Construction billing lives and dies on the labor/materials split. Clients want to see what they paid for hands and what they paid for goods; many jurisdictions tax them differently; and disputes almost always start with a lump sum someone couldn’t decompose.
This template keeps labor, materials, equipment, and subcontracted work on separate lines, supports progress billing against a contract total, and shows retainage transparently — the format general contractors, homeowners, and their lenders all expect.
| Item | Description |
|---|---|
| Framing labor | Crew of 3, 5 days, second-floor addition |
| Materials: lumber package | Per attached supplier invoice, at cost +10% |
| Equipment rental | Mini excavator, 2 days |
| Change order #2 | Upgraded window package per signed CO |
Bill against signed change orders only — verbal extras are where margins go to die.
Show "previously billed" and "balance to finish" on every progress invoice; it builds lender confidence.
Photograph completed stages and reference the photos; visual proof shortens payment cycles.
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You bill a percentage of the contract total as stages complete, showing contract value, work completed to date, amounts previously billed, and retainage withheld. Each invoice is a snapshot of that running ledger.
A percentage (commonly 5–10%) the client withholds from each progress payment until final completion. Show it as a visible deduction so your receivables stay accurate.
A 10–20% markup on materials is standard and covers procurement time and warranty risk — but state your basis (cost-plus or allowance) in the contract and keep supplier invoices available.
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