Subcontractor Invoice Template (Consultant-Billed)

An invoice for a subcontractor or consultant to bill a prime/general contractor — hours × rate line items, optional tax and retainage, totals, invoice number, and project/PO reference.

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SUBCONTRACTOR INVOICE

Invoice #: SUB-2026-014        Date: May 23, 2026
Terms / due: Net 30

FROM (Subcontractor):
Vertex Consulting LLC
88 Builder Way, Suite 5
Denver, CO 80205
EIN: 47-1234567

BILL TO (Prime / General Contractor):
Summit Construction, Inc.
1400 Industrial Blvd
Denver, CO 80216

PROJECT:   Riverside Office Build-Out — 220 River St
REFERENCE: Subcontract #SC-2026-31 / PO #4471

LINE ITEMS (hours x rate)
   - Site supervision and coordination: 32 hr x $95.00/hr = $3,040.00
   - Electrical rough-in oversight: 18 hr x $110.00/hr = $1,980.00
   - Punch-list walkthrough and report: 6 hr x $95.00/hr = $570.00
   - Project documentation and as-builts: 4 hr x $85.00/hr = $340.00

   ----------------------------------------------------------
   Subtotal:             $5,930.00
   Less retainage (10%): -$593.00
   TOTAL DUE:            $5,337.00

PAYMENT
ACH to Vertex Consulting LLC
First Summit Bank — Routing 102000076 — Acct 0098761234
or check payable to Vertex Consulting LLC

Notes: Hours per approved timesheets for the period. Retainage released per subcontract upon project completion and final lien waiver.

This invoice is issued by an independent subcontractor/consultant. The
subcontractor is responsible for its own taxes; amounts of $600+ per year are
typically reported by the prime on IRS Form 1099-NEC.

About this template

A subcontractor invoice is how an independent sub or consultant bills the prime (general) contractor for work on a project — and getting it right is mostly about making the prime's accounts-payable process effortless while protecting yourself. The non-negotiables an AP department scans for are a **unique invoice number**, the **project and contract/PO reference** (so the bill maps to the right job and subcontract), clear **hours × rate line items**, and a clean **total due** with payment instructions. Two things distinguish a subcontractor invoice from a generic freelancer invoice. First, **retainage**: in construction and many large projects, the prime withholds a percentage (often 5–10%) of each payment until the job is complete and final lien waivers are signed; showing retainage as an explicit deduction on the invoice keeps everyone's books aligned and avoids "why did you only pay 90%?" disputes. Second, **tax status**: a subcontractor is normally a 1099 independent contractor responsible for their own self-employment tax — the prime issues a Form 1099-NEC for $600+ paid in a year — so service-to-service invoices usually carry no sales tax (this template defaults tax to 0). Tie the hours to approved timesheets, reference the subcontract, and state your payment terms (Net 30 is common in construction, though state prompt-payment laws may entitle you to faster payment once the owner pays the prime). Keep a copy, and if retainage is being held, track it so you can invoice for its release at closeout.

When to use it

  • Billing a prime/general contractor as an independent subcontractor or consultant.
  • Invoicing hourly project work tied to a subcontract or PO.
  • Showing retainage withheld (and later invoicing for its release).
  • Creating 1099-consistent records of consultant billings.

What to include

  • Invoice number, date, and payment terms.
  • Subcontractor and prime-contractor names, addresses, and your tax ID.
  • Project name/location and the contract/PO reference.
  • Hours × rate line items with a subtotal.
  • Optional tax and retainage, total due, and payment instructions.

Frequently asked

Retainage is a percentage of each payment (commonly 5–10%) that the prime withholds until the project is complete and final lien waivers are in place. Showing it as an explicit deduction keeps your books and the prime's aligned and prevents disputes about short payment. You invoice for the held retainage at closeout. Many states regulate retainage amounts and release timing.
⚠ Legal disclaimer. This subcontractor invoice template is a general business document, not legal, tax, or accounting advice. Tax treatment, sales-tax applicability, retainage limits, and prompt-payment rights vary by state and trade and are governed by your subcontract. Confirm tax handling with an accountant and your payment rights against your contract and state law.
Jurisdiction: United States — a subcontractor/independent-consultant bills the prime (general) contractor under their subcontract. Subcontractors are typically 1099 independent contractors (IRS): the prime issues a Form 1099-NEC for $600+ paid in a year, and the sub is responsible for their own self-employment tax. Retainage (a withheld percentage released after completion) is common in construction subcontracts and is governed by state prompt-payment / retainage statutes. This is an invoice, not the subcontract itself.
Last reviewed: 2026-05
Reviewed by ScoutMyTool — consult a licensed attorney for binding use.

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