Construction Invoice Template
Construction invoices for larger projects are often billed against a percentage of completion or specific milestones, referencing the original contract or purchase order — a flat lump-sum invoice is rare once a project exceeds a certain size.
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Construction invoices for larger projects are often billed against a percentage of completion or specific milestones, referencing the original contract or purchase order — a flat lump-sum invoice is rare once a project exceeds a certain size.
Typical construction line items
- Progress billing — Milestone 3: framing complete (30% of contract)
- Change order #2 — additional electrical work
- Retainage held (5%, per contract)
Construction-specific invoicing tips
- Reference the specific milestone and percentage of contract completion it represents, not just a dollar figure.
- Track change orders as separate, clearly labeled line items distinct from the original contracted scope.
How construction invoicing works
Construction projects are billed in stages over months, with retainage, change orders and lien waivers along the way. A construction invoice template needs to show progress against the contract value — not just a list of items.
- Contract reference: project name, site address, contract number and original contract sum.
- Schedule of values: the contract broken into line items (site work, foundations, framing, MEP, finishes) each with its value.
- Work completed this period and to date, by line item, often as a percentage.
- Stored materials on site but not yet installed, if billable under the contract.
- Approved change orders added to the contract sum.
- Retainage withheld (commonly 5–10%) and the net amount due.
- Previous payments and the current payment due.
Example progress (pay application) summary
| Line | Amount |
|---|---|
| Original contract sum | $420,000 |
| Net change orders | +$18,500 |
| Contract sum to date | $438,500 |
| Total completed & stored to date (55%) | $241,175 |
| Retainage (10%) | −$24,118 |
| Total earned less retainage | $217,057 |
| Less previous payments | −$158,400 |
| Current payment due | $58,657 |
This mirrors the industry-standard AIA G702 (application and certificate for payment) with a G703 continuation sheet listing each line of the schedule of values. Many owners and lenders require that format on commercial jobs.
Lien waivers, retainage and getting paid
- Conditional lien waiver: submitted with your pay application; it only takes effect once you’re actually paid.
- Unconditional lien waiver: given after payment clears — never before.
- Retainage release: invoice the retained amount at substantial completion or final acceptance, as your contract specifies. Some states limit how much retainage can be held on public or private projects.
- Prompt payment laws: many states set deadlines for owners and general contractors to pay, with interest on late payments.
- Preliminary notices: subcontractors and suppliers often must send a preliminary notice early in the project to preserve lien rights.
Deadlines and forms vary by state — confirm the rules for each project location.
Construction billing tips
- Agree the billing cut-off date and submission deadline with the GC or owner (e.g. pay apps due on the 25th).
- Back percentages with evidence — photos, inspection sign-offs, delivery tickets.
- Bill change orders only once they’re signed, and track pending ones separately.
- Don’t front-load your schedule of values unrealistically; reviewers notice.
Frequently asked questions
What is progress billing in construction?
Invoicing a project in stages based on the percentage of work completed each period, against a schedule of values that breaks the contract sum into line items.
What is an AIA G702 and G703?
Standard forms used for construction pay applications: the G702 summarizes the contract sum, work completed, retainage and payment due; the G703 continuation sheet details each line of the schedule of values.
How much retainage is typical?
Usually 5–10% of each progress payment, released at substantial or final completion. Some states cap retainage, especially on public projects.
When should I sign an unconditional lien waiver?
Only after the payment it covers has actually cleared. Use a conditional waiver when submitting an invoice.