Invoicing Tool for US Small Business

Construction Invoicing Software

Construction invoicing software has to do three things ordinary invoicing does not: bill by progress rather than on completion, track retainage held back against each draw, and price change orders against an original contract value. Here is how to handle all three, free.

Create an invoice free Start 3-day Pro trial

Free generator needs no card. Pro trial requires a card and bills after day 3 unless cancelled.

Who this invoicing tool is for

Typical use cases for the construction invoicing software:

✓ General contracting and design-build
✓ Subcontract trades — electrical, mechanical, concrete, framing
✓ Renovation and fit-out
✓ Civil and site work
✓ Specialty trades billing under a prime contract

What the workflow should cover

The practical jobs this tool needs to handle:

✓ Original contract value, so every later figure has a reference point
✓ Approved change orders to date, listed with approval dates
✓ Revised contract value after changes
✓ Work completed this period, as a value and a percentage
✓ Materials stored on site but not yet installed
✓ Retainage withheld this draw, and retainage held to date
✓ Previous payments received, and the net amount now due

Invoicing Tips

✓ Retainage is the number most generic invoicing tools cannot express. Typically five to ten percent is held from each draw until completion, and an invoice that does not show it will be short-paid and look wrong
✓ Bill by percentage complete per line, not as one lump. It is what a project owner reviews against and what speeds approval
✓ Every change order needs its approval date on the invoice — unapproved changes are the leading cause of non-payment in construction
✓ Show materials stored separately from work installed. Owners routinely fund stored materials, but only when they can see them itemised
✓ Track the balance to finish. Owners and lenders check it before releasing a draw

Common Mistakes to Avoid

✓ Using a standard invoice with no retainage line, then being short-paid and treating it as a dispute
✓ Billing change orders without referencing the approval that authorised them
✓ Waiting for project completion to invoice, and financing the owner project out of working capital
✓ Omitting stored materials, then carrying the cost until installation

Frequently Asked Questions

What is retainage on a construction invoice?

Retainage is a percentage of each payment, commonly five to ten percent, that the owner withholds until the project is complete and accepted. It must appear on the invoice as its own line — both the amount held this draw and the cumulative total — or the payment will not reconcile.

What is progress billing?

Progress billing invoices for the portion of work completed in a period rather than waiting for the whole job. Each line shows the scheduled value, the percentage complete and the amount now due, which lets a contractor fund materials and labour without financing the project themselves.

Do I need AIA forms to bill a construction project?

Only where the contract requires them. Many owners accept any invoice that carries the same information: contract value, approved changes, work completed this period, stored materials, retainage and previous payments. The structure matters more than the specific form.

Related Invoice Templates

Build an invoice now with our free online invoice maker — professional PDF, local tax fields and no signup required.