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To create a construction invoice template for builders and tradespeople, it's recommended to download the PDF version for simple jobs and the Excel version for complex calculations. The tutorial suggests downloading the docHub PDF and entering essential details such as the company name, address, fax number, phone number, email, invoice number, reference numbers, and date. Additionally, the customer's name and billing period should be specified. Users need to fill in the description of the construction job, applicable rates, quantity of labor hours, and amounts. If both material and labor costs are involved, these can also be included in the invoice.