Subcontractor Invoice Template
Download a subcontractor invoice template to bill labour, materials, equipment, progress work, approved changes, tax, retention, and project charges clearly.
Prepare Clear Invoices for Subcontract Work
A subcontractor invoice gives trade contractors a structured way to request payment for completed labour, installed materials, equipment use, measured work, approved variations, and other project charges. A clear invoice helps the main contractor, construction manager, developer, or customer verify what has been completed and match the billing to the contract, purchase order, and project records.
This Subcontractor Invoice Template is designed for subcontractors and specialty contractors working under fixed-price contracts, schedules of rates, progress-payment arrangements, service agreements, or time-and-material authorisations. It can be used for interim invoices, monthly valuations, milestone payments, service work, approved change orders, retention releases, and final accounts.
What Is a Subcontractor Invoice?
A subcontractor invoice is a formal request for payment submitted by a subcontractor for work completed or costs incurred under an agreed scope. It may include contract work, measured quantities, labour hours, materials, equipment, approved changes, tax, retention, credits, previous payments, and the current balance due.
On larger projects, the invoice may support a payment application or valuation that shows the original subcontract value, approved variations, work completed to date, prior amounts billed, retention, and the remaining value of the subcontract.
When to Use This Template
- Submitting monthly or periodic subcontract invoices
- Billing completed fixed-price work
- Claiming progress against a schedule of values
- Charging for measured or unit-rate work
- Billing time-and-material labour, materials, and equipment
- Invoicing approved variations or change orders
- Requesting release of retention
- Preparing a final subcontract account
Who Should Use This Template?
This template is suitable for subcontractors, specialty contractors, trade contractors, service contractors, project managers, quantity surveyors, contract administrators, accounts teams, and business owners responsible for project billing.
It can be adapted for electrical, plumbing, HVAC, fire protection, roofing, concrete, steelwork, framing, drywall, painting, flooring, glazing, waterproofing, masonry, demolition, excavation, landscaping, civil works, and other specialist trades.
What a Subcontractor Invoice Should Include
| Invoice Section | Purpose |
|---|---|
| Subcontractor Details | Identifies the subcontractor’s legal name, trading name, address, contact information, company number, and tax registration details. |
| Customer Details | Records the main contractor, construction manager, developer, or direct customer responsible for payment. |
| Invoice Information | Shows the invoice number, invoice date, due date, payment terms, and billing period. |
| Project References | Links the invoice to the project, subcontract, purchase order, work order, package, and cost code. |
| Schedule of Values | Shows the subcontract value by activity or work package and the amount completed to date. |
| Current Work | Describes the labour, materials, equipment, quantities, milestones, or percentage completion being billed. |
| Approved Variations | Separates approved additions and deductions from the original subcontract amount. |
| Retention | Records retention withheld, retention released, and the remaining retention balance. |
| Previous Billing | Shows prior invoices, payments, credits, and the total amount billed to date. |
| Tax | Calculates applicable tax and identifies the tax treatment of the invoice. |
| Supporting Documents | References timesheets, delivery notes, progress reports, signed daywork sheets, photographs, and approved change records. |
| Payment Details | Provides remittance instructions, bank details, and the payment reference. |
How to Use the Template
- Enter the subcontractor, customer, project, subcontract, and purchase-order information.
- Assign a unique invoice number and confirm the billing period, invoice date, and due date.
- List the subcontract activities, schedule-of-values items, or work packages being billed.
- Enter the quantity, percentage complete, labour hours, material value, equipment cost, or milestone amount for each line.
- Separate original subcontract work from approved variations and credits.
- Record previous billing, payments received, retention withheld, and retention released.
- Calculate the current net value, tax, gross invoice total, and current amount due.
- Attach or reference the required supporting records.
- Check the invoice against the subcontract and customer billing requirements.
- Save the issued version and update the invoice register when payment is received.
A drywall subcontractor submits a monthly invoice for a commercial office project. The subcontract includes metal framing, plasterboard installation, insulation, taping, and finishing. The current invoice bills £18,500 for completed framing and boarding, £4,200 for an approved ceiling bulkhead variation, and a £600 credit for omitted wall lining. After deducting 5% retention and accounting for £42,000 billed previously, the invoice shows the current amount due and the remaining subcontract value.
Best Practices for Subcontractor Invoicing
- Use the customer’s required invoice and payment-application format.
- Reference the correct subcontract, purchase order, work package, and project number.
- Use the same schedule-of-values structure throughout the project.
- Separate original scope, approved additions, deductions, and credits.
- Bill only approved or contractually billable work.
- Show previous billing, current billing, and billed-to-date values clearly.
- Apply retention and tax consistently with the subcontract.
- Attach signed timesheets, delivery notes, photographs, or progress records where required.
- Check that the invoice does not exceed the remaining subcontract value.
- Keep issued invoices, supporting records, and payment information together.
Common Subcontractor Invoice Mistakes
- Submitting the invoice without the required purchase-order number
- Using a different schedule-of-values structure from previous invoices
- Billing unapproved variations as original subcontract work
- Failing to deduct prior invoices, credits, or deposits
- Applying the wrong retention percentage
- Using vague line-item descriptions
- Omitting signed daywork sheets or other supporting records
- Billing more than the remaining subcontract value
- Using a duplicate invoice number
- Missing the customer’s billing cutoff or submission deadline
Frequently Asked Questions
What is the difference between a subcontractor invoice and a payment application?
A subcontractor invoice is a request for payment. A payment application usually provides more detailed progress information, including the schedule of values, percentage complete, previous applications, current work, retention, and the remaining subcontract balance. Some customers require both documents.
What is retention on a subcontractor invoice?
Retention is an amount withheld from payment until specified contractual conditions are satisfied. The invoice should show retention withheld on the current claim, retention held to date, any retention released, and the remaining balance.
Can approved variations be included on the same invoice?
Yes. Approved additions and deductions can be included, but they should be shown separately from the original subcontract work and linked to the relevant variation or change-order reference.
How should daywork or time-and-material work be invoiced?
List labour classifications, hours, rates, materials, equipment, travel, and other approved charges separately. Reference signed daywork sheets, delivery records, receipts, or other documentation required by the customer.
What supporting documents may be required?
Requirements vary by project, but common supporting documents include signed timesheets, delivery notes, progress photographs, purchase orders, approved variations, inspection records, completion certificates, and supplier invoices.
What should be included on a final subcontractor invoice?
The final invoice should reconcile the original subcontract, approved additions and deductions, all previous billing, payments, credits, retention, tax, and the final balance due. It should also identify any retention that remains withheld.
Make Subcontract Billing Easy to Verify
A structured subcontractor invoice helps project teams verify completed work, approved changes, retention, tax, and the remaining subcontract value. Clear references and supporting records can reduce queries and make payment reconciliation easier.
An XLSX workbook provides a practical starting point for subcontract billing. As projects progress, SimplySub can help subcontractors organise estimates, jobs, change orders, purchase orders, time records, expenses, invoices, documents, and job-cost information.