A pay application is not paperwork. It is the bridge between work you have already done and cash you have not been paid for yet. And on most commercial jobs, that bridge is built out of two forms with names that sound like droid serial numbers: the AIA G702 and the G703.

Here is the short version. The G702 is the one-page summary cover sheet, with the original contract amount, what you have earned, retainage held, and the number that actually matters, current payment due. The G703 is the detailed backup that breaks the job into line items and proves the summary is real. Together they make up your AIA pay app. Fill them out cleanly and tied to each other, and your money moves. Fumble a line, and your pay app bounces, which in construction means another 30, 60, sometimes 90 days of waiting on cash for work that is already in the ground.

That is the whole game. Now let us make sure you never lose it on a form.

What AIA actually means and why these forms exist

AIA stands for the American Institute of Architects. They publish a library of standardized construction documents, and the G702 Application and Certificate for Payment plus the G703 Continuation Sheet are the pay-app pair. The current published version is the 1992 edition, and it has been the industry standard for decades.

The reason they exist is trust. On a commercial job, the owner, the lender, the architect, the GC, and a stack of subs all need to agree on one thing: how much work got done this month, and how much money that is worth. The G702 and G703 are the common language everyone reads. The architect reviews it, certifies the amount, or adjusts it, and signs. Without that signature, you do not get paid. That is not a Breva opinion. It is baked into the form itself.

Quick reality check: the AIA does not publish a standard schedule of values form. The contractor builds that. More on why that matters below.

The G703 first: where the real work lives

Counterintuitive, but true. You fill out the G703 before the G702. The continuation sheet is your schedule of values, the contract broken into line items, each with a scheduled dollar value. Framing, drywall, electrical, whatever your scope is.

For each line item, the G703 captures:

• Scheduled value, what that piece of work is worth in the contract
• Work completed from previous applications, what you have already billed
• Work completed this period, what you did this billing cycle
• Materials presently stored, approved materials on site but not yet installed
• Total completed and stored to date, the running total
• Percentage complete and the balance to finish for that line

Total up the completed and stored to date column, and that grand total becomes Line 4 on the G702. The G703 is the proof. The G702 is the headline.

One mismatch between your G703 grand total and your G702 Line 4 is one of the fastest ways to get a pay app kicked back. The summary has to tie to the backup. Every time.

The G702 line by line, in plain English

The G702 has nine numbered lines. Here is what each one is actually saying, with a simple hypothetical example to keep the math honest. These numbers are illustrative, not industry data.

A few things worth slowing down on.

Line 2, change orders. Only include change orders that have been formally approved in writing. A verbal go ahead from the super does not belong here. If it is not approved, it is not on the form.

Line 5, retainage. This is the percentage the owner or GC holds back until later in the job, usually 5 to 10 percent. It is listed in two parts, a percentage of completed work and a percentage of stored materials. Check your contract for the exact terms, and note that many states require variable retainage, meaning the held-back percentage drops once you hit a certain completion milestone. Do not leave money on the table by withholding more than the contract requires.

Line 8, Current Payment Due. This is your paycheck for the month. It is Line 6 minus everything you have already been paid. This is the number the owner cuts a check against.

Line 9, Balance to Finish. This is the remaining contract value, including the retainage you have not collected yet. It is a reminder that there is still money owed to you down the road, including that retainage pile that builds up quietly all job long.

Why this form decides when your cash shows up

Here is the part nobody teaches in the field. The pay app is not admin. It is the cash flow event. And construction cash flow is already brutal without self-inflicted wounds.

The numbers back this up. According to the Rabbet 2024 Construction Payments Report, the average payment cycle in U.S. construction is around 90 days, double the 45-day threshold financial analysts consider healthy. The Billd 2025 National Subcontractor Market Report found that subcontractors wait an average of 56 days after submitting a pay application, even though many GCs assume it takes 30. And Built Technologies 2025 survey data shows 70 percent of contractors regularly face delayed payments.

Now stack a rejected pay app on top of that 90-day clock. Every dispute restarts the timer. A form error does not cost you an afternoon. It can cost you a full billing cycle. Meanwhile, Procore notes that while you wait, you are still paying carrying costs: payroll, materials, insurance, and interest on whatever you are borrowing to cover the gap. Time literally costs money.

So a clean G702 and G703 is not about being tidy. It is about not handing anyone a reason to delay your check.

The most common ways pay apps get rejected

• The G703 grand total does not match G702 Line 4. The summary and the backup have to tie. Always.
• Retainage landed in the wrong place, for example getting baked into Line 4 instead of being broken out on Line 5.
• Unapproved change orders showing up on Line 2. If it is not approved in writing, it does not belong yet.
• Missing or sloppy stored-materials documentation. If you are billing for materials on site, have the invoices and proof ready.
• The math does not walk down the lines cleanly. Line 3, Line 6, Line 8, and Line 9 each depend on the lines above them. One bad input poisons everything below it.
• Forgetting notarization when the contract requires it.

None of these are hard. All of them are expensive when they slip through.

What this means for contractors

If you run AIA billing, your pay app is one of the highest-leverage financial documents in your business. Treat it that way. Build a real schedule of values up front. Keep the G703 honest line by line. Make the G702 tie back to it before you ever hit submit. And know your retainage terms cold, including whether your state requires it to step down.

Do that consistently, and you stop donating free billing cycles to avoidable rejections. That is not a small thing when the industry average is already 90 days.

Where Breva fits

At Breva, we build financial operations tools for construction businesses, and we start from one belief: the pay app is the cash flow event, not a piece of admin to do after the real work. We help contractors keep billing organized and actually see what the billing cycle is doing to their cash, so the gap between work performed and cash collected gets shorter, not scarier.

Want a clearer view of what your billing cycle is doing to your cash? See how Breva works for contractors, or start a free Breva account and get your billing, job costs, and cash plan working from the same numbers. Prefer to talk it through? Book a meeting.

Win jobs. Get paid.

Frequently Asked Questions

What is the difference between a G702 and a G703?

The G702 is the one-page summary, with contract amount, retainage, previous payments, and current payment due. The G703 is the detailed continuation sheet that breaks the job into line items and supports the G702 totals. You fill out the G703 first, then transfer the grand total to the G702.

Who fills out the AIA pay application?

On most jobs the general contractor prepares and submits the G702 and G703 package. Subcontractors submit their own pay apps to the GC, who rolls everything into one package for the architect and owner to review.

Why does the architect have to sign?

The G702 includes the Architect Certificate for Payment. The architect reviews the application and certifies the amount due, or adjusts it with an explanation. Owners generally pay based on that certified amount, so without the signature, payment does not get released.

Is retainage always 10 percent?

No. Retainage is set by your contract and commonly runs 5 to 10 percent. Many states also require variable retainage, which reduces the held-back percentage once the job reaches a certain completion point. Always check your specific contract and state rules, and when in doubt, confirm with your attorney or accountant.

This article is general education, not legal, accounting, or tax advice. Retainage rules, lien rights, and contract terms vary by state, contract, and project. Talk to your accountant or attorney about your specific situation.