Time and Materials Invoice Template
Download a time and materials invoice template to bill verified labour hours, materials, equipment, travel, markups, tax, and approved job costs clearly.
Bill Verified Labour, Materials, and Equipment Clearly
A time and materials invoice gives subcontractors a structured way to bill customers for the actual labour hours, materials, equipment, travel, and other approved costs used to complete construction work. It is commonly used when the final scope cannot be priced accurately in advance or when additional work is authorised on a cost-plus basis.
This Time and Materials Invoice Template is designed for subcontractors, specialty contractors, service contractors, project managers, supervisors, and accounts teams. It can be used for emergency work, repairs, troubleshooting, daywork, service calls, incomplete scopes, approved additional work, and projects billed using agreed labour rates and material markups.
What Is a Time and Materials Invoice?
A time and materials invoice is a request for payment based on the actual resources used to perform work. Labour is usually billed by classification and hour, while materials, equipment, travel, subcontractor costs, and other charges are billed using documented quantities, agreed rates, and approved markups.
The invoice should connect each charge to supporting records such as signed timesheets, daywork sheets, delivery notes, supplier receipts, equipment logs, work orders, or written customer authorisations.
When to Use This Template
- Billing emergency or reactive construction work
- Charging for repairs, troubleshooting, or service calls
- Invoicing daywork or force-account work
- Billing approved work outside the original contract scope
- Charging for work where quantities cannot be confirmed in advance
- Billing labour, materials, and equipment using agreed rates
- Submitting open-book or cost-plus invoices
- Reconciling authorised job costs at project closeout
Who Should Use This Template?
This template is suitable for subcontractors, specialty contractors, service contractors, trade contractors, project managers, site supervisors, commercial teams, and accounts staff responsible for documenting and billing actual job costs.
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, maintenance, and other construction trades.
What a Time and Materials Invoice Should Include
| Invoice Section | Purpose |
|---|---|
| Contractor and Customer Details | Identifies the subcontractor, customer, billing contact, and project contact. |
| Invoice and Work References | Links the invoice to the project, purchase order, work order, change order, service request, or daywork authorisation. |
| Labour Detail | Records employee or crew classification, work date, hours, rate type, hourly rate, and labour charge. |
| Materials | Lists materials, quantities, unit costs, supplier references, handling charges, and agreed markups. |
| Equipment | Records plant, tools, vehicles, access equipment, duration, rate basis, and equipment charges. |
| Travel and Mobilisation | Captures travel time, mileage, parking, tolls, accommodation, delivery, mobilisation, and demobilisation. |
| Subcontractor and Other Costs | Includes approved specialist services, permits, disposal, testing, and other reimbursable project costs. |
| Markup or Fee | Applies agreed category-specific markups, handling charges, or cost-plus fees. |
| Supporting Documentation | References signed timesheets, daywork sheets, receipts, delivery notes, equipment logs, and approvals. |
| Tax and Amount Due | Calculates net charges, tax, credits, prior payments, and the final amount payable. |
How to Use the Template
- Enter the contractor, customer, project, invoice, and authorisation details.
- Confirm the agreed labour rates, overtime rules, material markups, equipment rates, and minimum charges.
- List labour by work date, employee or classification, hours worked, and applicable rate type.
- Enter materials using supplier invoices, receipts, delivery notes, or approved inventory rates.
- Record equipment, vehicle, access, travel, mobilisation, and other approved charges.
- Apply the agreed markup or fee to the correct cost categories.
- Reference the supporting record for every billable line item.
- Calculate the net subtotal, tax, credits, previous payments, and current amount due.
- Review the invoice against signed timesheets, work orders, and customer approvals.
- Save the issued invoice and retain the supporting documents with the billing record.
An HVAC subcontractor completes an emergency weekend repair at a commercial property. The invoice includes 12 standard technician hours, 8 weekend premium hours, 4 apprentice hours, replacement valves and fittings, refrigerant, access-equipment hire, parking, and disposal costs. Material receipts and signed service sheets are referenced on the invoice, and the agreed 12% material markup is applied before tax.
Best Practices for Time and Materials Billing
- Obtain written authorisation before starting billable work.
- Use approved labour, overtime, equipment, and material rates.
- Record labour hours daily rather than reconstructing them later.
- Use clear work descriptions that explain what was completed.
- Reference signed timesheets or daywork sheets for labour charges.
- Attach supplier receipts, invoices, and delivery records for materials.
- Apply markups only to the cost categories allowed by the agreement.
- Separate standard time, overtime, weekend, and emergency labour.
- Reconcile returned, unused, or credited materials before invoicing.
- Check every line item against the customer’s billing requirements.
Common Time and Materials Invoice Mistakes
- Billing work without written customer authorisation
- Using labour or equipment rates that differ from the agreed schedule
- Combining standard and overtime hours without explanation
- Applying markup to categories excluded by the contract
- Failing to attach signed timesheets or material receipts
- Billing estimated quantities instead of actual verified quantities
- Charging for returned or unused materials
- Using vague descriptions such as “miscellaneous labour”
- Omitting travel, mobilisation, or minimum charges that were authorised
- Submitting duplicate receipts or previously invoiced costs
Frequently Asked Questions
What does time and materials billing mean?
Time and materials billing charges the customer for actual labour time, materials, equipment, and other approved costs used to complete the work. Rates and markups should be agreed before billing begins.
What documents should support a time and materials invoice?
Common supporting records include signed timesheets, daywork sheets, work orders, supplier invoices, receipts, delivery notes, equipment logs, photographs, and written customer approvals.
How should labour be shown?
List labour by date, employee or classification, work description, standard or premium hours, hourly rate, and total charge. Separate overtime, weekend, holiday, and emergency rates where applicable.
Can materials include a markup?
Yes, when the contract or written authorisation allows it. Show the material cost, applicable markup percentage or fee, and resulting selling amount clearly.
Should equipment be billed hourly or daily?
Use the agreed rate basis. Equipment may be billed hourly, daily, weekly, per use, or at a fixed mobilisation rate. The invoice should state the quantity, duration, and minimum charge where applicable.
Can a time and materials invoice include a not-to-exceed limit?
Yes. Record the authorised limit and compare cumulative billing against it. Obtain additional approval before charges exceed the authorised amount.
Connect Every Charge to Verified Work
A structured time and materials invoice helps subcontractors show exactly which labour, materials, equipment, and approved costs were used. Clear rates, authorisations, and supporting references make each charge easier to verify and reconcile.
An XLSX workbook provides a practical way to prepare detailed invoices and retain supporting cost records. As work progresses, SimplySub can help subcontractors organise estimates, jobs, change orders, purchase orders, time records, expenses, invoices, documents, and job-cost information.