Free Construction Invoice Template
Construction invoices are among the most complex in any industry, often involving progress billing, lien waivers, certified payroll, and retainage clauses.
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
Payment Terms
Net 30 (progress billing)
Country-Specific Versions
About Construction Invoicing
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.