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AIA Contract Billing: G702 And G703
Every month of a construction project, somebody has to answer one question: how much work got done, and how much money is owed for it?
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The Industry Already Has An Answer
It is a two-page document set: AIA G702, the application and certificate for payment, and G703, the continuation sheet that breaks it down line by line.
Banks read it. SBA lenders read it. Landlords administering a tenant improvement allowance read it. Architects certify it. Nobody in that list has to be taught what they are looking at.
LNB bills on those forms as standard, on every project, whether the client asks for them or not.
What The Two Forms Do
Together they tell anyone reading them exactly where the money went and exactly what is left.
G702, Application And Certificate For Payment.
The summary page. Original contract sum, net change orders, contract sum to date, total completed and stored to date, retainage held, previous payments, and the current amount due. Signed by the contractor, notarised where required, and certified by the architect.
G703, Continuation Sheet.
The detail behind the summary. Every line of the schedule of values, with its scheduled value, work completed in previous periods, work completed this period, materials stored, total to date, percentage complete and balance to finish.
What Goes Into Every Application
Six things, every month, in the same order. The first is the one everything else hangs off.
The schedule of values.
The contract price broken into line items: general conditions, demolition, framing, drywall, electrical, plumbing, HVAC, flooring, millwork and so on down. Everything else on this page depends on it being right.
It matches your lender’s approved budget.
If the bank approved fourteen line items, our schedule of values has those fourteen line items. Nobody should have to reconcile two documents by hand every month, least of all the person deciding whether to release your money.
It is not front-loaded.
Some contractors weight the early line items to collect more cash sooner. It works right up until the inspector disagrees with the percentages, and then every draw for the rest of the job gets scrutinised. We bill what is in place.
The lien waiver package.
Conditional waivers on progress payment from every sub and supplier billing that period, unconditional waivers for the prior period once that money cleared, and unconditional final waivers from every tier at completion. A payment application without them is an incomplete payment application.
Change orders, as their own line.
A written proposal with a price and a schedule impact, before the work happens, and your signature on it. Then it appears as a separate line on the G703. It never gets buried inside an existing line item and it never turns up on an application you have not already approved.
Retainage, stated every month.
Most contracts hold a percentage of each payment, typically 5 or 10 percent, until the work is complete. Every application shows what is held to date and what triggers its release, rather than leaving you to work it out.
A lien waiver package proves the money you paid actually reached the people who did the work. It is the reason a mechanic’s lien does not appear on your leasehold six months after you open.
Why This Matters To You
None of this is about paperwork for its own sake. It is about how fast you get paid, and what happens if anybody disagrees later.
Your draws move faster.
Lenders and property managers process what they recognise. An unfamiliar invoice generates questions and questions generate delay.
You can see the project’s finances.
Percentage complete by trade, every month, on one page. Not a total with your name on it.
Disputes have a paper trail.
Because everything was documented as it happened rather than reconstructed afterwards, when both sides remember it differently.
Your architect can certify without a fight.
They are signing a form they have signed a thousand times, in the format they expect it in.
AIA Billing FAQ
What is an AIA G702?
What is the difference between G702 and G703?
Do I need an architect to certify payment applications?
Do you use AIA contracts as well as AIA billing?
What if my landlord uses their own draw form?
Can I see a sample payment application before we start?
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