Contractor Invoice Generator
A contractor invoice bills a client for completed work, and unlike a generic invoice, it needs to separate labor from materials, reference the job, and support the paper trail that protects your right to get paid. This generator computes line totals, tax, and the amount due, so the arithmetic on the invoice you hand a client is never the thing in dispute.
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| Description | Qty / hrs | Rate | Amount |
|---|---|---|---|
| Labor. Deck board replacement (2 crew) | 16 | $85.00 | $1,360.00 |
| Materials. Cedar decking, fasteners | 1 | $612.40 | $612.40 |
| Haul-away & disposal | 1 | $150.00 | $150.00 |
| Subtotal | $2,122.40 | ||
| Total due | $2,122.40 | ||
Late Fees and Payment Terms: What Is Typical
Conventions, not legal maximums. Several states cap late-fee interest through usury or prompt-payment statutes; check your state before charging above the typical range.
| Term | Typical practice | Notes |
|---|---|---|
| Net 30 | Payment due 30 days from invoice date | The default B2B term in the US; Net 15 and Net 60 are the common variants |
| Late fee | 1% to 1.5% per month (12% to 18% per year) | Must be stated on the invoice or in the contract before it can be charged |
| Grace period | 5 to 10 days is common courtesy | Not required by law; put it in writing if you offer one |
| Government work | 30 days, then interest accrues automatically | Federal Prompt Payment Act; most states have an equivalent for public contracts |
| Early-payment discount | 2/10 net 30 (2% off if paid in 10 days) | Worth stating explicitly as a line under the total |
Source: Federal Prompt Payment Act (31 USC 39); state prompt-payment and usury statutes · checked 2026-08
What to Know About Contractor Invoices
- Separating labor and materials lines isn't cosmetic: many clients (and their accountants) require it, materials may be taxed differently than labor depending on the state, and itemization is what makes an invoice usable as lien-claim support.
- In most states, a contractor's mechanic's-lien rights depend on a documented money trail. Invoices tied to the property and dates of work are core evidence if payment fails.
- Businesses that pay a contractor $600 or more in a year generally must report it (1099-NEC). Your invoices are the record both sides reconcile against in January.
- Some state licensing boards require the contractor's license number on business documents (California's CSLB is the strictest example); adding it in the From block is standard practice.
- Net-30 remains the default payment term in the trades, but stated late-fee terms measurably shorten payment times, an invoice without terms is a request, not an instrument.
Frequently Asked Questions
What should a contractor invoice include?
Your business name and contact details (plus license number where your state requires it), the client and job site, an invoice number and date, itemized labor and materials lines, tax if applicable, the total due, and payment terms. Itemization is what separates a professional invoice from a number on a page.
Should I charge sales tax on labor?
It depends on your state. Some tax construction labor, some tax only materials, and rules differ for repair vs. new construction. Enter your rate in the tax field if it applies, and confirm the treatment with your state's revenue department or your accountant.
What if the client doesn't pay?
Your sequence is: reminder with a copy of the invoice, then a formal demand letter, then (because you kept dated, itemized invoices) mechanic's-lien or small-claims options depending on state and amount. The invoice itself is the foundational evidence, which is why it should be issued promptly and kept unaltered.
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This generator produces a general-purpose document, not legal, tax, or accounting advice. How our generators are built and checked →