AIA Pay Application Process: Step by Step for Subcontractors

If you're a subcontractor doing commercial work, the AIA pay application process is how you get paid. Get it right and payments flow on schedule. Get it wrong — wrong form, missing backup, late submission — and you're waiting another 30 days.

This guide walks through the entire process from project start through payment receipt, step by step.

What is an AIA pay application?

An AIA pay application is a formal billing document used on commercial construction projects. "AIA" refers to the American Institute of Architects, which publishes the standard forms used industry-wide. The two core forms are:

• G702 — Application and Certificate for Payment (the summary/cover sheet)
• G703 — Continuation Sheet (the line-by-line schedule of values breakdown)

When a GC or owner requires "AIA billing," they mean they want these forms — or their equivalent — submitted each billing period instead of a standard invoice. The G702 and G703 work together as a package.

Step 1 — Review your contract billing requirements

Before the project starts, read your subcontract carefully for billing requirements. Look for:

• Which forms are required (G702/G703 or GC-specific forms)
• Billing cutoff date (usually the 25th of the month)
• Who approves pay applications (GC project manager, owner's architect)
• Retainage percentage being withheld (typically 5–10%)
• Required lien waiver forms and timing
• Stored materials billing requirements

Every GC has slightly different requirements. Submitting the wrong form or missing a required attachment is the most common reason pay applications get rejected on first submission.

Step 2 — Create and get your schedule of values approved

The schedule of values (SOV) is the foundation of every pay application you'll submit on the project. It breaks your contract amount into individual line items — each representing a component of your scope of work with an assigned dollar value.

Your SOV must:

• Sum to your total contract amount
• Be specific enough that percentage complete can be verified
• Be submitted and approved by the GC before your first pay application

Common SOV line items for a painting contractor: Mobilization, Surface Prep (Interior), Surface Prep (Exterior), Prime Coat (Interior), Prime Coat (Exterior), Finish Coats (Interior), Finish Coats (Exterior), Final Touch-up and Punch, Project Closeout.

Submit your SOV early — ideally in the first week of the project. GCs often take 1–2 weeks to review and approve, and you can't bill until it's approved.

Step 3 — Track work completed through the billing period

Before each billing period ends, you need an accurate assessment of what percentage of each SOV line item has been completed. This is where most disputes originate — the GC's PM walks the job and their assessment of "% complete" differs from yours.

Best practices for avoiding disputes:

• Keep daily logs with photos documenting completed work
• Walk the job with the GC's PM before submitting, not after
• Be conservative on percentage complete — it's easier to bill more next period than to argue down a GC who thinks you overbilled
• Document stored materials on site with delivery receipts if you're billing for them

Step 4 — Complete the G703 (Continuation Sheet)

The G703 is filled out first because its totals flow into the G702. For each line item on your SOV, enter:

• Scheduled Value (from your approved SOV — this never changes)
• Work completed from previous applications (from your last G703)
• Work completed this period (what you're billing for this month)
• Materials presently stored (if applicable)
• The system calculates: Total completed, % complete, Balance to finish, and Retainage

Check your math carefully. The total of all line items must match your contract amount exactly.

Step 5 — Complete the G702 (Application and Certificate for Payment)

The G702 pulls its totals from the G703. Key fields:

• Original Contract Sum
• Net change by Change Orders (list each approved CO)
• Contract Sum to Date (original + change orders)
• Total Completed and Stored to Date (from G703)
• Retainage (from G703 totals)
• Less Previous Certificates for Payment (what you've been paid before)
• Current Payment Due (this period's amount)

Sign the G702 and have it notarized if required by your contract. Some GCs require notarized pay applications; many don't — check your contract.

Step 6 — Assemble and submit the package

A complete AIA pay application package typically includes:

• Completed, signed G702
• Completed G703
• Conditional lien waiver for the current period (most GCs require this)
• Unconditional lien waiver for the previous period (if payment was received)
• Stored materials documentation (if billing for stored materials)
• Change order backup if change orders are included for the first time

Submit by the GC's billing deadline — typically the 25th of the month. Late submission almost always means waiting until the following payment cycle.

Step 7 — Follow up on approval and payment

After submission, the GC's PM reviews your application, may request revisions, and forwards it to the owner or architect for certification. The G702 is then certified (signed by the architect) and submitted to the owner for payment.

Typical timelines: GC review 3–5 days, architect certification 3–7 days, owner payment 15–30 days after certification. Your contract will specify the payment terms.

If you don't hear back within 5 business days of submission, follow up. Pay application approvals don't happen automatically.

Automating the pay application process

Building G702 and G703 forms manually from a spreadsheet every billing cycle is time-consuming and error-prone — especially if you're billing multiple GCs on multiple projects simultaneously.

An AIA invoice generator connected to your JobTread data pulls your job's contract value, SOV, work completed percentages, and previous billing history to populate both forms automatically. You review and submit rather than build from scratch.

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