A construction invoice template has two shapes, because a small contractor bills two ways: a draw against the schedule of values, where the invoice states the contract sum, the work complete to date, what was billed before, this period's work, the retainage held and the payment due; and a time and materials bill, where the invoice lists the hours at the contractor's rates and the materials at cost plus the agreed markup. Both are arithmetic on figures the contractor already holds, and both fail in the same way, as a total with no lines under it. This page works the draw invoice on the hub's own example, a $450,000 contract 35% complete, states the time and materials shape, and points at the free schedule-of-values draw on this site that works the period's payment, with no account.
The draw invoice: the lines the pay application carries
The contract sum; the schedule of values, each part of the contract with its value; the work complete to date as a share of each value; the total completed and stored to date; the amount billed on previous applications; this period's work; the retainage held at the contract's percentage; and the current payment due. The AIA G702 application and certificate for payment, linked below, is the standard form those lines are laid out on, and a small contractor's invoice against a draw carries the same lines whether or not the owner uses that form. On the hub's example, a $450,000 contract 35% complete is $157,500 of work to date.
The worked draw: $450,000, 35% complete, 10% retainage
Work to date is 35% of $450,000, $157,500. Stored materials on site this period add $12,000. Billed on previous applications was 20% of the contract, $90,000. This period's work is therefore $157,500 plus $12,000 less $90,000, $79,500. Retainage held on this period at 10% is $7,950, so the current payment due is $71,550, and the balance to finish is $292,500. Those seven numbers are the invoice, in that order, with the schedule of values attached showing which parts moved, and the schedule-of-values draw on this site works them from the contract sum, the percentage complete, the previous billing, the stored materials and the retainage percentage the contract states.
The time and materials invoice: hours, rates, materials and markup
A time and materials invoice lists the crew's hours by classification at the rates the contract states, the equipment by the hour or the day at its rate, the materials at their invoiced cost with the markup the contract allows, and the subcontracts the same way, with the receipts attached where the contract requires them. The arithmetic is the sum of hours times rates plus materials times one plus the markup, and the invoice states the period it covers and the not-to-exceed figure if there is one. The Internal Revenue Service's Form 1099-NEC, linked below, is the form the payments to subcontractors on such an invoice are reported on at year end, which is why the invoice keeps the subcontract lines separate.
From the invoice to the record
Every draw invoice is written from the last one: the previously-billed figure is the sum of the earlier applications, the retainage held accumulates until release, and the balance to finish falls toward zero. A record that keeps each draw against the project is what makes the next invoice a lookup rather than a reconstruction, and the construction project billing software guide on this site says what that record must keep. The free schedule-of-values draw on this site works one period's invoice from your own figures; the paid plan keeps every period's draw against the client and the project, branded, exported and filed, at one price for the contractor.
Questions people ask about construction invoice template
What lines does a construction invoice for a draw need?
Contract sum, the schedule of values with each part's value and share complete, total completed and stored to date, previously billed, this period's work, retainage held, payment due and balance to finish. On a $450,000 contract 35% complete with 20% billed before, $12,000 stored and 10% retainage, $71,550 is due.
How is a time and materials invoice different?
It lists hours by classification at the contract's rates, equipment at its rate, materials at cost plus the allowed markup and subcontracts the same way, for the period stated, with the not-to-exceed figure if the contract has one.
Is there a free construction invoice template that does the arithmetic?
The schedule-of-values draw on this site works the draw invoice's lines from the contract sum, percentage complete, previous billing, stored materials and retainage, with no account; the paid plan keeps every draw filed against the project.