Streamlining AIA Billing Applications: A Guide to Simplifying the Process

AIA billing applications have long been known for being cumbersome and frustrating for contractors. However, it doesn’t have to be that way. With the right understanding and approach, the process can be streamlined to facilitate payments and ensure accuracy.

Understanding AIA Billing Applications

A typical AIA billing application for contractors is based on two critical documents: the G702 Application for Payment and the G703 Schedule of Values (also known as the Continuation Sheet). These documents work together to provide detailed information on the progress and costs associated with a construction project.

Blank AIA schedule of values

AIA-G703-1983-1Download

The Role of the G703 Continuation Sheet

The AIA G703 Continuation Sheet is essentially the same as the Schedule of Values. It breaks down each item of work and provides general contractors and project owners with a clear overview of the project’s status. At a glance, it shows the percentage of completion, remaining work, expenses incurred, and the funds required to complete the project.

Continuation sheets play a vital role in:

  • Facilitating Payments: They provide a detailed breakdown that helps in processing payments efficiently.
  • Ensuring Accuracy: By documenting every aspect of the work and associated costs, they help avoid errors and discrepancies.
  • Monitoring Progress: They offer a clear snapshot of the project’s progress, making it easier to track and manage.

Filled in sample of AIA schedule of Values

schedule-of-values-sample-sov-on-aia-documentg703.1-1-1Download

Another filled in sample of a Schedule of Values with only 1 line item- job completed in 1 payment cycle

12500-Schedule-of-Values-_1_-2-1Download

Filling Out the AIA G703 Continuation Sheet

Part I: Project Information

Start by filling out the header with basic project information, which should match the details provided at the top of the G702 form. This includes the application number, date, and billing period.

Part II: Table of Work and Values

The table of work and values is where contractors list each work line item with the associated cost or value and accounting of work and materials. Here’s a breakdown of what each column requires:

  • Column A: Item Number
    • Assign an item number to each line item. Many contractors use CSI MasterFormat numbers for standardization.
  • Column B: Description of Work
    • Provide a brief description of the completed work, specifying the type of labor performed and materials used.
  • Column C: Scheduled Value
    • List the cost to complete each line item. This should match the contract’s schedule of values and total the original contract sum unless adjusted by change orders.
  • Column D: Work Completed from Previous Applications
    • Enter the value of work finished prior to the current application. This is retrieved from the previous G703 form (Columns D & E).
  • Column E: Work Completed This Period
    • Specify the value of work done during the current billing period.
  • Column F: Materials Presently Stored
    • List the value of materials purchased and stored on-site but not yet used. Only include materials purchased through the current pay period.
  • Column G: Total Completed and Stored to Date
    • Add the amounts from Columns D, E, and F to get the total value of work completed and materials stored to date. Use this to calculate the percentage completed.
  • Column H: Balance to Finish
    • Subtract the total completed and stored to date (Column G) from the scheduled value (Column C) to find the balance needed to finish the work.
  • Column I: Variable Retainage
    • This column is for contracts with variable retainage. If retainage is fixed, leave this column blank.

AIA G702 and G703 complete the full AIA Billing package

g702-703-1Download

Final Steps

Ensure all entries are accurate and double-check your calculations. Continuation sheets build on one another, so accuracy is crucial to prevent discrepancies in subsequent sheets. Once completed, attach the G703 form to the G702 form and submit it for approval.

Conclusion

By understanding the purpose and requirements of the AIA G703 Continuation Sheet, contractors can simplify the billing process and ensure timely and accurate payments. Accurate documentation and careful attention to detail are key to making the process less cumbersome and more efficient.