How to Fill Out a Pay Application (G702/G703-Style), Line by Line

A pay application is your monthly bill on a construction job. Most general contractors and public owners expect it in the familiar two-part layout: a summary page and a continuation sheet that lists the schedule of values. This guide walks through every line and column of a G702/G703-style application, then works a full example at 5% retention.

AIA, G702 and G703 are trademarks of The American Institute of Architects; this guide is not affiliated with or endorsed by AIA. We describe the standard field labels and the math only. If your contract requires the licensed AIA documents, get them from AIA.

The two parts

• Summary page (G702-style): one page with the contract totals, retainage, payment due and signatures. It answers “how much do you want this month?”
• Continuation sheet (G703-style): one row per line of your schedule of values. It answers “for what?” Its column totals feed the summary page.

Fill out the continuation sheet first. The summary page is mostly totals carried over from it.

Header information

The summary page header usually includes the owner or customer you are billing, the project, the application number, the “period to” date, the contract date, your company name, and project or contract numbers. Number applications in order (1, 2, 3) and keep the “period to” date on the cutoff your prime sets.

The continuation sheet, column by column

Column	Label	What to enter
A	Item no.	The line number from your schedule of values
B	Description of work	The scope for that line, as approved in your schedule of values
C	Scheduled value	The dollar value assigned to that line
D	Work completed: from previous application	Prior D plus prior E, carried forward from your last application
E	Work completed: this period	Value of work put in place since the last application
F	Materials presently stored	Materials on hand but not yet installed, and not in D or E
G	Total completed and stored to date	D + E + F
%	Percent complete	G divided by C
H	Balance to finish	C minus G
I	Retainage	Retention held on the line, used when the rate varies by line

Add a grand total row at the bottom for columns C through I.

The summary page, line by line

1. Original contract sum. Your subcontract amount before any change orders.
2. Net change by change orders. The total of approved change orders, additions minus deductions.
3. Contract sum to date. Line 1 plus or minus line 2. It should equal the column C total.
4. Total completed and stored to date. The column G total from the continuation sheet.
5. Retainage.
   • 5a: the retention percentage times completed work (columns D + E).
   • 5b: the retention percentage times stored material (column F).
   • Total retainage: 5a plus 5b, or the column I total.
6. Total earned less retainage. Line 4 minus total retainage.
7. Less previous certificates for payment. Line 6 from your previous application.
8. Current payment due. Line 6 minus line 7. This is what you are asking to be paid this month.
9. Balance to finish, including retainage. Line 3 minus line 6.

Most summary pages also include a change order summary: changes approved in previous months, changes approved this month, totals, and the net change, which must match line 2.

Then comes the signature block. Many owners and primes require the contractor’s signature to be notarized. Check your subcontract for what yours requires.

Worked example: Application No. 3 at 5% retention

An electrical sub has a $200,000 subcontract on a California public works job. One change order for $10,000 was approved this month. Last month’s Application No. 2 showed $55,000 completed, $2,750 retainage, and $52,250 earned less retainage.

Continuation sheet

A	B	C	D	E	F	G	%	H	I
1	Mobilization	$10,000	$10,000	$0	$0	$10,000	100%	$0	$500
2	Rough-in	$90,000	$45,000	$27,000	$0	$72,000	80%	$18,000	$3,600
3	Fixtures and trim	$70,000	$0	$14,000	$8,000	$22,000	31.4%	$48,000	$1,100
4	Testing and closeout	$30,000	$0	$0	$0	$0	0%	$30,000	$0
5	CO 1: added conduit	$10,000	$0	$5,000	$0	$5,000	50%	$5,000	$250
	Grand total	$210,000	$55,000	$46,000	$8,000	$109,000	51.9%	$101,000	$5,450

Check the row math: for line 3, D + E + F = $0 + $14,000 + $8,000 = $22,000, and C minus G = $70,000 minus $22,000 = $48,000. Column I is 5% of column G on each line.

Summary page

Line	Item	Amount
1	Original contract sum	$200,000
2	Net change by change orders	$10,000
3	Contract sum to date	$210,000
4	Total completed and stored to date	$109,000
5a	5% of completed work ($55,000 + $46,000 = $101,000)	$5,050
5b	5% of stored material ($8,000)	$400
5	Total retainage	$5,450
6	Total earned less retainage ($109,000 minus $5,450)	$103,550
7	Less previous certificates for payment	$52,250
8	Current payment due ($103,550 minus $52,250)	$51,300
9	Balance to finish, including retainage ($210,000 minus $103,550)	$106,450

Two cross-checks catch most errors:

• Line 8 should equal this period’s work plus stored materials, less retention: ($46,000 + $8,000) x 95% = $51,300.
• Line 9 should equal the column H total plus total retainage: $101,000 + $5,450 = $106,450.

The change order summary shows $0 approved in previous months and $10,000 approved this month, for a net change of $10,000, matching line 2.

The 5% rate here is the cap on California public works under Public Contract Code 7201, outside narrow exceptions. Private jobs follow the contract.

Common reasons pay applications get rejected

Primes send back pay apps for the same handful of reasons. Check these before you submit:

1. Math that does not tie. G does not equal D + E + F on a line, the column G total does not match line 4, or line 3 does not match the column C total.
2. Column D does not match last month. Column D must carry forward what was on the previous application. If the prime reduced your last application, carry forward the approved figures and ask how it wants the difference handled.
3. Line 7 does not match line 6 of the previous application. This is the most common reason the payment due looks wrong.
4. Unapproved change orders. Line 2 and the change order summary are for approved changes. Pending change orders usually wait until they are signed.
5. Changed schedule of values. Scheduled values and line descriptions should stay the same every month unless the prime approves a change.
6. Overbilling. Percent complete that runs ahead of what the superintendent sees in the field invites a cut.
7. Stored materials without backup. If your subcontract allows column F, expect to provide invoices and proof of where the materials are stored.
8. Wrong retention. On California public works, retention above 5% is generally not allowed. See California public works retention.
9. Missing attachments. Many subcontracts require a conditional lien waiver with each application, and public works primes often ask for certified payroll for the period. See California lien waivers.
10. Missing signature, notarization or the prime’s cutoff date. A late or unsigned application can roll to next month’s cycle.

Make next month easier

Each new application starts from the last one: move D + E into the new column D, clear column E, update column F, and set line 7 to the last application’s line 6. Our free pay application generator builds a G702/G703-style application with the continuation sheet and does this math for you. If you would rather hand off pay applications, retention tracking and lien releases altogether, our pilot program does that work every month.

Sources

• AIA Contract Documents help center (G702-1992 and G703-1992): https://help.aiacontracts.com/hc/en-us/articles/1500009387461
• Public Contract Code 7201 (5% retention cap): https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=PCC&sectionNum=7201
• Public Contract Code 7107 (retention release): https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=PCC&sectionNum=7107
• Business and Professions Code 7108.5 (payments to subs): https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=BPC&sectionNum=7108.5