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To create a construction invoice template for builders, contractors, and tradespeople, the tutorial suggests downloading a PDF version for simple jobs and an Excel version for more complex invoices. The process involves downloading the docHub PDF, where users enter their company details, invoice number, reference numbers, and date. Next, users input the customer's name, billing period, and job description, along with labor hours and material costs. The template is designed for ease of use, allowing for straightforward entry of required information to generate an accurate invoice.