Every month, billions of dollars move through the construction industry on the strength of two standardized forms. The AIA G702 (Application and Certificate for Payment) and G703 (Continuation Sheet) are the backbone of payment processing on commercial, institutional, and multi-family projects across the United States.

Yet most GCs treat these forms as paperwork to push through rather than financial controls to master.

That approach costs real money. Projects that lack disciplined G702/G703 management overpay subcontractors by an average of 3-5% across the life of the job. On a $10 million project, that is $300,000 to $500,000 in avoidable cash flow leakage.

This guide breaks down everything a general contractor needs to know about AIA G702 and G703 forms --- field by field, calculation by calculation, process by process.

What Is AIA Document G702?

AIA Document G702, formally titled "Application and Certificate for Payment," serves as the summary sheet for a contractor's monthly payment request. It consolidates all financial data from the detailed line items into a single-page snapshot.

The form has two distinct sections:

Contractor's Application for Payment (top half): The contractor fills this out, summarizing the total work completed, stored materials, retainage withheld, and the net amount requested.

Architect's Certificate for Payment (bottom half): The architect or engineer reviews the application, certifies the amount they approve, and signs off. This certification is what triggers the owner's obligation to pay under most standard AIA contracts.

Key G702 Fields Explained

Field	Label	What It Contains
1	Original Contract Sum	The base contract amount before any changes
2	Net Change by Change Orders	Total approved change orders (additions minus deductions)
3	Contract Sum to Date	Field 1 + Field 2
4	Total Completed & Stored to Date	Sum of all work completed plus materials stored (pulled from G703 totals)
5	Retainage	Percentage or amount withheld per contract terms
5a	Retainage on Completed Work	Retainage calculated on work in place
5b	Retainage on Stored Material	Retainage calculated on stored materials (often a different rate)
6	Total Earned Less Retainage	Field 4 minus Field 5
7	Less Previous Certificates for Payment	Total of all prior approved payments
8	Current Payment Due	Field 6 minus Field 7
9	Balance to Finish, Including Retainage	Field 3 minus Field 6

Every number on the G702 must tie back to the G703 continuation sheet. If they do not match, the application gets rejected.

What Is AIA Document G703?

AIA Document G703, formally titled "Continuation Sheet," provides the line-item detail behind the G702 summary. It is essentially the schedule of values (SOV) in motion, showing what has been billed previously, what is being billed this period, and what remains.

The G703 lists every line item from the original schedule of values, plus any approved change orders that have been added as new line items.

Key G703 Columns Explained

Column	Label	What It Shows
A	Item Number	Sequential line item reference
B	Description of Work	Trade or scope description matching the SOV
C	Scheduled Value	Original budgeted amount for the line item
D	Work Completed from Previous Application	Cumulative billing through the prior period
E	Work Completed This Period	New billing for the current period
F	Materials Presently Stored	Value of materials stored on or off site
G	Total Completed and Stored to Date (D+E+F)	Running total of all billings and stored materials
H	Percentage Complete (G/C)	Mathematical ratio of total completed to scheduled value
I	Balance to Finish (C-G)	Remaining value on the line item

The sum of Column G across all line items must equal Field 4 on the G702. The sum of Column C must equal Field 3 on the G702. These are non-negotiable tie-outs.

How G702 and G703 Work Together

Think of the G702 as the executive summary and the G703 as the appendix of supporting data. They function as a single payment package.

The data flow works like this:

The subcontractor (or GC on an owner-direct contract) fills in Columns D, E, and F on the G703 for the current billing period.
The G703 calculates Column G (total to date), Column H (percentage), and Column I (balance).
The G703 column totals roll up to populate Fields 1 through 4 on the G702.
Retainage is calculated on the G702 based on the totals.
Previous payments are subtracted to arrive at the current amount due.
The architect reviews, adjusts if necessary, certifies, and signs the G702.

When a GC manages 15-30 subcontractors on a mid-size commercial project, that means 15-30 G703 continuation sheets feeding into a consolidated G702 submitted to the owner.

Understanding Retainage on G702/G703

Retainage is the percentage of earned revenue withheld by the owner (or GC) as financial security until the project reaches substantial completion.

Standard Retainage Structures

Structure	Rate	Common Usage
Flat retainage	10% on all work	Traditional, still common on private projects
Reduced retainage	5% on all work	Increasingly standard, especially public projects
Stepped retainage	10% to 50% complete, then 5%	Compromise approach
Dual-rate	10% on work, 0% on stored materials	Incentivizes early procurement
Capped retainage	10% until cap reached, then 0%	Some state laws require this

The G702 separates retainage into two sub-fields (5a and 5b) specifically because many contracts apply different retainage rates to completed work versus stored materials.

Retainage calculation example:

Total completed work to date: $1,200,000
Stored materials: $80,000
Retainage on completed work (10%): $120,000
Retainage on stored materials (0%): $0
Total retainage (Field 5): $120,000

Getting retainage wrong on even one billing cycle creates cascading errors in every subsequent application. The previous payment amount (Field 7) carries forward, so an error in month 3 distorts months 4 through final payment.

Change Order Integration

Change orders are where G702/G703 management gets complicated. When a change order is approved, it affects the forms in two ways:

On the G702: Field 2 (Net Change by Change Orders) increases or decreases, which changes Field 3 (Contract Sum to Date).

On the G703: New line items are added to the continuation sheet, or existing line items are modified to reflect the changed scope.

Best Practice for Change Order Line Items

Add each approved change order as a separate line item on the G703 rather than modifying existing line items. This creates a clean audit trail.

Item	Description	Scheduled Value
1	Concrete Foundations	$340,000
2	Structural Steel	$890,000
...	...	...
CO-1	Added foundation piers (CO #001)	$45,000
CO-2	Steel connection redesign (CO #002)	$22,500

The sum of all original line items plus all change order line items must equal Field 3 on the G702. If it does not, the application will be returned.

Glossary of Key Terms

Retainage: A percentage of earned contract revenue withheld by the paying party as financial assurance that the work will be completed satisfactorily. Typically ranges from 5% to 10% and is released at or after substantial completion.

Schedule of Values (SOV): A detailed breakdown of the contract sum into individual line items by trade, scope area, or cost code. The SOV forms the basis of the G703 continuation sheet and must be approved before the first pay application.

Change Order: A written agreement between the owner and contractor modifying the contract sum, contract time, or both. Approved change orders must be reflected on both the G702 (Field 2) and G703 (new line items).

Historical Context: G702/G703 Editions

The American Institute of Architects has published these forms for decades. The current editions most widely used:

G702-1992: The most common edition still in active use. Despite being over 30 years old, it remains the standard referenced in most AIA contract documents.
G703-1992: The companion continuation sheet, also from the 1992 edition.
2017 Updates: AIA released updated versions, but adoption has been slow. Many owners and architects still specify the 1992 edition.

The forms are copyrighted by AIA and must be purchased through AIA or licensed distributors. Using unauthorized reproductions can create legal issues on projects governed by AIA contract documents.

The Architect's Certification Role

The architect's signature on the G702 is not a rubber stamp. Under AIA Document A201 (General Conditions), the architect certifies that:

They have reviewed the application
The work has progressed to the point indicated
The quality of work is in accordance with contract documents
The contractor is entitled to payment in the certified amount

The architect can certify an amount different from what the contractor requested. If the architect believes a line item is overbilled, they can reduce it. This reduced amount becomes the certified payment --- the owner pays the certified amount, not the requested amount.

What happens if the architect refuses to certify?

The payment clock does not start. Under most AIA contracts, the owner's obligation to pay is triggered by the architect's certification. No certification means no contractual payment deadline, which means no prompt payment act protections in most jurisdictions.

This is why GCs need to submit clean, accurate applications. A rejected application can delay payment by 30-60 days.

Mathematical Tie-Outs Every GC Must Verify

Before submitting any G702/G703 package, verify these calculations:

G703 Column G = Column D + Column E + Column F (for each line item)
G703 Column H = Column G / Column C (percentage check)
G703 Column I = Column C - Column G (balance check)
Sum of G703 Column C = G702 Field 3 (contract sum tie-out)
Sum of G703 Column G = G702 Field 4 (total completed tie-out)
G702 Field 3 = Field 1 + Field 2 (contract sum calculation)
G702 Field 6 = Field 4 - Field 5 (earned less retainage)
G702 Field 8 = Field 6 - Field 7 (current payment due)
G702 Field 9 = Field 3 - Field 6 (balance to finish)

A single mathematical error anywhere in this chain will get the application kicked back by the architect or owner. On a project with 25 subcontractors, the GC must verify all nine of these tie-outs for each sub, every month.

Why Manual G702/G703 Review Fails at Scale

Consider a GC running five active projects with an average of 20 subs per project. That is 100 pay applications per month, each with its own G703 continuation sheet containing 15-40 line items.

That is 1,500 to 4,000 line items requiring mathematical verification, percentage completion validation, front-loading detection, and change order reconciliation --- every single month.

Manual review catches about 60-70% of errors. The remaining 30-40% slip through, resulting in overpayments that compound over the project lifecycle.

Automated pay application audit tools catch 95%+ of mathematical discrepancies, flag front-loading patterns, and verify tie-outs in seconds rather than hours.

Frequently Asked Questions

Who is responsible for filling out the G702? The contractor (or subcontractor billing the GC) completes the top portion of the G702 and the entire G703. The architect completes the bottom certification section of the G702 after review.

Can a GC modify a subcontractor's G703 before submitting to the owner? Yes, but with documentation. The GC should note any adjustments, communicate them to the sub, and maintain records. Many GCs use a "GC-adjusted" column to track differences between what the sub requested and what the GC approved.

What is the difference between the 1992 and 2017 editions of G702/G703? The 2017 edition includes updated language and formatting but the core fields and calculations remain the same. Most of the industry still uses the 1992 edition because it is embedded in existing contract templates and workflows.

How do stored materials get reflected on these forms? Stored materials appear in Column F of the G703. They require supporting documentation --- typically invoices, delivery tickets, and photos showing proper storage. Once materials are installed, their value moves from Column F to Column E in the next billing period.

What happens when the G702 summary does not match the G703 detail? The application is rejected. The architect cannot certify a payment when the summary and detail do not reconcile. This is the most common reason for pay application rejection and typically delays payment by 15-30 days.

Is it legally required to use AIA G702/G703 forms? No. These are standardized forms, not legal requirements. However, many contracts (especially those using AIA contract documents) specify their use. Some public project requirements mandate AIA forms. Non-AIA forms are acceptable when the contract allows them.

Stop Reviewing Pay Applications Manually

SubcontractorAudit automates every mathematical tie-out, flags front-loading patterns, and catches retainage errors before they cost you money. GCs using our platform reduce pay application processing time by 70% and catch an average of $18,000 in overbilling per project.

Audit Your Pay Applications Automatically

Use our free Pay App Calculator to verify G702/G703 math on your current project.