Do I use AIA G702/G703 forms or my own invoice template?

AIA G702 (Application for Payment) and G703 (Continuation Sheet) are required on most commercial and government jobs — they're the industry-standard format the architect signs off on. On smaller residential or commercial jobs without AIA terms, your own invoice is fine as long as it includes the schedule-of-values breakdown. When in doubt, use AIA — it's rarely a problem to over-document.

How do I invoice for change orders on a fixed-price contract?

Two rules: (1) Never bill for a change without a signed change order document referencing it. (2) Show change orders as separate line items, never merged into base-phase pricing. A clean change-order line — "Change order #3: Additional framing per signed CO dated [date] — $850" — makes the architect's certification process fast. Merged change orders trigger a kickback.

When can I bill for materials I haven't installed yet?

Only when your contract has a "stored materials" clause and you can provide backup. Most owner contracts let you bill for materials delivered to the site and properly stored, with a supplier invoice and a photo. Materials still at the supplier warehouse generally can't be billed. Read your contract's payment article carefully — it varies.

How long do construction invoices take to get paid?

Net 30 from the date the architect/owner approves the application for payment — which itself takes 5-10 business days from submission. Total: 30-45 days from invoice send to deposit. Prompt-payment laws in many US states give some protection (the owner must pay within a specified window), but they have notice requirements you'll need to follow to invoke them.

How do I invoice for a disputed change order on a fixed-price construction contract?

Invoice the undisputed portion of the original contract on schedule — never hold back the base contract billing because of a disputed change order. For the disputed change order, issue a separate invoice marked "In dispute per change order #X — held pending resolution." Keep it out of your receivables aging until resolved. Document everything in writing: the original scope, the verbal authorization, the written change order if you got one. In most states, billing disputes on construction contracts have specific notice and lien requirements — consult your construction attorney before writing off any amount over $5,000.

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INVOICE

Invoice #: INV-001

From:

Bayside Construction Co.

Bill To:

Date: May 17, 2026

Terms: Net 30

Description	Qty	Price	Total
Phase 1 Labor (40 hours @ $85/hr)	40	$85.00	$3,400.00
Materials — Lumber, fasteners, sheathing	1	$2,150.00	$2,150.00
Change order #1: Additional framing	1	$850.00	$850.00
Retainage held (10%)	1	$-640.00	$-640.00

Subtotal:$5,760.00

Total:$5,760.00

INVOICE

Invoice #: INV-001

From:

Bayside Construction Co.

Bill To:

Date: May 17, 2026

Terms: Net 30

Description	Qty	Price	Total
Phase 1 Labor (40 hours @ $85/hr)	40	$85.00	$3,400.00
Materials — Lumber, fasteners, sheathing	1	$2,150.00	$2,150.00
Change order #1: Additional framing	1	$850.00	$850.00
Retainage held (10%)	1	$-640.00	$-640.00

Subtotal:$5,760.00

Total:$5,760.00

Overview

A construction invoice is a progress or final billing document issued by a general contractor or builder to a property owner or developer. It tracks completed phases against the contract value, separates labor hours from materials, lists approved change orders, and applies retainage withholding — the standard 5-10% the owner holds back until project completion.

Step-by-step

How to invoice on a construction project

Reference the contract and the phase you're billing

Construction invoices are progress bills against a signed contract. The header should reference the project name, the contract number, and the phase (Phase 1, Phase 2, etc.) — so the owner's rep can match it to the schedule of values.

Itemize labor by phase, not by individual

A line like "Phase 1 Labor (40 hours @ $85/hr) — $3,400" works. Listing every crew member's hours inflates the invoice and creates payroll-privacy issues. Save the detail for the certified-payroll report.

List materials separately with backup

Materials get their own line: "Materials — Lumber, fasteners, sheathing — $2,150." Attach supplier invoices as backup if your contract requires "open book" billing — most government and large commercial contracts do.

Show change orders as separate lines, not merged into phases

"Change order #1: Additional framing — $850" with a reference to the signed CO document. Merging change orders into the base phase price hides the real story and creates disputes during the AIA G702/G703 application for payment process.

Apply retainage as a negative line at the bottom

After subtotal, show "Retainage held (10%) — -$640." The owner pays the invoice net of retainage and releases it at substantial completion. Track outstanding retainage separately so you can bill for the release at end of project.

Send to the owner's rep AND the architect

On AIA contracts the architect certifies progress invoices before the owner pays. Send to both, with a clear cover note describing what's claimed for the period. Solo-sending to the owner stalls the approval cycle.

What to include

What every construction invoice should include

Project name, contract number, and application-for-payment number (if AIA)

Billing period — start and end dates of the work being claimed

Phase or schedule-of-values line items matching the original contract breakdown

Labor by phase (not individual), at the contracted rate

Materials with optional backup attached

Approved change orders, listed separately with reference numbers

Permit fees, inspections, and disposal as their own lines

Subtotal, sales tax on materials (where applicable), and pre-retainage total

Retainage withheld at the contract percentage, shown as a negative line

Net amount due and Net 30 payment terms

Watch out

Common construction invoicing mistakes

Rolling change orders into the base contract price. The architect rejects the invoice; you re-bill three weeks later.

Forgetting to apply retainage. The owner deducts it themselves, you receive less than expected, and you have to re-do your accounting.

Inconsistent phase names. If your bid says "Foundation" and your invoice says "Foundation & footings" the architect can't match it.

Skipping the certified-payroll cover sheet on prevailing-wage jobs. The state holds payment until you provide it.

Billing for materials you ordered but haven't installed yet. Most owner contracts only pay for materials delivered to site (with stored-materials backup).

Common questions

Frequently asked questions.

Retainage is a percentage (typically 5-10%) the owner holds back from each progress payment until the project reaches substantial completion. Show it as a negative line at the bottom of every progress invoice: "Retainage held (10%) — -$X,XXX." Track the cumulative retainage separately so you can bill for its release at project end with one final retainage-release invoice.

Why PrimeBase

Why builders move construction billing into PrimeBase

A PDF invoice closes one billing cycle. In PrimeBase, every project lives under the owner's record alongside the signed contract, every approved change order, and every progress invoice. When it's time to bill the next draw, you raise the invoice in one click from the previous one's line items — phases, retainage line, and change-order references already there. The owner sees the running invoice history in their branded portal, and the double-entry ledger posts AR and revenue without re-keying.

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INVOICE

From:

Bill To:

INVOICE

From:

Bill To:

How to invoice on a construction project

What every construction invoice should include

Common construction invoicing mistakes

Frequently asked questions.

Why builders move construction billing into PrimeBase

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