The AIA G702 (Application and Certificate for Payment) and G703 (Continuation Sheet) are industry-standard forms used in construction payment applications. These forms help contractors, subcontractors, and project owners manage progress payments efficiently and transparently.
- G702 – Application and Certificate for Payment
- Acts as a formal payment request from the contractor to the owner or lender.
- Summarizes the total contract value, previous payments, current work completed, and retainage.
- Requires certification (approval) by the architect or owner before funds are released.
- G703 – Continuation Sheet
- Serves as a detailed breakdown of the work completed.
- Lists each work item, percentage completed, amount previously billed, and remaining balance.
- Supports the G702 by providing transparency into project progress.
Together, these forms ensure that contractors are paid fairly and on time while giving owners a clear view of work progress.
Standardized & Recognized Across the Industry
- The American Institute of Architects (AIA) developed these forms, making them widely accepted in commercial construction.
- Many lenders, government agencies, and large developers require these forms for processing payments.
How the Process Works
- The contractor fills out the G702 and G703 forms, detailing work completed and costs.
- The architect or project owner reviews the forms to verify progress.
- Once approved, payment is released based on the approved amount.
Common Mistakes & How to Avoid Them
🚫 Incorrect Retainage Calculation → Always double-check the percentage held back.
🚫 Not Signing the G702 Form → Missing signatures can delay approval.
🚫 Overbilling or Underbilling → Ensure that billed amounts match actual progress.
📌 Step-by-Step Guide to Filling Out G702 & G703 Forms (AIA Payment Application)
Properly completing G702 (Application and Certificate for Payment) and G703 (Continuation Sheet) is crucial to ensuring timely and accurate payment for work completed on a construction project. Below is a detailed step-by-step guide to filling out each section of these forms.
📝 Step 1: Filling Out the G702 Form (Application for Payment)
The G702 form serves as a summary of the payment request and must be signed before submission.
📍 Section 1: Project & Contractor Information
✅ Project Name → Enter the official project title as stated in the contract.
✅ Project Number → Use the reference number assigned to the project.
✅ To Owner → Enter the name and address of the project owner.
✅ From Contractor → List the name and address of your company.
✅ Application Number → Sequential numbering (e.g., first request = #1, second request = #2, etc.).
✅ Period To → The cutoff date for work covered in this payment request.
📍 Section 2: Payment Breakdown
| Line Item | What to Enter |
|---|---|
| Contract Sum | Total contract amount as per the signed agreement. |
| Net Change by Change Orders | Sum of all approved change orders (positive or negative). |
| Total Contract Sum to Date | Contract Sum + Net Change by Change Orders. |
| Total Completed & Stored to Date | Add up total work completed + stored materials from G703. |
| Retainage | Percentage withheld (e.g., 10% of Total Completed & Stored). |
| Total Earned Less Retainage | (Total Completed & Stored) – (Retainage). |
| Less Previous Payments | Enter the amount already paid in past applications. |
| Current Payment Due | (Total Earned Less Retainage) – (Previous Payments). |
| Balance to Finish | (Total Contract Sum to Date) – (Total Completed & Stored). |
📍 Section 3: Certification & Signatures
✅ Contractor’s Signature → Required before submission.
✅ Architect’s Certification → The architect (or project owner) must sign to approve the payment.
📝 Step 2: Filling Out the G703 Form (Continuation Sheet)
The G703 Continuation Sheet provides a line-item breakdown of work completed, previous billings, and remaining balance.
📍 Section 1: General Information
✅ Project Name & Number → Same as the G702 form.
✅ Contractor Name → Your company name.
✅ Application Number & Date → Same as G702.
📍 Section 2: Line-Item Breakdown (Work Completed)
Each line item corresponds to a specific scope of work, matching the Schedule of Values from the contract.
| Column | What to Enter |
|---|---|
| A – Item No. | Assign a sequential number to each work category. |
| B – Description of Work | List work activities (e.g., “Foundation”, “Framing”, “Electrical”, etc.). |
| C – Scheduled Value | The total cost assigned to that item in the contract. |
| D – Work Completed (This Period) | Amount billed for work completed during this pay cycle. |
| E – Work Completed (Previous Periods) | Total of all amounts previously billed for this work item. |
| F – Total Completed & Stored to Date | (D) + (E) – This is the cumulative total. |
| G – % Complete | (F) ÷ (C) × 100 – Shows project progress. |
| H – Balance to Finish | (C) – (F) – The remaining amount for this line item. |
| I – Retainage | Amount withheld (e.g., 10% of F). |
📍 Step 3: Review & Submit
🔍 Double-check calculations → Ensure all totals align between G702 & G703.
✍️ Sign G702 → The contractor must sign before submission.
📩 Submit to the owner or architect → For approval before payment processing.
🔹 Example Scenario
Project: ABC Commercial Building
| Item No. | Description of Work | Scheduled Value | Work Completed (This Period) | Work Completed (Previous Periods) | Total Completed & Stored | % Complete | Balance to Finish | Retainage (10%) |
|---|---|---|---|---|---|---|---|---|
| 1 | Site Work | $100,000 | $10,000 | $50,000 | $60,000 | 60% | $40,000 | $6,000 |
| 2 | Foundation | $200,000 | $50,000 | $100,000 | $150,000 | 75% | $50,000 | $15,000 |
| 3 | Framing | $300,000 | $80,000 | $50,000 | $130,000 | 43% | $170,000 | $13,000 |
✅ Key Takeaways
✔ G702 provides a high-level summary of the payment request.
✔ G703 breaks down the work in detail to support the payment application.
✔ Always check for missing signatures, incorrect retainage, or calculation errors before submission.
✔ Submit these forms regularly (monthly or per contract terms) to maintain consistent cash flow.