InvoiceYard logoInvoiceYard
🇺🇸United States·Sales Tax·USD

United States Construction Invoice Template

US construction invoices often involve retainage (5–10% withheld until project completion), progress billing against a schedule of values, and in some states, contractor licensing numbers.

Quick-fill by industry

Accent Color

Your Business

Bill To (Client)

Invoice Details

%

Line Items

Item 1
$11,400.00
Item 2
$8,500.00
Item 3
$2,250.00
Item 4
$12,000.00
Item 5
$800.00

🇺🇸 United States Requirements

Currency$ USD
TaxSales Tax (varies)
Date formatMM/DD/YYYY
PaymentACH transfer or check are standard payment methods.

Sales tax rates vary by state and locality. There is no federal sales tax. Consult your state's revenue department for the applicable rate. Sole proprietors should include their SSN or EIN on invoices when required.

Payment Terms

Net 30 (progress billing)

About United States Construction Invoicing

US construction invoices often involve retainage (5–10% withheld until project completion), progress billing against a schedule of values, and in some states, contractor licensing numbers. Mechanic's lien waivers may be required alongside payment. Construction invoices are among the most complex in any industry, often involving progress billing, lien waivers, certified payroll, and retainage clauses. Whether you're a general contractor, subcontractor, or specialty trade, your invoice must accurately reflect completed work, materials supplied, and contractual milestones. Many jurisdictions have specific statutory requirements for construction invoices and payment timelines.

Frequently Asked Questions

What is retainage and how is it invoiced?
Retainage (or retention) is a percentage of each payment withheld by the owner until project completion. Typically 5–10%, it's shown as a deduction on each progress invoice. Once the project reaches substantial completion, a final invoice releases the retained amount.
Do construction invoices need to include a lien waiver?
In the US, conditional or unconditional lien waivers are often required alongside invoice submission to protect the property owner from mechanic's liens. Requirements vary by state. In the UK, the equivalent protection comes via the Construction Act's payment notice provisions.
What is an Application for Payment (AFP)?
An Application for Payment is a formal invoice document used on larger construction projects (especially those using AIA contract forms). It includes a schedule of values, work completed to date, stored materials, and retainage calculations.
How is VAT or GST handled on construction invoices in the UK?
In the UK, the Domestic Reverse Charge applies to most construction services between VAT-registered businesses. Instead of charging VAT, the customer accounts for it. Always check whether your client is end-user or a contractor to determine if reverse charge applies.
Do I need to charge sales tax on my invoices in the US?
There is no federal sales tax in the United States. Whether you need to charge sales tax depends on your state, the type of goods or services you sell, and whether you have nexus in the buyer's state. Some states (e.g., Oregon, Montana, Delaware, New Hampshire) have no sales tax at all, while others tax services differently from tangible goods. Check with your state's department of revenue for the rules that apply to your business.
What tax ID should I include on US invoices?
US invoices do not legally require a tax identification number in most cases. However, business clients may request your EIN (Employer Identification Number) or ask you to complete a W-9 form for 1099-NEC reporting if they pay you $600 or more in a calendar year. Sole proprietors without an EIN may use their SSN, though applying for an EIN is recommended for privacy.
Are there federal invoicing requirements in the United States?
The US does not have a federally mandated invoice format. However, best practice is to include your business name and address, the client's details, a unique invoice number, an itemized list of goods or services, the total amount due, payment terms, and the date of issue. Some states and industries may have additional requirements.

Related Guides

How to Write an Invoice
Read guide →
Invoice Payment Terms
Read guide →
Us Sales Tax on Invoices
Read guide →

Related Templates

💻
Freelance Invoice
🇺🇸 United States
📊
Consulting Invoice
🇺🇸 United States
📸
Photography Invoice
🇺🇸 United States
🧹
Cleaning Services Invoice
🇺🇸 United States

Same template, other countries:

🇬🇧 United Kingdom🇨🇦 Canada🇦🇺 Australia