Whether your construction company builds homes for families or renovates office space, you need a construction invoice template to create professional bids for jobs as well as detailed invoices. Construction jobs can take months and many hours of labour to complete; a detailed invoice helps your client understand exactly what is included in a final payment.
In construction, you bill for two main items: labour and supplies. You need to break these two items down into as much detail as possible.
Download our free construction invoice template to get organized and stay on top of your cash flow now:
How to Account for Labour Costs
Manual labour is a large part of the final bill in any construction job. Framers, plumbers, and other employees each have a labour cost which varies depending on the job performed. For example, you’ll likely pay an electrician more for their labour than you would a painter.
When writing a construction bid or an invoice, your fees should cover the cost that you pay for labour and leave additional profit for the company. You can consult PayScale to see the salary range of various professionals to help you determine what to pay your workers and how much you should charge the client. The website also lets you factor in experience and licensing to arrive at a fair rate.
You can break down the labour charge on your invoice in a variety of ways. If you’re renovating a single room or building a deck, you might just list labour as a single charge. When you’re handling a larger job, you can break down labour by room or task, such as:
Managing Supplies in an Invoice
A lot of material goes into the average construction job, from roofing tiles and timber, to kitchen sinks, and bathtubs. A construction invoice template makes it easy to provide your client with a detailed list of supplies and the accompanying charges.
On a bid invoice template, you might list items such as lumber, wire, and paint as a single line item, then provide more detail on the final invoice. For example, imagine your company is renovating a small office building and you use 25 gallons of paint. On the invoice, list the 25 gallons of paint, the price per gallon, and the total amount of paint used. Offering as much detail as possible on the invoice helps answer questions before they arise. Some additional supply-related items to include on the invoice are:
-Price per unit
How Often Should You Invoice the Customer?
Some construction jobs take longer than others, and your initial bid should include when the client can expect invoices. If you’re billing monthly, you might bill for work done during that period or a portion of the total bill. For example, a construction company builds a home over a 12-month period, and the initial bid reflects a total cost of $120,000. The contract states that your company bills the cost in 12 equal invoices, so you need to provide a monthly invoice for a total of $10,000.
No matter what terms for billing the contract creates, offer as many details as possible on your company’s construction invoice to minimize questions and receive faster payments.
A construction invoice template encourages you to create professional-looking bids and invoices that can help you earn additional business. The template duplicates standard information, such as your company contact information, and offers more flexibility for adding details. Once you’ve created template, join many other small businesses in using online invoicing software to help track expenses, payments, and accounts receivable.