From architects to builders and beyond, if you’re part of the construction industry, you need to get paid for your services on time, every time.
To support you in getting the money you’ve worked so hard for, we’ve put together a free, printable construction invoice template to provide a professional backdrop where you can assess a job, give a quote and get paid.
The construction invoice template looks professional and is straightforward to use.
Once downloaded, you can easily tailor it to suit your needs. Different projects might call for slightly different invoice formatting – that’s why we’ve made the template flexible.
Here’s what we cover in this article:
How to use the invoice template
- Download the free construction invoice template.
- Add your company logo and contact information at the top.
- Add or remove lines as needed – some jobs may require extra room for details.
- Leave space for special notes.
- Send it on to your client.
- Get paid.
What is a construction invoice used for?
An invoice is a document created by a vendor outlining the total cost of products and services purchased or ordered by a customer.
In the construction industry, there are a few different ways to invoice your customers depending on the type and scale of project you’re working on, which we’ll explore below.
Invoices don’t just help you get paid on time.
They also play an important role in increasing transparency about the work you’re doing, and help prevent late payments by laying down a deadline for when a payment needs to be settled by.
What should be included on an invoice for construction workers?
Construction invoices vary depending on the specific work you perform.
Your trade or perhaps even your client may demand a technical explanation of your services and rates.
In general, a construction invoice template in the UK will include the following:
- The name of your company.
- An invoice number. A job number will add an extra hint of professionalism to your invoice. Invoice numbers make it easier to keep track of and reference past jobs and payments.
- The duration of the work you’re billing for.
- A description of your work.
- Payment terms. This can include your preferred payment methods, as well as any payment options or applicable warranty information.
- Project notes.
- An itemised list of materials. The materials used to complete the job, including quantities for each type, the unit price, and a total for each type of material used.
- A detailed breakdown of labour. This includes hours worked and hourly rate (tweak these to reflect price per job if that’s your payment structure), and the total amount to be charged for each type of labour input.
- A separate line item for the total cost of materials.
- A separate line item for the total cost of labour.
- The price you are charging. This includes applicable tax.
- Payment due date.
Building on that framework, you may want to further break down the price so your customer knows how the costs of both labour and materials are divided.
You might also want to list the hours worked performing different aspects of the job to increase transparency and build trust.
For example, if you’re framing a room, as well as roughing in the electricals for it, you may want to charge different hourly rates respectively.
Customers want to know what they’re paying for, so being as detailed as possible from the beginning is a smart move.
What do I need to know about proposals?
If you get your proposals right, you’ll find that invoicing gets a lot easier.
Industry best practices recommend that you document the project from the initial proposal to the final cost to keep your customers happy.
A typical construction project is made up of a lot of different aspects.
You’ll need to account for the materials you use, for example, or any external support from other contractors you may need.
Since there are so many moving parts to a single project, you need to lay it out in terms your customer can understand.
This is an opportunity for you to spell everything out. Your customer wants to know that the quality of your services is worth what you’re charging.
A jumbled mess of industry terms can be problematic. Nobody likes to feel mystified by what they are reading, so remember to keep things simple here.
Ensure the general project guidelines are spelt out at the beginning of a job, as this is both beneficial to both you and your customer.
Take the initiative to send a detailed proposal that lays out contingencies and any costs associated with them.
What do construction workers need to know about invoicing?
Construction projects are rarely straightforward, and even the best-planned jobs don’t always go as planned.
Your invoices need to be flexible enough to account for and adapt to any changes to your initial quote clearly while keeping things concise.
In some cases, you might need more time and materials than anticipated to get the job done.
Unforeseen circumstances are inevitable, so bear that in mind as you think about your invoicing process, as you’ll need to explain added costs that go beyond your initial quote.
Maintaining this level of transparency lets your customers know they can trust you, and this is a great way to secure more work from them in the future.
For instance, if you have to delay a job because you can’t access the gas supply for the building, and your client is not present or able to give you access on the day, you may want to have a fee in place for that setback.
Alternately, you might decide to simply send your client a notification about the issue, and only charge a fee for any similar future incidents. The choice is yours.
Another possible scenario is that you might not have been made aware of a specific problem that impedes a construction project, such as a hidden load-bearing wall or structural beam that you need to work around.
By outlining your policy for changes to the scope of your work and making allowances for unforeseen circumstances that can hold up a project in your initial proposal, you’ll have a game plan ready.
And there won’t be any surprises for you or your customer as the job moves along.
Provide your customer with any special instructions or precautions they should take as the project is underway.
It could be as simple as keeping doors to work areas closed. But notes such as these show you’re experienced and care about their safety.
When do you send a construction invoice?
In construction, the invoicing window tends to be more flexible than other industries since projects typically take longer to reach completion.
From the initial meeting, the project will have to be evaluated, laid out and scheduled. Often, you’ll need to complete a project in phases, with periods of ‘empty’ time in between.
Consider matching your invoicing with those project phases. This ensures you’re getting paid as the job unfolds and as more materials are needed to get it over the line.
Here’s an example: if you’re renovating multiple rooms in a home and doing one room at a time, you may bill for the materials and work as each room is completed.
There are three ways to invoice if it’s a larger project, such as building an addition to a home.
1. Divide payments
You may divide payments into monthly instalments over the project’s specified duration. This option may be ideal for customers, as they often prefer to pay in instalments.
2. Charge in full once the work is done
Charge the full amount after completing the job to your customer’s satisfaction. This option requires more upfront capital from your company, and it may not be the best choice for smaller operations.
3. Payment before work starts
Require full or partial payment before the project starts. Be aware that you may sacrifice wiggle room for unforeseen costs as the job progresses.
Automate your invoicing
If you find yourself behind on invoicing, it may be time to look at automating the process.
Construction-specific software could certainly help here, as it reduces the errors and redundancy that results when using multiple, disconnected systems, including the likes of Microsoft Excel and Word to manage invoices.
Cloud-based accounting software ensures accurate and prompt invoicing through automation, saving you time and money in the long run, so it’s worth the investment.
Construction invoice template
Want to look more professional and get paid on time? Get your free, printable construction invoice template to help you stay on top of your business admin.
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