AIA G702 and G703 Billing: Pay Application Guide (2026)

Quick answer: AIA G702 and G703 billing is a standard US construction pay application. The G703 continuation sheet lists each line of the schedule of values with work completed and materials stored to date, and the G702 summary rolls those totals into the contract sum, retainage, previous payments and the current payment due, which the architect then certifies.

If you have worked on a commercial building project in the US, you have probably been asked for an AIA pay application. The AIA G702 and its G703 continuation sheet are the forms architects, owners and lenders expect, because they show exactly how much of the job is done, how much has already been paid, and how much retainage is held. This guide explains each form, how to build the schedule of values, how to fill every column, and a full worked example where the numbers add up. For simpler jobs, a progress invoice from our US invoice generator may be all you need; AIA billing is the next level up.

Whatever format your contract uses, the amounts start with accurate records of what was billed and paid, which our invoice generator keeps in a clean, numbered PDF.

We cover broader progress billing, retainage and change order concepts in the construction invoice guide. This post is specifically about the G702 and G703 pay application.

General information only. Contract terms, state prompt payment laws and the AIA document editions used on your project control the details.

What the AIA G702 and G703 are

The American Institute of Architects publishes standard contract documents widely used in US building construction. Two of them handle progress payments:

• G702, Application and Certificate for Payment: a one-page summary. The contractor completes and signs the application; the architect reviews it and certifies the amount due.
• G703, Continuation Sheet: the detail behind the summary. It breaks the contract sum into portions of the work based on the contractor's schedule of values.

According to AIA Contract Documents' summary of G703, together the forms show the status of the contract sum to date, including work completed and stored, retainage, previous payments, a summary of change orders and the current payment requested. G703 is used with G702 or with G732, the construction manager as adviser edition. The widely used editions are the 1992 versions, and the procedures sit in the A201 general conditions.

Build the schedule of values first

Everything in AIA billing flows from the schedule of values. It is the contractor's breakdown of the contract sum into billable lines, approved before the first application. The AIA does not publish a standard schedule of values form, so you build your own. Good practice:

1. Split the work by trade or phase in the order it will be built: general conditions, site work, concrete, framing, mechanical, electrical, plumbing, finishes.
2. Price each line realistically. Front-loading early lines to collect cash sooner is usually spotted and rejected by the architect.
3. Make sure the lines add up exactly to the contract sum.
4. Add each approved change order as its own line, rather than editing original values.
5. Keep the same line numbers and descriptions for the whole project.

Subcontractors should mirror the GC's lines where possible, so their figures can be rolled into the GC's application.

How detailed should the schedule be? Enough lines that progress on each can be measured on a site walk, but not so many that every monthly update becomes a project of its own. A small fit-out might have 10 to 15 lines; a larger building often splits major trades into labor and material lines, or by floor or area, so the architect can see exactly what has been installed. Separating labor and material on equipment-heavy trades also makes stored material billing cleaner, because the material line can be billed when delivered and the labor line as installation progresses. Whatever level you choose, agree it with the architect before the first application, because changing the structure mid-job makes every later application harder to check.

G703 columns explained

Column	Name	What goes in it
A	Item number	Line number from the schedule of values
B	Description of work	The trade or phase
C	Scheduled value	Approved value of the line
D	Work completed: from previous application	Total billed for this line in earlier applications (D + E of the last one)
E	Work completed: this period	Value of work installed this billing period
F	Materials presently stored	Materials on hand, not yet installed and not in D or E
G	Total completed and stored to date	D + E + F, plus the percentage G divided by C
H	Balance to finish	C - G
I	Retainage	Retainage on G, if tracked per line

G702 lines explained

1. Original contract sum.
2. Net change by change orders, from the change order summary.
3. Contract sum to date: line 1 plus line 2. Equals the total of column C.
4. Total completed and stored to date: total of column G.
5. Retainage: on completed work and on stored materials, at the contract rates.
6. Total earned less retainage: line 4 minus line 5.
7. Less previous certificates for payment: line 6 from the prior certificate.
8. Current payment due: line 6 minus line 7.
9. Balance to finish, including retainage: line 3 minus line 6.

The contractor signs a certification that the work is complete as shown and previous payments have been paid on, usually before a notary. The architect then certifies an amount, which may be lower if it disagrees with the progress claimed.

Worked example: pay application number 4

A general contractor has a $250,000 contract and one approved change order for $12,000, so the contract sum to date is $262,000. Retainage is 10% on completed work and stored materials.

G703 continuation sheet

A	B	C	D	E	F	G	%	H
1	General conditions	$20,000	$8,000	$4,000	$0	$12,000	60.0%	$8,000
2	Site work	$30,000	$30,000	$0	$0	$30,000	100.0%	$0
3	Concrete	$45,000	$36,000	$9,000	$0	$45,000	100.0%	$0
4	Framing	$60,000	$15,000	$25,000	$0	$40,000	66.7%	$20,000
5	Mechanical, electrical, plumbing	$70,000	$0	$10,000	$6,000	$16,000	22.9%	$54,000
6	Finishes	$25,000	$0	$0	$0	$0	0.0%	$25,000
7	Change order 1	$12,000	$0	$6,000	$0	$6,000	50.0%	$6,000
	Totals	$262,000	$89,000	$54,000	$6,000	$149,000	56.9%	$113,000

Check the arithmetic: D + E + F = $89,000 + $54,000 + $6,000 = $149,000, and C - G = $262,000 - $149,000 = $113,000.

G702 summary

Line	Item	Amount
1	Original contract sum	$250,000
2	Net change by change orders	$12,000
3	Contract sum to date	$262,000
4	Total completed and stored to date	$149,000
5	Retainage (10% of $149,000)	$14,900
6	Total earned less retainage	$134,100
7	Less previous certificates ($89,000 less 10%)	$80,100
8	Current payment due	$54,000
9	Balance to finish, including retainage	$127,900

Cross-check line 8: this period's work and stored materials total $54,000 + $6,000 = $60,000, less 10% retainage = $54,000. Cross-check line 9: balance to finish $113,000 plus retainage $14,900 = $127,900. Both agree.

How to submit an AIA pay application

1. Agree the billing cut-off date and submission day in the contract, for example work through the 25th.
2. Walk the site with the superintendent and agree percentages per line before you bill.
3. Update the G703, then carry totals to the G702.
4. Collect conditional lien waivers for this payment and unconditional waivers for the last one from yourself, subcontractors and suppliers.
5. Attach stored material invoices, insurance or storage evidence, and any change order documents.
6. Sign and notarise the contractor's certification if required.
7. Submit to the architect or owner's representative, and log the date.
8. Follow up on certification and payment against the contract timeline and any state prompt payment law.

Timeline of a typical monthly pay cycle

The exact days come from your contract, but a common pattern on a commercial job looks like this:

• Around the 20th: the contractor circulates a pencil draft of the G703 to the architect and owner's representative to agree percentages informally.
• Around the 25th: the final signed application goes in, with waivers and backup.
• Within the review period: the architect inspects, certifies the full amount or a reduced amount, and returns the G702 with its certificate.
• Within the payment period: the owner pays the certified amount, less any amounts it is entitled to withhold.
• After payment: the contractor pays its subcontractors within the period set in the subcontract or state law, and collects unconditional waivers for the next application.

The pencil draft step is optional but valuable. Agreeing numbers before the formal submission avoids a returned application and a month's delay in cash. If the architect certifies less than you applied for, ask for the reasons in writing and carry the difference into the next application once the issue is resolved.

Retainage release at the end

When the project reaches substantial completion, most contracts allow the contractor to apply for release of retainage, often in stages: part at substantial completion and the balance at final completion, after punch list items, closeout documents and final waivers are delivered. On the example project, $14,900 is held after application 4. If the job finishes at the full $262,000 contract sum, retainage at 10% will total $26,200, all of which is billed through the final application. Track it as a separate line on your aging report so it does not get forgotten.

AIA pay application vs a standard progress invoice

Feature	AIA G702/G703	Standard progress invoice
Typical use	Commercial, architect-administered projects	Residential and smaller commercial jobs
Detail	Every schedule of values line, every period	Milestones or completed work this period
Retainage	Calculated on the form	Shown as a deduction line if used
Certification	Architect certifies amount due	Client approves and pays
Backup	Lien waivers, stored material proof, notarised signature	Usually just the invoice

Many smaller contractors bill with milestone payments and use an interim invoice and a final invoice instead. Even on AIA jobs, owners often want an invoice document alongside the application, which you can produce with a contractor invoice template.

Common AIA billing mistakes

• Columns that do not tie. Column D must equal the previous application's G for each line, excluding materials since installed.
• Billing stored materials twice. When stored materials are installed, move them out of F and into E.
• Editing scheduled values mid-job. Add change orders as new lines instead.
• Over-billing progress. The architect will cut it, delaying payment for everything.
• Missing waivers. The most common reason applications are returned.
• Wrong retainage. Check whether your contract reduces retainage after 50% completion or treats stored materials differently.

If a certified application still goes unpaid, see our guides to a client not paying an invoice and to mechanics liens, which can protect you on private projects.

Create your construction invoice

AIA G702 billing works best with a clear invoice behind it. Create a numbered progress invoice showing the period, work completed, retainage and amount due in our free invoice generator, then attach it to your G702 and G703 pay application. For a clean, professional layout, start from the corporate invoice template or browse all invoice templates. No sign-up is needed, and your PDF invoice is ready to send in a few minutes.