Subcontractor Invoice Template (US, UK CIS & AU Payment Claims)

What a subcontractor invoice needs that a normal one doesn't

A GC's accounts team matches each claim against a subcontract, schedule of values and prior billing. Give them the same references and labels they already use:

• Subcontract or PO number: place it near the invoice number.
• Project and phase: job name, site address and the scope billed this period.
• Current work: completed quantity, percentage or scope line at the subcontract price.
• Contract summary: contract value, previously billed, current billing, retention held and remaining balance.
• Retention held: show it as a separate negative line and keep a held-to-date total.
• Change orders: give each extra its approval or change-order reference.
• Tax (if applicable): manually entered amount.
• Amount due, terms and payment instructions.

Example: a progress claim with retention

This fictional example separates current work, an approved change order and retention. The values illustrate layout rather than a standard rate.

The summary lets the accounts team match the current claim with the contract ledger in one pass.

Billing situations subcontractors hit

Progress billing. Reuse the subcontract number and schedule-of-values labels each period. This progress-billing walkthrough shows how to reconcile prior billing, current work and remaining value.

Retention release. When retention becomes payable, use a separate line naming the subcontract and accumulated amount. The US section below records California timing for a direct contractor that receives a retention payment.

Change orders. Put approved extras on separate lines with their approval reference; keep pending work out of the amount due.

GC versus owner. Bill the party named in the subcontract. A construction invoice template shows the general-contractor view of the same billing chain.

Common subcontractor invoice mistakes

• No subcontract number. The accounts team loses the match to its own record.
• Different scope labels. Mirror the GC's schedule-of-values wording.
• Hidden retention. Keep current and cumulative retention visible.
• Extras without references. Name the change order or written approval.
• Missing prior-billing totals. Reconcile previously billed, current billing and remaining value on every progress claim.

UK: CIS subcontractor invoices

Under HMRC CIS 340, the contractor determines the subcontractor’s CIS status with HMRC and applies any required deduction to the part of the payment that does not represent the subcontractor’s material costs. Separate labour and materials on the invoice and leave the deduction amount for the user to enter.

Include the UTR to help the contractor identify and check the subcontractor; CIS 340 does not make the UTR a universal invoice field. Keep the CIS status and deduction amount as entered records rather than calculating a rate in this template.

Australia: progress claims and payment claims

A progress claim records the amount claimed for construction work completed or related goods and services supplied under the contract. In New South Wales, Security of Payment Act 1999 s 13(2) and (4) requires a payment claim to identify the work or related goods and services, state the claimed amount, state that the claim is made under the Act, and be served within the contract period or within 12 months after the relevant work or supply was last carried out, whichever is later.

In Queensland, Building Industry Fairness Act 2017 s 68 defines a payment claim as a written document that identifies the work or related goods and services, states the claimed amount, requests payment, and includes prescribed information. A document bearing the word “invoice” satisfies the request-for-payment element.

A payment claim is the statutory claim document described by the applicable Act; an invoice is the commercial bill and can also serve as the claim when it contains the required elements.

The ATO TPAR guidance says qualifying building and construction businesses report payments made to contractors and subcontractors. Clear ABN and amount fields support that record. The ATO no-ABN withholding guidance says a payer may need to withhold at the highest rate when a supplier does not quote an ABN.

US: deposits, retainage and prompt pay

Show a deposit as a negative line with the receipt reference. For retainage, show current retention, held-to-date and the release amount separately.

California Business and Professions Code §7108.5 requires a prime contractor or subcontractor to pass each subcontractor’s allowed share of a progress payment within seven days after receipt unless otherwise agreed in writing.

When a California direct contractor has withheld retention, Civil Code §8814 requires it to pay each affected subcontractor’s share within 10 days after receiving all or part of a retention payment. A retention payment specifically designated for one subcontractor goes to that subcontractor when consistent with the subcontract.

Texas Property Code §28.002 gives an owner 35 days after receiving an allowed written payment request to pay the contractor and gives contractors and subcontractors seven days after receipt to pass attributable payment downstream. Section 28.004 sets statutory late-payment interest at 1.5% per month on an unpaid amount required by that chapter; that figure is an interest rule, not tax.

For payments made after December 31, 2025, the statutory information-reporting threshold for affected nonemployee compensation increased to $2,000. Internal Revenue Bulletin 2026-19 explains the change. Form 1099-NEC is the payer’s information return, not the subcontractor’s invoice. The independent contractor invoice page covers direct-client billing.