Subcontractor Invoice Template

Subcontractor invoices need project-specific details that general contractors use to match your invoice to the contract and job site. Include the project name, location, contract number (if applicable), and specific phase or scope of work completed. General contractors also expect itemized line items showing labor hours and rates separately from materials, equipment rentals, or other direct costs. This level of detail helps them reconcile invoices with purchase orders and track project expenses more efficiently.

The timing depends on your contract terms and cash flow needs. For ongoing projects, weekly or bi-weekly invoicing maintains steady cash flow and keeps documentation fresh while work is still clear. Milestone-based invoicing works better for discrete project phases—invoice when you complete a defined phase or reach a contracted checkpoint. Upon-completion invoicing is common for short-term work but creates cash flow risk if payment delays occur. Discuss invoicing frequency with the general contractor before work begins, as their accounting systems and payment cycles may dictate the schedule.

Separate line items for labor and materials provide transparency and help general contractors manage their project budgets accurately. For labor, list the work performed with hours worked and your hourly rate. For materials, itemize what you supplied with quantities and unit costs. This separation is especially important if your contract stipulates different markup rates for labor versus materials, which is common in construction. It also simplifies accounting for both parties and makes it easier to track costs if changes or disputes arise. Always verify your contract to confirm whether material costs should be invoiced at cost or with your standard markup.

Gather these details before starting work: the legal name and billing address of the company paying you, project name and location, purchase order or contract number they'll use to match your invoice, their preferred invoicing format, payment method and timeline, and any tax documentation they need. Ask about their invoice approval process—who reviews invoices before payment, how long approval takes, and that person's contact information. Confirm whether they use specific invoice templates or software integrations. Clarifying these details upfront prevents delays and rejected invoices that hold up payment.

Yes, retention is standard in construction and many trade industries. General contractors typically withhold 5–10% of each invoice pending project completion or a specified period, often 30–90 days after your final invoice. Retention protects the GC against defective work and ensures you complete punch-list items. Your contract should specify the retention percentage and release terms before you start work. Larger projects may have lien waiver requirements—you may need to sign a waiver confirming you've been paid before the GC can receive their own payment. Understanding these terms prevents cash flow surprises.

Whether you can invoice these depends on your contract. Review what's explicitly included in your bid—some contracts bundle travel and mobilization into your labor rates, while others treat them as separate line items. If travel time is billable, clearly itemize it with hours and rate, distinguishing it from on-site work. Equipment rentals and tool costs should be listed separately with dates or project phases. Mobilization costs (site setup, permits, initial travel) should be billed only if your contract specifies this. Always discuss billable expenses before work begins to avoid disputes.

When your work covers multiple phases, organize your invoice clearly by phase or milestone. Use separate line items for each phase, noting the phase name and description of work performed. For example, "Phase 1 electrical installation—labor: 40 hours @ $75/hr" and "Phase 1 materials: $2,300." This structure helps the general contractor match your invoice to their project budget. If phases are billed under different purchase orders, you may need to create separate invoices—confirm with the GC first. Grouping related work under phase headers improves clarity and speeds up approval and payment.

Respond professionally and promptly with supporting documentation. Review the disputed items against your contract, purchase order, and project records. Gather evidence: photos of completed work, timesheets, material receipts, and any email instructions from the GC's site supervisor. Provide a clear, written explanation of each disputed item referencing the contract terms. If the dispute stems from a misunderstanding about scope or pricing, schedule a call to clarify rather than escalating. Keep communication professional and solution-focused. If the GC refuses to pay a legitimate charge, refer to the dispute resolution clause in your contract.