 30 or longer, and a general contractor may pay subcontractors only after the owner pays them.

Many states have prompt payment laws that set deadlines for paying contractors and interest on late payments, and some limit pay-when-paid clauses. The details vary a lot, so check the rules for the job's location rather than assuming.

Keep your right to file a mechanic's lien in mind. Deadlines to send preliminary notices can start early in the job and differ by state; missing one can cost you the lien entirely, whatever your invoices say.

Construction invoice FAQ

Progress billing, retainage and change orders.

What is a progress invoice in construction?

An invoice for the part of the contract completed during a billing period. Each phase is billed by the percentage finished since the last invoice, so the owner pays as the work advances.

How do I show retainage on a construction invoice?

Turn on the discount line, rename it “Retainage withheld” and enter the percentage, for example 10%. The invoice shows the work completed, the retainage withheld and the net amount due.

How do I bill a change order?

Add it as its own line with the change order number and description, such as “Change order #3: added egress window”, at the approved price. Don't merge it into the original phases.

Is this the same as an AIA G702 form?

No. AIA G702 and G703 are specific forms many commercial owners require. This template is a clear progress invoice for jobs that don't need them.

Do I need to include a lien waiver?

Only if your contract, the owner or the lender asks for one. The waiver is a separate document with forms that vary by state; note on the invoice that it is enclosed.

Is this construction invoice template free?

Yes. Fill it in on this page and download the PDF for free, with no watermark and no account.

More free invoice templates

Different work, different invoice. Each of these opens in the same free generator.

Browse all invoice templates → Open the invoice generator → Write a quote first →