AIA Billing Explained: G702 and G703 Forms for Contractors

AIA Billing Gets You Paid — When It's Done Right

If you work on commercial projects — whether you're a GC, a sub, or an owner's rep — AIA billing is the language of getting paid. The G702 and G703 forms are the industry standard for a reason: they create a clear, auditable record of what work has been completed, what materials are on site, what's been billed previously, and what's owed now. When done correctly, they speed up payment and prevent disputes. When done sloppily, they hand the owner or GC an excuse to hold your money.

A situation I encounter regularly: a subcontractor is consistently waiting 60, 75, even 90 days for payment on a contract with Net 30 terms. When I review the pay applications, I find the same issues — a front-loaded schedule of values, percentage complete figures that are inconsistent from period to period, and missing conditional lien waivers on several submissions. The owner's rep has been rejecting applications and requesting resubmittals, and the contractor doesn't fully understand why. Rebuilding the billing process from the ground up — getting the schedule of values right, applying completion percentages consistently, tracking lien waivers properly — typically brings collection time down significantly.

The G702 — Application for Payment (The Cover Sheet)

The G702 is the summary document. It shows the total original contract sum, all approved change orders and their cumulative total, total work completed to date including stored materials, retainage percentage and dollar amount being held, total previously certified, and the net amount due for the current period. Every number on this sheet has to be accurate and has to tie exactly to the G703 detail below it. A single math error here is enough to get the whole application kicked back.

The G703 — Schedule of Values (The Detail)

The G703 is where all the work happens. It lists every line item in the contract — site work, foundation, structural steel, framing, MEP rough-in, finishes, and so on — with the scheduled value for each, the percentage complete this period, the percentage complete cumulatively, materials stored on site, and the dollar amount earned this application. A well-constructed schedule of values makes the story of the project's progress completely transparent. A poorly constructed one invites scrutiny and disputes.

The Mistakes That Actually Delay Payment

I want to be specific here because vague advice doesn't help anyone:

• Front-loading the schedule of values: Assigning more value to early-phase items than they actually represent so you can bill heavily upfront. Experienced owners' reps catch this immediately, and it destroys your credibility for the rest of the project.
• Inconsistent percentage complete figures: If framing is at 60% complete this month and 55% complete next month, you're going to get questions. Completion percentages should reflect actual field progress, tracked consistently.
• Missing or incorrect lien waivers: Most commercial contracts require a conditional lien waiver from you — and from your major subs and material suppliers — with every pay application. Missing even one can hold up the entire payment.
• Math errors that prevent G702 and G703 from tying out: The totals have to balance. This sounds obvious, but I've reviewed applications from contractors billing seven figures who had arithmetic errors causing the documents not to reconcile. Build a spreadsheet that does the math automatically — don't rely on manual entry.
• Not tracking approved change orders properly: Change orders need to be incorporated into the contract value on the G702 and added as line items on the G703. Billing for change order work before it's formally approved is another common dispute trigger.

AIA billing is a skill. Done well, it's a cash flow management tool. If you want a second set of eyes on your current process — or you need help setting up a billing system from scratch — reach out. It's one of the highest-leverage things we help contractors improve.