How do I invoice a multi-phase project?

Bill by phase or milestone. Each invoice covers the work completed since the last one, applies prior payments, and shows the remaining project balance so the customer always knows where things stand.

Should subcontractor costs be their own line?

Yes. Listing subcontracted work separately from your own labor keeps the invoice honest and makes it clear what you managed versus performed — which matters if a line is ever disputed.

Do permits go on the invoice?

Yes, as a pass-through line. The customer is paying the permit cost, and itemizing it keeps it from looking like padded labor and documents that it was pulled.

General Contractor Invoice Template (Free)

Core components of a general contractor invoice

A general contractor invoice is a legal and financial record for multi-phase construction and renovation projects. Unlike simple service receipts, a GC invoice must account for multiple labor trades, material pass-throughs, subcontractor expenses, permit fees, and retainage withholdings:

Header & Licensing Info: Business name, physical address, phone, email, and state contractor license number (required for legal billing compliance in most states).
Project Location & Phase: Client name, job site address, unique invoice number, and current project phase (e.g., Phase 2: Rough Plumbing & Framing).
Itemized Direct Costs: Separate line items for in-house labor hours, specialized subcontractor invoices, raw materials, and municipal permit fees.
Contract Summary Accounting: Original total contract price, approved change order additions/deductions, revised contract value, total billed to date, prior payments credited, retainage withheld (if applicable), and current net amount due.
Payment Terms & Lien Notice: Payment due date (e.g., Net 10 days), accepted payment methods (check, ACH transfer, online card payment), and conditional lien release terms.

Free General Contractor Text Template

Copy and paste the template below into your billing document or invoice builder:

================================================================================
                              INVOICE & PROGRESS BILLING
================================================================================
CONTRACTOR INFO:                           INVOICE DETAILS:
[Your General Contracting Business Name]   Invoice Number: GC-2026-0842
[State License / Registration #]           Invoice Date: August 3, 2026
[Business Address & Phone]                 Payment Due Date: August 13, 2026 (Net 10)
[Billing Email Address]                    Project Phase: Draw 3 - Framing & Mechanicals

CLIENT & PROJECT LOCATION:
Client Name: [Homeowner / Developer Name]
Job Site Address: [123 Main Street, City, State ZIP]

--------------------------------------------------------------------------------
DESCRIPTION OF WORK COMPLETED THIS PHASE                      AMOUNT
--------------------------------------------------------------------------------
1. In-House Carpentry & Framing Labor (80 hrs @ $75/hr)        $6,000.00
2. Rough Electrical Subcontractor (License #EL-9942)           $4,200.00
3. Framing Lumber, Hardware & Fasteners (Cost + 15% Markup)    $3,850.00
4. City Building & Mechanical Permit Pass-Through Fees         $450.00
--------------------------------------------------------------------------------
SUBTOTAL THIS DRAW:                                            $14,500.00

CONTRACT ACCOUNTING SUMMARY:
Original Total Contract Value:                                $65,000.00
Approved Change Orders (#1 & #2):                             +$4,500.00
--------------------------------------------------------------------------------
REVISED CONTRACT VALUE:                                       $69,500.00
Total Value Billed To Date (Including This Draw):              $42,000.00
Less: Prior Payments Received:                               -$27,500.00
Less: Retainage Withheld (10% on framing phase):              -$1,450.00
--------------------------------------------------------------------------------
TOTAL AMOUNT DUE THIS INVOICE:                                $13,050.00
--------------------------------------------------------------------------------

PAYMENT TERMS & ACCEPTED METHODS:
Payment due within 10 days of invoice date. 
Accepted: ACH Direct Bank Transfer, Check payable to [Business Name], or Online Card.
Note: A Conditional Lien Waiver will be issued upon receipt of cleared funds.
Thank you for your business!
================================================================================

How to structure progress billing and draw schedules

Waiting until a large residential or commercial renovation is completely finished before issuing a bill is a fast path to cash flow collapse. Structure your project contract around a clear progress draw schedule:

Initial Deposit (10%–30%): Secured upon contract signing to cover initial permits, site prep, and upfront material deposits before breaking ground. Read our complete guide on how to ask for a deposit without losing the job.
Milestone Draws (60%–80% divided into 3–4 draws): Invoiced upon successful inspection of specific project phases (Foundation/Slab, Rough Framing & Mechanicals, Drywall & Trim, Cabinetry & Fixtures).
Final Draw & Retainage (10%): Invoiced upon final building inspection, municipal certificate of occupancy, and completion of the customer punch list.

Managing change orders without invoice disputes

Scope drift is the primary cause of contractor payment disputes. Never add verbal extras to your progress invoice without prior written documentation:

Issue Change Orders Immediately: When a homeowner asks for additional recessed lights or upgraded tile mid-project, draft a formal Change Order document specifying the exact cost and timeline adjustment before performing the work.
Itemize Change Orders Separately: List approved Change Orders as distinct lines in your invoice contract summary so the client can reconcile the updated total against the original estimate.

Handling subcontractor pass-throughs and retainage

Subcontractor Costs: Itemizing specialized electrical, plumbing, or HVAC subcontractor invoices on your GC billing builds client trust. If applying a standard GC coordination fee (typically 10%–20%), either include it in your overall markup schedule or list it as “Project Management & Subcontractor Supervision.”
Retainage Fee Management: On commercial or large residential builds, clients may withhold 5%–10% retainage from each progress payment until final project closeout. Track retainage withholdings on every invoice so your accounting reflects exact cash received versus long-term accounts receivable.

Attaching lien waivers to protect both parties

Always issue a Conditional Progress Lien Waiver alongside your draw invoice, stating that your legal right to file a mechanic’s lien against the property for that specific dollar amount will be waived as soon as payment clears the bank. Upon receipt of payment, provide an Unconditional Lien Release. This practice reassures homeowners, lenders, and title companies while encouraging prompt payment.

For multi-week projects, read our deep-dive guide on how to bill progress draws on a multi-week project. If you handle smaller handyman and remodeling jobs as a solo operator, check out the best handyman estimate and invoice app for a one-man business.