The sample is a progress invoice for a bathroom remodel: demolition and framing, plumbing rough-in by a subcontractor, materials and a change order for an upgraded vanity. Adapt the phase names to your contract schedule. Change orders should always appear as separate, dated lines matching a signed document. Lien waivers, retainage and deposit limits vary by state and province, so check local rules before setting terms.
Invoicing tips for contractors
- Use progress billing tied to clear milestones, and show the contract total, amount previously billed and balance remaining on every invoice.
- Put each signed change order on its own line with its number and date so it matches your paperwork.
- Check local rules on maximum deposits, retainage and lien waivers before setting your payment schedule.
- Separate subcontractor costs from your own labor so clients and lenders can follow where the money goes.
Typical line items
- Phase 2: demolition and framing
- Plumbing rough-in (subcontractor)
- Materials: tile, backer board, fixtures
- Change order #1: upgraded vanity
Rates shown are examples only — edit them to match your pricing.
FAQ
What is progress billing for contractors?
Progress billing means invoicing for completed portions of a project rather than waiting for the end. You might bill after demolition, rough-in, drywall and final completion, each as a percentage of the contract. It keeps cash flowing to pay crews and suppliers and gives clients clear checkpoints to inspect before releasing payment.
How do I show a change order on an invoice?
Add a separate line describing the change order, its number, the date it was signed and the agreed price. Do not merge it into an existing phase. Your updated contract total should include all approved change orders, so the client can see how the original price moved and why it changed.
Can I charge a deposit before starting work?
Usually, but some jurisdictions limit how much a home improvement contractor can collect upfront, and others set rules on how deposits must be handled. Check local rules for your state, province or territory. Where permitted, a deposit covering initial materials and scheduling is standard and should appear as a credit on later invoices.
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