Why Construction Invoicing Is Different From Every Other Trade
Construction projects run for weeks, months, or even years, and a single project can involve dozens of subcontractors, multiple material suppliers, equipment rentals, permit fees, and change orders. You can't just send one invoice at the end. Construction invoicing requires progress billing tied to milestones, retention tracking, change order documentation, and AIA-style billing for commercial work. A construction invoice template built for the industry handles this complexity so nothing falls through the cracks.
Common Construction Invoice Line Items
- Progress billing by phase - foundation, framing, rough-in MEP, insulation, drywall, finish, punch list
- Materials by category - lumber and framing, concrete, roofing, siding, windows and doors, insulation, drywall, finish materials
- Labor by trade - framing crew, concrete crew, general laborers, project manager time
- Subcontractor costs - HVAC, electrical, plumbing, roofing, painting, flooring (with their invoice numbers)
- Equipment rental - excavators, skid steers, scaffolding, lifts, compressors, generators
- Permits and fees - building permits, plan review, inspection fees, impact fees
- Change orders - itemized separately with reference numbers and approval documentation
- Retention - typically 5-10% held until project completion and final inspection
Construction Invoicing Best Practices
Bill according to your contract terms, which should specify a progress billing schedule tied to milestones or percentage of completion. Never let your billing fall behind the work. If the framing is complete and you haven't invoiced for it, you're essentially financing the project with your own money. Submit applications for payment promptly at each milestone.
Document change orders meticulously and invoice them separately from the original contract amount. Each change order should have its own line item or section on the invoice with the CO number, description, approved amount, and approval date. This keeps the paper trail clean and prevents disputes about whether additional work was authorized.
Track retention carefully. Most commercial and many residential contracts include 5-10% retention held until substantial completion. Your invoice should show the gross amount, the retention withheld, and the net amount due. Also track cumulative retention so you know exactly how much is owed upon final completion.
Invoice Your Construction Projects Properly
BillThemToday's free invoice generator supports the complex invoicing construction projects demand. Create progress billing invoices with milestone tracking, change order documentation, and retention calculations. Send professional PDFs that keep general contractors, developers, and homeowners paying on schedule. Our construction invoice generator handles the paperwork so you can focus on the build.