Construction billing depends on contracts, retainage, and approved changes. Everhour turns tracked project work into invoice-ready records.
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Construction invoice software is for turning field work, materials, subcontractor costs, and contract milestones into a payment request the client can review without guessing. A small repair job may need one labor and materials invoice. A longer project commonly needs progress billing tied to milestones, a schedule of values, or verified percentage of completion.
The useful result is a document that shows the work performed, the amount earned to date, prior payments, retainage, and the current payment due. For a contractor, that structure prevents the invoice from reading like a loose estimate. For the owner, builder, or project manager, it makes the request easier to approve against the contract.
A construction progress invoice commonly starts with the original contract amount, approved change orders, adjusted contract sum, total completed work, prior certified payments, retainage withheld, current payment due, and balance to finish. A schedule of values breaks the contract price into line items such as demolition, framing, electrical rough-in, plumbing, drywall, and finish work.
Each line should carry enough detail to support the payment request. A framing line can show the scheduled value, percentage complete, value completed to date, prior billed amount, and current amount. Materials and labor can be separated when the client expects that detail. Approved change orders should sit apart from original scope so nobody mistakes extra work for base-contract billing.
Retainage is commonly 5% to 10% of construction progress payments, and the percentage should come from the contract or billing terms. The invoice should show earned work before retainage, retainage withheld, current payment due after retainage, and the remaining balance including retainage. Treating retainage as a discount creates bad records because the owner still owes that amount if the contract conditions are satisfied.
Change orders deserve the same separation. Owner-requested scope changes, unexpected site conditions, design errors, and labor or material price changes can affect the amount owed, but only approved change orders should adjust the billed contract sum. Lien waiver requirements are state-specific, and California statutory forms illustrate the common distinction between conditional and unconditional waivers for progress and final payments.
A free invoice works for a single job, a small repair, or a final bill where the contract, materials, and labor are already organized. The manual version breaks down when several crews log time, costs move across phases, change orders arrive mid-project, or the client expects a consistent schedule of values with every draw request.
Everhour Billing & Invoicing converts tracked billable time and expenses into invoices, calculates invoice amounts from rates while excluding non-billable tasks, and supports client settings, taxes, discounts, payment terms, and invoice customization. Construction teams can turn tracked billable time per client or project into an invoice, then export invoices to QuickBooks Online, Xero, or FreshBooks with status details syncing back to Everhour.
This content is for general information only, may not be fully up to date, and is provided without any warranty or liability.
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A construction progress invoice commonly includes the original contract amount, approved change orders, adjusted contract sum, work completed to date, prior payments, current payment due, retainage, and balance to finish. A schedule of values gives the invoice its line-item structure by assigning contract value to project phases or tasks.
Retainage should appear as a separate retainage line, not as a discount. A discount reduces the price. Retainage withholds part of earned progress payment until the contract conditions are met, often completion or closeout. The contract or billing terms should state the retainage percentage.
Approved change orders should appear separately from original contract work because signed scope or cost changes alter the adjusted contract sum. The invoice should identify the change order, describe the added or reduced work, and show its amount. Unapproved requests belong outside the billed total until the client authorizes them.
The United States has no prescribed federal private-sector invoice form and no national VAT or GST invoice regime. For ordinary businesses, invoices mainly support records, contracts, and payment collection. Sales and use tax obligations depend on state and local rules, nexus, product or service taxability, and place of sale.
Construction sales tax treatment depends on state and local rules and the type of labor, materials, or service being billed. The United States has no single national sales tax rate. California generally taxes retail sales of tangible personal property and only some service or labor charges, while Texas defines 16 broad categories of taxable services.
Everhour Billing & Invoicing lets teams select uninvoiced billable time and expenses, preview the breakdown, and generate an invoice without rebuilding timesheets manually. It calculates invoice amounts from rates and billable expenses, excludes non-billable work, and exports invoices to QuickBooks Online, Xero, or FreshBooks.
Track billable construction time, expenses, rates, and client terms in Everhour, then generate invoices from approved records with less manual re-entry.
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