A construction invoice is a professional document that contains necessary information regarding payments owed during construction or developmental projects. The projects may include the development and maintenance of buildings, skyscrapers, and plazas.
The payments owed contain the fixed wages of the laborers, i.e., labor cost, materials utilized during development, and contract payment. This invoice represents the last interaction between the contractor and the company.
So the contractor forges this official document containing the billing process and every single payment owed, during the whole project, and sends it to the company.
What Is a Construction Invoice?
Construction invoice is a sort of itemized bill that a contractor, supplier, or sub sends to a company/project owner about the payment of the work performed and materials utilized in the project.
The whole single document contains all the details of expenses that occurred during the project, wages of the laborers (tax included), and commission of the contractor himself.
More often, the expenses spent on buying goods/services during the project work do not count in the invoice, as the amount for such costs are paid by the owner before starting construction and is handed to the contractor from time to time during development.
Yet, some contractors make itemized charges at the end of the project, calculate the total amount, and send it to the owner. This invoice has to be highly professional and adequately formed, as this contains almost the whole summary of the expenses from the start to the end of the project.
What Is Construction Invoice Used for?
As stated before, the invoice acts as a bill to be paid by the company/project owner as soon as it is received.
The invoice doesn’t only serve as proof of payment; rather it shows the entire amount that ‘has to be paid’ by the owner. After the amount is paid to the contractor, a receipt is issued to him and that receipt acts as proof of payment.
The contractor, during the project, records the labor hours, materials ordered during the work, number of supplies provided, building maintenance charges, and hourly charges and then makes a finalized bill containing all these items.
Since contractors cannot be treated as “employees,” so they do not depend on any sort of automatic payment or monthly wages through any company’s payroll system. Therefore, usually, in order to receive payment for services the contractor provides, this document must be prepared and presented.
What Does a Construction Invoice Include?
A well-organized construction invoice has some essential elements it must include, which are stated as follows:
Basic Info of Both Parties
The basic contact details, including name, contact number, and address of both contractor and contractor are written on the top of the invoice, usually on the left side.
The top-right side of the invoice contains the serial number, and the date of issuance. The location of the job site is also depicted in this portion.
Description of Services
Below basic details the items purchased, services utilized, and the labor hours along with the individual amount, are written categorically so that a list is made that contains all these things along with quantities and prices.
A total of all amounts (including taxes) is calculated and written below the list. This total represents the payment owed, which the company or the project owner has to pay as soon as the invoice is received or within the due date.
Generally, prices and wages are pre-decided before the agreement, and the contractor only needs to put the amount in an orderly list so that proper documentation is forged and time is saved.
Usually, all expenses and commission are pre-determined and mentioned in terms of an agreement between the contractor and the contractee, yet, additional expenses may follow during project work.
These may include building maintenance, repair of the damage due to unexpected reasons, and medical expenses of laborers who got injured during work. This requires a separate list and it is stated below the main expenditures in the invoice.
This part includes the due date within which the amount should be paid by the project owner, the payment method that the contractor will accept, and payment terms. The information regarding penalties against the contractee in case of delayed payment is also stated in this part, by the contractor.
Authorized Signatures and Remarks
The last portion contains signatures of the contractor and the witnesses of agreement, dates of beginning and completion of the project, and the date of invoice issuance.
A professional invoice also contains a feedback block on the bottom-right of the document. The contractor may give feedback (if any) to the contractor in this part.
The construction invoice is, in short, the documentation of whole project work. It can save both time and the unusual expenses of both parties. Plus, it ensures a trust relationship between the client and the contractor.
The template provides information in a systematic and effective way and thus satisfies the customer. Another plus point of using the documentation is that the whole project is summarized in one document, which can be accessed anytime, anywhere.
CocoSign provides a variety of designs of construction invoice templates in the most reliable way and free access to building customized invoices in any manner they want. The templates are readily downloadable, accessible, and printable in any export quality and any format.