AIA G702 & G703 Billing Guide (AIA-Style Pay Applications)

What “AIA-Style Billing” Means (Plain English)

In commercial construction, “AIA billing” usually means progress billing that follows the familiar G702/G703 format. Whether your project uses the official AIA forms or an AIA-style equivalent, the workflow is the same: you bill based on a Schedule of Values (SOV), you show to-date progress by line item, and you roll everything into a single summary with consistent history from one pay period to the next.

If you only remember one thing: the SOV is the source of truth. The continuation sheet (G703-style) is the detailed math, and the summary (G702-style) is the roll-up that reviewers read first.

Step 1: Build a Review-Friendly Schedule of Values (SOV)

A clean SOV prevents 80% of pay app pain. If your SOV is vague, lumpy, or missing scope, you’ll fight every month. If it’s clear and consistent, reviewers can approve faster because they can see what changed (and what didn’t).

• Break scope into reviewable chunks. “Electrical” is a fight. “Rough-in,” “Trim,” “Fixtures,” and “Controls” is manageable.
• Match the contract’s language. If the contract has divisions or alternates, reflect that structure.
• Keep line item amounts realistic. Front-loading (or accidental front-loading) attracts scrutiny.
• Decide how you’ll handle retainage + stored materials. Many “doesn’t tie” issues start here.

Need a template? See What Is a Schedule of Values (SOV)? and How to Create a Schedule of Values Template.

Step 2: Update Progress on the Continuation Sheet (G703-Style)

The continuation sheet is where AIA-style billing becomes “auditable.” It’s line-by-line, so reviewers can spot what changed this month and whether the math holds up.

• Work completed this period: what you installed/earned during the current billing window
• Total completed to date: cumulative progress, not just “this month”
• Stored materials (if allowed): materials on site (or stored offsite if the contract allows)
• Balance to finish: the remaining value for each line item

Step 3: Roll Totals into the Summary (G702-Style)

The summary is what owners, lenders, and GCs often read first. They want to answer three questions quickly:

1. What’s the contract value today? (original + approved changes)
2. How much has been earned to date? (completed + stored, less retainage)
3. What’s the payment due this period? (earned less retainage minus prior payments)

If those totals don’t tie back to the continuation sheet and prior periods, your pay app slows down—period.

Retainage, Stored Materials, and Change Orders (The “Rejection Triangle”)

If you’re getting rejections, it’s usually one of these three categories—and sometimes all three at once. Here’s what reviewers are really checking.

How to Avoid Rejections (What Reviewers Actually Look For)

The phrase you’ll hear is “doesn’t tie.” What it really means is the reviewer can’t reconcile your numbers to the supporting detail and the project’s billing history.

• Totals tie: G702 summary totals match the G703 continuation totals
• History ties: previous payments and to-date totals match last month’s approved pay app
• COs tie: approved change orders match the owner/GC log
• Backup exists: stored materials, waivers, insurance, payroll reports, etc. are attached when required

QuickBooks and AIA-Style Billing (Where It Gets Weird)

QuickBooks can work in an AIA-style workflow, but it doesn’t natively “be” a G702/G703 engine in the way contractors expect. Most teams handle AIA-style billing by generating the pay app externally, then creating invoices (or progress invoices) that match the approved amount.

If you’re trying to keep your accounting clean while still using AIA-style billing formats, start here: Does QuickBooks do AIA billing? and Progress billing in QuickBooks Online.

How PayAppPro Helps (Without Spreadsheet Drama)

PayAppPro is built to keep AIA-style totals consistent across periods. You set up your SOV once, update progress each month, and the system handles the roll-ups and the history so your pay app doesn’t “mysteriously” stop tying.

• Build your SOV once per project
• Track progress, stored materials, and retainage by line item
• Keep change orders organized (approved vs pending)
• Generate AIA-style PDF outputs from the same source of truth
• Reduce rejections with consistent math and cleaner supporting detail

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