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Contractor Guide

The pay application, line by line

On most commercial jobs, and many larger residential ones, you get paid through a pay application in the AIA G702/G703 layout, or something modelled on it. It looks like accounting, but it’s just a running tally of the contract, what’s been done and what’s been paid. Once you can read it line by line, you can see exactly why the cheque is smaller than you expected.

The continuation sheet (G703): one row per line of the schedule of values

ColumnWhat it holds
A, BItem number and description of the work.
CScheduled value: what this line is worth in the contract.
DWork completed on previous applications.
EWork completed this period.
FMaterials stored on site or off site, not yet in D or E.
GTotal completed and stored to date (D + E + F), with the percentage of C beside it.
HBalance to finish (C − G).
IRetainage, where it varies by line.

The summary page (G702): nine lines

  1. Original contract sum.
  2. Net change by change orders. Only approved ones.
  3. Contract sum to date (1 + 2).
  4. Total completed and stored to date. The grand total of column G.
  5. Retainage. The rate times line 4, sometimes split between completed work and stored materials.
  6. Total earned less retainage (4 − 5).
  7. Less previous certificates for payment. Zero on the first one.
  8. Current payment due (6 − 7). This is the cheque.
  9. Balance to finish, including retainage (3 − 6).

Why the cheque is below what you billed

This is a plain-language guide to the layout, not legal advice. Your contract says when pay apps are due, what must come with them and how long the owner has to pay. AIA’s forms are its own and are licensed from AIA.

Pay apps whose numbers add themselves up

siteMargin issues pay apps from the job’s own lines: work to date, change orders, retainage and previous payments, stored on the record once issued so nobody can quietly retype a number.

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