Subcontractor pay application checklist

What to check on every sub pay app before it rolls into your own pay app and before you release payment.

os.construction
Free template

Project

Job #

Subcontractor

Subcontract #

Pay app # / period through

Reviewed by

1 · Before the cutoff

Done	Item	Initials	Date
	Pay app received by the cutoff date in the subcontractLate apps roll to next month unless you agree otherwise in writing.
	Submitted on the required form (G702/G703 style or your format)
	Schedule of values matches the approved subcontract SOV, line for line

2 · Paperwork in the package

Done	Item	Initials	Date
	Conditional lien waiver for this paymentUse the statutory form where your state requires one.
	Unconditional waiver for the previous payment, once funds cleared
	Lower-tier sub and supplier waivers, where required
	Certified payroll for the period (public or prevailing wage jobs)
	Stored materials backup: invoice, bill of sale, insurance, photos, locationOff-site storage usually needs extra proof. Check the prime contract.

3 · Check the numbers

Done	Item	Initials	Date
	Previous work completed matches what you certified last period
	% complete per line agrees with what the PM or superintendent sees in the fieldWalk it or check the daily logs. Do not approve a percentage you cannot see.
	Only executed change orders billed (no pending or unapproved COs)
	Retainage at the subcontract rate, including any agreed reduction
	Math checks: completed and stored to date, less retainage, less previous payments = amount due
	Backcharges and deductions applied, with notice given per the subcontract

Completed and stored to date − retainage = earned less retainage
Earned less retainage − previous payments = current payment due
Example (CoreDry sample sub): $1,404,000 − $140,400 (10%) = $1,263,600 − $1,053,000 previous = $210,600 due

4 · Compliance

Done	Item	Initials	Date
	Certificate of insurance current; additional insured and waiver of subrogation in placeExpired coverage: hold payment until a current certificate is on file.
	W-9 and any required license or registration on file
	Required submittals, closeout items or safety documents are not outstanding

5 · Approve and pay

Done	Item	Initials	Date
	PM approval recorded, with any adjusted lines noted back to the sub
	Approved amounts carried into your pay app to the owner on the matching SOV lines
	Payment released only after the owner pays, if your subcontract is pay-when-paid or pay-if-paidEnforceability varies by state. Ask counsel.
	Payment recorded against the commitment; retainage payable updated

Template from os.construction/resources/templates. Free to use and adapt.Requirements vary by contract and state. Your contract documents govern.