A construction payment application is how a contractor asks an owner to pay for work completed so far. AIA G702 and AIA G703 are the two standard forms most projects use for that: G702 summarizes what’s owed, and G703 shows the detail behind it. Getting the retainage math right often decides whether an application clears review or bounces back.
Key Takeaways
- G702 is the summary application; G703 is the detailed continuation sheet behind it.
- The schedule of values on G703 breaks the contract into line items, covered in more depth in our construction scheduling and planning guide.
- Retainage on AIA form G702 and G703 is a set percentage withheld per line item, then totaled on the summary.
- A payment application only moves quickly if the numbers on G702 match the detail on G703 exactly.
- Reality Intelligence tools help confirm that what’s billed matches what’s been built.
Quick Definitions
- AIA G702: Application and Certificate for Payment; the summary form showing the amount currently due.
- AIA G703: Continuation Sheet; the itemized schedule of values behind the G702 summary.
- Schedule of values: Contract price broken into line items tied to specific scopes of work.
- Retainage: Percentage of each payment withheld until substantial completion, typically 5 to 10 percent.
- Payment application: A contractor’s formal, usually monthly, request for payment on completed work.
What Is AIA G702 and G703?
AIA G702, the Application and Certificate for Payment, is the summary form a contractor submits to request payment. It states the contract sum, total completed to date, retainage, prior payments, and the amount due.
What is an AIA document G702, functionally, is a one-page snapshot of what’s owed. The contractor signs first to certify it’s accurate; the architect signs to certify payment to the owner.
AIA document G703, the Continuation Sheet, is the backup: every line item from the schedule of values, with work completed, materials stored, percent complete, and balance to finish. What is AIA G702 and G703 together, then, is a summary and its supporting detail, submitted as a pair each cycle.
What Is a Schedule of Values?
What is a schedule of values in construction? What is schedule of values in construction, or just what is schedule of values, all point to the same answer: it is the contract price broken into line items tied to specific scopes of work, used to approve payment as work is completed rather than as time passes. Instead of billing the full contract as one lump sum each month, the contractor and owner set a value for site work, concrete, framing, mechanical, electrical, and other major scopes, then bill against each separately as it progresses. We cover this in more depth in our guide to construction scheduling and planning, since the same schedule of values also underpins the project schedule.
The contractor drafts the schedule of values early and submits it for architect or owner approval before the first payment application. Once approved, it becomes the baseline for every G703 continuation sheet, and should only change through a formal change order, not a contractor reallocating value between line items.
What is an AIA schedule of values, specifically, is that same breakdown reformatted into the G703 layout described above.
Learning how to create a schedule of values, or how to make a schedule of values, means listing every major scope, assigning a dollar value that sums to the full contract, and keeping line items granular enough to track progress. A line item like “concrete” that lumps foundations, slabs, and sidewalks together hides what is actually driving percent complete; splitting it into two or three items usually fixes that.
What does a schedule of values look like in practice? A spreadsheet with one row per line item, tracking value, progress, and remaining balance each billing cycle, for example: cast-in-place concrete, scheduled value $340,000, 60 percent complete, $204,000 earned, $136,000 remaining.
How to Fill Out AIA G702
Teams learning how to fill out AIA G702, or how to complete AIA document G702, follow the same sequence:
- Enter the contract sum and any approved change orders.
- Pull the total completed and stored to date from the G703.
- Calculate retainage based on the contract percentage.
- Subtract previous payments and retainage to get the amount due.
- Sign and route the form to the architect for certification.
- Most of that work behind how to fill out AIA document G702 correctly happens on the G703.
How to Fill Out AIA G703
Teams asking how to fill out AIA G703, or how to fill out AIA document G703, are updating the schedule of values for one billing period. For each line item:
- Report work completed this period, in dollars.
- Report materials stored but not yet installed.
- Add both to the total completed and stored to date.
- Calculate percentage complete.
- Subtract from the scheduled value for balance to finish.
Stored materials need documentation: a supplier invoice, proof of insurance, and, if off-site, confirmation the location is bonded or secured.
What is AIA document G703 really testing is whether claimed progress matches what a reviewer can verify. Numbers that don’t reconcile are the top reason applications get sent back.
How to Bill Retainage on AIA Forms G702 and G703
Retainage on AIA G702 and G703 is billed as a set percentage, usually 5 to 10 percent, withheld per line item on the G703 and totaled as one deduction on the G702. How to bill retainage on AIA form G702 and G703 both trace back to that single number.
Retainage is calculated per line item on the G703, either on completed work alone or plus stored materials, depending on contract terms. Those amounts are totaled and subtracted on the G702, along with previous payments, to get the amount due. Some contracts reduce retainage once the project hits a completion threshold.
A Worked Example: G702 and G703 for One Billing Cycle
Say a project has a $1,000,000 contract sum and 10 percent retainage. On the G703: concrete is $400,000 scheduled value, 75 percent complete ($300,000 earned, $30,000 retainage); framing is $600,000 scheduled value, 33 percent complete ($200,000 earned, $20,000 retainage). That’s $500,000 completed and $50,000 in retainage.
On the G702: $1,000,000 contract sum, less $500,000 completed, less $50,000 retainage, less $300,000 in previous payments, leaves a current payment due of $150,000.
What Is a Payment Application in Construction?
A payment application in construction is a contractor’s formal request to be paid for work completed, backed by documentation an owner or architect can verify. AIA G702 and AIA G703 are the most widely used format, but the underlying idea (billing tied to verified progress, not a flat invoice) applies regardless of the forms a project uses.
Common Mistakes When Preparing a Payment Application
- Letting G703 line items drift out of sync with the schedule of values, so totals no longer add up.
- Billing materials as stored without documentation.
- Applying the wrong retainage percentage after a contract amendment.
- Submitting an application before confirming percent complete against what’s actually installed.
What Happens If a Payment Application Is Rejected?
An architect can certify a payment application for less than requested, or flag specific line items, if the numbers don’t reconcile. The contractor gets a written explanation and resubmits a corrected application next cycle.
Repeated rejections on the same line items usually mean the schedule of values needs adjusting. Most contracts also set a payment timeline, so a rejected application can push payment past that window.
How Teams Verify a Payment Application Against Real Progress
Most payment applications still rely on a contractor’s own percent-complete estimates, checked against a reviewer’s memory of the last site visit. That’s a gap where disputes start.
Reality Intelligence platforms like Track3D close that gap by comparing a G703 line item against what’s actually captured on site. Track3D’s VisualTrack keeps a unified record of site captures; ProgressTrack turns that into a factual view of installed work, so an application can be checked against reality before it’s signed.
Want a Clearer View Behind Your Next Payment Application?
Getting AIA G702 and G703 right starts with a schedule of values that holds up. Talk to us to learn how Track3D can help you confirm billed progress against what’s actually built.
Frequently Asked Questions
What is the difference between AIA G702 and AIA G703?
G702 is the one-page summary showing the amount currently due; G703 is the itemized backup showing the schedule of values behind that total.
What documentation is required for stored materials on AIA G703?
A supplier invoice, proof of insurance, and, for materials stored off-site, confirmation the location is bonded or secured.
How do you fill out AIA document G702?
Enter the contract sum, pull totals from the G703, calculate retainage, subtract previous payments, and route for certification.
How do you bill retainage on AIA forms G702 and G703?
Calculate it per line item on the G703 using the contract percentage, then total it on the G702 and subtract it from the amount due.
What is a payment application in construction?
A contractor’s formal request for payment on completed work, backed by documentation an owner or architect can verify.
What happens if a payment application is rejected?
The architect certifies a lower amount or flags specific line items, the contractor gets a written explanation, and a corrected application goes out the next cycle.
