INVOICE
INV-2025-001
From (Contractor)
ABC Construction Co.
123 Builder Blvd, Suite 100
Austin, TX 78701
Phone: (555) 123-4567
Email: billing@abc-construction.com
Web: www.abc-construction.com
License #: LIC-987654321
Bill To (Client)
Estate Developers LLC
888 Skyline Dr
Austin, TX 78705
Phone: (512) 555-9000
Email: projects@estatedevelopers.com
Project Site
888 Skyline Dr (Commercial Renovation)
Date
2026-04-30
Due Date
2026-05-15
Payment Terms
Net 15
PO
#-
| # | Description | Qty/Unit | Rate | Amount |
|---|---|---|---|---|
| 1 | Demolition & Disposal Removal of old cabinets, flooring, and debris disposal. |
12 hrs | $85.00 | $1,020.00 |
| 2 | Installation Materials Drywall, screws, adhesive, and protective sheets. |
1 lump | $450.00 | $450.00 |
Subtotal
$1,470.00
Sales Tax (8.25%)
$121.275
Balance Due
$1,591.275
One Thousand Five Hundred Ninety One Only
Notes & Terms
- Please include the invoice number as the payment reference.
- Payment is required within the due date associated with the selected payment terms.
- Late payments may be subject to a finance charge of 1.5% per month.
- Please notify us of any discrepancies within 7 days of receipt.
This is a computer-generated invoice, no signature required.
Authorized Signatory
Thank you for your business!
Lessons from the Jobsite
Construction invoicing has quirks that other industries don't. Here's what actually matters when billing for builds.
Get the Site Address Right
In construction, your lien rights are tied to the property address. If you ever need to file a mechanic's lien, having the exact project site address on every invoice is critical.
Split Labor from Materials
Many states tax materials differently than labor. Some states don't tax labor at all. Splitting these out on your invoice keeps you compliant and builds trust with clients.
Construction Invoice FAQ
What is a construction invoice?
A construction invoice is a formal bill sent by contractors to clients for work performed, materials used, and expenses incurred. It serves as a payment request and a legal record of the transaction.
What should be included in a construction invoice?
Include project details (name, address), your company info, client info, invoice number, date, payment terms, and a detailed breakdown of labor, materials, and other costs.
How do I split labor and materials?
List labor and materials as separate line items. This provides transparency for the client and helps with tax compliance, as labor and materials may be taxed differently in some states.
What is retainage in construction billing?
Retainage is a portion of the contract price (usually 5-10%) withheld by the client until the project is substantially complete. Ensure your invoice clearly shows the total amount, less retainage.
When should I send a construction invoice?
Invoices are typically sent at agreed-upon milestones (e.g., foundation complete) or at regular intervals (e.g., monthly progress billing). Check your contract for specific billing schedules.
How do I handle change orders?
Invoice for change orders separately or as distinct line items on the main invoice. Reference the approved Change Order Number to avoid disputes and delays in payment.