The Contractor’s Guide to AIA G702 and G703 Pay Applications

G702 and G703 are a payment package

AIA G702 and G703 are commonly used together for a contractor’s application for payment. G702 is the summary and certification page; G703 is the continuation sheet that breaks the contract into line items. The package lets the contractor show what has been earned, what has been retained, what has already been paid, and what is being requested now.

The exact form edition, contract procedure, backup documents, signatures, and review path come from the project contract. This guide explains the planning logic and the calculator workflow; it is not a replacement for the licensed AIA documents, the contract, the architect’s instructions, or the owner’s payment requirements.

Build the schedule of values before the first application

A schedule of values allocates the approved contract sum across identifiable portions of the work. It should be detailed enough for the reviewer to understand what is complete, what is stored, and what remains. For demolition and excavation, useful lines may separate mobilization, permits and protection, abatement when applicable, structural removal, foundation work, hauling, mass excavation, imported fill, trenching, restoration, and closeout.

Avoid both extremes: one line for the entire contract hides progress, while dozens of tiny lines create a bookkeeping burden without improving review. Match the line items to the scope, cost codes, milestones, subcontract agreements, procurement, and the way the work will actually be inspected. Once accepted, changes to the schedule may require the contract administrator’s approval.

How G703 line-item math works

For each line, start with the scheduled value. Record the amount completed in prior periods, the amount completed this period, and eligible stored materials when the contract allows them. The total completed and stored to date is the sum of those components. The percent complete is that total divided by the scheduled value, and the balance to finish is the scheduled value minus the total completed and stored.

The line totals must reconcile to the G702 summary. A line should not be billed above its scheduled value unless the contract and approved change documentation support the adjustment. Stored-material claims should be supported by the project’s required evidence, such as invoices, delivery records, ownership terms, photos, insurance, or other backup—not simply an entry in the spreadsheet.

• Scheduled value: the approved amount assigned to the line.
• Previous work: the value already reported in earlier applications.
• This period: the value earned during the current billing period.
• Stored material: eligible material presently stored under the contract’s conditions.
• Completed and stored: previous work plus this period plus eligible stored material.
• Balance to finish: scheduled value less completed and stored to date.

The G702 summary and retainage check

The G702 summary carries the contract sum, approved net changes, total completed and stored, retainage, previous certificates, current payment requested, and balance remaining. The calculator mirrors those relationships so a contractor can identify a mismatch before sending the package for review.

Retainage is controlled by the contract and applicable law. If completed work and stored material have different retainage treatments, calculate each portion separately, then add them. Do not assume that 5% or 10% applies to every project, every line, or every jurisdiction. Confirm the contract language, amendments, and payment requirements before using the result.

Change orders, stored material, and backup

A change-order amount should not be treated as earned contract value merely because someone expects it to be approved. Keep pending, proposed, and executed changes distinct. The application should follow the project’s process for identifying approved changes and showing their effect on the contract sum and schedule of values.

Stored materials create a second review question: are they eligible under the contract, located where permitted, protected, insured, and supported by evidence? The answer can differ for material stored on site, in a bonded off-site warehouse, or at a supplier. Attach the documents the contract administrator requests and avoid billing material that cannot be verified or that the contract excludes.

Why payment applications are returned for correction

Most review problems are reconciliation or documentation problems rather than complicated arithmetic. A reviewer may return an application when the G702 summary does not match the G703 totals, a change order is not executed, stored materials lack backup, the percent complete is not supported by field progress, or retainage is applied inconsistently.

A clean package makes the reviewer’s job easier. Use the same project name, application number, period, line-item identifiers, and totals on every page. Keep a working reconciliation sheet, compare the current application with the previous certificate, and check that the requested payment does not exceed the contract and approved changes.

Use the digital pay-application workstation

Enter the original contract sum, approved changes, previous payment, retainage treatment, and schedule-of-values lines in the AIA pay-app workstation. The tool calculates line totals and the summary relationships, then flags values that are missing, inconsistent, or outside the schedule. Export the working result for internal review and retain the project’s required supporting documents separately.

The workstation is a planning and checking aid. It does not issue an AIA document license, certify payment, decide whether stored material is eligible, determine the contract’s retainage rule, or replace signatures and approvals. Save the permalink with the application number and period, then compare the exported package with the project’s current contract instructions before submission.

• Confirm the contract and form edition used on the project.
• Reconcile every G703 line to the approved schedule of values.
• Separate pending changes from executed changes.
• Support stored materials with the evidence the contract requires.
• Check current-period work against field progress and prior certificates.
• Verify retainage, previous payments, signatures, waivers, and backup before sending.