Subcontractor Invoice Template

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. 

A subcontractor invoice is a professional method of communication between subcontractors and general contractors 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.

A subcontractor invoice is the most standard method of billing and payment processing for subcontractors. These invoices can be accompanied by formal payment agreements, escrow services, purchase orders, or retainer agreements to ensure the security of funds.

Detailed timesheets are a common alternative to subcontractor invoices, as they track billable hours that can be directly processed for payment calculations. Subcontractors can also use timesheet software to automate work-hour tracking and create accurate reports for billing. 

A subcontractor invoice typically includes:

• The name and contact details of the subcontractor
• The invoice number and issue date for recordkeeping
• The general contractor’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
• The subcontractor’s tax code and payment terms
• 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.