You’re curious about how to make an invoice for construction projects and clients.
If you’ve done a quick search on the internet you know that there are thousands of construction invoice templates.
So many, in fact, that you just can’t be sure which one would be the most comprehensive and worth your while.
Curious if there’s an easier way?
In this guide, we discuss everything you need to know about:
- Construction invoice templates
- Proper formatting; and
- How you can invoice clients efficiently every time.
Simplify Your Billing With Flexbase’s Automated Construction Invoice Template
Construction billing can get complex and frankly, can be a big pain.
Invoices need to be thorough and having a construction invoice template that covers everything you need to properly invoice clients can get tricky.
Flexbase has streamlined and automated the paperwork involved in the payment process to reduce human error and accelerate receipt of payment.
Think of us as your one-stop payment automation platform — because that’s what we are.
Contractors can use Flexbase to:
- Create invoices
- Send invoices
- Track projects
- Automate all the documents in a payment application
- And more
Flexbase is entirely free to use — say good-bye to subscriptions that you have to pay even if you don’t get paid. Flexbase works on a small commission of 0.5% — if you don’t get paid, neither do we.
When Is a Construction Invoice Used?
Construction invoices are used by contractors and subcontractors to bill for anything furnished under their contract including…
- Materials; and
…used for their construction project.
Just like with other forms of invoicing, the invoice will subtract any amount that’s been previously paid and any retainers to show that the amount that they are requesting to be paid is correct and up to date.
In other industries, invoices are sent at the end of a project when all the work is complete.
Construction invoices can be sent at the end of a project, but may also be sent incrementally as progress payments. This type of construction invoice template is often used on projects that extend for long periods or are extremely costly.
Why Is it Important for Contractors to Use Construction Invoices?
Construction invoices are vital for contractors for a number of reasons:
- Organization — handwritten invoices are a thing of the past. Clear, concise invoicing is the way to go. This not only helps you and your client stay on top of payments but keeps track of any outstanding debts or debtors — it will be a breeze keeping all your financial records up to date.
- Get paid faster — the reality is, construction contractors get paid for the work they document. If you can’t show how you reached your total, the work that’s been completed, and the materials you had to purchase, you can’t expect to get paid.
- Clear communication — having a clear, organized way of billing clients is the easiest way to track what happened during each project. It’s your paper trail of proof should any issues arise.
- Easy Inventory — keep a record of what you’ve charged for labor, the materials you’ve used, and the services you’ve performed without having to shuffle through mounds of paperwork.
Types of Construction Invoices
In the construction industry, contracts may be written several ways, but the most common types of contracts include:
- A “completed contract” only involves invoicing the client once when the job is finished
- Percentage-of-completion or in-progress payment contracts where clients are invoiced several times over the life of the project — this is common with large, long-term projects
Use a Construction Invoice Template to Generate a New Application for Payment
Construction invoices get complicated — all the forms, state-dependent paperwork, etc. — and can take far too much time out of your day.
Construction invoice templates can certainly help make the process a little easier, but there’s still quite a bit of manual work involved.
You could start the construction invoice template process by:
- Searching for construction invoice templates
- Downloading the template from one of the thousands of options over the internet — and hoping it’s the right one for the project
- Insert your logo, business information, as well as all of your client’s information
- Create invoice numbers, and providing all the details and documents for each project:
- Your schedule of values
- Billing forms — ie: AIA forms G73, G702, etc.
- Itemized lists of the materials, quantity, and costs
Remember, if it isn’t documented, you likely won’t be paid.
- Calculate the total. Don’t forget to subtract any retainers or previous payments. Were there any change orders that took place?
- Add any payment terms or additional information required
- Send the invoice to the client.
Instead of wasting hours out of your day on unnecessary processes, let Flexbase automate the process for you.
No more searching for the correct template, or hoping you have the right forms for that client who’s working on projects in three different states.
Construction Invoice Format: 6 Components of a Quality Template
*Construction invoice formats may differ depending on the work performed, but most* templates should have fields covering all of the topics we’ll cover in the following sections.
If you choose to use a construction invoice template, here’s how to successfully invoice your clients.
For any invoice template, you want to make sure there is a place for both name, address, and contact information for the:
- Contractee; and
- Construction investor — if applicable
This field is very useful to contractors, especially if they are working on more than one project or job for the same customer.
Adding the job site or other project information to the construction invoice makes it clear which project you are invoicing for.
We’ve mentioned this before, but we’ll remind you again, contractors get paid for work performed that has been documented.
Recording materials used on your invoice is also necessary to get paid properly. In some cases, you may even be able to bill for materials you’ve purchased but haven’t used yet.
For example, if you choose to use in-progress billing, the American Institute of Architects created a standard billing process for the industry — specifically for in-progress billing.
This type of billing is standardized — the invoice and the language you use doesn’t change. By making sure you are compliant with industry standards, you reduce the possibility of risks and expedite the payment process.
AIA billing requires a specific set of forms to be used by contractors. The most common forms used with AIA billing are the G702 and the G703 — these are especially important for payment applications, which we’ll discuss more later.
Depending on the type of contract, you may also be required to furnish the client with receipts and sub invoices — if you’re working on a time/material basis.
If you’re doing public work, you may also be required to add the materials you’ve purchased.
Fixed contracts often don’t require you to provide receipts of any kind, but that doesn’t mean you won’t be required to put the materials purchased on your invoice. To play it safe, we recommend you find a template that gives you the option to list the materials you’ve purchased for the project.
This section can get a little complicated if there’s been a retainer held, or if you’re doing in-progress billing.
On your invoice template you will need a section that shows:
- The amount due for the entire project
- Any amounts already paid — ie: in-progress payments made or retainers held
- Total due at the time of invoice after the previously mentioned deductions
Being succinct is the key to successful payment instructions — and getting paid on time. Every construction invoice template needs to have a place for payment instructions.
Things to include in the payment instructions section are:
- What methods of payment you accept
- How your client can make the said payment — ie: online, by mail, etc.
- Any late fees or penalty disclaimers, warranty disclaimers, or money-back guarantee information
In addition to payment instructions, this is a great place to outline any terms and conditions from your contract, payment deadline reminders, etc. A gentle reminder about the contract is rarely frowned upon.
A Construction Invoice is Only One Component of a Full Application for Payment in Construction
Construction invoices often get confused as payment applications, but a typical invoice template does not account for all of the other aspects of a full construction invoice — the payment application.
Payment applications vary for each specific project, but they commonly include an array of documents:
- Specific forms based on the project — like forms G702 and G703 as mentioned above
- A schedule of values
- Lien waivers
- Any change orders
- Evidence of work — visual evidence or documentation
- Invoices and receipts
- Wage reports
Although a “free printable construction invoice template” may sound tempting, our advice to you is to think twice.
If you’re downloading an invoice template, it likely doesn’t come with any system to track payments, documents, or other important details about each of your projects.
Did we mention you should have a different invoice template for each of your clients? That’s a lot of downloads and a lot of wasted time.
Flexbase keeps everything in one place and automates the entire billing process — from paperwork to invoicing.
Invoicing problems shouldn’t be an issue for your business. Reduce the amount of time and stress you spend on your invoicing system with a free subscription.
With Flexbase, you have the freedom to:
- Create invoices and payment applications for each client
- Request payments
- Track projects, materials used, and receipts
- Communicate directly with your clients through our application
- Send late payment notices
- And more…
Reduce the risk of human error and the risk of not being able to pay your employees by streamlining your billing procedures with Flexbase.
You can reap the benefits of Flexbase, including:
- No subscriptions or licenses are required
- Our full platform is immediately available for use after getting started; and
- You only pay when you receive a payment
Ready to make construction invoicing easy, no template necessary? Schedule your free demo today.
Want to know more about our invoicing process? Check out the construction invoice sample below.
Flexbase makes invoicing a breeze — the app’s construction invoice template is easy to follow, is structured to make billing each client fast and simple — no downloads required.
First, choose the client you’re invoicing.
Next, add any missing data and confirm that the schedule of values is correct.
After you’ve checked your schedule of values, confirm the payment options.
You’ve confirmed everything is correct, it’s time to add a message to the client — this is a great spot to add in any reminders about payment timelines, contract details, etc.
*Boom! Just like that, you’re ready to send the invoice approval request and get back to business.*