Last updated November 6, 2026
General information, not tax or legal advice. The rules depend on your country and your situation, so check anything with a tax or legal consequence with your accountant.
AIA G702 and G703 add up in one direction. G703 lists each line of the schedule of values with the work done to date. G702 takes its totals, subtracts retainage and everything already certified, and arrives at the current payment due. If the two sheets disagree, expect the application back.
This guide covers the sums only. AIA's instructions say the forms are copyrighted and can't be reproduced or excerpted without its written permission, so use a licensed copy for the real thing. The descriptions below are in our own words.
What are AIA G702 and G703?
AIA G702 and G703 are the American Institute of Architects' payment forms for US construction contracts. G702 is one page holding the contractor's application and the architect's certificate. G703, the continuation sheet, breaks the contract sum into portions of work following the contractor's schedule of values.
The working order starts with G703. You complete it, carry its totals to G702, sign G702, have it notarised and send both sheets to the architect. The architect certifies the amount or a different one, initialling every changed figure and attaching an explanation. The owner then pays on the certificate.
The line numbers and column letters here come from the 1992 editions, G702-1992 and G703-1992. AIA publishes related forms for other situations, such as G702S for subcontractors and G702CW and G702GMP for cost-of-the-work projects, so check which one your contract names.
How do the G703 columns add up?
The G703 columns give each line of the schedule of values its own running account: what the line is worth, what has been done, what's in storage and what's left.
| Column | What it holds | Where the figure comes from |
|---|---|---|
| A, B | Item number and description | Schedule of values |
| C | Value of the line | Schedule of values, with approved change orders added as lines |
| D | Work done up to the last application | Last application's D + E |
| E | Work done this period | Your measure for the period, including stored materials now installed |
| F | Materials stored but not yet installed | What is in store at the period end |
| G | Total completed and stored | D + E + F |
| % | Progress on the line | G ÷ C |
| H | Balance to finish | C − G |
| I | Retainage, only where the rate varies by line | That line's rate × its amount |
Here's an invented example. A contractor with a $480,000 contract and one approved $12,000 change order prepares application 3, with retainage at 5% throughout.
| Line | C | D | E | F | G | % | H |
|---|---|---|---|---|---|---|---|
| 1 General conditions | $48,000 | $16,000 | $8,000 | $0 | $24,000 | 50% | $24,000 |
| 2 Sitework and foundations | $96,000 | $96,000 | $0 | $0 | $96,000 | 100% | $0 |
| 3 Framing and roof | $144,000 | $72,000 | $43,200 | $0 | $115,200 | 80% | $28,800 |
| 4 Mechanical and electrical | $132,000 | $19,800 | $26,400 | $13,200 | $59,400 | 45% | $72,600 |
| 5 Finishes | $60,000 | $0 | $0 | $6,000 | $6,000 | 10% | $54,000 |
| 6 Change order 1, extra glazing | $12,000 | $0 | $6,000 | $0 | $6,000 | 50% | $6,000 |
| Total | $492,000 | $203,800 | $83,600 | $19,200 | $306,600 | 62.3% | $185,400 |
Column F is where people slip. Line 4's $26,400 in column E includes $9,000 of equipment that sat in column F on the last application and has now been installed. When material goes in, it leaves F and enters E. Leave it in both and you've billed it twice.
How do the G702 lines add up?
The G702 lines start from the contract sum, pick up the G703 totals and work down to the current payment due. Here is the same application:
| Line | What it is | Arithmetic | This application |
|---|---|---|---|
| 1 | Contract sum as signed | From the contract | $480,000 |
| 2 | Approved change orders, net | Additions less deductions | $12,000 |
| 3 | Contract sum now | Line 1 ± line 2 | $492,000 |
| 4 | Completed and stored to date | Column G total | $306,600 |
| 5a | Retainage on completed work | Rate × (D + E totals) | 5% × $287,400 = $14,370 |
| 5b | Retainage on stored materials | Rate × F total | 5% × $19,200 = $960 |
| 5 | Total retainage | 5a + 5b, or the column I total | $15,330 |
| 6 | Earned less retainage | Line 4 − line 5 | $291,270 |
| 7 | Certified on earlier applications | Line 6 of the previous certificate | $202,160 |
| 8 | Current payment due | Line 6 − line 7 | $89,110 |
| 9 | Balance to finish, with retainage | Line 3 − line 6 | $200,730 |
Application 2 had $212,800 completed and stored, made up of $203,800 of work and the $9,000 of stored equipment. Retainage on that was $10,640, which gave a line 6 of $202,160, and that figure becomes line 7 here.
Line 8 is what you are asking for this month. Line 9 is everything still to come, including the retainage you've earned but haven't received.
How do you check a pay application before sending it?
A pay application can check itself, because the main figures can be reached two ways. Using the example above:
- Column totals: the C total equals line 3 ($492,000), and D + E + F equals the G total ($203,800 + $83,600 + $19,200 = $306,600).
- Line 9: equals the H total plus total retainage ($185,400 + $15,330 = $200,730).
- Line 8: equals the rise in column G less the rise in retainage since the last application ($93,800 − $4,690 = $89,110).
- Line 7: equals line 6 of the last certificate as certified. If the architect cut your last application, use the certified figure rather than the one you applied for.
What gets a pay application sent back?
A pay application usually comes back because a figure can't be supported, more often than because of a slip in the adding up.
- Front-end loading. Weighting the schedule of values towards early items brings cash in sooner, and architects look for it. It also leaves the last lines short of money when you need it most.
- Change orders that aren't approved yet. Only approved ones belong on line 2 and as lines on G703. Mention pending ones in your covering note.
- Progress ahead of the site. The architect certifies from site observations, so 80% claimed on a framing line that looks 60% done gets cut.
- Stored materials without paperwork. Many contracts want invoices, insurance or proof of title before paying for materials, especially ones stored off site.
- The wrong retainage rate. Rates depend on the contract and the state, and some contracts reduce the rate partway through. The guide to retainage on an invoice covers the rules and how the release gets billed.
G702 and G703 are one format for progress billing, and they only show what you've claimed. To see if you're ahead of or behind your own progress, you need a WIP report.
Keeping AIA pay applications alongside ERPFlow
ERPFlow has no AIA forms, schedule of values or retainage line, so G702 and G703 stay on AIA's own forms. Monthly pay applications on large contracts are beyond what it's built for. If you run a small construction business and only some jobs need them, the rest of the billing record can still sit in ERPFlow.
- Raise the invoice. If the owner's accounts team wants an invoice as well, make an ordinary invoice with one line for line 8 of the certified application. In the example: "Application 3, period to 31 March 2026, current payment due", quantity 1, price $89,110.
- Give it their reference. The optional Order number field prints on the PDF, which suits the owner's purchase order or contract number.
- Keep the paperwork on the record. Attach the certified G702 and G703 to the invoice. Attachments are internal and don't go out with the emailed PDF, so send the forms to the owner separately.
- Record what arrives. Payments go against the invoice, part payments included, and the invoice shows what is still due.