General contractors manage residential and light commercial building projects, from kitchen and bathroom remodels to additions, decks, and whole-house renovations. They hire and coordinate subcontractors, buy materials, pull permits, and bill clients for labor, materials, sub work, and their own management fee. Invoices are often tied to project milestones rather than a single bill at the end.
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Most general contractors price in one of three ways. Fixed-price (lump sum) contracts set one total for a defined scope, usually billed in draws tied to milestones such as deposit, rough-in complete, drywall complete, and final completion. Cost-plus contracts bill actual labor, materials, and subcontractor costs plus a markup, commonly 10-25 percent, with receipts or backup attached. Time and materials is used for small repairs, punch lists, and change orders, with an hourly labor rate plus materials at cost plus markup. Many contractors also bill by the square foot as a rough guide for new construction, additions, and flooring or roofing work. Overhead and profit are usually built into the markup or rate, not shown as a separate line, unless the contract is cost-plus and requires a visible fee.
| Service | Priced | Typical range |
|---|---|---|
| General labor or handyman-level carpentry (time and materials) | per hour | $50-100 |
| Lead carpenter or project supervisor | per hour | $75-150 |
| Kitchen remodel (mid-range, full scope) | per project | $25,000-75,000 |
| Bathroom remodel | per project | $12,000-35,000 |
| Room addition | per sq ft | $100-300 |
| Deck construction (wood) | per sq ft | $35-75 |
| Interior painting (labor and materials) | per sq ft of floor area | $2-6 |
| Materials markup on cost-plus or change orders | percent | 10-25% |
| Project management fee on cost-plus jobs | percent of project cost | 10-20% |
Typical US ranges. Rates vary by region, experience, and job size.
| Description | Qty | Rate | Amount |
|---|---|---|---|
| Bathroom remodel - Draw 2 of 3: demolition, rough plumbing and electrical, and tile backer board complete | 1 milestone | $6,500.00 | $6,500.00 |
| Labor - framing repair of rotted subfloor (change order #1, approved 3/12) | 14 hours | $85.00 | $1,190.00 |
| Materials - 3/4 in. plywood subfloor, joist hangers, fasteners (change order #1) | 1 lot | $412.00 | $412.00 |
| Materials markup on change order #1 (15%) | 1 lot | $61.80 | $61.80 |
| Dumpster rental and haul-away (10 yd) | 1 each | $425.00 | $425.00 |
| Total | $8,588.80 | ||
Notes: Contract total $18,500. Draw 1 ($5,550) paid at signing. This invoice covers Draw 2 plus approved change order #1. Remaining balance after this invoice: $6,475 due at final completion. Payment due within 7 days of invoice date. Checks payable to the business name above. A 1.5% monthly late fee applies to balances past due. Lien waiver for work through this invoice provided on receipt of payment.
Many states require the license number on contracts and invoices, and clients use it to verify you are in good standing.
Ties the invoice to a specific job and signed contract, which matters when you run several projects at once.
Clients and lenders want to see that the work billed has actually been done before releasing payment.
Keeps extra work visible and tied to written approval, which prevents disputes over why the total changed.
Cost-plus contracts require backup. Attach receipts and sub invoices so the client can see what the markup applies to.
Shows permits were pulled and lets you pass through fees. Inspectors and lenders may ask for the references.
In many states, a conditional or unconditional lien waiver is expected with each payment, and preliminary lien notices may be required. Check your state's rules.
Shows total contract, paid to date, this invoice, and balance left so there are no surprises at final payment.
Most residential contractors take a deposit at signing, often 10-33 percent depending on the job and state limits (some states cap deposits on home improvement contracts, so check yours). The rest is billed in draws tied to milestones, typically due within 5-10 days of invoice, with final payment due at substantial completion or after the final walkthrough. Smaller time and materials jobs are often due on receipt or net 15. Late fees of 1-1.5 percent per month are common if stated in the contract. Clients pay by check, ACH, or card; if you accept cards, consider whether to pass along processing fees, and check your state's rules on surcharging. Retainage of 5-10 percent is common on commercial jobs and is released after final inspection.
Write the draw schedule into the contract with specific events, such as rough-in inspection passed or cabinets installed. Billing against observable progress is easier to defend than billing by calendar date.
Get a signed or emailed approval with the price before you do extra work. Then list it as its own line on the next invoice with the approval date.
Exchange waivers with payments so the client knows their property is clear, and so your subs and suppliers are paid before you bill the next draw. Unpaid subs can file liens against the client even if the client paid you.
Front-load the schedule enough to cover materials orders and sub deposits, but avoid collecting far more than the work completed. It protects you if a dispute arises and may be required by state law.
Waiting a week to bill after drywall or final paint slows your cash flow. Send the invoice with photos of the completed work attached.
Use fixed price when the scope is clear and drawings or a detailed list exist. Use time and materials or cost-plus when the scope is uncertain, such as repair work that may uncover hidden damage. Many contractors use fixed price for the main contract and time and materials for change orders.
Ten to 25 percent is typical on materials and subcontractor costs, with smaller jobs toward the higher end. The markup needs to cover your overhead, such as insurance, trucks, estimating time, and warranty callbacks, as well as profit.
It depends on the state. Some states tax materials in a construction contract, some tax labor on certain work, and some tax neither for real property improvements. Check with your state's department of revenue before setting up your invoice format.
Keep a signed punch list and set a reasonable holdback in your contract, such as 150 percent of the value of the remaining items. Complete the items promptly and invoice the balance. If it is still unpaid, send a written demand and look into your state's lien deadlines early.
Yes, if your contract says so. List dumpster rentals, disposal fees, and delivery charges as separate lines or build them into your bid. Mileage and trip charges are more common on small service calls than on large projects.
Send a Contractor estimate for approval, then turn it into an invoice when the work is done.
Contractor estimate template