A construction valuation records the value of work completed to date, approved variations, materials on site, retention and previous amounts. It supports an application for payment; it is not automatically the tax invoice.
Use this 2026 template for a subcontract package.
Construction valuation template
Subcontractor: [Legal name]
Contractor: [Legal name]
Project/site: [ ]
Subcontract/PO: [ ]
Valuation number: [ ]
Valuation date: [Date in 2026]
Period ending: [ ]
| Valuation summary | This period | Cumulative |
|---|---|---|
| Original subcontract work | £[ ] | £[ ] |
| Approved variations | £[ ] | £[ ] |
| Materials on site, if allowed | £[ ] | £[ ] |
| Gross value | £[ ] | £[ ] |
| Retention | -£[ ] | -£[ ] |
| Previously certified/applied | -£[ ] | |
| Current amount | £[ ] | £[ ] |
Supporting documents: [measurements, programme, photos, signed sheets, delivery notes, variation approvals]
Worked valuation example
| Item | Cumulative value |
|---|---|
| Original work completed | £42,000 |
| Approved variations | £3,500 |
| Gross valuation | £45,500 |
| Retention at 5% | -£2,275 |
| Net cumulative value | £43,225 |
| Previously certified | -£31,000 |
| Current application | £12,225 |
This is an illustrative 2026 example. Use the percentage and valuation method in the actual subcontract.
Separate this period from cumulative value
Cumulative figures show the full job position. The current amount removes what was already certified or invoiced.
Do not invoice the cumulative total again. Tie the current invoice to the certified or agreed amount for this period.
Measure the work package
Use the same work breakdown as the subcontract:
- preliminaries
- measured work sections
- milestones
- agreed daywork
- approved variations
- materials on site
- retention
This lets the contractor compare the valuation with the original price and prior month.
Variations
Only include variations at the status allowed by the contract. Separate:
- instructed and priced
- instructed but not agreed
- submitted for approval
- rejected or withdrawn
Do not hide an unagreed variation inside the original work line. Use a reference, date and supporting instruction.
Materials on site
Some contracts allow properly stored and evidenced materials to be valued before installation. Others do not.
If included, record:
- description and quantity
- delivery location
- ownership and insurance position
- delivery note or supplier invoice
- amount previously valued
Follow the subcontract rather than a generic template.
Retention
Show the current retention deduction and cumulative amount held. The rate, cap and release events come from the contract.
The retention invoice guide explains release and final-account records.
From valuation to invoice
The contractor may certify a different amount from the application. Raise the invoice according to the contractual process and show:
- invoice number and date
- supply period
- certified or agreed current value
- VAT treatment
- CIS labour and materials split
- retention where applicable
- amount due
The subcontractor invoice template gives the invoice layout.
VAT and CIS
A valuation records value. VAT and CIS are applied when the payment document is prepared under the correct rules.
Keep the figures separate:
- net taxable supply
- reverse-charge VAT or normal VAT
- CIS deduction base
- CIS deduction
- cash due
Valuation checklist for 2026
- Does the work breakdown match the subcontract?
- Are this-period and cumulative figures separate?
- Have previous certifications been deducted?
- Are variations individually referenced?
- Are materials on site allowed and evidenced?
- Is retention calculated under the contract?
- Are supporting measurements attached?
- Does the resulting invoice use the correct tax treatment?
Sendinvo handles the invoice after the valuation: customer, lines, CIS deduction, reverse-charge wording and payment due. Start free when the current amount has been agreed.