Contractor Invoice: What makes a Construction Invoice?

The most prone to disputes that often arise in construction companies in the payment process between the contractor and the client. Therefore, invoicing is an essential skill for contractors, especially independent contractors, for them to limit disputes with customers and facilitate the payment process faster. Not only that, contractors will always have different projects, which means the terms and timing of billing are also different, so it is very important for contractors to understand the elements of an invoice to easily track time and set up invoices in the most detailed and accurate way. Besides, proper invoicing will play an important role in the accounting of small construction businesses.

To request payment from customers, you need an official construction invoice. It will include the terms of payment, due date as well as information about the company and the customer.

  • A construction invoice should include these points:

  • The information of a construction company (company name, contact information)

  • The customer's name and contact information

  • Invoice date (the date of the invoice and the due date for the amount)

  • Brief description of the goods or services

  • The quantities (such as units, hours) and prices for goods or services

  • The payment terms

How to Invoice as a Contractor? Here are some tips to help you with invoicing.

1. IDENTIFY THE DOCUMENT AS AN INVOICE

Surely the word "Invoicing" will need to be most clearly represented in the document you create. It is your way of expressing the theme of your document. The main content in it is the invoice-related issues that your customers need to understand what they are watching.

2. COMPANY INFORMATION

All of the most important company information should be presented at the beginning of the invoice. Important information that needs to be mentioned is your construction company name, address, phone number, email, or required contact information. You can put the company logo in so that customers can easily know your construction company.

3. CUSTOMER CONTACT DETAILS.

Underneath your company information and the invoice information, you need to have your client's information, which is similar to how you fill out your construction company information.

4. IMPORTANT BILLING INFORMATION

A unique invoice number is indispensable in each invoice. That number is unique and essential for future billing records management.

5. ADD THE INVOICE DATE

Include the date that you’re sending the invoice in the top section of the document.

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6. PROVIDE DETAILS OF YOUR SERVICES

A description of the services/products you have provided includes 4 columns (description, quantity/time, price, total) recording all the services you have provided.

  1. Description: You should briefly write down the services or product names that you have used in the project for the client.

  2. Quantity/time: quantity or number of hours worked

  3. Price: list your rate of pay

  4. Total: the subtotal for each service.

7. YOUR PAYMENT TERMS

The payment methods your construction company accepts from customers as well as its terms of payment will be added to this section. If your construction company has a deferred payment policy, it should also be specified here.

8. LIST THE TOTAL AMOUNT DUE

The last part of the invoice is the total bill amount, including applicable taxes, discounts, ... This is the total amount that the customer needs to pay you so you need to show clearly, to the most obvious.

Preview a sample construction invoice below.

Sample of a Construction Sample

Download a free sample here:

Construction Cost Accounting -Sample Con
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Download • 626KB

Are you ready to get help, or are you still not sure if you need help to run your construction business? Contact Construction Cost Accounting to have a free 15-minute consultation!

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