Contractor Invoice

What is a Contractor Invoice?

Various types of workaround or on a construction site or property is performed by a contractor, which is hired by the owner. Electrical Work, Plumbing, Heating, Roofing, Painting, Construction, etc. are the work supervised or carried by a contractor. The contractors a rehired for a contract period during which he/she supervises the labor to fulfill the task assigned and also has the duty to provide all materials required on the site.

Thus, a detailed method is required by the contractors to keep a record of all the services carried out by them. For this purpose, a contractor invoice is made to specify the services provided by the contractor, along with the duration and the subsequent payment of the services. This serves a proof for both the contractor and the owner.

Difference between an Invoice and a Receipt

Invoices and receipts are both formal billing documents, recognized in the court of law, but there is a substantial difference between both.

  • Invoice: Invoice is issued by the company or individual salesmen and service providers for asking for payment, due to the services provided or items sold. Similar to a receipt, the invoice is issued after-sale or provision of service and it enlists all the items details and billing information, but it is issued in advance of the payment and mentions the due date for payment in future.
  • Receipt: Receipt is issued by a company or individual as proof after the payment is made by the client for purchasing items or availing services. It confirms that the client has received items or services and the company has received its due payment. Thus, their contract is clear and over.

Format of a Contractor Invoice

The format for a contractor invoice varies according to the companies and services offered. However, billing details, payment due dates, an itemized list of services are the necessary details that should be mentioned in the invoice and the format that can be followed to do so is stated below.

  • Invoice Document: Though obvious, but is still necessary to recognize the document as an “invoice”, thus it should be clearly labeled as contractor invoice, in its header.
  • Contractor Credentials: If an individual contractor or business, their credentials are necessary to be mentioned. These include the name (of contractor or business), logo (if any), contact details, and address.
  • Client’s Credentials: The name of the client or owner of the property, who has hired the contractor is to be mentioned, along with his/her contact information and address. Moreover, the details of the property for which the contractor was hired, such as its name, location, area are also to be stated for relevance.
  • Invoice Number: Invoices are utilized as proof of payment and services by both the contractor and owner, but in addition to that, it serves as a record-keeping document for the contractor companies. That is why each invoice issued by the company should be assigned an individual number to maintain clarity.
  • Dated: The invoice should be accurately dated because it shows the day it was generated and from then the countdown for the due date of payment starts.
  • Itemized List of Services: Item by item, the details of services provided by the contractor should be listed. Along with any purchases if made directly by him/her or any operations of this sort.
  • Payment Terms: Since, an invoice is issued before the payment, the method in which the payment will be received and the payment delay policy should be included in the invoice.
  • Billing Details: The individual amount of each service provided, the applicable taxes at that time along with the VAT charges or VAT rate are mentioned. After that, the total summed up the amount that is to be paid is finally stated.
  • Due Date for Payment: This is very important information and is to be carefully mentioned. There are no chances of errors in this. The due date by which the owner of the property has to pay the billed amount or the contractor or company is mentioned like “28th August 2020” very precisely.
Contractor Receipt Template for Excel