Construction is a complex process with many moving parts. As a builder, you need to be able to track and bill for all the materials, labor, and other costs associated with each project.
An invoice template can help you keep track of all the charges associated with a construction project and make billing your clients a breeze. It also helps you keep track of payments and ensure that you're paid on time.
In this guide, we'll show you how to create a construction invoice template that you can use for all your future projects.
Key Elements of a Builder Invoice Template
To bill clients efficiently, your construction invoice template should include all the key elements of a standard invoice. This includes:
Your Business Information
Make sure to include your construction company name, address, email, and phone number on the construction invoice template.
It's also a good idea to include your Federal Tax ID or Social Security Number on the invoice. This will ensure that your client knows that you're a legitimate business and they can deduct the charges on their taxes.
Your Client's Information
Include your client's name, address, contact details, email, and phone number on the construction invoice template.
For instance, your client's information might look something like this:
123 Main Street
Anytown, USA 12345
Date and Invoice Number
Be sure to include a unique invoice number and date on your construction invoice template. This will help you keep track of invoices and ensure that they are paid in a timely manner.
You may also want to include the name of the project and the address where the construction jobs were performed. This can be helpful if your client needs to reference the invoice at a later date.
Materials and Labor Costs
Be sure to itemize all the costs associated with the construction work on the invoice template. A good rule of thumb is to include the quantity, description, and cost of each item. It allows you to track your expenses and bill your clients accurately.
For instance, the unit price might look something like this:
-15 sheets of plywood @ $25/sheet = $375
-100 linear feet of fencing @ $15/linear foot = $1500
-20 labor hours @ $50/hour = $1000
Also, if you're working on a construction project with many subcontractors, it's important to include their names and contact information on the professional invoice. This can be helpful if your client wants any additional help, and you may not be available.
For instance, if you're working with a subcontractor, the information might look something like this:
Subcontractor: Joe's Painting Co.
Total Cost: $2775.00
In addition to materials and labor costs, there may be other expenses associated with the construction work. Be sure to itemize these charges on the invoice template as well.
Some common additional costs include permits, inspections, and dump fees.
For instance, your additional costs might look like this:
- Permits: $500
- Inspections: $250
- Dump Fees: $100
Total Cost: $850
Payment Terms and Conditions
To avoid any misunderstandings, include your invoicing terms or payment instructions, payment process, and payment due date on your detailed template. Make sure you state when the client is expected to pay and what type of payment you accept (e.g. check, cash, wire transfer). You may also want to include a late payment fee if the client doesn't pay on time.
You may also want to consider offering a discount for early payments or charging interest for late payments. For instance, you could offer a discount of 13% if the client makes the final payment within 10 days of receiving the invoice.
Sales Taxes and Fees
Depending on the country or state you're working in, there may be different taxes and fees associated with construction projects. Make sure to include any relevant taxes and fees in your invoice template. This will ensure that you're compliant with the law and avoid any penalties.
Final Cost and Signature
Always include the total cost of the project at the bottom of your contractor invoice template. This will make it easy for your client to see how much they owe and avoid any confusion.
If you're sending a physical copy of the invoice, make sure you include a space for a signature. This will serve as proof that the client has received and accepted the invoice.
Thank You Note
Lastly, you may want to include a thank you note on your construction invoice form. This is a nice way to show your appreciation for your client's business and build goodwill.
A thank-you note could say something like "Thank you for choosing ABC Company for your construction needs. We appreciate your business and look forward to working with you again in the future."
Creating a Construction Invoice Template
You can create your own construction invoice template using a word processing program like Microsoft Word or Google Docs. To do this, simply create a new document and add the information we discussed above.
The benefit of using a word processing program to create your invoice is that you can easily customize the template to fit your needs. For instance, you can change the font, add additional information, or delete any information that isn't relevant to your business. Another benefit is that you can save the template on your computer and use it again in the future.
The drawbacks, however, outweigh their benefits. First, it can be time-consuming to make a custom invoice template from scratch. Second, you'll need to have a basic understanding of how to use the word processing program in order to create the template. Third, your invoices may not look as professional as those created by an online invoicing service.
Your best bet is to use free invoice templates – like our free construction invoice template. With our free construction invoice templates, you can create professional invoices in minutes without having to worry about design or formatting. All you have to do is to simply download the free invoice template, enter your client's information, and add a description of the construction job, and the total costs.
Use our invoicing software for your construction business
You use your expertise to build amazing structures, houses, and commercial buildings. You work long, sometimes unpredictable hours.
The last thing you want to worry about is whether you've sent an accurate invoice to your client.
That's where we come in. Bonsai invoicing software is designed with construction companies in mind. We make it easy to create and send unlimited invoices, so you can get paid faster. We take the guesswork out of invoicing and help you get paid on time, every time.
Try Bonsai today and see how easy it is to get paid for your hard work.