AIA Billing Glossary
Construction billing terms explained in plain English. This glossary covers AIA-style G702 & G703 pay applications, Schedule of Values (SOV), retainage, stored materials, change orders, construction billing software, and related pay application terminology.
If you are dealing with commercial pay apps, owner billing packages, subcontractor billing support, or monthly progress billing requirements, this glossary is designed to help you quickly understand the terminology that shows up on contracts, billing forms, and review comments.
Looking for the full workflow? Start with the Complete AIA Billing Guide, or see how AIA billing software helps contractors create cleaner pay application packages.
How to Use This AIA Billing Glossary
This page works best as a quick reference for contractors, subcontractors, office managers, and project teams who need to understand construction billing language without digging through a contract every time a term comes up. If you are trying to figure out the difference between a G702 and a G703, how retainage works, what belongs in a Schedule of Values, why QuickBooks does not natively create AIA-style pay apps, or why a pay app got kicked back, this glossary gives you the plain-English version first and then links you to deeper guides.
In other words, this is not just a definition page. It is a shortcut into the larger PayAppPro learning hub for AIA-style billing, progress billing, QuickBooks billing workflows, and contractor payment applications.
Most Commonly Confused AIA Billing Terms
- G702 vs. G703: the G702 is the summary page; the G703 is the line-by-line continuation sheet.
- Retainage vs. Balance to Finish: retainage is money withheld; balance to finish is remaining contract value.
- Change Order vs. Pending Change Order: approved change orders affect official billing totals; pending ones generally should not.
- Completed & Stored to Date vs. Work Completed This Period: one is cumulative, the other is just the current billing cycle.
- AIA Billing Software vs. Construction Billing Software: AIA billing software is focused on G702/G703-style pay apps; construction billing software is the broader category.
- Application for Payment vs. Basic Invoice: a pay app is a formal progress billing document; an invoice is usually simpler.
Software & Workflow Terms
AIA Billing Software
Software that helps contractors create AIA-style pay application packages, usually based on a G702-style summary, G703-style continuation sheet, Schedule of Values, retainage, stored materials, approved change orders, and prior billing history. See AIA billing software.
Construction Billing Software
A broad category of software used to manage construction billing workflows, including invoicing, progress billing, retainage, change orders, project billing, accounting handoff, and pay applications. See construction billing software.
Contractor Billing Software
Software used by contractors to manage job billing, payment applications, invoices, supporting documents, and billing history. Depending on the job, this may include AIA-style billing, standard progress billing, or accounting-connected workflows.
Subcontractor Billing Software
Software used by subcontractors to prepare billing packages for general contractors, owners, architects, or lenders. For many commercial projects, this includes AIA-style pay apps, retainage, stored materials, lien waivers, and backup documents.
Pay Application Software
Software designed to create and manage pay applications across billing periods. A good pay application workflow keeps prior billing, current billing, retainage, change orders, and supporting files organized.
QuickBooks AIA Billing
A workflow where QuickBooks Online remains the accounting system, while a separate AIA-style pay application workflow creates the reviewer-facing G702/G703-style package. See Does QuickBooks Do AIA Billing? and QuickBooks Online Integration.
AI Quality Check
A review step that helps identify potential pay application problems before submission, such as retainage inconsistencies, missing documentation, stored materials issues, change order questions, or SOV mismatches. See AI Quality Checks for Construction Pay Applications.
Core Billing Terms
Application for Payment
A formal request for payment submitted periodically during a project. In AIA-style workflows, this typically includes a G702-style summary and a G703-style continuation sheet.
AIA-Style Billing
A structured progress billing format commonly used in commercial construction that follows the familiar G702/G703 layout tied to a Schedule of Values.
Application Number
The sequential number assigned to each pay application, such as Application #1, Application #2, and so on. Consistent numbering prevents confusion in payment history.
Billing Period
The timeframe covered by a pay application, such as “through 03/31/2026.” The billing period helps reviewers understand what work is included in the current request.
Pay Application (Pay App)
A periodic request for payment based on work completed under the contract. For a walkthrough, see how to fill out G702/G703.
Pay Application Rejection
When a submitted pay app is returned due to math inconsistencies, missing documentation, contract mismatches, retainage issues, or unsupported stored materials. See rejection checklist and common errors.
Progress Billing
A billing method where payment is requested periodically based on percentage of completion or completed work value. See construction progress billing.
Payment Application vs. Invoice
A payment application explains the progress billing request, usually with supporting detail, retainage, and contract history. An invoice is the accounting document used to request or record payment. See payment application vs. construction invoice.
Form & Document Terms
G702 (Application and Certificate for Payment)
The summary page showing contract value, completed work, retainage, previous payments, and payment due. See G702 instructions, line-by-line explanation, and what a G702 is.
G703 (Continuation Sheet)
The line-by-line breakdown tied to the Schedule of Values. Totals roll up into the G702 summary. See G703 instructions and what a G703 is.
G702-Style Summary
A summary page modeled after the familiar G702 structure, showing contract totals, completed and stored work, retainage, previous payments, and current payment due.
G703-Style Continuation Sheet
A line-item continuation sheet modeled after the familiar G703 structure, showing each SOV item, prior billing, current work, stored materials, retainage, and balance to finish.
Lien Waiver
A document confirming payment has been received or will be received and lien rights are waived to a certain date or amount. See Lien waivers explained.
Schedule of Values (SOV)
A detailed breakdown of the contract sum into specific work categories. See SOV explained and how to create an SOV.
SOV Line Item
A single row in the Schedule of Values. Each line item usually represents a scope of work, cost category, trade, phase, or approved change order.
Supporting Documentation
Backup files that help justify a payment request, such as stored materials invoices, photos, approved change orders, lien waivers, COIs, or project notes.
Contract & Money Terms
Balance to Finish
The remaining contract value after subtracting total completed work to date from the current contract sum.
Completed & Stored to Date
The cumulative value of completed work and approved stored materials through the current billing period.
Contract Sum to Date
The original contract sum plus or minus approved change orders.
Current Payment Due
The amount requested for the current billing period after subtracting retainage and previous payments.
Front-Loading
Allocating excessive contract value to early-stage work. Front-loading may be scrutinized by reviewers because it can shift payment too far ahead of actual project progress.
Net Change by Change Orders
The total value of approved change orders added to or deducted from the contract.
Original Contract Sum
The contract value before any change orders.
Previous Certificates for Payment
Total amount previously certified and paid on earlier applications.
Retainage
A percentage, often 5–10%, withheld from earned work until milestones or completion. See retainage explained and retainage math on G702/G703.
Retainage Held
The amount withheld from earned work during the billing period or across the project to date.
Retainage Release
The reduction or elimination of retainage near substantial or final completion.
Work Completed This Period
The dollar value of work performed during the current billing cycle.
Change Order Terms
Change Order (CO)
A written modification to the contract scope and price. Approved change orders adjust the contract sum to date. See how to bill change orders.
Approved Change Order
A change order that has been formally accepted under the project’s approval process and can be included in the contract sum to date.
Pending Change Order
A proposed change not yet approved. Pending change orders generally should not be included in official contract totals.
Change Order Backup
Documentation supporting a change order, such as approval emails, signed forms, revised scope, pricing backup, photos, or field notes.
Other Construction Billing Terms
Stored Materials
Materials purchased but not yet installed that may be eligible for billing with documentation. See billing stored materials.
Materials Presently Stored
A billing amount for materials that are stored but not yet incorporated into the project. Stored materials usually require backup documentation and reviewer approval.
Substantial Completion
The stage at which the project is sufficiently complete for its intended use.
Final Pay Application
The last payment application on a project, typically submitted after the work is complete and remaining retainage, closeout documents, and final balances are addressed.
Certificate of Insurance (COI)
A document showing proof of insurance coverage. Some projects require COIs as part of the billing or project documentation package.
AIA Billing Glossary FAQ
What is AIA-style billing?
AIA-style billing is a structured way of handling progress billing on construction projects. It commonly uses a G702-style summary, a G703-style continuation sheet, and a Schedule of Values to track prior billing, current billing, retainage, and balance to finish.
What is the difference between G702 and G703?
The G702 is the summary page that rolls up project billing totals. The G703 is the continuation sheet that breaks the contract into line items and shows the detailed math behind the summary.
What is a Schedule of Values in construction billing?
A Schedule of Values, or SOV, is the line-item breakdown of the contract amount. It helps owners, GCs, and subcontractors track progress billing in a consistent format over time.
What does retainage mean?
Retainage is the portion of earned work that is withheld from payment until later in the project. Many contracts use retainage to protect against incomplete or deficient work until the job reaches a milestone or final completion.
What is AIA billing software?
AIA billing software helps contractors create AIA-style pay applications, manage Schedule of Values line items, track retainage and stored materials, handle approved change orders, and export G702/G703-style pay application packages. See PayAppPro AIA Billing Software.
What is the difference between construction billing software and AIA billing software?
Construction billing software is a broad category that may include invoicing, progress billing, accounting, and project billing tools. AIA billing software is more specialized around Schedule of Values, retainage, stored materials, and G702/G703-style pay application workflows. See Construction Billing Software.
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