Contractor Invoice: How to Invoice as a Contractor (With Sample)
A contractor invoice is the bill a contractor sends a client for work done. It lists the job, labor and materials, any agreed project stages or change orders, and payments already received, along with your business details, the amount due and payment terms. To invoice as a contractor, agree on prices and payment terms in writing before you start, then send an itemized, numbered invoice with a due date as soon as the job or each stage is finished.
This guide covers both kinds of contractors: construction and trade contractors who bill homeowners, businesses or insurers, and independent contractors (freelancers) who bill clients for their services.
What to include on a contractor invoice
- Your business details: business name, address, phone and email, plus your contractor license number if you have one. Clients and insurers often look for it.
- Client details: name, billing address and the job site address if it is different.
- Invoice number, issue date and due date. See how to number invoices.
- Project reference: contract, estimate or purchase order number, and the insurance claim number for insurance work.
- Work performed: a clear description with dates. Put labor and materials on separate lines.
- Labor: hours times rate, or a fixed price per task.
- Materials: itemized, with quantities and unit prices.
- Other costs: permits, equipment rental, disposal, travel, if your contract lets you bill them.
- Change orders: each approved change on its own line, with its reference.
- Subtotal, tax where it applies, and total.
- Payments received: deposits and progress payments, then the balance due.
- Payment terms and methods: due date, accepted payment methods, and late fees if your contract includes them.
Sample contractor invoice
Here is a final invoice for a bathroom remodel, with the deposit already credited:
Summit Home Renovations
2100 Ridge Rd, Denver, CO 80212
License no. GC-000000
INVOICE
| Item | Amount |
|---|---|
| Labor | |
| Demolition and framing16 h × $75.00 | $1,200.00 |
| Tile installation, floor and shower22 h × $75.00 | $1,650.00 |
| Materials | |
| Porcelain tile and grout1 × $1,280.00 | $1,280.00 |
| Shower valve, trim and vanity faucet1 × $940.00 | $940.00 |
| Other | |
| Dumpster and disposal1 × $385.00 | $385.00 |
| Building permit (pass-through)1 × $150.00 | $150.00 |
- Total
- $5,605.00
- Deposit received Aug 30
- -$2,000.00
- Balance due
- $3,605.00
Net 14. Pay by card from the invoice link or by bank transfer. Thank you for your business.
Labor, materials and other costs are grouped so the client can compare each line with the estimate. The deposit is subtracted, so the client sees exactly what is left to pay.
How to invoice as a contractor, step by step
- Put the terms in writing first. Your estimate or contract should state the price or rates, the deposit, when you will invoice, and when payment is due.
- Track time and materials as you work. Keep receipts; they back up your material lines if a client or insurer asks.
- Create the invoice from your estimate, so descriptions and prices match. Add approved change orders as separate lines.
- Subtract what the client already paid and show the balance due.
- Check the details: client name, job address, invoice number, due date and your payment information.
- Send it the day the work is done, as a PDF or a link the client can pay online. Put the invoice number in the email subject.
- Follow up a few days before the due date and on the day after it passes.
Invoicing as an independent contractor
If you work for yourself and bill clients for services, such as design, consulting, IT or writing, your invoice works the same way, with hours or a project fee instead of materials.
- Invoice in the name you use for taxes, either your own or your business’s.
- Show the period or project, hours and rate, or the agreed fee.
- Clients do not withhold payroll taxes from your invoice, so set money aside for your own taxes.
- In the US, clients usually ask you to fill in Form W-9 so they have your taxpayer identification number. The IRS calls this the first step when a business works with a contractor.
- Businesses generally file Form 1099-NEC for each contractor they pay at least $2,000 for services in a year. That threshold applies to payments made after December 31, 2025; before that it was $600 (IRS instructions for Forms 1099-MISC and 1099-NEC).
Our freelancer invoice guide has more examples for service work.
Contractor invoices for insurance claims
When an insurance company pays for repairs, your invoice has to hold up to an adjuster’s review. The advice state insurance regulators give homeowners shows what to provide: the California Department of Insurance tells homeowners to get written bids from licensed contractors that list materials and prices “on a line-by-line basis”, and the Texas Department of Insurance tells them to keep all receipts for repairs.
For insurance work:
- Add the claim number, the policyholder’s name and the property address.
- Match the approved estimate or scope line by line, and list any supplements separately with their approval.
- Itemize materials and labor separately with quantities and unit prices.
- Attach photos of the damage and the finished work, and receipts for major materials.
- Bill only for work actually done and materials actually used.
- Agree with the homeowner in advance who pays you and when: the homeowner, the insurer, or both.
Progress billing, change orders and subcontractors
- Progress invoices bill a long project in stages, for example 30% at signing, 40% at rough-in and 30% at completion. Each invoice shows the contract total, what has been billed before and what this invoice covers.
- Change orders should be approved in writing before you do the work. Bill each one as its own line with its reference number.
- Subcontractors bill the general contractor, not the owner, unless the contract says otherwise. Use the general contractor’s job number, follow its billing schedule and include the documents it asks for with each payment request.
Get paid faster
- Take a deposit before you order materials.
- Keep payment terms short, such as net 7 or net 14, and put the due date on the invoice.
- Accept cards and bank transfers. A pay button on the invoice removes friction.
- Send reminders before and after the due date.
Invoxa’s online invoice generator turns an estimate into an invoice, groups items into sections such as Labor and Materials, tracks deposits and lets clients pay by card from the invoice link. For Excel and Word files, see our construction and home improvement invoice templates, and for a template walkthrough, read how to create a construction invoice.
Frequently asked questions
What should be on a contractor invoice?
Your business name, contact details and license number if you have one; the client's name and the job site address; an invoice number, date and due date; the work done, with labor and materials on separate lines; change orders; deposits already paid; the balance due; and how to pay.
How do I invoice as an independent contractor?
Send an invoice in your own or your business's name with an invoice number, the dates and description of the work, your rate and hours or the agreed fee, the total, and payment terms. Your client does not withhold payroll taxes, so keep records for your own tax return. In the US, clients usually ask you for a Form W-9.
What should a contractor invoice for an insurance claim include?
The property owner's name, the property address and the claim number, plus a line-by-line list of work with materials and labor priced separately, so the adjuster can compare it with the approved estimate. Attach photos and receipts for materials. Invoice only for work that was actually done.
How do I send an invoice as a subcontractor?
Bill the general contractor, not the property owner, unless your contract says otherwise. Reference the general contractor's project name and purchase order or job number, follow their billing schedule, and include any documents they require with each payment request.
What is an invoice for work completed?
It is a final invoice sent when a job or project stage is finished. It lists the completed work, subtracts deposits and progress payments already received, and asks for the remaining balance.
When should a contractor send an invoice?
As soon as the job or an agreed stage is finished, or on the dates set in your contract for progress billing. The later you invoice, the later you get paid.
