AIA Pay Application Guide: How to Fill Out G702 & G703

Pay applications are how subcontractors get paid on commercial construction projects. If you've worked on any job larger than a small renovation, you've likely encountered AIA pay app forms — and if you're filling them out wrong, you're delaying your own payment.

This guide breaks down the two standard AIA pay application forms, how to fill them out correctly, and how to avoid the mistakes that slow down approvals.

What Are AIA Pay Applications?

The American Institute of Architects (AIA) publishes standardized contract documents used across the construction industry. The two forms used for progress billing are:

• G702 — Application and Certificate for Payment. This is the cover sheet. It summarizes the total contract amount, work completed to date, retainage, previous payments, and the current amount due.
• G703 — Continuation Sheet. This is the detail. It breaks down the contract into line items (your schedule of values) and shows the work completed and materials stored for each line item.

Together, these two forms tell the GC and owner exactly how much work you've done, how much you've been paid, and how much you're requesting this period.

Setting Up Your Schedule of Values

The schedule of values (SOV) is the backbone of every pay application you'll submit on a project. It gets established at the start of the job and stays with you through the final payment. Getting it right upfront saves headaches for the entire project duration.

Break your contract into meaningful line items that reflect actual phases of work. A mechanical sub might break theirs into rough-in, underground, above-ceiling, trim-out, and startup/commissioning. An electrical contractor might separate by floor, by system (power, lighting, fire alarm, low voltage), or by phase.

Tips for structuring your SOV:

• Front-load strategically, but don't overdo it. It's standard practice to weight early work items (mobilization, submittals, rough-in) slightly higher to improve early cash flow. But if your SOV is obviously front-loaded, the GC or architect will reject it.
• Include a mobilization line item. This covers your costs for getting set up on the job — temporary facilities, initial material deliveries, and coordination.
• Separate labor and materials if the contract requires it. Some owners want to see the split. Check your subcontract.
• Make line items match your work flow. You'll be billing against these items monthly, so they should align with how the work actually progresses.

Filling Out the G702 (Cover Sheet)

The G702 is mostly a math exercise once your G703 is complete. Here's what goes in each field:

1. Original contract sum. Your base contract amount, as awarded.
2. Net change by change orders. The total of all approved change orders — additions minus deductions.
3. Contract sum to date. Original contract plus net change orders.
4. Total completed and stored to date. Pulled from the G703 total — this is the sum of all work completed and materials stored across all line items.
5. Retainage. Typically 10% of the completed work, though some contracts reduce retainage after 50% completion. Check your subcontract for the specific retainage terms.
6. Total earned less retainage. Completed work minus retainage held.
7. Less previous certificates for payment. What you've already been paid on previous pay apps.
8. Current payment due. The difference — this is what you're requesting.

Filling Out the G703 (Continuation Sheet)

The G703 is where you track progress on each line item. For each row:

• Column A: Item number
• Column B: Description of work
• Column C: Scheduled value (from your approved SOV)
• Column D: Work completed from previous applications
• Column E: Work completed this period
• Column F: Materials presently stored (not yet installed)
• Column G: Total completed and stored to date (D + E + F)
• Column H: Percentage complete (G / C)
• Column I: Balance to finish (C - G)

The most important thing: your numbers need to be defensible. If you bill 60% on a line item, you should be able to walk the GC through the job and demonstrate that 60% of that work is actually in place. Overbilling erodes trust and leads to disputes.

Common Mistakes That Delay Payment

• Math errors. Sounds basic, but incorrect totals are the number one reason pay apps get bounced. Double-check every calculation before submitting.
• Missing backup documentation. Many GCs require lien waivers, certified payroll, stored materials invoices, or updated insurance certificates with each pay app. Know what's required and include it.
• Billing for stored materials without documentation. If you're billing for materials stored on-site or at a warehouse, you need invoices and sometimes photos. Some contracts require stored materials to be insured separately.
• Submitting late. Pay app deadlines are usually tied to the owner's billing cycle. Miss the cutoff by one day and you could wait an entire month for your money.
• Not matching the GC's format. If the GC uses a specific template or requires submission through a portal, use it. Submitting in your own format creates extra work for their AP team and pushes you to the back of the line.

Tips for Faster Approval

1. Submit early. Don't wait until the deadline. Submit a few days ahead so there's time for questions without missing the cycle.
2. Be conservative on percentages. It's better to bill 55% when you're at 58% than to bill 65% and get knocked back. Consistent, honest billing builds trust.
3. Communicate with the GC's project manager. A quick call before you submit — "I'm billing 70% on rough-in this month, does that align with what you're seeing?" — can prevent rejections.
4. Keep your change orders current. Don't let unapproved change orders pile up. Push for timely approval so your pay app reflects the actual contract value.
5. Track everything digitally. Using software to manage your pay apps eliminates math errors, keeps a clean audit trail, and makes it easy to generate the forms on demand.