# 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<br>Removal of old cabinets, flooring, and debris disposal. | 12 hrs | $85.00 | $1,020.00 |
| 2 | Installation Materials<br>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
1. Please include the invoice number as the payment reference.
2. Payment is required within the due date associated with the selected payment terms.
3. Late payments may be subject to a finance charge of 1.5% per month.
4. 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.