Pay applications are where good projects lose cash flow over small mistakes. Here is the G702 and G703, line by line, the way I would explain it to a new project manager.
What are the G702 and G703?
The G702 is the one-page Application and Certificate for Payment that the contractor submits and the architect certifies. The G703 is the Continuation Sheet behind it, breaking the contract into the schedule of values. They are used together, often with the G701 change order form.
How do you fill out the G703?
| Column | What goes in it |
|---|---|
| A | Item number from the schedule of values |
| B | Description of work |
| C | Scheduled value |
| D | Work completed from previous applications |
| E | Work completed this period |
| F | Materials presently stored, not in D or E |
| G | Total completed and stored to date (D + E + F) |
| G รท C | Percent complete |
| H | Balance to finish (C minus G) |
| I | Retainage, if variable by line |
Add approved change orders as their own lines, so the scheduled value always matches the contract sum to date.
How do you fill out the G702?
| Line | Meaning | How to get it |
|---|---|---|
| 1 | Original contract sum | From the contract |
| 2 | Net change by change orders | Approved change orders only |
| 3 | Contract sum to date | Line 1 plus Line 2 |
| 4 | Total completed and stored to date | G703 Column G total |
| 5 | Retainage | 5a on completed work, 5b on stored material, at the contract's rate |
| 6 | Total earned less retainage | Line 4 minus Line 5 |
| 7 | Less previous certificates for payment | Line 6 from the prior application |
| 8 | Current payment due | Line 6 minus Line 7 |
| 9 | Balance to finish, including retainage | Line 3 minus Line 6 |
The contractor leaves the architect's certificate blank, signs and has the application notarized.
Can you show a worked example?
A $1,000,000 contract with $50,000 of approved change orders and 10% retainage:
- Line 3, contract sum to date: $1,050,000
- Line 4, completed and stored to date (from G703): $420,000
- Line 5, retainage at 10%: $42,000
- Line 6, earned less retainage: $378,000
- Line 7, previous certificates: $270,000
- Line 8, current payment due: $108,000
- Line 9, balance to finish including retainage: $672,000
Your contract sets the actual retainage rate, and many states cap it on public work.
What gets pay applications rejected?
- Percent complete that does not match what the architect sees on site.
- Change orders billed before they are approved.
- Stored materials billed without proof of storage, insurance or title.
- Arithmetic that does not tie out between the G703 and the G702.
- Missing lien waivers for the previous period.
How does Fina help?
Fina, BAU AI's agent for finance and budget, drafts the pay application from the schedule of values, the approved change orders and the field progress, checks the arithmetic, and flags anything that does not tie out, each figure linked to its source. Your project manager reviews and submits it.
Fina is the agent we built for this. If you want to see her draft a pay application from your own schedule of values, join our US founding cohort.
Tushar Adsul, Founder and CEO, BAU AI
Frequently asked questions
Who fills out the G702? The contractor completes and signs it. The architect then certifies the amount, and the owner pays.
Is the G702 the same as the schedule of values? No. The schedule of values is the line-item breakdown on the G703. The G702 summarizes it.
Can a subcontractor use G702 and G703? Yes. Many general contractors require subcontractors to bill on G702 and G703 too.
Sources
- AIA Contract Documents, G702-1992 Application and Certificate for Payment and G703-1992 Continuation Sheet.
- AIA, Payment Application Procedure.