You've finished enough work to bill, but the general contractor wants an AIA Form G702, a G703 continuation sheet, lien waivers, stored-material records, and signatures before anyone reviews the package. The blank forms are on your screen, last month's spreadsheet is open, and one wrong carry-forward value could send the entire submission back.
That's the part many guides miss. A G702 can be mathematically correct and still fail because the package doesn't match the contract. The practical task isn't filling out a form. It's coordinating the payment summary, schedule-of-values detail, retainage, change orders, waivers, backup, and certification so every document tells the same story.
Table of Contents
- What AIA Form G702 Does
- Step-by-Step Field Guide to Completing G702
- How G702 and G703 Work Together
- Understanding Retainage Calculations on G702
- Why Pay Applications Get Rejected Beyond Math Errors
- Lien Waiver Requirements and Sequencing
- How Drawra Automates Compliant Pay Applications
- Quick Reference Guide and Common Questions
What AIA Form G702 Does
A contractor completes work during the billing period, collects progress records from the field, and submits a payment request. On commercial projects, the owner or general contractor may require that request in AIA format. The AIA G702, formally the Application and Certificate for Payment, provides the one-page summary and certification for that request.
AIA pairs G702 with G703, the continuation sheet that supplies the detailed information behind the summary. The official AIA instructions for G702 describe G702 as a standardized application and certificate that allows the contractor to request payment and the architect to certify that payment is due.
Practical rule: Treat G702 as the certification page. It does not replace the invoice, schedule of values, or supporting documents.
G702 consolidates the project's financial position. It brings together the original contract value, approved change orders, completed work, stored materials, retainage, prior payments, and current amount due. G703 supports those totals with line-item detail.
Why the standardized format matters
A generic invoice can state the amount you want paid. G702 shows how that request fits the contract. The architect reviewing progress, the owner authorizing payment, and the lender tracking project finances can compare the summary with the schedule of values and prior applications.
The package must also agree across documents. A correct total on G702 does not resolve a missing stored-material record, an unsupported change order, or a waiver for the wrong billing period. Contract-aware document coordination matters because reviewers usually reject incomplete packages, not just bad arithmetic.
AIA's current instructions and summary pages continued official use of G702-1992 in 2026, with updates published in July 2026. The form remains part of an established standardized payment process in the U.S. construction market.
The monthly billing context
G702 is commonly used for monthly progress billing. The contractor reports completed work and materials stored to date, applies the contract's retainage rules, subtracts prior payment certificates, and presents the current amount due. On many commercial projects, payment is typically made within 30 days after certification, as described in industry guidance on AIA G702 pay applications.
The architect does not approve a number because it appears on a form. The review tests whether the claimed progress, calculations, and backup support the requested amount. A reliable G702 therefore depends on coordinated project records, correctly sequenced waivers, and a complete submission package.
Step-by-Step Field Guide to Completing G702
Start with the project header. Enter the project name, owner, architect or other designated certifier, contractor, contract date, application number, billing period, and distribution information exactly as the contract and prior approved application show them. A mismatched project name or application number creates avoidable review questions before anyone reaches the math.
Build the contract summary first
The first financial lines establish the contract value against which progress is measured.
Line 1, original contract sum: Enter the executed base contract amount. Pull it from the signed agreement, not from an old invoice or an internal estimate.
Line 2, net change by change orders: Include approved additions and deductions that belong in the current contract value. Pending or disputed changes shouldn't be treated as approved contract value unless the project's contract administration process permits that treatment.
Line 3, contract sum to date: This is the original contract sum plus or minus the net approved change orders. It establishes the adjusted contract value.
Reconcile completed work and retainage
Line 4, total completed and stored to date: This total comes from the G703 continuation sheet. It includes eligible completed work and properly supported stored materials through the current billing period.
Line 5, retainage: The form separates retainage on completed work at Line 5a and retainage on stored materials at Line 5b. Add those parts for total retainage.
Line 6, total earned less retainage: The form calculates this as Line 4 minus total retainage. This is the earned amount after the holdback.
Line 7, less previous certificates for payment: Enter amounts certified on prior applications, according to the project's approved payment history. For the first application, prior certificates are entered as zero, as reflected in AIA's payment-application completion instructions.
Line 8, current payment due: Calculate Line 6 minus Line 7. This is the current amount requested before any project-specific adjustments handled elsewhere in the contract process.
Line 9, balance to finish including retainage: Calculate Line 3 minus Line 6. It shows the remaining contract value after earned work, while retaining the form's treatment of retainage.
The important control is not just calculating each line. It's proving that Line 4 and the retainage totals agree with the G703. A spreadsheet that looks right on G702 but uses different source figures on the continuation sheet will fail review.
How G702 and G703 Work Together
G702 and G703 aren't two independent forms that happen to travel together. They are two layers of one payment request.
The G703 continuation sheet breaks the contract into schedule-of-values line items. Each line tracks its scheduled value, prior completed work, current-period work, stored materials, total completed and stored to date, percentage complete, balance to finish, and applicable retainage treatment. The AIA G703 instructions identify the continuation sheet as the line-item basis for the payment calculations.
The G702 then rolls those line-item results into a concise certification. If the G703 total for completed and stored work doesn't match G702 Line 4, the reviewer can't verify the summary. If the retainage totals differ, the current payment due also differs.
Summary versus detail
| Document | Primary role | What the reviewer checks |
|---|---|---|
| G702 | Summary application and certification | Contract value, earned amount, retainage, prior payments, and current amount due |
| G703 | Detailed continuation sheet | Schedule-of-values line items, progress, stored materials, balances, and line-level retainage |
| Supporting package | Contract and payment backup | Waivers, invoices, stored-material evidence, signatures, and other required attachments |
A schedule of values must remain stable enough for the reviewer to compare applications while still reflecting approved contract changes. For practical help organizing that foundation, use this schedule of values template.
Why reconciliation fails in real offices
Manual processes usually break at the handoff. A project manager updates current-period progress on G703, accounting updates the invoice separately, and someone else copies totals into G702. Each person may use a reasonable number, but the package still contains conflicting values.
The fix is a single source of calculation. Enter line-item progress once, carry prior values forward, apply the project retainage rule, and let the summary derive from the detail. That approach also makes review easier because every G702 total can be traced back to a G703 line and then to field or vendor backup.
Understanding Retainage Calculations on G702
Retainage is a contract-controlled holdback, and it deserves more attention than a copied percentage in a spreadsheet. On G702, Line 5a applies to completed work and Line 5b applies to stored materials. Those two amounts combine into total retainage, which the form subtracts from Line 4 to produce Line 6.
The distinction matters because completed work and stored materials may have different eligibility rules or different retainage treatment under the contract. A material invoice alone doesn't automatically make stored material billable. The package may also need delivery evidence, ownership information, insurance records, photographs, or other documents required by the project.
Fixed and variable retainage
With fixed retainage, one contract rule applies across the work. AIA's instructions indicate that retainage can be entered on G702 Lines 5a and 5b when fixed retainage is selected, rather than itemized on every G703 line.
Variable retainage works differently. If different line items carry different retainage rules, G703 Column I is normally used to track the line-level amount. AIA notes that Column I is generally needed only when variable retainage is permitted on a line-item basis. If retainage is constant across the contract, that column doesn't need to be completed.
The form logic is straightforward:
Line 5a: retainage on completed work.
Line 5b: retainage on stored materials.
Line 5 Total: Line 5a plus Line 5b.
Line 6: Line 4 minus total retainage.
Calculation examples
The table below uses a simple illustrative structure. It does not replace the contract's actual retainage rule, stored-material requirements, or jurisdiction-specific requirements.
| Scenario | Completed Work | Stored Materials | Retainage % | Line 5a | Line 5b | Line 6 Total |
|---|---|---|---|---|---|---|
| Completed work only | $100,000 | $0 | 10% | $10,000 | $0 | $90,000 |
| Stored materials only | $0 | $100,000 | 10% | $0 | $10,000 | $90,000 |
| Both categories | $100,000 | $25,000 | 10% | $10,000 | $2,500 | $112,500 |
The first row shows why a 10% retainage example must not be treated as a universal project rule. The arithmetic is clear, but the applicable rate comes from the contract. A mismatch appears when the G703 calculates retainage by line and the G702 applies a different assumption to the combined total.
Check the contract before checking the calculator. The correct formula with the wrong retainage rule still produces a rejected application.
Why Pay Applications Get Rejected Beyond Math Errors
A mathematically perfect G702 can still be rejected. In daily billing administration, the bigger problem is often package-level compliance: the form is right, but the attachments, waiver sequence, signatures, or stored-material evidence don't satisfy the contract.
An industry review of common pay-application rejection causes highlights the operational problem. Owners and general contractors review the entire submission, not just the bottom-line amount.
The common package failures
Missing supporting documents: Required lien waivers, stored-material backup, invoices, progress records, or project reports aren't included.
Wrong attachment version: The G703 doesn't match the required format, a continuation sheet is missing, or an attachment belongs to a different billing period.
Inconsistent data: The invoice, G702, G703, waiver amount, and backup don't agree. Reviewers then have to determine which document is authoritative.
Improper certification: A required signature, notarization, or authorized signer is missing. The reviewer may refuse to process the package until the certification is valid.
Unsupported stored materials: The contractor bills material that isn't sufficiently documented or isn't eligible under the contract.
The owner and architect enforce these requirements because payment certification carries risk. They need evidence that the billed work exists, the amount is supported, lien exposure is being managed, and the person signing has authority to certify the request.
A single checklist helps, but a checklist alone won't solve disconnected documents. The package should be generated from the same contract data and billing-period record so attachments, dates, amounts, and waiver language stay aligned.
Lien Waiver Requirements and Sequencing
Lien waivers are not interchangeable receipts. The type you provide affects when you surrender lien rights and whether you carry risk while waiting for funds.
A conditional progress waiver generally becomes effective only when the payment clears. An unconditional waiver can waive rights immediately, which creates risk if you sign it before receiving the money. The exact form and timing can depend on the contract and applicable state law, so a project requirement should never override legal review where the rules conflict.
A practical billing sequence
For a progress application, first check the contract's waiver requirements and identify the billing period and payment amount. Then collect the waiver required for that stage, confirm that the amount and through-date match the application, and verify whether the general contractor also requires waivers from lower-tier subcontractors and suppliers.
Progress billing often calls for conditional waivers because payment hasn't cleared yet. After funds clear, the corresponding unconditional waiver may be required. Final payment and retainage release commonly involve final unconditional waivers from the contractor and lower tiers, making waiver sequencing directly relevant to closeout cash flow. The construction retainage guidance from Corpay discusses the relationship between retainage release and final waiver documentation.
Before submitting the package
Read the contract requirement: Identify the required waiver type, signer, amount, through-date, and submission timing.
Match the billing stage: Don't use a final waiver for a progress draw or an unconditional waiver before funds clear unless the contract and legal requirements clearly support it.
Collect lower-tier documents: Confirm whether subcontractor and supplier waivers must accompany your own package.
Check amount alignment: The waiver amount should correspond to the payment or release being documented, subject to the contract's wording.
Keep an approval record: Store the submitted waiver, payment evidence, and subsequent unconditional waiver together by billing period.
A partial release can be useful when the project or payment covers only part of the claimed rights. Keep the release scope and period precise, and review the partial lien release guidance when the project requires something more specific than a broad progress waiver.
How Drawra Automates Compliant Pay Applications
The weak point in many billing systems isn't the formula. It's the repeated re-entry of contract requirements into separate templates. A contract-aware workflow starts by scanning the executed agreement and extracting the contract sum, billing cycle, retainage terms, required forms, and waiver types.
Drawra can use those extracted requirements to build a package containing the invoice, G702, G703, and standard lien waivers. Its single calculation engine keeps the invoice total, G702 Line 8, G703 totals, retainage, dates, and billing-period values synchronized. That directly addresses the reconciliation failures that occur when several spreadsheets or document templates are maintained separately.
What the workflow handles
Contract extraction: Billing requirements, retainage terms, cycle dates, and waiver types come from the executed PDF rather than memory.
Line-level billing: You enter progress against schedule-of-values items, while the system applies the configured calculations.
Package generation: Invoice, G702, G703, and lien waivers are assembled into one submission-ready PDF.
Validation: Dates and calculations are checked before packaging, reducing conflicts between documents.
Reminders and delivery: Billing reminders help prevent missed cycles, and the package can be exported or sent to the recipient.
Drawra's publisher reports around 60% time savings on monthly billings, with the claim described in its product information rather than as a universal result for every contractor. Pricing includes a free first application, pay-as-you-go use, or an unlimited monthly option. Contractors can review the Drawra pay application builder when they want to compare an integrated workflow with manual forms or spreadsheets.
Quick Reference Guide and Common Questions
Use this lookup while preparing the next package:
| G702 item | What it represents |
|---|---|
| Line 1 | Original contract sum |
| Line 2 | Net approved change orders |
| Line 3 | Contract sum to date |
| Line 4 | Total completed and stored to date from G703 |
| Line 5a | Retainage on completed work |
| Line 5b | Retainage on stored materials |
| Line 6 | Line 4 less total retainage |
| Line 7 | Previous certificates for payment |
| Line 8 | Current payment due |
| Line 9 | Balance to finish including retainage |
Key terms: The schedule of values divides the contract into billable line items. Stored materials are eligible materials held for the project but not yet installed, subject to contract backup. Retainage is the contractually withheld amount. Change orders adjust the contract when properly approved.
First application: Enter zero for previous certificates when no prior payment certificates exist.
Pending changes: Don't include unapproved changes in the contract sum unless the project's written process allows it.
Stored materials: Confirm eligibility and attach the required invoices, delivery records, ownership evidence, photos, or other backup.
Official instructions: Start with the AIA G702 instructions and summary, then check the project contract for additional requirements.
Drawra - English scans executed contracts, extracts billing and waiver requirements, and generates coordinated invoices, AIA G702 and G703 forms, and lien waivers in one package. Visit Drawra to prepare your next pay application with synchronized calculations and contract-aware submission support.