Question 1

Should I charge a deposit before starting work?

Accepted Answer

Yes. A deposit protects you from clients who disappear mid-project and covers your upfront material costs. For most residential projects, 10-30% is standard. Some states cap how much contractors can collect before work begins, so check your local regulations. Always document the deposit clearly on the invoice and specify what triggers the next payment.

Question 2

How do I handle change orders in my invoices?

Accepted Answer

Create a separate line item or addendum for each change order, referencing the change order number and the original contract. Never fold scope changes into the original invoice without documentation. A signed change order protects you legally and prevents disputes at the final payment stage. Include a brief description of what changed and why the cost differs from the original estimate.

Question 3

Can I mark up materials on a contractor invoice?

Accepted Answer

Yes, marking up materials is standard practice. Most contractors apply 10-25% over their cost to cover procurement time, storage, and the risk of incorrect estimates. Be transparent about this practice in your contract. Some clients negotiate a cost-plus arrangement where they see receipts and pay a fixed percentage, while others prefer a lump sum that already includes markup.

Question 4

What payment terms should contractors use?

Accepted Answer

Net 14 or Net 30 are common for residential contractors. For commercial work, Net 30 to Net 60 is typical. Include a late fee clause, usually 1.5% per month on overdue balances, stated clearly in your contract and repeated on the invoice. Some contractors offer a small discount (1-2%) for payment within 10 days to incentivize faster payment.

Question 5

Do I need to include my contractor license number on invoices?

Accepted Answer

In most US states, yes. Many states require licensed contractors to display their license number on contracts, invoices, and advertising. Failing to include it can invalidate your lien rights and expose you to fines. Check your state licensing board's requirements. Even where not mandatory, including it builds credibility with clients who can verify your standing.

Question 6

How do I invoice for a project that took longer than estimated?

Accepted Answer

If your contract specifies a fixed price, you absorb the overrun unless you issued a signed change order. If you are billing time and materials, invoice for actual hours and costs with supporting documentation. For fixed-price overruns caused by unforeseen conditions, document the discovery, issue a change order before continuing, and get client approval in writing before adding charges to the invoice.

Question 7

Can I use this template for free?

Accepted Answer

Yes. Tidybill's free plan lets you create up to 5 invoices per month at no cost, with no credit card required. You can use the Contractor invoice template straight away after signing up.

Service	Typical Rate	Unit
General Labor	$65 - $120	per hour
Framing and Rough Carpentry	$75 - $130	per hour
Lumber and Framing Materials	cost + 15-25%	per job
Subcontractor (Electrical)	$800 - $2,500	per job
Permit and Inspection Fees	$150 - $1,500	per permit
Project Management Fee	10-15% of project total	per project

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