Anatomy of a pay app
Watch an AIA G702/G703 get built line by line, from the schedule of values to the current payment due. Every cell, what it means and where it comes from.
Pay App #9, built step by step
- Pay App #9 · sample data
Two forms, one number
A pay app on AIA forms is two documents. The G703 continuation sheet has one row per schedule of values line. The G702 is the one-page summary the architect certifies and the owner pays.
We'll build Riverside Medical Center's Pay App #9 from scratch: $2,310,400 of work this period.
- G703 · columns A–C
Start with the schedule of values
Each row is an approved SOV line with a scheduled value. Change orders get their own lines: CO #14 for the fire dampers is line 10.
Column C total = $49,300,000 = contract sum to date - Column D
What you already billed
Work completed and billed on Pay Apps #1 through #8, line by line. It carries forward from the last application, so it never changes this month.
Previous applications = $30,689,600 - Column E
Work put in place this period
The progress the field actually installed since the last cutoff. This is the column the architect checks on the site walk.
Work this period = $1,971,920 - Column F
Stored materials
Material delivered but not yet installed: air handlers, switchgear and the dampers for CO #14. Most contracts allow billing it with backup (invoices, insurance, location).
E $1,971,920 + F $338,480 = $2,310,400 this period - Column G and %
Completed and stored to date
Add D + E + F on every row. Divide by C for percent complete. The bars behind each line show how far it has come.
G = $33,000,000 · 66.9% of the contract - Column H
Balance to finish
Scheduled value minus completed and stored. What's left to bill on each line, before retainage.
C − G = $16,300,000 - Column I
Retainage
The owner holds back 10% of column G on every line until the job is complete. On CO #14 that's $6,912.
10% × $33,000,000 = $3,300,000 - G702 · lines 1–3
Roll it up: contract sum to date
The original contract plus executed change orders. The change order summary box has to agree, and line 3 has to equal G703 column C.
$48,200,000 + $1,100,000 = $49,300,000 - G702 · lines 4–6
Earned, less retainage
Line 4 comes straight from column G. Retainage splits into completed work (5a) and stored material (5b), and must equal column I.
$33,000,000 − $3,300,000 = $29,700,000 - G702 · lines 7–9
Current payment due
Subtract what was certified on earlier pay apps (line 6 of Pay App #8). What's left is this month's check.
$29,700,000 − $27,620,640 = $2,079,360Sanity check: $2,310,400 this period − $231,040 retainage = $2,079,360. It ties.
- Signatures
Sign, certify, pay
The contractor signs (notarized where required). The architect certifies the amount after checking the work, and the owner pays what's certified, usually with lien waivers attached.
Next: why pay apps get rejected.
The whole pay app, as tables
Every number from the walkthrough above. Riverside Medical Center, Job 24-118, Pay App #9 (sample data).
| A · Item | B · Description | C · Scheduled value | D · Previous | E · This period | F · Stored | G · Completed & stored | % (G÷C) | H · Balance to finish | I · Retainage |
|---|---|---|---|---|---|---|---|---|---|
| 1 | General conditions | $3,850,000 | $2,656,500 | $115,500 | $0 | $2,772,000 | 72% | $1,078,000 | $277,200 |
| 2 | Sitework | $2,640,000 | $2,640,000 | $0 | $0 | $2,640,000 | 100% | $0 | $264,000 |
| 3 | Concrete | $6,920,000 | $6,574,000 | $138,400 | $0 | $6,712,400 | 97% | $207,600 | $671,240 |
| 4 | Structural steel | $5,480,000 | $5,206,000 | $109,600 | $0 | $5,315,600 | 97% | $164,400 | $531,560 |
| 5 | Mechanical & plumbing | $11,260,000 | $5,630,000 | $486,000 | $225,200 | $6,341,200 | 56% | $4,918,800 | $634,120 |
| 6 | Electrical | $8,140,000 | $3,663,000 | $402,800 | $96,000 | $4,161,800 | 51% | $3,978,200 | $416,180 |
| 7 | Fire protection | $1,910,000 | $764,000 | $152,800 | $0 | $916,800 | 48% | $993,200 | $91,680 |
| 8 | Interiors & finishes | $8,000,000 | $2,786,100 | $448,980 | $0 | $3,235,080 | 40% | $4,764,920 | $323,508 |
| 9 | Approved COs #1–13 | $1,013,600 | $770,000 | $66,000 | $0 | $836,000 | 82% | $177,600 | $83,600 |
| 10 | CO #14 Fire dampers | $86,400 | $0 | $51,840 | $17,280 | $69,120 | 80% | $17,280 | $6,912 |
| Grand total | $49,300,000 | $30,689,600 | $1,971,920 | $338,480 | $33,000,000 | 67% | $16,300,000 | $3,300,000 |
| Line | Description | Amount |
|---|---|---|
| 1 | Original contract sum | $48,200,000 |
| 2 | Net change by change orders (from the change order summary) | $1,100,000 |
| 3 | Contract sum to date (line 1 ± 2) | $49,300,000 |
| 4 | Total completed & stored to date (column G on G703) | $33,000,000 |
| 5a | 10% of completed work (columns D + E) | $3,266,152 |
| 5b | 10% of stored material (column F) | $33,848 |
| 5 | Total retainage (5a + 5b, or column I) | $3,300,000 |
| 6 | Total earned less retainage (line 4 − line 5) | $29,700,000 |
| 7 | Less previous certificates (line 6 from Pay App #8) | $27,620,640 |
| 8 | Current payment due (line 6 − line 7) | $2,079,360 |
| 9 | Balance to finish, incl. retainage (line 3 − line 6) | $19,600,000 |
Common rejection reasons
What gets a pay app sent back, in the order reviewers usually find it.
- 01
The math does not tie
G702 line 4 has to equal the G703 column G total, line 5 has to equal column I, and line 3 has to equal column C. One transposed digit and the whole package comes back.
- 02
Unapproved change orders
Only executed change orders go on the SOV. A pending PCO billed as a line is the fastest way to lose an architect’s trust.
- 03
Percent complete ahead of the field
The architect walks the site. If column G says drywall is 60% done and the third floor is still open studs, expect a markup.
- 04
Stored materials without backup
Most contracts want invoices, proof of insurance and the storage location (and a bill of sale for off-site storage) before they pay for material that is not installed.
- 05
Missing lien waivers
Owners and lenders commonly want conditional waivers for this period and unconditional waivers for the last one, from you and your subs. On Riverside, Apex Steel and CoreDry are still missing (sample data).
- 06
Wrong retainage rate
Reducing retainage at 50% complete only counts if the contract allows it and the owner has approved it. Billing the reduction early gets the pay app rejected.
- 07
SOV values moved without approval
Shifting value between lines (or front-loading early trades) without owner sign-off is a red flag reviewers look for.
- 08
Paperwork gaps
Wrong application number or period, missing signature or notarization, or a continuation sheet that does not match the summary page.
Keep going
Keep exploring
Related across os.construction
- DocsPayment applications: G702/G703 progress billingCreate a pay app against a prime contract, subcontract or purchase order. Enter this period's progress on the G703, check the G702, then submit and approve.
- GlossaryAIA G703The AIA Continuation Sheet: the line-by-line detail of a pay application, showing progress and retainage for each schedule of values item.
- GlossaryPay Application (Pay App)A contractor's periodic, itemized request for payment based on work completed and materials stored against the schedule of values.
- ExplainerYour owner pay application review, line by lineReview Riverside Pay App #9 the way your owner will: G703 lines, stored materials, retainage and the G702 math, before you submit it.
- DocsPay apps, SOV and retainageHow progress billing works with a schedule of values, AIA G702/G703 and retainage, worked through Pay App
- PlatformAIA billing (G702/G703) (use case)How os.construction handles aia billing (g702/g703) on one record.
Sample project included
Try this workflow on the sample project
Every trial workspace includes a sample project with sample data, so you can follow these steps in the app before touching a live job.
Want this on live job data?
Change orders and pay apps are live in os.construction; WIP and AP are planned. On one record, every number on this page is entered once.
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All figures are illustrative sample data, not a real project. Contract terms and state law decide how retainage, stored materials and change orders work on your job. Check both.