Reviewing G702/G703 submissions without a structured process is like inspecting concrete without a checklist. You will catch the obvious cracks and miss the hidden deficiencies. A standardized monthly review process ensures that every pay application receives the same level of scrutiny, every billing cycle.

This checklist walks through the complete G702/G703 review process from the moment a sub's pay app hits your desk to the moment you certify payment. Each step has a specific purpose, a specific check, and a specific action if the check fails.

Phase 1: Pre-Review Data Pull (Day 1-2 After Submission Deadline)

Before you open a single G703, gather the reference data you need for comparison. Reviewing a pay app in isolation is reviewing it blind.

Pull these documents for each sub:

Prior period G702 and G703 (for carry-forward verification)
Current project schedule with percentage milestones
Change order log with approved amounts and status
Subcontract value and any amendments
Lien waiver status from the previous billing period
Field superintendent's weekly progress reports for the billing period

Verify submission completeness:

G702 received with authorized signature
G703 continuation sheet attached with all line items
Supporting documentation for line items over $25,000
Stored materials documentation (photos, receipts, insurance)
Conditional lien waiver for current draw
Unconditional lien waiver for previous draw
Certified payroll (if prevailing wage project)

Any missing item triggers a return to the sub for completion. Do not begin the review until the package is complete. Partial reviews create rework.

Phase 2: Math Verification (30-45 Minutes Per Sub)

Math errors are the easiest problems to catch and the most embarrassing to miss. Verify every calculation before evaluating any judgment-based items like percentages or stored materials.

G703 Internal Math:

Column C (work completed from previous application) matches prior G703 Column F totals by line item
Column D (work completed this period) + Column E (materials stored this period) = incremental billing
Column F (total completed and stored to date) = Column C + Column D + Column E
Column G (percentage complete) = Column F / Column B, verified for each line item
Column I (balance to finish) = Column B - Column F, verified for each line item
Column totals sum correctly (foot each column independently)

G702/G703 Reconciliation:

G702 Field	Must Equal	G703 Source
Line 1 (Original contract sum)	Original subcontract value	Column B total minus change orders
Line 2 (Net change orders)	Sum of approved COs	CO line items on G703
Line 3 (Contract sum to date)	Line 1 + Line 2	Column B grand total
Line 4 (Total completed and stored)	G703 Column F grand total	Sum of all line items
Line 5 (Retainage)	G703 retainage total	Calculated from retention %
Line 6 (Total earned less retainage)	Line 4 - Line 5	Derived
Line 7 (Less previous certificates)	Prior G702 Line 6	Must match exactly
Line 8 (Current payment due)	Line 6 - Line 7	Derived

A discrepancy at any point means the pay app goes back to the sub. No exceptions. Math errors that pass through your review become your errors in the owner's audit.

Phase 3: Field Percentage Verification (2-4 Hours Per Project)

Schedule a field walk 3-5 days before the billing deadline. The superintendent or project engineer walks each active scope area and records independent completion estimates.

For each line item with billing activity this period:

Compare sub's claimed percentage against field estimate
Flag any line item where the gap exceeds 10 percentage points
Photograph representative work for documentation
Verify that completed work meets quality standards (do not certify payment on defective work)
Confirm that billed materials are actually on-site or at documented off-site locations

Front-loading analysis:

Plot cumulative billing percentage against schedule percentage for each sub
Flag any sub billing more than 10% ahead of schedule progress
Review mobilization line items for reasonableness (should not exceed 3-5% of contract)
Check that early-phase items are not priced disproportionately above cost

The field walk is the single most valuable step in the entire review process. It is also the step most often skipped. A 2-hour field walk on a $3M subcontract catches an average of $18,000 in overbilling per billing cycle. That is a $9,000-per-hour return on the PM's time.

Phase 4: Retainage Check (15-20 Minutes Per Sub)

Retainage errors compound. An error in period 3 carries through every subsequent period unless caught and corrected.

Verify retainage calculations:

Correct retainage rate applied (check if rate reduction threshold has been reached)
Retainage calculated on both work completed and stored materials
Retainage on the G703 matches the schedule of values retainage methodology
G703 retainage total matches G702 Line 5
No retainage released on incomplete line items
Retainage rate aligns with subcontract terms

State compliance check:

Retainage rate does not exceed state statutory maximum
Retainage release timeline complies with state prompt payment act
Interest provisions on retained funds are addressed (some states require retainage to earn interest)

Phase 5: Change Order Reconciliation (15-20 Minutes Per Sub)

Every approved change order should appear as a distinct line item on the G703. Every line item on the G703 should trace back to either the original contract scope or an approved change order.

Change order verification:

G702 Line 2 equals the sum of all approved change orders
Each approved CO appears as a separate G703 line item
CO line items match the approved change order amounts
No unapproved or pending change orders appear on the G703
Existing line item percentages did not inflate in the same period a related CO was added (double-count check)
Deductive change orders are properly reflected as negative values

Phase 6: Stored Materials Documentation Review (20-30 Minutes Per Sub)

Any G703 with stored materials entries requires documentation review. This is not optional.

For on-site stored materials:

Photographs showing materials at the project site
Quantity verification matching the billed amount
Materials are protected from weather, theft, and damage
Materials are segregated by sub and labeled

For off-site stored materials:

Photographs at the storage location with date stamps
Proof of purchase or payment (invoice, PO, mill certificate)
Transfer of title documentation (materials are property of the owner/GC upon payment)
Insurance certificate naming owner and GC as additional insured
Delivery schedule showing when materials will arrive on-site
Owner approval for off-site storage payment (required under AIA A201)

Phase 7: Approval Workflow and Certification (Day 5-7)

After completing phases 1-6, process the certified amount.

Internal approval steps:

Project manager signs off on field verification and percentage adjustments
Project accountant signs off on math verification and retainage
Project executive or authorized signer reviews and certifies the G702
Certified amount is entered into the project accounting system
Sub is notified of any adjustments with specific line-item explanations

Owner submission preparation:

Compile all sub G703s into the GC's consolidated G702
Verify that the GC's G702 total equals the sum of all sub-certified amounts plus GC general conditions
Attach required documentation per the prime contract
Submit by the contractual deadline

Frequently Asked Questions

How long should the entire G702/G703 review process take per sub? For a sub with 20-40 line items and a contract value of $500K-$2M, budget 2-3 hours for desk review and 1-2 hours of field verification. As your team builds familiarity with each sub's SOV and billing patterns, review time decreases by 20-30%.

Should I review every sub's pay app every month, even if the amount is small? Yes. Small subs are more likely to make errors due to less sophisticated billing processes. A $75K sub who overbills by 15% costs you $11,250, the same dollar impact as a $750K sub overbilling by 1.5%.

What if I cannot complete the field walk before the billing deadline? Certify only the amounts you can verify from documentation and prior field observations. Withhold on any line item where field verification would change the outcome. Complete the field walk within 5 days and process an adjustment on the next draw.

How do I handle a sub who consistently misses the billing deadline? Enforce the deadline. Process only pay apps received on time. A sub who submits late learns to submit on time after one skipped payment cycle. Document the deadline and the sub's pattern in writing.

Should I use this checklist for T&M (time and materials) work? T&M billing uses different verification methods (timesheets, material receipts, equipment logs) but the same G702/G703 framework. Modify the percentage verification steps to focus on labor hour and material cost verification instead.

Can I delegate the entire review to a project accountant? Delegate the math verification and documentation review. Do not delegate the field verification or the final certification. The project manager's field knowledge is essential for evaluating percentage claims, and the certifying signature carries personal accountability.

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