Free Invoice Generator for Contractors
Progress billing, milestone payments, and materials breakdowns in one clean invoice.
Contractor work is paid in stages. You do not hand over a finished building and wait for one check. You bill at milestones: after demolition, after framing, after rough-in, after finish work. Each invoice needs to show what phase was completed, what materials were used, and how the total relates to the original contract amount. A sloppy invoice slows down the draw process and can hold up the next phase of work.
Most invoicing software is designed for service businesses that bill monthly. It does not handle progress billing, change orders, or the materials-plus-labor split that contractors live with every day. invoice.Now gives you a blank canvas with structured line items, so you can build an invoice that matches how construction and trades billing actually works.
Why contractors invoice differently
Contractor invoices are tied to physical progress. A client or general contractor needs to see that the billed amount corresponds to work that is actually complete and inspectable. This is not about listing hours. It is about tying dollar amounts to specific milestones defined in the contract or scope of work.
Materials and labor need to be separated. Clients, project managers, and lenders all want to see what portion of the invoice covers materials purchased and what portion covers labor. Lumping everything into a single line item creates confusion and often triggers questions that delay payment.
Change orders are a regular part of contractor billing. When the scope changes mid-project, the invoice needs to clearly show the original contracted amount, the change order amount, and how the two relate. Without that clarity, disputes over what was agreed upon can drag on for weeks.
What to include on your invoice
- Contractor business name, license number, and contact info
- Client or property owner name and project address
- Invoice number and date
- Project name or contract reference number
- Phase or milestone being billed (e.g., "Phase 2: Rough-in")
- Materials with itemized costs
- Labor hours and rates, or labor as a lump sum per phase
- Change order line items, referenced by CO number
- Percentage of contract completed to date
- Retainage withheld, if applicable
- Payment terms and due date
- Lien waiver status or note, if required in your state
Recommended templates
The Agency template handles complex, multi-section invoices well. Its structured layout lets you separate materials from labor, list change orders in their own section, and still keep the document readable. Despite the name, it works for any business that bills large, multi-part projects.
The Brutalist template is a no-frills option that puts the numbers front and center. If your clients are general contractors or project managers who just want to see the line items and totals without any design flourish, this template delivers exactly that. It prints cleanly and reads fast.
Example
Invoice #RC-2026-038 | Issued: March 3, 2026 | Due: March 18, 2026
Project: 412 Elm Street Kitchen Renovation | Phase 2: Rough-in
Materials - plumbing supplies: $1,420.00
Materials - electrical rough-in: $980.00
Labor - plumbing rough-in (24 hrs at $85/hr): $2,040.00
Labor - electrical rough-in (18 hrs at $90/hr): $1,620.00
Change Order #2 - relocated water heater: $690.00
Change Order #3 - added recessed lighting (6 units): $2,000.00
Subtotal: $8,750.00
Retainage (10%): -$875.00
Amount due: $7,875.00
Payment terms: Net 15
Contract completion to date: 45%
Frequently asked questions
How do I handle retainage on an invoice?
Show the full subtotal first, then subtract the retainage percentage as its own line item. For example, if the subtotal is $8,750 and retainage is 10%, show "-$875.00" labeled as retainage withheld. The amount due is the subtotal minus retainage. This keeps the math transparent for both you and the client.
Should I invoice for change orders separately?
You can do either. Some contractors send a separate invoice for each change order. Others include change orders as additional line items on the next progress invoice, clearly labeled with the CO number. The second approach is usually simpler for the client to process. Just make sure each change order references the written approval.
What if the client disputes the percentage complete?
This is common in progress billing. Include a brief description of the work completed for each phase billed. If possible, reference the inspection sign-off or the agreed milestone in the contract. Having that detail on the invoice reduces disputes and gives the client something concrete to verify against the job site.
Do I need to include my contractor license number?
Requirements vary by state, license type, and contract. If your state licensing board, customer, or project documents require a license number on invoices, include it near your business name at the top of the invoice. Even when it is not mandatory, it can help clients verify your credentials more quickly.
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