GCs encounter the same G702/G703 questions on every project. Who signs what. What happens when the architect pushes back. How to handle the gray areas that the AIA forms do not explicitly address. This FAQ covers the questions we hear most often, with direct answers grounded in industry practice and contract language.

Who Signs the G702?

The G702 has three signature blocks, and each one serves a different purpose.

The Contractor (GC): Signs first. The GC's signature certifies that the work described in the attached G703 has been completed, the amounts are correct, and payment is due. The GC is the applicant. By signing, you are standing behind the accuracy of every line item, every percentage, and every dollar amount on the G703.

The Architect: Signs second. The architect's signature certifies the payment amount to the owner. The architect reviews the application, verifies that the work and stored materials are consistent with the contract documents, and issues the certificate. The architect may certify a different amount than the GC requested.

The Owner: Does not sign the G702. The G702 is a certificate from architect to owner, not a three-party agreement. The owner reviews the certified amount and processes payment per the contract terms.

The GC's project manager or project executive typically has signing authority. Verify your company's delegation of authority. A superintendent signature may not carry contractual weight unless specifically authorized.

What Happens If the Architect Refuses to Certify?

The architect can withhold certification for specific reasons outlined in AIA A201 (General Conditions). Legitimate reasons include defective work not remedied, third-party claims filed against the project, failure to make payments to subs or suppliers, reasonable evidence of inability to complete the work for the unpaid balance, and damage to the owner or another contractor.

When the architect withholds certification, the process depends on whether it is a full or partial withholding.

Partial withholding: The architect certifies a reduced amount, noting the reason for the reduction. The GC can dispute the reduction through the contract dispute resolution process, but payment on the certified portion should proceed normally.

Full withholding: The architect refuses to certify any payment. This triggers the dispute provisions in the contract. Under AIA A201, the GC can notify the owner of the dispute and pursue resolution through mediation and then arbitration.

The practical response is to address the stated reason immediately. If the architect cites defective work, correct it and resubmit. If the architect cites incomplete documentation, provide it. Fighting a certification withholding costs more in schedule delays than resolving the underlying issue.

Can I Use Non-AIA Forms Instead of G702/G703?

Yes, with conditions. The G702/G703 are not legally mandated forms. They are AIA-published documents that the industry has adopted as a standard. You can use alternative forms if your contract permits them.

Check three documents before substituting:

The prime contract (owner-GC agreement). Many AIA-based contracts reference the G702/G703 by form number. If your A101 or A133 specifies G702/G703, you need the owner's written agreement to use an alternative.
The subcontract. Your subcontract should reference the billing form. If it requires G703 format, hold subs to that requirement.
Project-specific requirements. Public projects, bonded projects, and projects with construction lending may have form requirements that override your preference.

Non-AIA alternatives work when they capture the same data fields: line item breakdown, completed work, stored materials, retainage, change orders, and previous billing. The data matters more than the form number.

Form Element	G702 Field	Why It Matters
Original contract sum	Line 1	Baseline for all billing calculations
Approved change orders	Line 2	Tracks scope modifications
Total completed and stored	Line 4	Current earned value
Retainage	Line 5a/5b	Financial holdback
Total earned less retainage	Line 6	Net earned to date
Previous certificates	Line 7	Running total of prior payments
Current payment due	Line 8	Amount owed this period
Balance to finish	Line 9	Remaining contract value

How Do I Handle a Disputed Line Item on the G703?

A disputed line item should not hold up the entire pay application. Process the undisputed portion and withhold only the specific amount in question.

Step-by-step approach:

Identify the disputed line item and the specific dollar amount in dispute.
Notify the sub in writing within 7 days of receiving the pay app (or per your contract timeline).
State the reason for the dispute: percentage disagreement, documentation deficiency, scope question, or quality issue.
Certify the G702 for the undisputed amount, noting the reduction and the reason.
Resolve the dispute through field verification, documentation submission, or contract negotiation.
Include the resolved amount in the next billing cycle.

Withholding payment on undisputed line items because one line item is in dispute violates prompt payment obligations in most states and weakens your position in any legal proceeding.

What Is the Standard Retainage Percentage?

There is no single national standard. Retainage varies by contract, project type, and state law.

Common structures:

10% retainage through 50% completion, reduced to 5% thereafter
5% retainage throughout the project (increasingly common)
10% retainage throughout (less common, more aggressive)

State limitations: At least 32 states have statutes that limit retainage on public projects, typically capping it at 5%. Some states, like Colorado and New Mexico, have extended retainage caps to private projects as well. Federal projects under FAR allow up to 10% but encourage reduction to 5% or lower after satisfactory progress.

Retainage release timing: Most contracts release retainage at substantial completion of the sub's scope, not project substantial completion. This distinction matters. An electrician who finishes their scope in month 8 of a 14-month project should not wait an additional 6 months for retainage release because the building envelope is not complete.

Match your sub retainage to your prime contract retainage. Holding 10% from subs while the owner holds 5% from you creates a cash flow imbalance that strains sub relationships and may violate state retainage laws.

How Do Stored Materials Work on the G703?

The G703 Column E covers materials presently stored but not yet incorporated into the work. This column exists because many construction materials are fabricated, purchased, or delivered weeks or months before installation.

What qualifies as stored materials:

Materials delivered to the jobsite but not yet installed
Materials stored off-site at a warehouse, fabrication shop, or supplier facility
Custom-fabricated items awaiting delivery (structural steel, curtain wall panels, custom millwork)

What does not qualify:

Materials not yet ordered or manufactured
Materials in the supplier's general inventory (not specifically allocated to your project)
Materials already incorporated into the work (those belong in Column D)

Documentation requirements for stored materials:

For on-site storage: photographs showing materials on the project site, quantity verification, and protection from weather and theft.

For off-site storage: photographs at the storage location, proof of payment or purchase order, transfer of title documentation, insurance certificate naming the owner and GC as loss payees, and a delivery schedule.

The owner's approval is typically required before paying for off-site stored materials. Check your prime contract. AIA A201 requires owner consent and adequate insurance before certifying payment for off-site storage.

When Should I Reject a G702/G703 Submission Entirely?

Reject the entire submission when it contains fundamental errors that make partial processing unreliable:

G702 contract sum does not match the actual contract value plus approved change orders.
G703 line items do not match the approved schedule of values.
Total of G703 columns does not reconcile with G702 summary.
Missing signature from an authorized representative of the sub.
Submission arrived after the contractual billing deadline (enforce this consistently or lose the right to enforce it at all).

For isolated errors on specific line items, return the submission for correction on those items rather than rejecting the whole package. Wholesale rejection when only one line item is wrong delays payment unnecessarily and creates friction.

How Far Back Can an Owner Audit G702/G703 Submissions?

Most contracts allow the owner to audit project financial records for 3 to 7 years after final completion. The AIA A201 gives the owner the right to audit the GC's records related to the project, including pay applications, change orders, and cost records.

As the GC, your exposure in an owner audit extends to every G702/G703 you certified. If the owner discovers that you certified payment for work not completed, materials not stored, or amounts not earned, the owner can demand repayment and potentially file a claim against you.

Maintain complete G702/G703 records, including all supporting documentation, field verification notes, and correspondence about disputed items, for the full audit window. Digital records are acceptable. Organize them by project, by sub, and by billing period.

Frequently Asked Questions

Can a sub submit a G702/G703 for $0 in a given month? Yes. A $0 pay app is appropriate when the sub performed no work and has no new stored materials. Some GCs require monthly submissions regardless of activity to maintain documentation continuity. A $0 submission confirms that the sub is not claiming any work for that period.

What if the G703 line items do not match the sub's bid breakdown? The G703 line items should match the approved schedule of values, not the bid. The SOV is negotiated and approved before the first billing cycle. If the sub's bid had 12 items but the SOV was restructured into 28 items during the SOV approval process, the G703 follows the 28-item SOV.

Is there a maximum number of line items on a G703? No formal maximum. The AIA continuation sheet accommodates as many line items as needed. Practical limits are driven by reviewability. Beyond 60-70 line items, the review becomes unwieldy. Group related items logically and avoid excessive granularity on low-value scope items.

Can I process a G702 before receiving all sub G703s? You can submit your G702 to the owner based on available data, but you assume risk on any sub amounts you include without a verified G703. Best practice is to set sub billing deadlines 7-10 days before your owner submission deadline to allow processing time.

Does the G702 need to be notarized? The standard AIA G702 does not require notarization. Some state or project-specific requirements may add a notarization requirement, particularly on public projects. Check your prime contract and project manual.

What is the difference between G702-1992 and G702-2023? The AIA released an updated G702 in 2023 with modernized language and digital compatibility improvements. The core structure and fields remain largely the same. Most projects still use the 1992 version due to existing contract references. Both versions are valid. Use whichever version your contract specifies.

Get instant answers on every pay app. SubcontractorAudit flags G702/G703 discrepancies automatically, so your team spends less time on form questions and more time building. Explore pay app audit.