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
| Column | What it holds |
|---|---|
| A, B | Item number and description of the work. |
| C | Scheduled value: what this line is worth in the contract. |
| D | Work completed on previous applications. |
| E | Work completed this period. |
| F | Materials stored on site or off site, not yet in D or E. |
| G | Total completed and stored to date (D + E + F), with the percentage of C beside it. |
| H | Balance to finish (C − G). |
| I | Retainage, where it varies by line. |
The summary page (G702): nine lines
- Original contract sum.
- Net change by change orders. Only approved ones.
- Contract sum to date (1 + 2).
- Total completed and stored to date. The grand total of column G.
- Retainage. The rate times line 4, sometimes split between completed work and stored materials.
- Total earned less retainage (4 − 5).
- Less previous certificates for payment. Zero on the first one.
- Current payment due (6 − 7). This is the cheque.
- Balance to finish, including retainage (3 − 6).
Why the cheque is below what you billed
- Retainage comes off every application (line 5).
- The architect or owner’s rep marks down your percentages where they don’t agree the work is as far along as you say.
- Change orders that aren’t signed don’t count on line 2, however much of the work is done.
- Stored materials may not be paid until they’re on site, insured or both, depending on the contract.
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.