AIA Billing Explained: How to Fill Out a G702 and G703
By BRIX Editorial Team · Updated
AIA billing is a standard way to request progress payments on construction projects using two American Institute of Architects forms: the G702 Application and Certificate for Payment, and the G703 Continuation Sheet. The G703 lists each line of the schedule of values with work completed; the G702 summarizes it, subtracts retainage and previous payments, and shows the amount due.
Key takeaways
- The G703 breaks the contract into line items (the schedule of values). The G702 is the one-page summary that carries the totals and the payment request.
- Current payment due = total completed and stored to date − retainage − previous certificates for payment.
- The AIA instructions say the contractor signs the G702, has it notarized, and submits it with the G703 to the architect, who certifies the amount.
- The current editions are G702–1992 and G703–1992. They're copyrighted; buy licensed copies from AIA Contract Documents.
- Most rejected pay apps fail on math, stored-material backup or missing lien waivers, not on the work.
How does AIA billing work?
Before the first bill, the contractor prepares a schedule of values: the contract sum split into line items (general conditions, site work, concrete, framing, mechanical and so on). The AIA notes that it doesn't publish a standard schedule of values form; you build it, and the owner or architect approves it. Each month you fill in the G703 with work completed for every line, carry the totals to the G702, sign and notarize the G702, and submit both to the architect. Per the AIA's instructions, the architect reviews them and completes the Architect's Certificate for Payment, and may certify a different amount (initialing the changed figures and explaining why). The owner then pays the certified amount.
What are the columns on the G703 continuation sheet?
| Column | Heading | What goes in it |
|---|---|---|
| A | Item no. | Line number from the schedule of values |
| B | Description of work | The line item, e.g. "Electrical rough-in, level 2" |
| C | Scheduled value | The dollar value of that line, including approved change orders added as their own lines |
| D | Work completed: from previous application | Total of columns D + E from last month's G703 |
| E | Work completed: this period | Value of work installed since the last application |
| F | Materials presently stored | Materials bought and stored for the line but not yet installed (not in D or E) |
| G | Total completed and stored to date | D + E + F |
| G ÷ C | % | Percent complete for the line |
| H | Balance to finish | C − G |
| I | Retainage | Retainage on the line, used where retainage rates vary by line |
What are the lines on the G702?
| Line | Name | How to calculate |
|---|---|---|
| 1 | Original contract sum | From the contract |
| 2 | Net change by change orders | Total approved change orders, additions minus deductions |
| 3 | Contract sum to date | Line 1 ± line 2 |
| 4 | Total completed and stored to date | Column G total from the G703 |
| 5 | Retainage | 5a: % of completed work; 5b: % of stored material; or the column I total |
| 6 | Total earned less retainage | Line 4 − line 5 |
| 7 | Less previous certificates for payment | Line 6 from the prior certificate |
| 8 | Current payment due | Line 6 − line 7 |
| 9 | Balance to finish, including retainage | Line 3 − line 6 |
AIA billing example: a complete pay application
Illustrative numbers. A general contractor has a $1,200,000 contract plus one approved $45,000 change order. Retainage is 10% on completed work and stored materials. This is pay application #4. Last month's G703 showed $456,000 of work completed with nothing stored, and the owner paid that, less retainage.
| A | B: Description | C: Scheduled value | D: Previous | E: This period | F: Stored | G: To date | % | H: Balance | I: Retainage |
|---|---|---|---|---|---|---|---|---|---|
| 1 | General conditions | $120,000 | $48,000 | $12,000 | $0 | $60,000 | 50% | $60,000 | $6,000 |
| 2 | Site work | $180,000 | $180,000 | $0 | $0 | $180,000 | 100% | $0 | $18,000 |
| 3 | Concrete | $240,000 | $168,000 | $72,000 | $0 | $240,000 | 100% | $0 | $24,000 |
| 4 | Framing | $300,000 | $60,000 | $120,000 | $30,000 | $210,000 | 70% | $90,000 | $21,000 |
| 5 | Mechanical, electrical, plumbing | $360,000 | $0 | $36,000 | $54,000 | $90,000 | 25% | $270,000 | $9,000 |
| 6 | Change order #1 | $45,000 | $0 | $22,500 | $0 | $22,500 | 50% | $22,500 | $2,250 |
| Totals | $1,245,000 | $456,000 | $262,500 | $84,000 | $802,500 | 64% | $442,500 | $80,250 |
What do you submit with an AIA pay application?
- The signed, notarized G702 and the completed G703, per the AIA instructions.
- Conditional lien waivers for this payment, and often unconditional waivers for the last one, from you and your subs and suppliers. See lien waivers.
- Stored materials backup: invoices, photos, proof of insurance and storage location for anything in column F. Contracts often limit what can be billed as stored.
- Change order documentation for any new change order lines.
- Anything else the contract or lender requires, such as certified payroll on public jobs or an updated schedule.
AIA billing by trade
| Trade | Who you bill | Tips |
|---|---|---|
| General contractor | Owner and architect, sometimes a lender's inspector | Collect subs' pay apps a week before yours so your G703 includes their work |
| Electrical subcontractor | The GC, on the GC's pay app schedule | Break rough-in and trim into separate lines by floor or area so progress is easy to verify |
| Mechanical (HVAC) subcontractor | The GC | Bill large equipment as stored materials only if the contract allows it, with full backup |
| Plumbing subcontractor | The GC | Separate underground, rough-in, top-out and trim lines |
| Commercial roofing | The GC or owner | Split tear-off, insulation, membrane and flashing; tie the final line to warranty delivery |
| Site work and landscaping | The GC | Ask for early release of retainage when your scope finishes months before the building |
Common AIA billing mistakes
- Column D doesn't match last month's D + E. The most common rejection. Carry the numbers forward exactly.
- Front-loaded schedule of values. Overvaluing early lines (general conditions, mobilization) can get the schedule rejected and creates overbillings on your WIP report.
- Stored materials without backup. No invoice, photos or proof of insurance means the architect cuts column F.
- Billing unapproved change orders. Only approved change orders belong on the G702 and as G703 lines.
- Wrong retainage math. Retainage on stored materials may differ from completed work. Follow the contract.
- Missing the submission date. Most contracts set a pay app deadline. Miss it and you wait a month.
- Using unlicensed copies. The forms are copyrighted; buy them from AIA Contract Documents or use licensed software.
Frequently asked questions
What is the difference between AIA G702 and G703?
The G703 Continuation Sheet lists every line of the schedule of values with work completed, stored materials, percent complete, balance and retainage. The G702 Application and Certificate for Payment summarizes those totals, applies retainage and previous payments, shows the current payment due, and carries the contractor's notarized signature and the architect's certification.
Does the G702 have to be notarized?
The AIA's instructions for G702–1992 say the contractor should sign the G702, have it notarized and submit it with the G703. Your contract may modify that requirement, so follow its payment section.
What is a schedule of values?
A breakdown of the contract sum into line items, each with a dollar value, prepared by the contractor and approved by the owner or architect. It becomes column C of the G703 and is the basis for measuring progress each month. The AIA doesn't publish a standard schedule of values form.
How do you calculate current payment due on a G702?
Take total completed and stored to date, subtract retainage to get total earned less retainage, then subtract the previous certificates for payment. The result is line 8, current payment due.
Can I use AIA billing without an architect?
Yes. Many GCs require AIA-style pay applications from subs, and some owners and lenders use the forms with no architect involved. The certification is then done by whoever the contract names, such as the GC's project manager or a lender's inspector.
Can QuickBooks create AIA G702 and G703 forms?
QuickBooks Online's progress invoicing creates partial invoices from an estimate, not AIA-format pay applications. Contractors typically use AIA's own software, construction billing tools that sync with QuickBooks, or a spreadsheet, then record the invoice in QuickBooks.
How is retainage shown on an AIA pay application?
On the G702, line 5 shows retainage as a percentage of completed work (5a) and of stored material (5b). Column I of the G703 shows retainage by line when rates vary. Retainage is subtracted on line 6 and stays in the balance to finish on line 9.
Related
- What Is Progress Billing?Progress billing explained: milestone, percent-complete and schedule-of-values methods, worked examples, QuickBooks progress invoicing steps and pitfalls.
- What Is Retainage in Construction?Retainage explained for contractors and subs: how it's calculated, worked billing examples, retainage receivable and payable accounting, rules and release.
- What Is a WIP Report (Work-in-Progress Schedule)?What a construction WIP report is, every column explained, a four-job worked example with over and under billings, how to read it, and mistakes to avoid.
- What Is the Percentage of Completion Method?How the percentage of completion method works for contractors: cost-to-cost formula, a two-year worked example, IRC §460 tax rules and common mistakes.
- What Is a Lien Waiver?What a lien waiver is, conditional vs. unconditional and progress vs. final waivers, and which states require statutory forms, with sources.
- What Is a Change Order?What a change order is, what it must include, how to price one with overhead and profit, and how to track change orders so extra work gets paid.
- Contractor invoicing software that sends the invoice and chases the moneyTurn finished jobs into invoices the same day, send polite automatic reminders on unpaid ones, and sync invoices and payments to QuickBooks.
- QuickBooks for contractors: the right version, real job costing and a sync that keeps the books matched to the jobsQuickBooks for contractors: Online vs Desktop, job costing with projects and classes, sync pitfalls, and how BRIX keeps QuickBooks matched to your jobs.
- Bookkeeping for contractors that keeps your books tax-ready all yearContractor bookkeeping that stays current: categorized expenses, 1099 subcontractor tracking, sales tax and quarterly tax reminders, synced to QuickBooks.
- Days Sales Outstanding (DSO) Calculator for ContractorsFree days sales outstanding calculator for contractors. See how long customers take to pay, how much cash is tied up in receivables, and what it costs you.
Sources
- AIA Contract Documents — Instructions: G702–1992, Application and Certificate for Payment (checked October 12, 2026)
- AIA Contract Documents — Summary: G703–1992, Continuation Sheet (checked October 12, 2026)
- AIA Contract Documents — G703–1992 Continuation Sheet (checked October 12, 2026)