What is progress billing?

Invoicing for portions of a job as agreed stages complete, rather than everything at the end. It keeps your cash flow alive on long projects and limits the client's exposure to work not yet done.

How do I handle change orders?

As their own line, or their own invoice, with a reference to the signed change order. Never fold extra work into an existing line — that is the single most common cause of a disputed construction invoice.

A percentage, often 5-10%, the client holds back until the job is finished and signed off. It is normal in construction. Show it on the invoice so the balance due is never a surprise.

Should I ask for a deposit?

For any job with a significant materials cost, yes. You should not be financing someone else's build. A deposit covering materials is standard and rarely refused.

What if the client disputes part of an invoice?

Ask them to pay the undisputed portion immediately and hold only the disputed line. Most clients accept this, it keeps your cash flowing, and it narrows the argument to one item. Itemised invoices make this possible, which is the practical reason not to bill a job as a single lump figure.

Invoice Builder › Contractor

Contractor invoice template

Built for construction billing rather than a single flat fee: progress payments against milestones, materials, subcontracted labor, and a place to show a deposit already held.

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INVOICE

Invoice # Date Due PO / Ref

From

Bill to

Description	Qty / Hrs	Rate	Amount

Subtotal$0.00

Discount % $0.00

Tax % $0.00

Shipping

Total$0.00

Amount paid

Balance due$0.00

Notes

Terms & payment details

How to bill for contractor work

Bill against milestones, not dates

'Phase 2 of 4, framing complete' is verifiable. 'April progress' is an opinion, and opinions get held up in accounts.

Show the contract total and what remains

On a staged job, put the contract value and the balance remaining in the notes. It stops the client experiencing each invoice as a fresh shock.

Track retainage explicitly

If a percentage is being held until completion, show it. An invoice that silently arrives short of the agreed figure creates a dispute where none existed.

What belongs on a contractor's invoice

The project name or site address, and the contract reference
Which stage this invoice covers, and how many stages there are in total
The contract value and the balance remaining after this invoice
Materials, labor and subcontractors as separate lines
Any change orders, referenced by their signed number — never folded into existing lines
Retainage held, shown explicitly rather than silently deducted
Lien waiver status where your jurisdiction requires it

Common questions

What is progress billing?: Invoicing for portions of a job as agreed stages complete, rather than everything at the end. It keeps your cash flow alive on long projects and limits the client's exposure to work not yet done.
How do I handle change orders?: As their own line, or their own invoice, with a reference to the signed change order. Never fold extra work into an existing line — that is the single most common cause of a disputed construction invoice.
What is retainage?: A percentage, often 5-10%, the client holds back until the job is finished and signed off. It is normal in construction. Show it on the invoice so the balance due is never a surprise.
Should I ask for a deposit?: For any job with a significant materials cost, yes. You should not be financing someone else's build. A deposit covering materials is standard and rarely refused.
What if the client disputes part of an invoice?: Ask them to pay the undisputed portion immediately and hold only the disputed line. Most clients accept this, it keeps your cash flowing, and it narrows the argument to one item. Itemised invoices make this possible, which is the practical reason not to bill a job as a single lump figure.