Should I bill labour and materials on separate lines?

Yes — clients generally expect to see labour hours and materials or supplies broken out separately rather than combined into one lump amount, since it makes the invoice easier to verify against the quote.

Do I charge GST/HST on materials as well as labour?

In most cases yes, GST/HST applies to the full amount charged to the client including materials, but tax treatment can vary by contract type — check with CRA or an accountant for your specific situation.

What is progress billing?

Progress billing means invoicing a project in stages — for example a deposit, a milestone payment, and a final invoice — rather than one invoice at the end. It's common on larger construction and renovation jobs.

Can I include a holdback on this invoice?

You can note a holdback amount as a line item or deduction, though for formal construction contracts subject to lien legislation you should confirm the exact holdback requirements with your provincial rules.

Free Contractor & Trades Invoice Template

Separate labour from materials, apply the right tax to each, and get paid without back-and-forth over what was billed.

Contractors and trades invoices usually mix two very different cost types — labour hours and materials or supplies — and clients want to see them broken out, not lumped together. A vague single-line "construction work: $4,200" invites questions and delays payment. This template separates labour, materials, and any subcontracted work into clear line items.

What a contractor invoice should show

Job or project reference (address or project name)
Labour hours and rate, shown separately from materials
Materials and supplies, itemized or summarized with receipts on request
Any permit, disposal, or subcontractor costs
Payment terms and holdback details if applicable (common on larger jobs)
GST/HST applied per line, since materials and labour can sometimes carry different tax treatment depending on the contract

Progress billing vs. final invoice

For larger jobs, many contractors invoice in stages — a deposit, a progress payment at a milestone, and a final invoice on completion — rather than one lump sum at the end. If you're doing staged billing, note clearly on each invoice which stage it covers and what percentage of the total project that represents.

Start from the Contractor / Trades template — labour and materials pre-separated.

Create a Free Contractor Invoice →

Frequently asked questions

Should I bill labour and materials on separate lines?: Yes — clients generally expect to see labour hours and materials or supplies broken out separately rather than combined into one lump amount, since it makes the invoice easier to verify against the quote.
Do I charge GST/HST on materials as well as labour?: In most cases yes, GST/HST applies to the full amount charged to the client including materials, but tax treatment can vary by contract type — check with CRA or an accountant for your specific situation.
What is progress billing?: Progress billing means invoicing a project in stages — for example a deposit, a milestone payment, and a final invoice — rather than one invoice at the end. It's common on larger construction and renovation jobs.
Can I include a holdback on this invoice?: You can note a holdback amount as a line item or deduction, though for formal construction contracts subject to lien legislation you should confirm the exact holdback requirements with your provincial rules.