Free contractor invoice template

Frequently Asked Questions

• What should contractors include on invoices?

  Include: contractor license number, project address, detailed breakdown of labor hours and rates, itemized materials costs, equipment rentals, permits or fees, subtotals, taxes, total due, payment terms, and lien waiver information if applicable.

• Should contractors invoice by milestone or at completion?

  For larger projects, milestone billing (progress payments) is standard—typically 30% upfront, payments at 25%, 50%, and 75% completion, with final 10% upon completion. This protects cash flow for both parties.

• How do contractors handle change orders on invoices?
  Document all change orders in writing with client approval before work begins. On your invoice, list original scope items and change orders separately with their approved amounts to maintain transparency.
• What payment terms do contractors typically use?
  Many contractors require deposits (25-50%) before starting, then use Net 15 or Net 30 for remaining payments. For larger projects, progress payments tied to completion milestones are standard industry practice.
• Do contractors need to include lien waiver information?
  In many states, yes. Conditional lien waivers may accompany invoices (waiving lien rights once payment is received). Final payments often require unconditional lien waivers. Check your state's requirements for construction billing.