Contractor Invoice Template (Free Word, Excel, PDF)

A contractor invoice is a bill for work on a job: labor or hours, materials, subcontractors and equipment, minus any deposit or retainage, with the amount now due. This free contractor invoice template comes in Excel (it does the math), Word and PDF, with no sign-up. It's filled in with a worked bathroom-remodel example so you can see exactly where each number goes.

What should a contractor invoice include?

A contractor invoice should include your business and license details, the client and job site, a unique invoice number, invoice and due dates, the contract or PO it bills against, line items split into labor, materials, subcontractors, equipment and change orders, sales tax, retainage, deposits, the amount due and payment instructions. Field by field:

1. Your business details: name, address, phone, email and your contractor license number if your state requires it on invoices.
2. Client details: name and billing address.
3. Job site address and job name, if different from the billing address.
4. Invoice number: unique, such as INV-2026-0042. More on invoice number formats.
5. Invoice date, due date and payment terms, such as Net 30.
6. Contract, estimate or PO number that this invoice bills against.
7. Line items split by type: labor (hours × rate), materials (quantity × unit price), subcontractors, equipment rental, permits and change orders.
8. Subtotal, sales tax (only on taxable lines), retainage held and deposits received.
9. Amount due now.
10. Payment instructions and any notes, such as "conditional lien waiver attached".

Contractor invoice example

A contractor invoice example shows each charge on its own line (labor as hours × rate, materials as quantity × unit price, subcontractors and change orders separately), then sales tax on the taxable lines, retainage and any deposit subtracted, and the amount due. This sample contractor invoice is the filled-in version of the template: a fictional bathroom remodel for a homeowner. Every number is real arithmetic you can check.

The 6.25% matches Texas's state sales tax rate. Under a Texas separated contract for residential remodeling, the materials are taxed and the labor isn't (Texas Comptroller: real property repair and remodeling). Local taxes can add up to 2% (8.25% combined maximum), so a real Texas invoice usually shows a higher rate (Texas Comptroller: sales and use tax).

The plumbing, change-order and dumpster lines are left untaxed to keep the example short, not as a ruling on how your state treats them.

Two choices in this example are worth copying. The tile line shows the 10% waste allowance, so the client doesn't wonder why 120 square feet became 132. And the change order has its own line with its number, which ties the charge to a document the client already signed.

What's the difference between an independent contractor and a general contractor invoice?

"Contractor invoice" covers two different jobs. An independent contractor (a freelancer paid on a 1099) bills hours or a project fee. A general or construction contractor bills a job: labor, materials, subs and often a payment schedule. The template works for both: delete the lines you don't use.

Invoicing as an independent contractor: list your hours by date or week with a short description, your rate, any agreed expenses with receipts, and your payment terms. Business clients often ask for a Form W-9 before the first payment (IRS: About Form W-9), because a business that pays you $2,000 or more in a year for services generally has to report it on Form 1099-NEC (payments to most corporations are exempt). That threshold applies to payments made in 2026, and may be adjusted for inflation from 2027 (IRS 1099-NEC instructions).

How do you fill in the contractor invoice template?

Download the Excel file, replace the blue example text in the yellow cells with your own business, client, job and line-item details, mark which lines are taxable, and set your sales tax rate, retainage percentage and deposit. The Amount column and the totals block (subtotal, sales tax, retainage and amount due) then calculate on their own.

1. Header: your business name, address, phone, email and license number.
2. Client and job: client name, billing address and job site.
3. Invoice details: invoice number, date, due date, terms and the contract or estimate number.
4. Line items: one line per item. Type "Labor", "Materials", "Subcontractor", "Equipment" or "Change order" in the Type column so the client can see the split.
5. Taxable?: mark "Yes" only for lines your state taxes. The tax line calculates from those lines.
6. Sales tax rate and retainage %: set the sales tax rate to the combined state and local rate that applies to the job (not just the state rate), and the retainage % from your contract. Use 0% for either if it doesn't apply.
7. Deposit: enter any deposit already received as a negative number. Some states cap deposits on home improvement jobs (see the deposit section below).
8. Export: open the Print tab, which shows your entries without the yellow highlighting or instructions, then File > Save As and choose PDF as the file type (Excel saves only the active sheet by default), and name the file after the invoice number.

Keep one master copy and save each invoice as a new file. A folder of PDFs named by invoice number beats a single spreadsheet called invoice_final_v7_REAL.xlsx that everyone's afraid to touch.

How do you bill materials, labor and markup?

Bill each on its own line: labor as hours times rate, materials as quantity times unit price, and subcontractors at the price you charge the client. Show markup as its own line or build it into unit prices, but match your estimate. Separate lines also affect how sales tax applies in many states.

• Bill labor as hours × rate per trade or per task. For a flat-price task, say what it includes.
• List major materials with quantities, and group small consumables into one "lot" line.
• If you show markup, give it its own line (for example, "Overhead and profit, 10%") so the client can match it to the estimate.
• Give each subcontractor one line, named by trade.
• Put equipment rentals and permit fees on their own lines.

Sales tax is state by state, and sometimes job by job. In Washington, for example, a prime contractor on custom construction collects retail sales tax from the customer on the full contract price, labor included, which is the opposite of the Texas example above (Washington DOR).

How does construction billing work?

On larger jobs, contractors bill in stages: a deposit at signing, progress invoices for work completed each month or milestone (measured against a schedule of values), retainage held from each payment, and a final invoice that releases it. Change orders and lien waivers travel with these invoices.

Progress billing and the schedule of values

Each invoice bills the share of work completed since the last one, measured against a schedule of values: the contract sum broken into line items such as demolition, framing, electrical and finishes.

On a $40,000 contract with 10% retainage (explained below), three pay applications against the schedule of values look like this:

AIA G702 and G703 forms

On many commercial projects, progress billing uses the American Institute of Architects' forms: the G702 Application and Certificate for Payment, with the G703 Continuation Sheet listing each schedule-of-values line (AIA Contract Documents). Residential remodelers rarely need them, but some lenders and commercial clients do.

How much deposit can a contractor take?

Some states cap the deposit on home improvement jobs. In California, the down payment can't be more than $1,000 or 10% of the contract price, whichever is less, and you can't ask for more than the value of the work done and materials delivered so far (Cal. Bus. & Prof. Code § 7159.5).

In the example, the contract signed before change order #1 was $5,349 ($5,624 minus the $275 niche), so the cap would be $534.90, and a California contractor would enter a smaller deposit than the sample's $1,000. Contractors who carry the bonds listed in § 7159.5(a)(8) are exempt from the cap. Other states set their own limits, or none.

What is retainage in construction billing?

Retainage (also called retention) is a percentage of each progress payment that the client holds back until the job is finished, to make sure punch-list items get done. Your contract sets the percentage, and the final invoice, or a separate retainage invoice if the contract calls for one, releases it.

The law caps it in places. On federal construction contracts, the contracting officer can hold back up to 10% of a progress payment when progress is unsatisfactory, and can keep an amount to protect the government once the work is substantially complete (FAR 32.103, FAR 52.232-5(e)). Washington caps retainage on public works at 5% (RCW 60.28.011). California caps retention on private projects at 5% of each payment and 5% of the contract price for contracts signed on or after January 1, 2026; residential projects of four stories or fewer that aren't mixed-use are exempt (Cal. Civ. Code § 8811, added by SB 61).

Change orders

Any added or changed work gets a signed change order, then its own line on the next invoice with the change order number. The adjusted contract sum on later invoices should include it.

Lien waivers

Many clients and lenders ask for a lien waiver with each payment. A conditional waiver takes effect once the payment clears; an unconditional one says you've already been paid. Forms and rules vary by state. California, for example, has four statutory waiver forms (conditional and unconditional, for progress and final payments) that waivers must substantially follow (California CSLB).

When should a contractor send an invoice?

Send each invoice on the dates in your contract's payment schedule: deposit on signing, progress invoices at milestones or monthly, and the final invoice at completion with the retainage release. For small jobs, invoice the day the job is done. The guide on how to send an invoice includes an email template and a follow-up schedule.

How do you generate contractor invoices from a job sheet automatically?

Mark the job ready in your sheet or Airtable base, and an automation sends the client, line items and tax rate to an invoicing API. The API numbers the invoice, calculates totals, generates the PDF and emails it. Trigger on the status change (Status = "Ready to invoice"), not on every edit, or each correction creates a new invoice.

The ASHDOCS Invoice API handles that API step:

• Gives each invoice a gapless number when it's issued
• Applies per-line tax rates, discounts and deposits, and calculates the totals
• Generates the PDF and emails it with a link to a hosted invoice page, with a Pay button when you connect Stripe
• Sends reminders 3 days before, on and 7 days after the due date, and stops once the invoice is paid
• Accepts an Idempotency-Key header. Send the row or record ID as the key, and a retried Zap gets the original invoice back instead of a second one. Keys are kept for 24 hours (rate limits and idempotency), so also have the automation set the row's status to "Invoiced" once the API responds

From Google Sheets or Airtable, a Zap that uses Webhooks by Zapier can send each finished row to the API. Webhooks by Zapier is a premium app, so you'll need a paid Zapier plan (Zapier setup).

No Zapier? Use an HTTP step in Make or n8n, or Airtable's Run a script automation action. Airtable offers that action on all plans, with plan-based limits, but not during a Team plan trial (Airtable help). Run it on a few sample rows, with your own email address as the client, using a test key before you switch to a live key.

Frequently asked questions

What's the difference between an estimate and a contractor invoice? An estimate prices the work before it starts. An invoice bills work already done, or a scheduled payment under the contract, and sets a due date. Put the estimate or contract number on every invoice so the two reconcile, and bill any changes from the estimate as signed change orders.

Should a change order go on a separate invoice? Usually not. Once the client signs the change order, bill it as its own line on the next progress or final invoice, with the change order number and amount, and include it in the adjusted contract sum on later invoices. Use a separate invoice only if your contract says change orders are billed that way.

Can a general contractor charge sales tax on an invoice? It depends on the state and how the contract is written. In Texas, a separated contract for residential remodeling taxes the materials but not the labor. In Washington, a prime contractor on custom construction collects sales tax on the full contract price. Under a Texas lump-sum contract, by contrast, the contractor pays tax on materials when buying them and doesn't charge sales tax to the client (Texas Comptroller). Check your state's revenue department.

Is sales tax figured before or after retainage? Before, in Washington: the Department of Revenue says that if a contract requires retainage, sales tax must be computed before deducting it. The template works the same way: tax is calculated on the full taxable lines, and retainage comes off the subtotal afterward. Other states may differ, so check yours before you bill.

Do independent contractors need to send invoices? No federal law requires you to send invoices for private-sector work (federal agencies are the exception: they pay only against a proper invoice, under FAR 32.905), but an invoice is how you request payment, set a due date and keep records for your taxes. Many business clients' accounts-payable teams won't process a payment without one, and many also ask for a Form W-9 before the first payment.

How do I invoice a deposit? Send the deposit as its own numbered invoice when the contract is signed, for the amount the contract sets and within your state's cap. Then show it as a "Less deposit received" line on the next invoice, so it's credited against the work and the client never pays it twice.