Builder invoice wording and payment terms

Copy-and-paste blocks

• Labour line

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  Labour — two-man team (per day) on site for the works described, including setting out, blockwork and general building operations.

• Materials line

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  Materials supplied to site — blocks, sand, cement, aggregate and ancillaries. Supplier receipts available on request.

• Site costs line

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  Site costs — skip hire, waste transfer and disposal under our waste carrier licence, plus plant hire where used.

• Stage payment terms

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  This invoice covers the stage described above. Payment is due within 7 days. The next stage of works commences on receipt of cleared funds.

• Variation wording

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  Any variation to the agreed scope is priced and confirmed in writing before the work is carried out and appears as a separate line on the next invoice.

Getting the terms to stick

Stage payments must be enforced on time or the job funds itself out of your pocket. State clearly that the next stage starts on cleared funds.

If you don't state a payment period, the statutory default of 30 days applies — and you can charge statutory interest plus a fixed recovery cost on a commercial debt once it is late. Putting your terms on every invoice is what makes them enforceable without argument.

Common questions

How should a builder invoice stage payments?

One invoice per stage, each naming the stage and referencing the agreed schedule, with short payment terms and a clear statement that the next stage begins on cleared funds.

Should material receipts go with the invoice?

You do not have to send them, but saying they are available on request settles most queries before they are asked.

Do I invoice VAT at 20% on an extension?

Almost always yes. Zero and reduced rates apply to new builds and certain conversions or long-term empty properties, not to extensions on an occupied home.