Construction invoice template
Construction invoicing is different in three specific ways: work is billed in stages rather than at the end, a percentage is usually held back as retention, and variations to the original scope are constant.
An invoice that ignores those gets disputed. This template handles all three.
Progress billing
Construction work is invoiced as it completes. Each application should show:
- The total contract value.
- Work completed to date, as a value and a percentage.
- Amounts previously invoiced, with their invoice numbers.
- The amount now due for this period.
Showing the running position rather than an isolated figure is what allows a quantity surveyor or project manager to certify the application quickly.
Retention
Retention is a percentage — commonly 5% — withheld until practical completion, and often half of it held further until the end of the defects period.
Show it explicitly: gross amount due, less retention at the agreed percentage, net payable. Invoices that omit retention get corrected downward by the client's surveyor, which creates a mismatch between your records and theirs and makes the eventual retention release harder to claim.
Track what has been retained across all applications. Retention release is the payment contractors most often fail to collect, simply because nobody kept the running total.
Variations
Variations must be invoiced separately from contract work, each referencing the variation order or written instruction that authorised it.
Unauthorised variations are the single largest source of construction payment disputes. If a change was instructed verbally, confirm it in writing before doing the work — an invoice is not the place to raise a variation for the first time.
Materials and labour
Separate the two. Materials on site but not yet installed may be claimable under many contracts, but only if identified separately and, in some cases, only if evidence of ownership is provided.
Splitting them also makes the invoice easier to certify, since materials and labour are frequently assessed by different people.
What to reference
- Contract or project number.
- Site address — often different from the client's registered address.
- Application or valuation number, and the period covered.
- Variation order numbers for any variation lines.
- The certifying party, where the contract names one.
How to use this template
- Open the free invoice generator.
- Add your business and customer details.
- Enter your items, prices, tax and branding.
- Preview, then download the PDF or share it directly.
Frequently asked questions
How does progress billing work in construction?
You invoice for work completed to date rather than at the end. Each application shows the contract value, work completed to date as value and percentage, amounts previously invoiced, and the amount now due.
What is retention on a construction invoice?
A percentage — commonly 5% — withheld until practical completion, often with half held further until the defects period ends. Show it explicitly as a deduction so your records match the client's.
How should variations be invoiced?
On separate lines from contract work, each referencing the variation order or written instruction that authorised it. Raising a variation for the first time on an invoice is how disputes start.
Should materials and labour be separated?
Yes. Materials on site but uninstalled may be claimable under many contracts if identified separately, and the two are often certified by different people.
Why do construction invoices get disputed?
Most often unauthorised variations, missing retention, or a figure with no supporting running total. All three are documentation problems rather than pricing disagreements.