Professional Independent Contractor Invoice Template

A professional contractor invoice needs to clearly document the work performed, materials used, and payment expectations. Proper documentation protects both you and your clients.

• Your legal business name and contractor license number
• Federal Tax ID (EIN) or Social Security Number
• Client name, project address, and billing address
• Unique invoice number and date
• Project name or job reference number
• Detailed description of work completed
• Labor hours and hourly rate (or fixed project fee)
• Materials and supplies with itemized costs
• Equipment rental charges (if applicable)
• Subcontractor costs (if passing through)
• Permits and inspection fees
• Change order summary and additional charges
• Payment terms and accepted methods
• Lien rights notice (required in many states)

Follow these proven practices to maintain healthy cash flow and avoid payment disputes on your contracting projects.

• 1Invoice regularly—weekly or at each milestone, not just at project end
• 2Always have signed contracts with detailed scope before starting
• 3Document all change orders in writing with client approval
• 4Take dated photos of completed work to support invoices
• 5Separate labor, materials, and markup clearly on invoices
• 6Include lien notices as required by your state's laws
• 7Request deposits on materials for larger projects
• 8Keep detailed daily logs of work performed
• 9Follow up on overdue invoices within 7 days
• 10File preliminary notices to protect your lien rights
• 11Use progress billing for projects over $5,000

Contractor rates vary significantly by trade, location, and project type. Understanding market rates helps you bid competitively while maintaining profitability.

• General contractors typically charge $50-$150/hour or 10-20% markup
• Specialized trades (electrical, plumbing) command $75-$200/hour
• Carpentry and finish work: $50-$100/hour
• Painting contractors: $35-$75/hour
• Landscaping: $45-$100/hour
• HVAC contractors: $75-$150/hour
• Roofing: Often bid by the square ($150-$400 per square)
• Mark up materials 15-30% to cover handling and procurement
• Add 10-15% contingency for unforeseen issues on fixed bids
• Overhead and profit margin: typically 20-35% on top of costs

Setting clear payment terms upfront protects your cash flow and ensures you have funds to cover labor and materials throughout the project.

• Small jobs (<$5,000): 50% deposit, 50% on completion
• Medium projects ($5,000-$25,000): 30/30/40 payment schedule
• Large projects: Progress payments tied to completion milestones
• Always collect deposit before ordering materials
• Net 15 is standard for contractor invoices
• Include late payment fees (typically 1.5% per month)
• Retain 10% until final walkthrough on large projects
• Don't start additional phases until prior invoices are paid
• Consider mechanic's lien for non-payment protection
• Get written approval before any change order work

Many contractors lose money due to poor invoicing habits. Avoid these common mistakes to protect your business and maintain healthy cash flow.

• ✕Starting work without a signed contract
• ✕Waiting until project completion to invoice (cash flow killer)
• ✕Not documenting change orders before doing the work
• ✕Failing to include required lien notices
• ✕Vague descriptions that don't specify work completed
• ✕Not tracking materials separately from labor
• ✕Underestimating job costs and eating the loss
• ✕Not following up promptly on overdue payments
• ✕Missing preliminary notice deadlines (losing lien rights)
• ✕Failing to invoice for additional work requested verbally
• ✕Not keeping copies of all invoices and communications