You finished a trade scope or reached a billing milestone and need to request payment. Use the billing format and terms you agreed with the business that hired you. Show the job, approved work, and amount requested so the buyer can check the invoice against the agreement.
Use these suggested billing steps. They are not a legally required invoice template. IRS recordkeeping guidance calls for supporting business records, including invoices and payment evidence. IRS recordkeeping. Review the job’s contract billing requirements with the buyer.
1. Confirm where and how to send the invoice
Ask for the buyer’s invoice instructions during onboarding. Record the accounts-payable contact, project reviewer, submission address or portal, required format, and agreed billing dates. Start with the legal business name in your agreement when setting up the bill-to account.
Ask whether the buyer requires a purchase order, an invoice, or a formal pay application. AIA offers subcontractor-specific payment application forms as well as other versions. AIA payment-form FAQ. If the contract requires a pay application, do not assume an emailed invoice alone completes the submission.
Also ask who can authorize extra work. A site contact who requests a change and an office contact who processes bills may be different people. Keep both roles clear. Use the subcontractor agreement guide to review authority and terms before work begins.
Write down the submission instructions in your job file. If the buyer changes them, ask for the current process in writing. Record when the instructions changed so you can explain where you sent an earlier invoice.
2. Put the identifying fields at the top
Use this suggested field list in the buyer’s agreed format.
Scroll to read all columns.
| Field | What to enter |
|---|---|
| Your business | Contracting name, address, and billing contact |
| Bill-to party | The business that hired you |
| Job | Project name, site address, and buyer’s job or lot reference |
| Invoice identifier | Your unique invoice number and issue date |
| Contract reference | Subcontract, work order, or purchase-order reference |
| Billing period | Dates or milestone covered by the request |
| Work description | Scope line items that match the agreement |
| Current request | Amount requested, with adjustments explained |
| Terms | Agreed due-date basis and payment instructions |
Keep the descriptions specific enough to recognize the work. “Interior trim installation, approved scope reference” points the reviewer back to the agreement. Avoid a line that says only “labor” when several scopes or houses share one account.
Keep your full tax identifier off the public-facing invoice. Send the W-9 through the buyer’s protected accounting channel. The FTC recommends limiting sensitive identifiers to necessary uses and restricting access. FTC information-security guidance.
3. Match line items to approved work
List the base scope separately from approved changes. Include the change reference beside the amount. List unresolved changes separately for review. Do not bill them as base-contract work.
Use the change-order checklist to identify the approval record for each billed extra.
AIA’s subcontract summary treats changes, progress payments, and retainage as separate contract subjects. AIA A401 summary. Your own agreement may use different procedures, so ask the buyer which documents support each billing category.
For a fixed-price scope, identify the agreed completion requirement or billing milestone. For hourly work, attach the work records required by the agreement. For unit-price work, show the agreed unit and the accepted quantity record. Avoid changing the price basis on the invoice without an approved modification.
Check the descriptions against the buyer’s scope names. If purchasing calls the line “rough-in” and your estimate uses another label, include both references. Make the line easy to match without changing the agreed work.
4. Reconcile draws and prior payments
For progress billing, show earlier approved billings and payments alongside the current request. Keep separate columns for billed, approved, and paid. A prior approved amount is not automatically evidence that funds have arrived.
AIA pay applications use cumulative contract and progress information, with prior certificates and the current request distinguished. AIA payment application guidance. If your project uses an invoice-based draw schedule instead, show how the current draw matches prior billings and payments under your agreement.
Check deposits and advances before calculating the current balance. Ask accounting how each applies to the agreed scope. Do not count the same credit again just because it appears on earlier invoices.
If retainage applies, identify the contract basis and show the amount separately. Ask what triggers release and how to request it. Do not assume a familiar percentage or final-payment date governs this project.
5. Attach the backup the buyer agreed to review
Ask for the backup list before you reach the first draw. The following table suggests how to organize it; it does not make every item mandatory.
Scroll to read all columns.
| Billing question | Possible backup, when requested or applicable |
|---|---|
| Which work is included? | Scope or work-order reference |
| Who approved the extra? | Approved change document |
| Which hours or quantities are claimed? | Agreed time or quantity records |
| What progress is visible? | Dated progress photos tied to locations |
| Has the specified inspection passed? | Official inspection result for the relevant milestone |
| How do prior payments reconcile? | Billing and receipt ledger |
| Which waiver accompanies payment? | Attorney-reviewed form matching the transaction |
Name each attachment with its invoice and line item. Send the photos relevant to that work. Identify the area and what each photo shows.
Do not label a photo “inspection passed” without the inspection record. If a milestone depends on an official result, attach that result. If an item remains incomplete, describe it accurately and ask how the agreement treats it.
6. Submit at the agreed trigger
Use the contract’s milestone or billing calendar. Before sending, check the billed work, approvals, and required backup. Ask the buyer to identify any missing items. A delivered email does not mean the package was accepted.
For North Carolina residential work, avoid copying a universal seven-day payment rule from a commercial checklist. Chapter 22C excludes residential contractors and several residential improvement categories, including improvements consisting of twelve or fewer residential units. N.C. Gen. Stat. § 22C-6. Ask a construction attorney which rules and terms apply to your job.
Save the exact submitted package and submission date. Keep the original invoice identifier when requesting a status update. If you revise the invoice, clearly identify the revision and ask the buyer to retire the earlier version.
7. Follow up by status
Ask whether the package was received, whether review is complete, and which payment date applies. These are separate questions. A suggested tracking sheet has a row for each invoice and columns for receipt, review outcome, missing items, due date, and payment received.
If the buyer disputes one line, ask for that line and the reason in writing. Show the disputed amount separately. Refer disagreements about withholding, suspension, or lien rights to a construction attorney before taking action.
Keep follow-up messages factual. Name the invoice, job, and unresolved item. Ask for the next action or payment date. Avoid promising faster payment merely because you supplied more attachments.
8. Verify payment instructions and close the record
Use the payment instructions agreed during onboarding. Verify any change through an established contact route. The FBI advises independently confirming changes in account numbers or payment procedures. FBI business email compromise guidance.
When funds arrive, match the receipt to the invoice. Record partial payments and any explanation supplied. Check whether the remaining balance is retainage, a disputed line, or an approved amount still unpaid. Record that reason for the next follow-up.
Keep banking instructions in restricted accounting files. Share invoice status and redacted backup with project staff. FTC access guidance.
For year-end reporting after the payment records are reconciled, follow the subcontractor 1099 workflow.
Where Cercha fits
Cercha’s portfolio and endorsements help you introduce your business to builders. Messages supports the first conversation about a scope. Agree billing terms with the buyer and keep invoices in your own accounting process. Ask about the beta.