Invoice template · For contractors
Invoice template for contractors.
A contractor invoice should separate labour, materials, equipment, and subcontractor costs into their own line items, list the job address and dates, reference any change orders agreed mid-project, and state the agreed payment terms (typically Net 14 with progress-payment milestones). Inbill's Corporate template gives this multi-category breakdown a clear, audit-friendly format.
Recommended template
Corporate — why it fits
A clear, structured layout with strong column dividers — essential when an invoice mixes labour hours, materials, equipment, and pass-through subcontractor costs.
Open this template in InbillWhy invoicing matters for contractors
A contractor's invoice is the document that decides whether a job ends in a handshake or a small-claims complaint. Unlike a designer or developer, a contractor's costs are split across labour, materials, equipment, permits, and often subcontractors — and homeowners or property managers will scrutinise every category, especially when the final bill comes in higher than the original estimate. The two most common ways contractors lose money on the paperwork: bundling materials into a single line (which prevents the client from seeing the markup or the actual receipts), and forgetting to invoice for change orders before final payment is due. Inbill's Corporate template structures the four cost categories into separate sections with clear column dividers, the line-item notes field lets you reference change-order numbers, and the partial-payment tracker handles progress payments cleanly — deposit at signing, mid-job draw, final balance on completion. The clearer the breakdown, the faster the wire arrives.
What goes on the invoice
Typical line items for contractors.
| Line item | Unit | Typical 2026 USD |
|---|---|---|
| Labour (lead carpenter / journeyman, per hour) | per hour | $45–$150 |
| Labour (apprentice / helper, per hour) | per hour | $25–$75 |
| Materials (lumber, drywall, fixtures — at cost or marked up) | at cost +% | — |
| Equipment rental (per day or week) | per day | $75–$800 |
| Subcontractor pass-through (electrical, plumbing, HVAC) | at cost +% | — |
| Permits & inspection fees | reimbursable | — |
| Project management fee | flat or % | — |
| Change order (signed before work performed) | per change | — |
On rates
How much should contractors charge?
Contractor pricing in 2026 varies more by region and trade than any other category — a finish carpenter in coastal California bills 3–4x what the same trade earns in the rural Midwest. Most general contractors mark up materials 15–35% to cover sourcing time, delivery coordination, and waste; this should be disclosed in the contract, not hidden on the invoice. Subcontractor pass-throughs typically carry a 10–20% project-management fee. The single biggest pricing mistake contractors make is absorbing change orders verbally — a homeowner says "can we also do the back room?" mid-project, work starts, and the extra never makes it onto the invoice. Document every change order in writing with a price BEFORE the work happens, then add it as a separate line on the next invoice with the change-order number referenced.
How to send the invoice
Sending your first invoice as a contractor.
- 01
Pick the Corporate template
Open Inbill, choose Corporate. The strong column dividers and structured layout suit invoices with labour, materials, equipment, and subcontractor lines.
- 02
List the job address and dates in the invoice header
In the project field, write "456 Oak Street — Kitchen renovation, 2026-04-15 to 2026-05-02." Anchors the invoice to a specific job and protects you in any later dispute.
- 03
Group line items by category, with subtotals
Labour, then Materials, then Equipment, then Subcontractor pass-throughs, then Permits. Inbill's line-item ordering preserves your sequence; the running subtotal shows the client where the money went.
- 04
Reference change-order numbers in line-item notes
Any work outside the original contract gets its own line — e.g. "Change order CO-003: add electrical outlet, pre-approved 2026-04-22." This eliminates the "I never agreed to that" conversation at final payment.
- 05
Set up progress payments via partial-payment tracking
A typical contractor schedule is 30% deposit at signing, 40% mid-job draw, 30% on completion. Inbill's partial-payment tracker records each instalment against a single rolling invoice, with a clear running balance for both sides.
Frequently asked
Contractor invoice questions, answered.
Should a contractor mark up materials on the invoice?
Yes, and disclose the markup in the contract. A 15–25% materials markup is standard and covers sourcing, transportation, return-trip waste, and the time you spent at the supply yard. Some contractors invoice "materials at cost" and bake the markup into a higher labour rate; others itemise materials with the markup on each line. Either is fine — pick one approach and use it consistently so clients don't feel the rules change between projects.
How do contractors handle change orders on invoices?
Document every change order in writing BEFORE the work happens — a one-page signed form is enough. Then on the next invoice, list each approved change order as its own line item with the CO number ("Change order CO-002: replace hardwood with engineered, +$1,400"). Never bury change costs in inflated existing line items; that erodes trust and gives the client an excuse to dispute the whole invoice.
What payment schedule should contractors use for larger projects?
Progress payments tied to milestones, not just dates. The market standard is 25–30% deposit at signing, 30–40% mid-project draw (e.g. when framing or rough-in is complete), 25–30% on substantial completion, and a 5–10% retainage held until punch-list items are finished. Inbill's partial-payment tracker handles this against a single invoice — each draw is recorded as it's received, the balance updates automatically.
Do contractors need to charge sales tax on labour?
It depends entirely on jurisdiction. In most US states, contractor labour on residential improvement is NOT taxable, but materials usually are (you pay the tax when buying, then bill the client at cost-plus). In some states (NY, CT, NJ), labour on capital improvements is exempt but labour on repairs is taxable. The safest practice: register with your state department of revenue, read the specific contractor guidance, and add a tax line on Inbill only where you're required to collect.
Should I require a deposit before starting a contracting job?
Yes for any job over $1,500 or two days of work. The market norm is 25–30% deposit at signing — enough to cover initial materials and protect against the client cancelling after you've scheduled crew time. Some states cap residential contractor deposits by law (California: 10% or $1,000, whichever is less); check local rules. Inbill records the deposit as the first partial payment so the running balance reflects what's actually owed.
Adjacent work
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