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Getting paid on time is crucial in the construction industry. As a business owner, providing your clients with an accurate and comprehensive invoice can help speed up the process. Skynova's invoice template allows construction businesses to create and customize professional invoices in just minutes.
You can use programs like Excel or Word, which also offer invoice templates, but they often require more steps that make it take that much longer to deliver an invoice. Using Skynova's invoice template, you can easily edit and send your invoice on-site, as well as download a printable PDF for later use. This gives you more time to focus on what matters, which is growing your construction business. Check out the construction invoice template we've made below to help your business:
Managing your construction company's accounts might be imperative to your success, but it isn't always fun. It's probably even less enjoyable in an industry notorious for slow payments. In fact, late payments cost the industry $64 billion in 2019.
You deserve to be paid on time for your work, though. Establishing a method for invoicing clients can help keep track of what you're owed. Skynova's invoice template makes it easier than ever for you to create a professional invoice and streamline your payment process.
Our template is easy to use when creating a professional construction invoice. Follow the steps outlined below to produce an invoice that suits your company's needs.
Of all the information that you should include on your invoice, two of the most essential items are the name and address of your business and the client who owes you payment. These should appear in separate fields: one for your business and your address and another for your client's name and their address.
This information should be prominent on your invoice and easy to read. You don't want there to be any confusion on your client's end when they receive your invoice. They should immediately know who it's from.
If you have additional contact information for your clients, such as a phone number or email address, you might also want to include it in these sections. This information might be helpful as the payment process proceeds. If your client has any questions, they'll be able to look at the invoice and find a phone number they can call immediately.
Also, before sending out your invoice, double-check the contact information you have on file for your client, particularly their address. Accidentally sending an invoice to the wrong place might delay the payment process.
Our platform automatically creates and includes a unique invoice number for each invoice you send to clients. This will help you track payments and make it easier to ensure accurate accounting for your business.
As an example, if you built a shed for a client before completing work on an addition to their kitchen, you would bill them first for the shed. When you finish the kitchen addition, you would send a second invoice to your client. Each invoice would include a separate invoice number. Your client will reference these invoice numbers when they submit their payment to you, so you know which job the money is for.
When filling out a construction invoice form, it's also important to include basic information, like your company name, an invoice date, and a due date. Communication is key to any business relationship and spelling out these dates clearly in writing for both parties will make for a smoother payment process. After all, you deserve to be paid on time for your hard work.
When choosing an invoice date, most people simply select the date that the invoice is created. Even if you complete the work on a different day, you will still use the date you create and send out your invoice as the invoice date.
For due dates, the standard is Net 30, which means payment is due 30 days from the invoice date. You can choose any length of time that suits you, though — seven, 14, or 30 days from the invoice date, for instance. Whichever you select, just be sure to convey these due dates with your clients before work begins and state it clearly in your invoice. You might also consider adding financial penalties if due dates are missed or discounts for early payments to entice clients to pay on time.
When invoicing clients for completed construction work, it's also important to include the cost of your building materials and other supplies bought specifically for their project on your invoice. Typically, construction companies charge their clients for these items and this is worked out between the two parties in advance.
It's important to accurately track how much you spent on these items throughout construction and then include this number on your invoice. This will ensure that your client properly pays you for any materials you purchased.
Skynova's construction invoice template allows you to itemize these materials. In addition to the item and a description of it, our invoice also includes a space for the unit price (how much a single item costs) and quantity (how many of this item you purchased and are invoicing for).
You can determine how specific your business wants to be when itemizing your invoice. If you bought several sizes of nails for the project, it would make sense to bundle them under one line item. Larger items, such as different types of wood, appliances, or fixtures, should each have their own line, though.
Once you enter the total cost of supplies and the quantities, our construction invoice template does the math for you. It automatically calculates the total amount for this line item.
Your construction invoice should also include labor costs. How you charge for labor will be determined by the size of your company and the scope of your client's project.
If you're a handyman who works independently doing small- to medium-sized projects and quick repairs for individuals and businesses, you could choose to either charge an hourly, daily, or flat rate. This would be based on each specific project. Maybe you offer a flat rate for common work (like installing a fence) based on its length, and charge by the hour or day for more involved work (like laying a foundation) because it's more complicated. You also might charge different hourly rates for different types of jobs.
It gets a bit more complicated if you're the business owner of a larger construction company. If you have a crew that works for you, you need to include their hourly wages in your cost of labor, as well as a markup for yourself.
Remember, if you choose to charge by the hour, it's important to accurately track all of the hours you spend on the job. Your client might request this information if they have questions about your invoice.
Skynova's construction invoice template lets you customize your invoice based on whether you're charging an hourly rate or a fixed price. If you're charging hourly, once you've completed your work, tally the number of hours you spent working and include those in the "Quantity" section of the invoice. Then, under "Unit Price," add your hourly rate.
If you charge a fixed rate per project, you would type the number "1" — presuming you only completed one project of that type — under "Quantity." Then, under "Unit Price," enter your fixed rate for that project.
After you enter these numbers, our invoice template takes over once again and calculates the total amount for this line item. There's no need for you to worry about the math. As always, make sure you're upfront with your client about how you charge for labor and include it in your contract.
If you offer a discount on your services for a first-time client or a client referral — $50 off of four hours of work, for instance — you can include this on your invoice as well. Under the "Item" drop-down menu, select "Discount."
Type your discount into the "Unit Price" field. If your discount is $50, it will appear in this field as a negative number, such as "-50." In the "Quantity" field, include the number of discounts offered, which will, presumably, be one.
Skynova's invoice template will calculate the total discount amount for you. Once you're done writing your invoice, the template will deduct this discount from the total your client owes.
For some construction jobs, you might have additional information you wish to convey to your client regarding the work you completed for them and their invoice. The "Notes" section of our invoice template is an excellent space to communicate additional thoughts on any item on their bill.
In this area, you can further explain specific line item charges or discounts you've given them. You might also want to leave a kind note thanking them for their business in this area.
Our construction invoice template lightens your workload by helping you build an invoice that suits your construction business's needs. A professional invoice goes a long way in ensuring prompt payment from clients.
Of course, there's more to getting paid for your work than simply submitting an invoice to your client. We've compiled additional tips and best practices to keep in mind to make for a smoother billing process.
Even before you start a project, your client will likely request an estimate for the work that needs to be done. To keep clients happy, there shouldn't be much difference between your original quote and your final invoice for them.
This means you need to have a firm grasp of how long specific jobs will take you (especially if you're billing hourly), what the work entails, and how much materials will cost. Skynova's estimate template can help you create a professional estimate for your clients before starting a job. Our template lets you customize a comprehensive estimate ahead of each project you're hired to complete.
It's common in the construction field for contractors to purchase supplies for each job and then bill their clients for them. Those purchase types might require a contractor invoice. Before any items are purchased, though, you should discuss your client's budget with them. Review all materials needed to complete their project. If possible, offer options in various price ranges for them to choose from. You should never make any decisions regarding the cost of materials without consulting your client first.
Before starting a project, discuss all payment terms and conditions with your client. Once you've agreed on things like rates and payment information, the scope of your work, and deadlines for completion, compile this information in a contract to be signed by both parties. What you include in this contract should ultimately match what is in your invoice to your client.
Sometimes things happen during construction that are beyond your control. Maybe a storm delays your crew's work. Maybe you discover a crack in the foundation that requires additional work and adds a few extra days to a project.
If problems arise that knock your work off track and drive the cost of the project up, communicate this with your client as soon as possible. They won't be happy if they're caught off guard by additional costs on your invoice.
For larger construction projects, it's customary to request a retainer upfront. If you're making room for a project in your schedule and have completed some of the work, it's only fair to receive a portion of your payment at the beginning. Then, you would receive the remainder of your payment once the work is completed. Skynova's retainer form helps you create a professional-looking request for this initial payment prior to starting a project.
Cash flow is often a real concern in the construction industry. It's common practice in this field to offer discounts to clients who pay their bills early, which can be communicated in the payment instructions on the invoice. This encourages prompt payments from your clients and frees up money for your business operations.
When running a construction company, in addition to being skilled at building and repair work, you also need to know how to run a business. These administrative tasks might seem burdensome, but managing your accounts and tracking client payments is integral to your success.
Luckily, Skynova's range of templates — covering everything from invoices to receipts to job quotes — simplifies all your business and accounting needs. With these free templates at your fingertips, you have everything you need to invoice clients and track payments in a professional manner.
Skynova is dedicated to helping budding entrepreneurs build their brands. Our free customizable templates and software programs are designed with small businesses in mind. We're here to help you look more professional, get paid faster, and keep your books organized. This means less time completing paperwork and more time doing the construction work you love.