Question 1

Is the contractor invoice template completely free?

Accepted Answer

Yes, 100% free to download and use. No email required, no credit card needed, no hidden costs. Download in Excel, PDF, or Word format as many times as you need. Use it for unlimited invoices for your contracting business.

Question 2

What should I include on a contractor invoice?

Accepted Answer

Every contractor invoice should include: your business name and contractor license number (if applicable), contact information, client name and project location, unique invoice number and date, detailed description of work performed, labor hours with rates, materials and quantities with costs, equipment rentals or fees, subcontractor charges if applicable, subtotal before tax, applicable sales tax, total amount due, payment terms and due date, and accepted payment methods.

Question 3

How to generate an invoice as a contractor?

Accepted Answer

To generate a contractor invoice, first download our free template in your preferred format (Excel, PDF, or Word). Add your business information and contractor license number. Enter the client details and project information. List all labor charges with hours and rates. Add material costs with descriptions and amounts. Include any equipment rentals or subcontractor fees. Calculate tax if applicable. Set clear payment terms and due date. Save or print the invoice. Send it to your client via email or hand delivery. Keep a copy for your records and track when payment is received.

Question 4

Should I use a contractor invoice template or subcontractor invoice template?

Accepted Answer

The same template works for both general contractors and subcontractors. As a general contractor billing clients directly, include all project details and your contractor license information. As a subcontractor billing the general contractor, reference their project or purchase order number and ensure you include your business details and any required insurance information. The line items may differ - subcontractors typically bill for specialized services while general contractors may include broader project management and multiple trade work.

Question 5

Do I need to charge sales tax as a contractor?

Accepted Answer

Tax requirements vary by location and project type. In most US states, contractors must charge sales tax on materials but not labor, though some states tax both. New construction is often treated differently than remodeling or repairs. Commercial projects may have different rules than residential work. Check with your state tax authority or an accountant to ensure proper tax collection. Incorrect tax handling can result in penalties and you being liable for uncollected taxes.

Question 6

Should I charge separately for materials or include them in my labor rate?

Accepted Answer

Most contractors bill materials separately from labor. This transparency builds client trust and is easier to justify. Typically, contractors charge materials at cost plus a 10-20% markup for procurement, transportation, and handling time. Showing materials separately also helps with job costing and tax reporting. Some contractors prefer to include materials in an hourly or flat project rate, which is simpler but offers less transparency.

Question 7

What payment terms should I use for contracting work?

Accepted Answer

For small jobs under $1,000, many contractors request payment upon completion or Net 7 (due within 7 days). For larger projects, use progress billing: 25-50% deposit upfront, progress payments at milestones, and final payment upon completion. Commercial clients typically operate on Net 30 terms. Always establish and agree on payment terms before starting work and include them clearly on every invoice.

Question 8

Can I customize the contractor invoice template?

Accepted Answer

Absolutely. The templates are fully editable. Add your company logo and branding, include your contractor license number, modify line item categories to match your services, add fields for project-specific details, customize payment terms and conditions, adjust tax calculations for your location, and change colors and formatting. The Excel and Word formats are especially easy to customize.

Question 9

How do I handle deposits and progress payments on invoices?

Accepted Answer

For deposit invoices, clearly mark them as "Deposit - [Project Name]" and note the total contract amount. When you invoice for subsequent progress payments or final payment, show the calculation: Total amount due for this billing period, Less deposit previously paid: $X, Amount currently due: $Y. This transparency helps clients understand the payment schedule and prevents confusion about previous payments.

Question 10

Should I include my insurance information on invoices?

Accepted Answer

For commercial work, yes - include your general liability insurance certificate number and workers compensation policy information. Many commercial clients require this information to process payment. For residential work, it's optional but including it demonstrates professionalism and can differentiate you from uninsured competitors.

Question 11

What file format is best for contractor invoices?

Accepted Answer

Excel is best for building invoices because formulas automatically calculate totals and taxes. PDF is ideal for sending to clients since it looks professional and can't be altered. Word is good if you prefer text editing or need flexible formatting. Many contractors create invoices in Excel for the calculations, then save as PDF before sending to clients.

Question 12

How often should I invoice on long-term contracting projects?

Accepted Answer

For projects over $5,000, invoice at predetermined milestones or monthly, whichever comes first. Common milestone structures: deposit (25-50%), rough-in complete (25-30%), finish work complete (25-30%), and final completion (20-25%). Regular invoicing maintains healthy cash flow and reduces your financial risk. Never let too much money build up between invoices.

Question 13

How do I bill for permits and inspections?

Accepted Answer

Bill permit and inspection fees as separate line items at actual cost without markup. Include the permit number and type (building permit, electrical, plumbing, etc.). Keep permit receipts in case clients request proof. This transparency builds trust. Some contractors add a small admin fee ($50-100) for handling permit applications and scheduling inspections.

Question 14

What should I do if a client disputes my contractor invoice?

Accepted Answer

Respond quickly and professionally. Ask specifically what items they dispute and why. Provide documentation of work completed, approved proposals or contracts, material receipts, photos of completed work, and time logs if you have them. Review your original agreement. Be willing to clarify but stand firm on agreed terms. For future prevention, document everything, get scope changes in writing, and send progress updates throughout the project.

Question 15

Should I send invoices by email or print and mail them?

Accepted Answer

Email is faster and creates an automatic paper trail. Most clients prefer email. Send as a PDF attachment (don't send editable files to clients). Use a clear subject line: 'Invoice #123 - [Project Name] - Due [Date]'. For older clients who prefer paper, print and deliver in person or mail, but also email a copy for their records. Email invoices typically get paid faster.

Question 16

How do I invoice for subcontractor work when I hire subs?

Accepted Answer

When you hire subcontractors, you generally invoice the client for their work plus your markup (typically 10-20% for coordination and supervision). On your invoice, you can either show "Plumbing work - $3,000" with markup included in the price, or break it out as "Plumber subcontractor: $2,700, Coordination: $300". On commercial jobs, clients may require subcontractor lien waivers before paying you.

Question 17

Can I charge late fees on overdue contractor invoices?

Accepted Answer

Yes, but you must include late fee terms on the invoice before work begins - you can't add them later. Common rates are 1.5% per month (18% annually) on overdue balances. Check your state laws as some limit late fee amounts. Just having late fees stated often encourages timely payment even if you never enforce them.

Question 18

Do I need a contract in addition to the invoice?

Accepted Answer

Yes, for projects over $500, use both a contract and invoices. Contracts outline the scope, timeline, payment schedule, warranties, and responsibilities. Invoices request payment for completed work. The invoice should reference the contract or proposal number. Contracts protect both you and the client if disputes arise.

Question 19

How do I track multiple jobs and invoices?

Accepted Answer

Use a consistent numbering system that includes project identification, like "SMITH-001, SMITH-002" for multiple invoices on the Smith project. Keep digital folders organized by project with all invoices, contracts, receipts, and communications. Invoice Mama automatically tracks all your invoices, shows payment status, and reminds you to follow up on late payments.

Question 20

Why should I use Invoice Mama instead of free templates?

Accepted Answer

Free templates work for occasional invoicing, but Invoice Mama saves massive time if you invoice regularly. Enter your business details once and they save automatically. Clients are saved for repeat invoicing. Invoice numbers auto-increment. Send invoices via email directly from the app. Accept online credit card and ACH payments (get paid 2-3x faster). Automatic payment reminders do follow-ups for you. Track all invoices in one dashboard and see what is paid, pending, or overdue. Generate tax reports instantly. Start free with 10 invoices, then just $69 once for unlimited invoices forever - no monthly fees ever.

Free Contractor Invoice Template

Download Your Free Contractor Invoice Template

Excel Template

PDF Template

Word Template

Everything Contractors Need to Invoice Clients

Labor & Materials Breakdown

Project Details & References

Multiple Payment Options

Professional Appearance

Tax Calculations Built-In

Customizable Template

How to Use Your Contractor Invoice Template

Download Your Preferred Format

Add Your Business Information

Enter Client & Project Details

Itemize Your Work

Send & Get Paid

What to Include on Your Contractor Invoice

Labor Costs

Materials

Equipment & Tools

Subcontractor Services

Additional Charges

Best Practices for Contractor Invoicing

Invoice Immediately After Work Completion

Be Specific About Work Performed

Separate Labor from Materials

Include Your License Number

Request Deposits for Larger Jobs

Set Clear Payment Terms

Document Change Orders Separately

Keep Detailed Records

Follow Up on Late Payments

Make it Easy to Pay

Why Contractors Choose Invoice Mama

Save Time Every Week

Get Paid Faster

Look More Professional

Track Everything Easily

Mobile & Desktop Access

No Monthly Fees

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