Contractor invoices

Contractor invoicing FAQ

Why do contractors need special invoices?

Property owners and general contractors expect invoices with clear job descriptions, materials vs. labor breakdown, deposit balances, and often lien waiver acknowledgment. Standard invoices miss these details and can delay payment or raise red flags during audits.

Can I invoice for deposits and milestone payments?

Yes. Bill the deposit as its own invoice, then on the final invoice note the deposit received in the notes and bill the remaining balance. Showing what was invoiced, what was paid, and what remains keeps contractor-owner relations simple.

Is this invoice format accepted by property owners and GCs?

Yes. The contractor invoice has line items for labor and materials, the job site in the notes, and the draw or progress payment it covers. The lien waiver goes out as its own document from the lien waiver generator.

Can I add lien waiver language to the invoice?

Send the waiver as its own document. In 11 states (California, Texas, Arizona, Nevada, Georgia and others) the statute requires its own waiver form, and a waiver that drifts from it can be unenforceable, which is exactly what the GC's accounting department is checking for. The lien waiver generator prints the statutory form wherever a state has one and a plain conditional or unconditional waiver elsewhere; attach it to the invoice.

How do I invoice for change orders?

Issue change orders as separate invoices that reference the original job (use the notes field for "Change Order #2, original invoice INV-1042") or as additional line items on a progress invoice. Keeping change orders on their own invoice simplifies disputes later: the property owner has a clean paper trail of what was added to scope and when.

Can I bill subcontractors' work through my invoice?

Yes. List subcontractor charges as discrete line items with a clear description ("Electrical sub: XYZ Electric, 14 hrs"). Some GCs require markup transparency, so consider listing the sub's cost and your markup separately. The terms field is useful for stating payment dependencies ("Subcontractor payment contingent on owner payment").

What payment terms are typical for contractor invoices?

Net-30 is the most common, but residential homeowners often pay on receipt and commercial GCs sometimes negotiate net-45 or net-60. State your terms explicitly on every invoice so there's no ambiguity. For larger jobs, AIA-style progress billing (deposit + milestones + final retainage release) is the norm.

Do I need to charge sales tax on labor?

It depends on your state. Many states tax materials but not labor; some tax both; a few tax neither for residential repair work. Consult your state's department of revenue or your accountant. Issueable supports two tax lines (e.g. state + city), and both apply to the whole invoice, so if labor is exempt in your state, bill materials and labor on separate invoices.