A Contractor’s Guide to Construction Invoicing

Follow our guide on how to list payment options on an invoice to make the payment process as easy as possible for your clients. Running a contractor business isn’t easy, especially when there are so many moving parts to manage outside of doing the actual construction work. Luckily, there are many tech tools available to help https://www.bookstime.com/ you run every aspect of a construction business more efficiently. For those starting out, using an invoice template is a great way to get started and learn how to master invoicing. Creating a construction invoice requires keen attention to detail to ensure every aspect of the work done is accurately accounted for and billed.

What Is a Construction Invoice?

• Implementing the following best practices can greatly enhance the efficiency of your construction billing process, ensuring accuracy and boosting customer satisfaction.
• Most construction businesses are honest, and a double billing could simply be a mistake.
• Such a break down may list the hours worked performing different aspects of the job.
• Document every aspect of the project, including executed work, materials consumed, and any project changes.
• You get a copy of these 1099-K forms and reconcile the amounts with your own, impeccable records.
• Understanding the components of a construction invoice is key to ensuring that all parties involved have a clear understanding of the project costs and the services rendered.

Use this construction project invoice template to capture the details of project-specific construction work. To create a bill for your services, enter the client’s information, materials quantity and rate, a description of work, a labor description, hours worked, and rate, as well as miscellaneous charges. This construction invoice template can serve as an agreed-upon contract for proposed construction project work, or as a confirmed invoice. Ensure that you get paid on time for construction work — and keep your books accurate and up-to-date — with this self-employed construction invoice template.

Invoice for construction work using progress billing.

On other projects, vendors and subcontractors may not be responsible to adhere to the prime contractor’s invoicing standards, and can simply send over their own invoice they send across all jobs. It will then be the GC’s responsibility to adhere to the prime contract on behalf of all hired subcontractors by submitting additional documentation alongside their payment application. Larger construction companies likely realize why they should have construction invoice templates, but smaller outfits might not. There are some significant benefits to developing or utilizing a solid construction invoice template. In cases where the customer information might be different than the project information, be sure to include it on the construction invoice template. If there is a specific person that needs to receive it, call attention to their name on the invoice.

• The schedule of values is usually created during the creation of the Work Breakdown Structure (WBS) of the project.
• If you want to gain a deeper understanding of How to Create a Personalized Invoice, follow our guide.
• Procore is committed to advancing the construction industry by improving the lives of people working in construction, driving technology innovation, and building a global community of groundbreakers.
• Typically, the party making payment requires the party receiving payment to sign a lien waiver.
• This gives both contractors or company owners and the clients themselves a record of all work performed, making it easier to file taxes and ensuring that all services provided are paid for right away.

Regularly Evaluate Billing Practices

The template also has space to add your logo, customer signature, and authorized signature, and it serves to standardize your construction bookkeeping records and ensure on-time payment. In short, a construction invoice breaks down materials and labor costs in a clear, easy-to-read document of payment due from the client to the contractor or construction company. You can also include line-by-line materials and labor descriptions, as well as enter subtotals, tax rate, total tax, other charges, grand total, less payment (amount paid to the last bill), and total due. Most construction invoices also include a section for the client’s signature and for a signed record of authorized payment.

Achieving full visibility into your invoicing process is effortless with Billing Link®️. The software consolidates all your invoices in one centralized location, providing a comprehensive overview at a glance. Every construction invoice should start with the basics—your company’s name, address, contact information, and, if applicable, your logo.

These invoices also keep record of materials delivered and smaller jobs completed. Invoices are generally straightforward bills from vendors or contractors on smaller jobs or residential projects. This free invoice template was designed for use on construction projects where you are working under a lump sum contract. When running a construction company, in addition to being skilled at building and repair work, you also need to know how to run a business. These administrative tasks might seem burdensome, but managing your accounts and tracking client payments is integral to your success. Our template is easy to use when creating a professional construction invoice.

Be sure the work was not only actually completed but completed correctly. Or, if the job is botched, you may want to consider withholding payment until the work is brought up to snuff. You don’t want How to Write Construction Invoice to pay for work that wasn’t expressly authorized or was performed by someone else. Another benefit of using an invoice management system is that you can get customer payments in real time, via email.