Professional Subcontractor Invoice Template
Streamline your subcontractor invoicing with our customizable template, designed to save you time and ensure accurate, professional billing.
As a subcontractor, you play a vital role in completing larger projects, providing specialized skills that prime contractors depend on. Whether you're in construction, electrical, plumbing, HVAC, or any trade, professional invoicing ensures you get paid promptly for your work and maintains good relationships with the contractors who hire you. This guide covers everything subcontractors need to know about professional invoicing.
Everything You Need for Subcontractor Invoicing
Our subcontractor invoice template includes all the features you need to create professional invoices and get paid faster.
Progress Payment Applications
Create monthly pay applications showing percentage complete, work completed this period, and cumulative totals, matching GC billing requirements.
Retainage Tracking and Release
Track retainage amounts (typically 5-10%) withheld by GCs, with automatic calculation of release amounts at project milestones.
Lien Waiver Generation
Generate conditional and unconditional lien waivers matching invoice amounts, required for payment processing in most states.
Change Order Documentation
Separately itemize approved change orders with reference numbers, ensuring extra work is properly documented and billed.
Schedule of Values Integration
Bill against your original schedule of values, maintaining alignment with contract line items and preventing billing disputes.
General Contractor PO Reference
Include GC purchase order numbers and subcontract numbers on every invoice, meeting contractor billing standards and speeding approval.
Complete Guide to Subcontractor Invoicing
As a subcontractor, you play a vital role in completing larger projects, providing specialized skills that prime contractors depend on. Whether you're in construction, electrical, plumbing, HVAC, or any trade, professional invoicing ensures you get paid promptly for your work and maintains good relationships with the contractors who hire you. This guide covers everything subcontractors need to know about professional invoicing.
- Business Information: Your company name, address, phone, email, license number, and insurance info.
- General Contractor Details: GC company name, project manager, billing address, and contact information.
- Project Information: Project name, job site address, and contract/PO number.
- Invoice Number & Date: Sequential invoice number and issue date.
- Payment Application Number: If progress billing: which payment application this is.
- Work Performed: Detailed description of completed work tied to contract scope.
- Labor: Hours worked, crew size, labor rates, and total labor cost.
- Materials: Materials used with quantities, unit prices, and totals.
- Percent Complete: Percentage of contracted work completed to date.
- Previous Payments: Amount previously billed and paid.
- Retainage: Amount being held (typically 5-10%).
- Current Amount Due: Net amount due this billing period.
- Lien Waiver Status: Conditional/unconditional waiver information.
- Match Contract Terms: Invoice exactly per your subcontract agreement. Match line items and rates.
- Invoice on Schedule: Bill per the GC's payment cycle. Monthly or per milestone as specified.
- Document Everything: Photos, daily logs, delivery tickets—proof of work completed.
- Submit Required Paperwork: Lien waivers, certified payroll, insurance certs with each invoice.
- Track Change Orders: Only bill for approved change orders with signed documentation.
- Reference Contract Numbers: Include subcontract number and PO on every invoice.
- Meet Submission Deadlines: Late invoices often get pushed to the next pay cycle.
- Maintain Communication: Keep the GC project manager informed of billing expectations.
- Follow Up Promptly: Don't let invoices sit unpaid. Follow the GC's payment timeline.
- Protect Your Lien Rights: File preliminary notices and meet all lien deadlines.
Common billing approaches for subcontractors:
Time & Materials (T&M):
- Bill actual hours + materials
- Include markup on materials (10-20%)
- Track time meticulously
- Provide detailed backup
Fixed Price/Lump Sum:
- Total price for scope
- Bill based on % complete
- Schedule of values required
- Change orders for additional work
Unit Price:
- Price per unit installed
- Count verified with GC
- Common for repetitive work
- Easy to track and bill
Cost Plus:
- Actual costs + markup %
- Typical markup: 15-25%
- Full documentation required
- Open-book accounting
Progress Billing:
- Monthly pay applications
- Based on % complete
- Subject to retainage
- AIA G702/G703 forms common
Standard subcontractor payment practices:
Payment Timing:
- "Pay-when-paid": GC pays you after owner pays them
- Net 30 from invoice approval
- Per milestone completion
- Monthly progress payments
Retainage:
- Typically 5-10% withheld
- Released at project completion
- Or at substantial completion
- Per subcontract terms
Lien Waivers:
- Conditional: before payment
- Unconditional: after payment
- Required for payment processing
- Match waiver to invoice amount
Required Documents:
- Certified payroll (prevailing wage jobs)
- Insurance certificates
- Safety documentation
- Material receipts/invoices
Protecting Yourself:
- Know your lien rights
- File preliminary notices
- Document all approvals
- Maintain communication
- Missing Lien Deadlines: Know your state's lien law deadlines and never miss them.
- Billing Without Approval: Only invoice for work that's been inspected and approved.
- No Contract Reference: Always reference your subcontract and PO numbers.
- Mismatched Line Items: Invoice line items must match your contract schedule of values.
- Unsigned Change Orders: Never perform or bill extra work without signed authorization.
- Missing Documentation: Keep photos, logs, and receipts for everything you bill.
- Late Submissions: Submit invoices on time per the GC's schedule.
- Wrong Lien Waivers: Use correct waiver type (conditional vs. unconditional).
- Ignoring Retainage: Track retainage and request release when entitled.
- Poor Communication: Keep the GC informed about any billing or payment issues.
Ready to put these best practices into action?
Use our free subcontractor invoice template to get started in minutes.
Subcontractor Invoice FAQ
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