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AIA pay applications: G702 and G703
How a construction progress billing works, why the AIA G702 and G703 are used together, and how the schedule of values drives the whole thing.
A construction pay application is a formal request for progress payment that a contractor submits to bill for work completed during a period. The industry standard is AIA Document G702, the Application and Certificate for Payment, backed by AIA Document G703, the Continuation Sheet that breaks the contract into a line-item schedule of values.
- Summary form (AIA)
- G702, Application and Certificate for Payment
- Detail form (AIA)
- G703, Continuation Sheet
- Dependency
- G702 is not certified without G703
- Retainage line
- Withheld per contract, commonly 5 to 10%
The two documents
What the G702 and G703 each do
AIA Document G702, the Application and Certificate for Payment, is the one-page summary. It shows the original contract sum, change orders, work completed to date, retainage withheld, previous payments, and the current amount due. It carries the contractor certification and a space for the architect to certify the amount for payment.
AIA Document G703, the Continuation Sheet, is the detail behind that summary. It lists every line of the schedule of values with its scheduled value, work completed in this period and to date, stored materials, the percentage complete, and the balance to finish. Every number on the G702 traces back to the G703.
Why they travel together
You cannot use the G702 without the G703
The G702 is a total; the G703 is the proof of that total. Owners and architects will not certify a payment application without the matching continuation sheet, because the summary alone gives them nothing to verify. The two are a package: the G703 supports every figure the G702 asks to be paid.
This is also why the schedule of values matters so much. The G703 is essentially the schedule of values with progress columns added. If the schedule is set up well at the start of the job, every pay application after it is straightforward. If it is vague, every billing becomes an argument.
How to bill
How a pay application comes together
Build the schedule of values
Break the contract sum into line items whose total equals the contract price. This becomes the G703.
Enter this period work
For each line, record work completed this period and materials stored but not yet installed.
Calculate to-date and retainage
Sum work to date, apply the contract retainage percentage, and subtract prior payments.
Complete the G702 summary
Roll the G703 totals into the G702 and sign the contractor certification.
Submit for certification
Send both documents to the architect or owner, who certifies the amount and releases payment.
Frequently asked questions
What is the difference between the G702 and G703?
The G702 is the one-page summary that states the total amount due this period and carries the certifications. The G703 is the continuation sheet that itemizes the schedule of values and shows the progress math behind that total. The summary depends on the detail.
Can you use a G702 without a G703?
No. The G702 is a summary with no supporting detail on its own, and owners and architects will not certify payment without the matching G703 continuation sheet. The two are submitted together as one pay application package.
Is a pay application the same as an invoice?
Not quite. An invoice is a simple bill. A construction pay application is a progress claim tied to a schedule of values, showing percentage complete, stored materials, and retainage, and it usually requires the architect to certify the amount before the owner pays.
What is a schedule of values?
A schedule of values breaks the total contract price into a list of work items, each with a dollar value that sums to the contract sum. It is the basis of the G703 and of every progress billing, because you bill against percentage complete on each line.
Who prepares the schedule of values?
The general contractor or prime contractor prepares the schedule of values, usually early in the project and subject to the architect and owner accepting it. Subcontractors provide their own values that roll up into the prime schedule.
How is retainage shown on a pay application?
Retainage is a line on the G702 that subtracts a set percentage, commonly 5 to 10 percent, from the work completed to date. The withheld amount accumulates over the job and is released later, typically at substantial or final completion.
What are stored materials on a G703?
Stored materials are items delivered to the site or an approved storage location but not yet installed. They can be billed separately on the G703 so a contractor is not out of pocket on major purchases, usually with documentation that the materials are properly stored and insured.
Read pay applications automatically
Buildalytic reads incoming G702 and G703 documents, ties every line to the schedule of values, checks the retainage math, and routes the pay application for approval.