What a pay application is
A pay application is the monthly progress bill a subcontractor sends the general contractor. It reports how much of the contract is finished, subtracts retainage and everything you were paid before, and shows what is due now. The common format has two pages: a summary (the G702-style page) and a continuation sheet that lists the schedule of values (the G703-style page). This tool produces both in a layout of its own that follows the same lines and arithmetic, so owners, architects and general contractors can read it without a lookup.
What each line means
- Original contract sum: the total of your schedule of values lines, before change orders.
- Net change by change orders: approved additions minus approved deductions.
- Contract sum to date: line 1 plus line 2.
- Total completed and stored to date: all work finished through this period plus materials stored but not yet installed.
- Retainage: the share held back until the work is done, shown separately for completed work (5a) and stored material (5b).
- Total earned less retainage: line 4 minus line 5.
- Previous certificates for payment: what earlier applications already certified, usually last month's line 6.
- Current payment due: line 6 minus line 7. This is the amount you are asking for now.
- Balance to finish, including retainage: line 3 minus line 6, the money still to be earned plus the retainage being held.
How retainage works
Retainage is a percentage of the value of your work that the payer holds back until the job is complete. It is figured on work completed and, at its own rate if your contract says so, on materials stored. Here is the sample project you can load above. The original contract is $200,000 and one approved change order adds $5,000, so the contract sum to date is $205,000. You have completed $62,500 of work and have $10,000 of materials stored. At 5%, retainage is $3,125 plus $500, or $3,625. Total completed and stored is $72,500, so $68,875 is earned. If previous certificates were $28,500, the current payment due is $40,375, and $136,125 is left to finish including retainage.
The 5% cap on California public works
California Public Contract Code section 7201 limits retention on public works contracts to 5% of the contract price, and the limit applies to what a prime contractor withholds from its subcontractors. Narrow exceptions exist, and private projects are governed by different rules and by your contract, so confirm the rate in your subcontract. Section 7107 sets when retention must be released after completion, and section 7108.5 requires a prime contractor to pay subcontractors within seven days of receiving payment. Verify current statute text for your project. When you send a pay application, pair it with the matching California lien release form.
Common mistakes
- Billing more than a line's scheduled value instead of writing a change order.
- Changing "previous applications" so it no longer matches what you billed last month.
- Leaving materials in "stored" after they are installed, which bills them twice.
- Calculating retainage on the whole contract instead of on work completed and stored.
- Entering previous certificates that do not match last month's total earned less retainage.
- Skipping a required signature or notary, or sending applications out of sequence.
Frequently asked questions
What are the G702 and G703 forms?
G702 and G703 are the names of the American Institute of Architects (AIA) application for payment and its continuation sheet. The first page summarizes the contract and what is due now. The second lists every line of the schedule of values. AIA's documents are copyrighted, so this tool creates its own G702/G703-style layout with the same lines and math. If your contract requires the official AIA form, copy the figures across.
How much retainage can be withheld on a California public works project?
Generally no more than 5% of the contract price, under Public Contract Code section 7201, with narrow exceptions. The same cap carries down from the prime contractor to subcontractors. Private projects follow different rules and your contract terms. The tool defaults to 5% and warns you when you enter a higher rate.
How do I bill stored materials?
Enter the value in "Materials presently stored" in the month the materials are delivered and stored. Once they are installed, move that amount into "Completed, this period" and take the stored amount back to zero, so the same dollars are never billed twice. Many contracts also ask for bills of sale, proof of insurance and the storage location, so check yours.
How do I add a change order to a pay application?
Press "Add change order" and enter its scheduled value once it is approved. Use a negative amount for a deduction. Change order lines flow into line 2, "Net change by change orders", and are billed and retained like any other line. They are not part of the original contract sum.
Is the tool really free, and is my data private?
Yes. There is no account, no payment and no upload. All the math and the PDF are produced in your browser, and your entries are saved only in your browser's local storage so you can return next month. Use Clear to erase them. Clearing your browser data also removes them, so download your PDF and CSV to keep your own copy.