Invoice

What is an Invoice?

An invoice is a formal document requesting payment from clients for completed work, delivered materials, or services provided. It serves as both a bill and a legal record of the transaction between contractor and client.

Invoices are essential for maintaining cash flow and documenting all financial transactions throughout a construction project.

Types of Invoices

Progress Invoice

Billing for work completed during a specific period, typically monthly or upon reaching project milestones.

Final Invoice

The last bill for a project, including any remaining balance and final adjustments.

Material Invoice

Billing for materials purchased and delivered to the job site.

Time & Materials Invoice

Billing based on actual hours worked plus materials used, common for service calls.

Essential Elements

Invoice Number: Unique identifier for tracking and record-keeping.

Date Issued: When the invoice was created and sent.

Client Information: Name, address, and contact details.

Work Description: Detailed breakdown of completed work or materials.

Payment Terms: Due date, accepted payment methods, and late fees.

Total Amount: Clear calculation of all charges and taxes.

Payment Terms

Net 30: Payment due within 30 days of invoice date.

Net 15: Payment due within 15 days for faster cash flow.

Due on Receipt: Payment expected immediately upon receiving invoice.

2/10 Net 30: 2% discount if paid within 10 days, otherwise due in 30.

Best Practices

• Send invoices promptly after work completion
• Include clear descriptions of all work performed
• Attach photos or documentation when helpful
• Follow up on overdue payments professionally
• Keep detailed records for tax and legal purposes