General contractors manage residential and light commercial construction projects, from kitchen and bath remodels to additions, decks, and whole-house renovations. They hire and coordinate subcontractors, order materials, pull permits, and bill the client for labor, materials, subcontractor work, and their own management fee. Invoices usually follow a contract schedule, such as a deposit, progress draws, and a final payment at completion.
Create an invoice for payment collection
Upload logo
PDF will be generated with filename:
Invoice_1001_Client_2026-10-14.pdf
General contractors price in a few common ways. Fixed-price (lump sum) contracts set one total for a defined scope and are typically billed in draws tied to milestones. Cost-plus contracts bill actual labor, materials, and subcontractor costs plus a markup or fixed fee, often 10-25 percent, with receipts backing each charge. Time and materials is common for small repairs and punch-list work, billed per hour with materials at cost plus markup. Some contractors quote by square foot for new construction, additions, and finish work as a planning number, but still bill against a schedule of values. Change orders are priced separately and added to the contract total. Overhead and profit, usually 15-30 percent combined on top of direct costs, are built into the numbers whichever model you use.
| Service | Priced | Typical range |
|---|---|---|
| General contractor labor (small jobs, T&M) | per hour | $55-125 |
| Project management / supervision (cost-plus) | percent of cost | 10-25% |
| Kitchen remodel (mid-range) | flat fee | $25,000-75,000 |
| Bathroom remodel | flat fee | $10,000-30,000 |
| Room addition | per sq ft | $150-350 |
| Deck construction (wood) | per sq ft | $30-65 |
| Interior painting (labor and materials) | per sq ft of floor area | $2-6 |
| Permit handling and coordination | flat fee | $250-1,000 |
Typical US ranges. Rates vary by region, experience, and job size.
| Description | Qty | Rate | Amount |
|---|---|---|---|
| Progress draw #2: Demolition complete, framing and rough plumbing/electrical passed inspection (30% of $38,000 contract) | 1 draw | $11,400.00 | $11,400.00 |
| Change order #1: Relocate sink drain and add under-cabinet outlets | 1 flat fee | $1,250.00 | $1,250.00 |
| Additional carpentry labor, reframe window opening (T&M) | 6 hours | $85.00 | $510.00 |
| Lumber and headers for window reframing (cost plus 15%) | 1 lot | $437.00 | $437.00 |
| Dumpster rental, 20-yard, second haul | 1 each | $525.00 | $525.00 |
| Total | $14,122.00 | ||
Notes: Project: Smith kitchen remodel, 214 Maple St. Contract dated 3/4. Draw #2 per payment schedule. Payment due within 7 days of invoice date. Lien waiver for payment through this draw attached. Checks payable to the company name above; ACH and card accepted, card payments add 3%.
Many states require the license number on contracts and sometimes invoices, and it tells the client and any lender you are legitimate.
Ties the invoice to a specific job and agreement, which matters if you have several jobs with the same client or a dispute arises.
Clients and lenders want to see that the amount matches the work finished, not just a number.
Shows the running position on the job so the client can reconcile against the contract and the bank can release funds.
Keeps extra work from being disputed later. Reference the signed change order number and its amount.
Cost-plus clients are paying for actual costs and expect backup. Attach receipts or sub invoices.
In many states, clients and lenders expect a conditional or unconditional lien waiver with each payment. Check your state's rules on required forms.
Most residential contractors collect a deposit at signing, often 10-30 percent where state law allows, since some states cap deposits. The remainder is billed in progress draws tied to milestones such as demolition, rough-in inspections, drywall, cabinet install, and substantial completion, with a final payment held until the punch list is done. Draws are commonly due within 3-10 days of invoice, and final payments on receipt or within 7 days. Late fees of 1-1.5 percent per month are common if stated in the contract, though some states limit them. Checks, ACH, and wire are typical for large amounts; card payments are accepted by some contractors with a surcharge where permitted. Some contractors keep the right to pause work if a draw is late, and that right should be written in the contract.
Write the payment schedule so each draw matches finished work, such as framing inspection passed or tile complete. Clients pay faster when they can see the progress, and you avoid being financially ahead of the job.
Get a signed change order with the cost and any schedule impact before starting extra work. Verbal approvals are the most common source of unpaid balances on remodels.
Front-load the schedule modestly so deposits and early draws cover materials and sub payments. You should not be financing the client's project from your own credit line.
Give clients a waiver when you are paid, and get waivers from your subs and suppliers when you pay them. This protects you and the homeowner from duplicate payment claims.
Send the final invoice with a completed punch list and any warranty information. A short, clear closeout helps avoid retainage disputes.
It depends on the state. Many states cap residential deposits at a percentage of the contract or a fixed dollar amount, and some require deposits to be tied to work or materials. Check your state licensing board rules, then state the deposit and schedule clearly in the contract.
Typical markup is 10-25 percent on materials and subcontractor costs, or a management fee of similar size on cost-plus jobs. Overhead and profit combined are often 15-30 percent. Small jobs usually need higher markup to cover minimum time and overhead.
Either works if it is in the contract. Milestone draws are simpler for homeowners to verify, while percent-complete billing is common on larger jobs and when a lender requires a schedule of values. Pick one method and use it consistently.
Retainage is a portion of each payment, often 5-10 percent, held until the project is complete. It is common on commercial work and public jobs, and less so on residential. If your contract includes it, show the amount held on each invoice and invoice for it at closeout.
It varies by state. In many states a contractor pays sales tax on materials and does not charge it to the client on a lump-sum contract, while some states require tax on certain materials or on separately stated items. Check with your state revenue department or a tax professional.
Send a General Contractor estimate for approval, then turn it into an invoice when the work is done.
General Contractor estimate template