Construction Invoice Template
Progress billing, retainage and change orders
Bill construction projects the way owners and general contractors expect: by stage of completion, with retainage withheld, approved change orders listed, and materials stored on site accounted for.
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A construction invoice that matches how projects are paid
Construction work is rarely paid in one lump sum. Most contracts pay in stages as work is completed, hold back a percentage as retainage until the job is finished, and add or remove work through change orders. Your invoice needs to show all of that clearly so it gets approved first time.
- Bill each stage as a percentage of the contract value
- Show retainage withheld and released
- List approved change orders as separate lines
What makes a construction invoice different
The details that general contractors, owners and lenders check before they approve a payment.
Progress billing
Invoice the percentage of each scheduled task completed this period, based on your schedule of values, rather than hours or items.
Retainage
Show the amount withheld (commonly 5–10%) on each invoice, the running total held, and a separate release invoice at completion.
Change orders
List each approved change order with its number and amount so the updated contract sum is easy to verify.
Pay applications
On larger US projects, owners may ask for the AIA G702/G703 format. Your invoice should carry the same figures: work completed to date, previously billed, and amount due this period.
Stored materials
Materials delivered and stored on site but not yet installed can often be billed when the contract allows it — list them separately.
Billing period
State the period the invoice covers (for example, work completed 1–31 March) so it lines up with the project schedule.
Working in the UK? Read how CIS deductions and the VAT reverse charge affect your invoices: How to Invoice Under CIS
Construction invoice example
A monthly progress invoice on a $120,000 contract, with an approved change order and 5% retainage.
| Description | Qty | Rate | Amount |
|---|---|---|---|
| Progress billing: framing and roof — 35% of contract | 1 | 42,000.00 | 42,000.00 |
| Change order #3: additional window openings (approved) | 1 | 8,500.00 | 8,500.00 |
| Materials stored on site: structural steel | 1 | 3,200.00 | 3,200.00 |
| Less 5% retainage withheld | 1 | -2,685.00 | -2,685.00 |
| Subtotal | 51,015.00 | ||
| Total due | 51,015.00 | ||
Retainage is deducted from the amount due now and released on a separate invoice once the work is accepted.
Example figures only — replace them with your own rates.
Create this invoiceWhat to include on a construction invoice
- Project name and site address, plus the contract or job number
- Original contract sum and the total of approved change orders
- Work completed this period and to date, by line of your schedule of values
- Amount previously billed, retainage withheld, and the net amount due
- Your licence number and insurance details where required
- Payment terms, due date, and lien waiver requirements
Common ways to bill construction work
Progress (percentage complete)
Bill the share of each task completed since the last invoice. Standard on fixed-price contracts.
Milestone billing
Bill a fixed amount when an agreed stage is reached — foundation, frame, roof, handover.
Time and materials / cost-plus
Bill labour hours and material costs as incurred, plus an agreed markup or fee.
Construction invoicing FAQs
What is progress billing in construction?
Progress billing means invoicing for the portion of the project completed during each billing period, usually as a percentage of each line in the schedule of values, rather than billing the full contract at the end.
What is retainage on a construction invoice?
Retainage (or retention) is a percentage of each payment — often 5–10% — that the owner or general contractor holds back until the project is complete and accepted. Show it on every invoice and bill it separately when it is released.
How do I show change orders on an invoice?
List each approved change order as its own line with the change order number, description and amount, and show the revised contract sum so the client can reconcile it.
Do I need to use the AIA G702 and G703 forms?
Only if your contract requires them. They are common on larger US commercial projects. Smaller jobs usually accept a clear itemised invoice with the same figures: work completed, previous payments, retainage and amount due.
Can I invoice for materials before they are installed?
Often yes, if the contract allows billing for materials stored on site or off site. List them separately and be ready to show delivery records.
Send your next progress invoice in minutes
Build a construction invoice with progress lines, change orders and retainage, then download a PDF or send it by email.