AIA G702 and G703 are the standard construction-industry forms for requesting and certifying payment on a project: the G702 is the contractor's application for payment, and the G703 is the itemized breakdown behind it. Together they're what a lot of construction contracts run their billing through, and they're also where calculation errors creep in.
Understanding AIA G702 and G703
AIA G702 and G703 are standard construction-industry documents for the application and certification of payment. The American Institute of Architects publishes them, and they're widely used in construction contracts to keep billing consistent and standardized.
AIA G702: Application and Certificate for Payment
The G702 is the contractor's application for payment and the architect's certification of the amount due. It includes:
- Project information: the parties, project and application ID, and date.
- Application for payment: the contractor's request for payment for work completed, materials stored on site, and other contractual entitlements.
- Certification: the architect reviews the application and certifies the amount to be paid.
AIA G703: Continuation Sheet
The G703 works with the G702 to give a detailed breakdown of the work performed and the amount requested for each part of the project. It includes a table of work items, quantities, values, and amounts completed to date, and it tracks progress and the remaining balance for each work item.
Together the two forms give every party a clear, documented view of the payment request and the work completed.
Common challenges with AIA forms
Data entry accuracy
- Human error. Wrong quantities, values, or percentages produce an inaccurate payment application.
- Inconsistent updates. Forms that aren't kept current with the latest project information lead to outdated or incorrect payment requests.
Project complexity
- Detailed breakdown. Projects with many line items make an accurate, detailed breakdown hard to maintain.
- Coordination. Keeping contractors, subcontractors, and architects aligned on progress and payment amounts is a challenge.
Documentation and verification
- Supporting documentation. Gathering and organizing the documents that back up the requested amounts is time-consuming and easy to miss.
- Verification. Getting every claimed item verified and approved by the architect is difficult on large projects.
Change orders
- Tracking changes. Reflecting change orders and modifications accurately in the payment application is complex.
- Coordination. Making sure every change is communicated and agreed by all parties is a logistical challenge.
Why the math compounds
AIA G702 and G703 are legal documents that demand precise entries and calculations. When a project has multiple parties and applications, each form builds on the calculations from the previous ones until the project is complete, so there's no room for error. It gets worse when the general contractor consolidates payment applications from several subcontractors.
Contractors have traditionally used Excel to speed this up. Email and e-signature tools cut down on physical paperwork, but they create version-control risks and more chances for error. Spreadsheets aren't built for construction, and the errors they let through cause payment application rejections.
At submission, you're essentially asking permission to invoice the amount on the G702. The owner reviews the completion percentages against their own estimate. If they agree, you get paid. If not, they “redline” the form, adjusting your amounts and sending it back. Then you update your billing system, create a new version of the application, resubmit, and, if you'd already recorded the original as accounts receivable, fix that too.
As the project runs, this gets harder, because your estimated completion percentages may not match the owner's. You have to track what you applied for, what you actually billed, and what you were paid, and update the “previous applications” amount every cycle.
How APARBooks helps
APARBooks automates the generation of AIA G702 and G703 forms, speeds up invoicing, and simplifies lien waiver management. Settings let you match the documentation to each project:
- Single invoice for all line items. Consolidates all costs into one invoice, cutting the chance of errors and discrepancies.
- Main invoice with multiple sub-invoices. Generates sub-invoice files for detailed tracking of individual line items alongside an overall summary.
A conditional lien waiver is a legal document that releases a party's right to place a lien on the property, but only once payment is actually received and processed. You can choose whether to generate one and which type.
- Show main cost items only. Focuses the invoice on the significant costs without the detail clutter.
- Show all cost items. A complete view of primary and sub-cost items.
- Show only non-zero scheduled-value items. Keeps the invoice clean by excluding items that don't affect cost.
- Show all items, including zero scheduled value. Full visibility for thorough reviews and audits.
AIA G702 and G703 forms are demanding because of their complexity and the accuracy they require. Understanding the forms and their challenges is what lets a general contractor keep construction accounting accurate and efficient, and a tool built for the work removes most of the error risk.
Frequently Asked Questions
What is the AIA G702 form?
The G702, or Application and Certificate for Payment, is the contractor's application for payment and the architect's certification of the amount due. It carries the project information, the payment request, and the certification.
What is the AIA G703 form?
The G703, or Continuation Sheet, works with the G702 to break down the work performed and the amount requested for each part of the project, tracking progress and the remaining balance per work item.
Why are AIA G702 and G703 forms error-prone?
They require precise entries, and each application compounds on the calculations from previous ones until the project is done. The risk grows when a general contractor consolidates applications from multiple subcontractors, and spreadsheets aren't built to handle it.
What does it mean when an owner redlines an AIA form?
If the owner disagrees with the completion percentages, they adjust the amounts on the form and return it. The contractor then updates the billing system, creates a new version of the application, resubmits it, and corrects any accounts receivable entry made for the original.
Built for Contractors. Built for Construction Accounting.
APARBooks is purpose-built construction accounting software for general contractors and bookkeepers. Manage job costing, AIA progress billing, subcontractor payments, retainage, change orders, lien compliance, and WIP reporting in one place.
