Invoice Template for Contractors & Subcontractors
Construction and trade contractors need invoices that handle the complexity of progress billing, materials costs, labor rates, change orders, and retention holdbacks. A professional invoice protects you legally, supports payment applications, and ensures you get paid for every phase of work completed.
Key takeaways
- Include all essential details: your info, client info, invoice number, itemized services, and payment terms
- Be specific about deliverables — vague line items lead to payment disputes
- Set clear payment terms with a due date and late fee policy
- Follow up promptly when payments are overdue — use a tracking system
What to Include on Your Contractors & Subcontractors Invoice
- Contractor business name, license number, and insurance details
- Client or general contractor name and project address
- Invoice number, date, and contract reference
- Progress billing percentage or phase completed
- Labor breakdown (hours × rate per worker or crew)
- Materials and supplies with costs
- Change orders with client approval references
Need help crafting a professional reminder for an overdue invoice? Use the free email generator to create payment reminders in seconds. For UK businesses, the HMRC invoice requirements outline exactly what every invoice must include to be legally valid.
Common Contractors & Subcontractors Invoicing Mistakes to Avoid
- Not referencing the contract or work order number
- Failing to document change orders — always get written approval before billing
- Not tracking retention holdbacks (typically 5-10%)
- Submitting invoices without progress photos or completion evidence
- Mixing materials and labor into one lump sum — always itemize
How Contractors & Subcontractorss Get Paid Faster
- Submit invoices at each milestone or monthly for long projects
- Always attach progress photos and completion percentages
- Keep change orders separate and reference the approval on your invoice
- Track retention holdbacks and invoice for release at project completion
- Use a visual tracking system to manage invoices across multiple job sites
Tracking invoices manually is error-prone. Track your outstanding invoices with a visual Kanban board, built-in chase history, and a plan your follow-up timeline tool.
Already Sent the Invoice? Now Track It and Get Paid.
The real problem starts after you send the invoice
Creating an invoice takes minutes. Getting paid can take weeks. The hard part is knowing which clients haven't paid, when to follow up, and what you already said. Spreadsheets and memory don't cut it when you have multiple invoices in flight.
InvoiceGrid is built for exactly this. Open it each morning, see who to chase today, generate the right follow-up email, and log everything — so you have a paper trail if things escalate.
- Today View — shows exactly which invoices need attention each morning
- Chase History — log every email, call, or message sent per invoice
- Email Generator — professional reminder emails in 5 tones, from friendly to final notice
- Evidence Pack — dispute-ready documentation if a client refuses to pay
Free Chase Tools for Invoice Payments
Once you've sent your invoice, these free tools help you manage due dates, calculate late fees, and track what you're owed — no signup required.
Due Date Calculator
Calculate exact due dates for Net 7, 15, 30, 45, 60, 90 or custom terms
Late Fee Calculator
Calculate how much a client owes including late fees and accrued interest
Reminder Email Generator
Generate payment reminders in 5 tones — from friendly to final notice
AR Aging Report Generator
See all outstanding invoices bucketed by 0–30, 31–60, 61–90, 90+ days
Other Invoice Templates
Looking for a template for a different profession? Browse our other guides:
Frequently Asked Questions
What is progress billing for contractors?+
Progress billing means invoicing for work completed to date rather than waiting until the project is done. Typically, you invoice monthly or at project milestones, showing the percentage of work completed and the corresponding payment due.
How do contractors handle retention on invoices?+
Retention (typically 5-10%) is held back from each progress payment as security for the client. Show it as a line item on each invoice. After project completion and acceptance, submit a final invoice for the retained amount.
Should contractors charge for materials separately?+
Yes. Always itemize materials and labor separately. Include material costs, delivery charges, and a reasonable markup (typically 10-20%). This transparency builds client trust and protects you if material costs change.
Ready to Track Your Invoices Visually?
Stop losing track of who owes you money. InvoiceGrid gives you a visual Kanban board, chase history, and professional email reminders.