Stored Materials Billing Example for AIA-Style Pay Applications
Stored materials can be billed on many construction pay applications, but reviewers usually expect the amount to be documented clearly.
This example shows how a stored material line item might appear in a G703-style continuation sheet and what backup a reviewer may expect before approval. For the full workflow, see how to bill stored materials on AIA-style pay applications.
Example Stored Materials Line Item
In this scenario, an HVAC subcontractor has purchased major equipment that has been delivered to an approved storage location but not installed yet.
| SOV Item | Scheduled Value | Previous Completed | This Period | Stored Materials | Total Completed + Stored |
|---|---|---|---|---|---|
| RTU Equipment Package | $72,000 | $0 | $0 | $54,000 | $54,000 |
The material amount should not just appear on the continuation sheet. The reviewer needs support showing what was purchased, where it is stored, and why it is eligible for billing.
Example Backup Documentation Package
A strong stored materials package makes the reviewer’s job easier. Instead of forcing the reviewer to chase emails and attachments, organize the support around the same SOV line item used in the pay application.
Invoice or supplier statement
Shows what was purchased, the cost, supplier details, and date.
Delivery or receiving record
Shows the material was received and is not just on order.
Storage location
Identifies where the material is stored and whether the location is acceptable under the contract.
Photo backup
Gives the reviewer visual confirmation and makes the package easier to approve.
For ledger organization, see the stored materials ledger guide.
How Retainage Can Affect Stored Materials
Some contracts apply retainage to stored materials. Others treat stored materials differently. The important thing is to follow the contract and keep the treatment consistent across billing periods.
For background, review retainage in construction.
What Reviewers Usually Look For
Reviewers are not only checking that the number is entered correctly. They are checking whether the stored material amount is eligible, supported, and carried forward correctly on the next application.
- The material belongs to the project
- The material has been purchased or delivered
- The storage location is acceptable
- The backup documents match the SOV line item
- The amount rolls forward correctly next month
- The amount does not duplicate completed work
See how general contractors review pay applications for the broader approval workflow.
Why Stored Materials Are Hard to Track in Spreadsheets
Stored materials are easy to enter once and harder to manage over time. The amount may move from stored materials to completed work, get reduced after review, or carry forward while retainage changes.
PayAppPro helps contractors keep stored materials, SOV line items, retainage, and prior billing history easier to follow. If your billing also needs accounting coordination, review the QuickBooks Online integration for AIA billing.
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