Subcontractor Invoice Template for Construction (Free)

Quick answer: A construction subcontractor invoice template bills the general contractor (GC) for your share of a project. It shows the subcontract amount, approved change orders, work completed this period and to date, retainage withheld, previous payments and the current amount due, and it is usually submitted with a lien waiver by the GC's monthly cutoff.

Billing a general contractor is very different from billing a homeowner. Your invoice joins dozens of others in the GC's monthly pay application to the owner or lender, and if yours is late, incomplete or missing a waiver, it waits another month. This guide explains how a subcontractor invoice template works, walks through retainage and lien waivers, shows a complete worked example, and lists the mistakes that hold up subcontractor payments.

What is a subcontractor invoice?

A subcontractor invoice is a request for payment from a trade contractor (electrical, plumbing, HVAC, drywall, framing, concrete, roofing, painting and so on) to the contractor that hired it, usually the GC. On small jobs it may be a simple itemized invoice. On commercial and larger residential projects it is a progress billing document, often called a pay application or pay app, that follows the GC's format.

If you are new to construction billing, our construction invoice guide covers the overall flow, and the progress billing guide explains how percent-complete invoicing works.

How subcontractor billing flows on a construction project

1. Subcontract signed. Sets the contract sum, scope, billing cutoff, retainage percentage and payment terms.
2. Schedule of values approved. Your contract sum is split into line items (for example mobilization, rough-in by floor, trim, close-out).
3. Monthly pay application. By the GC's cutoff (often around the 20th to 25th), you submit percent complete per line, change orders and stored materials.
4. GC review. The project manager checks your percentages against the site.
5. GC bills the owner. Your amount is rolled into the GC's pay application.
6. Owner or lender pays the GC. Often after an architect or lender inspection.
7. GC pays you per your subcontract and any state prompt payment law, less retainage.
8. Lien waivers exchanged. Conditional with the invoice, unconditional after payment clears.
9. Close-out. You bill retainage after completion with final waivers, warranties and as-builts.

Subcontractor invoice template: required fields

Field	What to enter
Your company details	Name, address, license number, contact, logo
Bill to	GC legal name and accounts payable address or email
Project	Project name, address, GC job number, subcontract or PO number
Application details	Application number, period from and to, invoice date
Original subcontract sum	From the signed subcontract
Net change orders	Approved changes only
Contract sum to date	Original plus net change orders
Completed and stored to date	From your schedule of values
Retainage	Percentage and dollar amount held
Previous certificates or payments	Total billed in prior applications
Current payment due	Earned less retainage less previous billings
Attachments	Conditional lien waiver, certified payroll if required, change order copies

For simpler jobs, you can create this in our free invoice generator with the schedule of values as line items. If the GC requires AIA forms, see our guide to AIA G702 and G703 billing.

Retainage: how to show it on a subcontractor invoice

Retainage (or retention) is money the GC withholds from each payment as security until the work is complete. It is commonly 5% or 10% of each progress payment. Many states cap retainage on public projects and a growing number cap it on private projects too. For example, New York amended its prompt payment law in 2025 so that retainage above 5% on covered private construction contracts is void, and California capped private-project retention at 5% for contracts entered on or after January 1, 2026. Rules change and have exceptions, so check your state's current statute before relying on any cap.

On each invoice, show retainage two ways: the amount withheld this period and the total retainage held to date. At project close-out you send a separate retainage invoice for the accumulated amount. Some subcontracts reduce retainage to a lower percentage once the work is 50% complete; if yours does, show the reduction clearly.

Subcontractor invoice example: electrical rough-in, application 3

This sample shows an electrical subcontractor's third monthly pay application with 10% retainage. Figures are illustrative.

Brightline Electric LLC | Pay Application 3 | Period: Oct 1 to Oct 25, 2026 | Date: October 25, 2026
To: Cornerstone Builders Inc., Accounts Payable | Project: Riverside Medical Office, Job 2614 | Subcontract SC-2614-08

Schedule of values item	Scheduled value	% complete	Completed to date
Mobilization and permits	$6,000.00	100%	$6,000.00
Underground and slab conduit	$18,000.00	100%	$18,000.00
Rough-in, floor 1	$32,000.00	90%	$28,800.00
Rough-in, floor 2	$32,000.00	40%	$12,800.00
Switchgear and panels	$24,000.00	0%	$0.00
Trim and devices	$20,000.00	0%	$0.00
Close-out and testing	$8,000.00	0%	$0.00
CO-01 (approved Sept 30): add EV charger circuits	$4,500.00	100%	$4,500.00
Totals	$144,500.00		$70,100.00

Summary	Amount
Original subcontract sum	$140,000.00
Net change orders	$4,500.00
Contract sum to date	$144,500.00
Total completed to date	$70,100.00
Less retainage (10%)	-$7,010.00
Total earned less retainage	$63,090.00
Less previous applications (1 and 2)	-$37,800.00
Current payment due	$25,290.00
Balance to finish, including retainage	$81,410.00

How the math works: $70,100 has been earned to date. Holding back 10% retainage ($7,010) leaves $63,090. The first two applications billed $37,800 after retainage, so this period's payment is $25,290. The balance to finish is the contract sum to date minus earned less retainage ($144,500 minus $63,090 = $81,410), which includes the $7,010 retainage still held. A conditional progress lien waiver for $25,290 is attached.

Lien waivers: what to send with each invoice

GCs, owners, lenders and title companies use lien waivers to confirm that subcontractors have been paid and give up lien rights for the amounts covered. There are four common types:

Type	When to use	Risk to you
Conditional progress	With each progress invoice	Low: effective only when payment is received
Unconditional progress	After a progress payment clears	High if signed before payment
Conditional final	With the final and retainage invoice	Low: effective only on payment
Unconditional final	After final payment clears	High if signed before payment

Some states, including California, Texas and others, require specific statutory waiver forms. Read our full guide to the lien waiver, and understand your mechanics lien rights and deadlines, including any preliminary notice you must send at the start of the job to preserve them.

How to create a subcontractor invoice step by step

1. Check the subcontract. Confirm the billing cutoff, format, retainage rate and required attachments.
2. Update the schedule of values. Enter honest percent complete per line. Overbilling damages trust and can backfire at close-out.
3. Add approved change orders only. Pending changes go in a separate log, not on the invoice.
4. Add stored materials if allowed, with supporting documents.
5. Calculate retainage, previous billings and current due.
6. Attach the conditional lien waiver and any certified payroll or insurance documents.
7. Submit before the cutoff to the right contact, and keep proof of submission.
8. Follow up on the payment date in your subcontract, and send the unconditional waiver once funds clear.

How to bill change orders and extra work as a subcontractor

Change orders are the biggest source of unpaid money for subcontractors. The GC's superintendent asks for "a few extra outlets" or a moved wall, you do the work to keep the job moving, and months later the change was never priced or approved. Protect yourself with a simple routine:

1. Get a written directive. Even an email or a signed field ticket from the superintendent is better than nothing.
2. Price it quickly. Send a change order request with labor, materials, equipment and markup within the time your subcontract requires, which is often only a few days.
3. Track time and materials if the price is unknown. Daily signed tickets showing crew hours and materials let you bill later on a time and materials basis.
4. Bill only approved changes on the pay app. Keep a separate change order log of pending items, and raise it at every project meeting.
5. Watch for overtime requests. If the GC asks you to accelerate, agree on who pays the premium time before your crew works it. Our guide on how to invoice for overtime covers the details.

Approved change orders become new lines on your schedule of values, as with CO-01 in the example above. That keeps the original subcontract sum visible and makes it easy for the GC to pass the cost through to the owner.

Simple invoices for small subcontract jobs

Not every subcontract needs a full pay application. Small residential builders often accept a standard itemized invoice for a one-week job, such as a drywall hang and finish or a single-family plumbing rough-in. In that case, list the job address, lot number, the builder's PO, the phase of work, quantities and rates, and the total. Even on simple invoices, show the builder's job number and attach a conditional waiver if the builder's lender requires one.

Common subcontractor invoicing mistakes

• Missing the cutoff. A late pay app can delay payment by a full month.
• Billing unapproved change orders. GCs reject them and may hold the whole invoice. Get signed change orders first; see our guide to change orders.
• Signing unconditional waivers early. Only sign after the money clears.
• Forgetting retainage at close-out. Set a reminder; retainage is often the profit on the job.
• Front-loading the schedule of values. Inflated early line items get noticed and cut.
• Wrong legal name or job number. AP teams reject invoices that do not match the subcontract.
• Missing lien notice deadlines. Preliminary notices may be due within days of starting work.

Taxes and paperwork for subcontractors

Most GCs ask for a Form W-9 before your first payment. For payments made in 2026, the Form 1099-NEC reporting threshold is $2,000 under current federal law (up from $600), per the IRS Form 1099-NEC page; see our W-9 and 1099 guide. Sales tax on construction materials and labor varies by state and by whether the project is a capital improvement or repair. This is general information, not legal or tax advice; check your subcontract and state law, or ask a construction attorney or CPA.

If you also hire lower-tier subcontractors, our guide to how to pay contractors covers onboarding and payment methods from the other side.

A clean subcontractor invoice template with your schedule of values, change orders, retainage and lien waiver gets approved the first time and paid on schedule. For smaller jobs or GCs that accept standard invoices, build yours in our free invoice generator: no sign-up is required, the PDF is created in your browser, and you can download it ready to attach to your pay application.