Subcontractor Invoice Template

What is a Subcontractor Invoice?

A subcontractor invoice is a structured document used by subcontractors to request payment for work completed. It provides a detailed breakdown of costs, including labor, materials, and project details, ensuring accurate recordkeeping and smooth payment processing. 

 

(Freepik)

 

What are the Benefits of Using a Subcontractor Invoice?

A subcontractor invoice is a professional method of communication between subcontractors and clients regarding completed work and payment terms. Some key advantages of using a subcontractor invoice are:

 

  • Financial Transparency: A subcontractor invoice clearly outlines the amount owed for a certain job. Additionally, it helps subcontractors keep an eye on cash flow.
  • Enhanced Credibility: With a complete and accurate record of tasks performed in a specific project and their costs, an invoice increases the professional credibility of a subcontractor.
  • Legal Protection: These invoices can serve as proof of performed work and owed payments in payment disputes.
  • Customization: Subcontractor invoice templates can be customized for specific projects to include hourly billing, flat fees, or milestone-based payments.

 

What are the Alternatives to a Subcontractor Invoice?

Although a subcontractor invoice is the most common and standard method of billing and payment processing for subcontractors, there are some alternatives that can be used. These include:

 

  • Formal payment agreements that outline the scope of work, payment milestones, and project deadlines
  • Direct payments without an invoice
  • Payroll systems
  • Escrow services
  • Purchase orders issued before the start of a project to confirm work and cost details
  • Detailed timesheets with tracked billable hours for payment calculation
  • Retainer agreements that pay a fixed amount to the subcontractor

 

The feasibility of these alternatives depends on the nature of the project and mutual agreement between parties.

 

What is Included in a Subcontractor Invoice?

A subcontractor invoice typically includes:

 

  • The name and contact details of the subcontractor
  • The invoice number and issue date for recordkeeping
  • The client’s billing details, including name and address
  • A description of the work performed (e.g., electrical installation, fittings, system setup)
  • The project or site reference where the work was completed
  • A breakdown of costs, including materials, labor rates, quantity, and total amount
  • A section for additional notes or clarifications regarding the invoice

You can use a customizable subcontractor invoice template to adjust and modify fields to align with your business needs.

screenshot of jibble's free subcontractor invoice template

Jibble’s free subcontractor invoice template

We’ve created a 100% free subcontractor invoice template that you can tailor to your requirements. Download below!

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