Using a Downloadable Construction Invoice Template

If you have recently started a construction business or have been in the industry for many years, then invoicing is probably one of your most used tools outside of your toolbox. Having professional invoices on hand can streamline the invoicing process for clients while also ensuring uniformity and branding consistency.

The construction invoicing process should cover all time and materials billing for projects, meaning each invoice should include:

• The scope of work completed, including the time put in and overall labour costs 
• The materials used and the costs associated with those materials 
• Any other details, including payment terms, the client should follow 

In many cases, paying an invoice is one of the last interactions a client will have with your business, so it's vital to create a comprehensive and professional document that covers all client account details. A detailed construction invoice also creates the perfect record keeping document for both parties should either of you need to reference the account in the future. 

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 that 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 an 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: 

• Framing
• Plumbing
• Wiring
• Roofing
• Painting
• Appliance installation
• HVAC

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: 

• Brand
• Part number
• Description
• Model number
• Price per unit
• Colour
• Material

Adding Payment Terms for Construction Invoicing

Once you have recorded all necessary information surrounding materials and labour costs, you will want to add any invoice payment terms to the document that clients must follow when paying off their account. Adding payment instructions like net 30, which lets the client know they have 30 days to pay the total construction invoicing amount, delineates when you expect to be paid by. 

You will want to be as clear and concise about your payment terms as you were about listing all materials and labour. Writing simple and straightforward steps to the payment process can help you avoid common pitfalls in construction contracts, and get paid for your work quicker.

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. For small, one-off jobs, you can send client invoices after the work is completed. For larger, long-term projects, consider using progress invoicing, where you will send monthly invoices covering different steps of work. 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 construction invoice sample, each 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. 

The provided free Excel construction invoice templates encourage 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 your template, join many other small businesses in using online invoicing software to help track expenses, payments, and accounts receivables.