A construction invoice should include your contractor license number, the project address, itemized labor costs (hours × rate), material costs, permit fees, and any subcontractor charges. Always reference your contract number and include a lien waiver policy.

Divide the project into milestones (e.g., 30% mobilization, 40% rough-in, 30% completion) and issue a separate invoice at each milestone. Note the percentage complete and the cumulative amount billed vs. the contract total.

Tax rules vary by state. Most states don't tax labor on new construction, but do tax materials. Some states tax repair and renovation services. Check with your state's revenue department or a CPA to confirm your obligations.

A mechanic's lien is a legal claim against a property if a contractor isn't paid. Always include a lien waiver provision in your invoices — typically, you provide a conditional lien waiver when submitting the invoice and an unconditional one upon receiving full payment.