Contractor invoice: what to include and a simple example
How contractors and tradespeople should invoice: labor and materials lines, deposits, change orders, progress billing and getting paid on the job site.
Contractor invoices have a few things most invoices don't: materials, labor, deposits, change orders and sometimes progress payments. Here's how to lay one out so the homeowner or GC can approve it quickly.
What to include
- Your business name, phone, email and license number if your state requires it on paperwork.
- The client's name and the job site address.
- Invoice number, invoice date and due date.
- Labor and materials as separate lines.
- Any change orders, each on its own line with a short description.
- Subtotal, tax (if materials are taxable in your state), total.
- Deposit paid and balance due.
- How to pay, and your late-payment terms.
Example
Invoice INV-0108 · Bathroom remodel · 14 Elm St.
| Item | Qty | Rate | Amount |
|---|---|---|---|
| Demolition and haul-away | 1 | $650.00 | $650.00 |
| Tile installation labor (hours) | 22 | $65.00 | $1,430.00 |
| Porcelain tile and setting materials | 1 | $890.00 | $890.00 |
| Vanity and fixtures | 1 | $1,240.00 | $1,240.00 |
| Change order #1: niche in shower | 1 | $275.00 | $275.00 |
Subtotal $4,485.00 · Deposit paid $1,500.00 · Balance due $2,985.00
Labor vs materials
Splitting them helps the client see where the money went, and in some states sales tax applies to materials but not labor. Check your state's rules or ask your accountant.
Deposits and progress billing
For anything larger than a day or two, take a deposit before you buy materials. (See how to ask for a deposit.) On long jobs, bill in stages tied to milestones: rough-in done, drywall done, final walkthrough. Each stage is easier to approve than one big bill at the end.
Change orders
Write every change down and get it approved before you do it, even by text. Then add it to the invoice as its own line. "Extra work" with no detail is the most disputed line on any contractor invoice.
Get paid before you leave the site
Send the invoice from your phone at the final walkthrough while the client is happy with the work. If they can tap a link and pay by card right there, you skip the wait for a check entirely.
Invoicefy works from your truck
Invoicefy has an iPhone app and a web app. Create the invoice on site, text the link to your client from your phone, and they can pay by card or PayPal. Deposits, taxes and change-order lines are all supported, and reminders go out automatically if the balance is late.