Contractor invoicing has more moving parts than most trades: a job runs for weeks, money is released in stages, a slice is held back until the end, and materials have to be accountable separately from your time. An invoice that keeps those threads clear gets paid on schedule.
Split labour and materials
Always give labour and materials their own lines, and keep them backed up differently. Labour ties to a schedule of values — the breakdown of the contract price by trade or stage — or to logged hours and a rate. Materials tie to receipts and supplier invoices you keep on file. Lenders releasing funds against the job, and clients claiming on insurance, both need to see the split, and some jurisdictions apply sales tax to materials but not to labour. How that plays out on your own invoices depends on the job's location and your registration, so check it locally — nothing here is tax or legal advice.
Bill progress in draws
On a fixed-price contract, you rarely invoice the whole amount at the end. Instead, the contract sets stages — site prep, rough-in, drywall, finishes, completion — each releasing a percentage. Every draw invoice states the stage reached, the percentage of the contract that represents, the amount this draw releases, and the total billed to date against the contract value. That running total is what stops arguments about whether you have over-invoiced.
Show retainage as a deduction
If the client holds retainage, don't hide it. On each draw, add a line that subtracts the retained percentage: "Less 10% retainage held". The client then sees the amount payable now and the amount accruing for release later. When the job passes final inspection and any punch-list items are closed, invoice the accumulated retainage as a single final line referencing the earlier draw numbers.
Credit the deposit and pass through permits
A deposit taken at signing is a payment against the contract, so credit it as a negative line — "Less deposit paid (JOB-2026-011)" — on the draw or final invoice where it applies. Permit fees, inspection fees, and any bonds you paid go on their own lines at cost, with the permit or reference number noted, so the client can see these are pass-through costs and not part of your margin.
Attach the documentation
A contractor invoice travels with paperwork: signed change orders for any work beyond the original scope, lien waivers where required, material receipts, and photos for a progress stage if that is how sign-off works. List change orders as their own numbered lines — never fold extra work silently into a draw — with the change order reference and the client's approval date.
Set terms that keep the job funded
Net 15 from the invoice date is common for progress draws, because you have supplier bills and a crew to pay before the next stage. State it as a date, name any late fee, and consider a contract clause that pauses work if a draw goes unpaid past a set number of days.
Before you send
- Your business name, licence number, address, and tax number
- The client's name, the property address, and the job or contract number
- A unique invoice number and both dates
- Labour and materials on separate lines, each with its backup
- The draw stage, its percentage, and the total billed to date
- Retainage shown as a deduction; deposit credited as a negative line
- Change orders itemised with their approval reference
- Permits and fees passed through at cost
- Payment terms and late fee
Set your stages and amounts above and download the PDF. A free NeatDue account keeps each job and client on file so every draw invoice follows the same format.