AIA G702/G703 Billing Guide: Pay Applications, SOV, Retainage and Rejections
AIA-style billing is one of the most common progress billing workflows in commercial construction. This guide explains how the G702-style summary, G703-style continuation sheet, and Schedule of Values work together so pay applications stay cleaner, easier to review, and less likely to get kicked back. Contractors new to the process should also review how construction payment applications work and how general contractors review pay applications, since many rejected billing packages come from continuity issues, retainage confusion, or incomplete backup documentation.
AIA-style billing is a structured way to request payment for completed construction work. The G703-style continuation sheet shows line-item detail from the Schedule of Values, and the G702-style summary rolls those details into the current payment request.
Many contractors start with spreadsheets, but continuity problems usually appear after several billing periods, especially when retainage, stored materials, and change orders begin rolling forward month after month. If you want software instead of rebuilding spreadsheets every pay cycle, see how PayAppPro helps contractors create AIA-style G702/G703 pay applications online.
AIA Billing Guide Navigation
Use this page as the master overview. Then go deeper into G702, G703, SOVs, retainage, stored materials, change orders, QuickBooks, and rejection prevention.
PayAppPro helps contractors build AIA-style G702/G703 pay applications, track retainage, manage stored materials, separate approved change orders from pending work, and export cleaner PDF billing packages. Explore AIA G702 & G703 software →
The Short Version: How AIA-Style Billing Works
AIA-style billing is easiest to understand when you separate the workflow into three pieces: the Schedule of Values, the continuation detail, and the payment summary.
1. Schedule of Values
The Schedule of Values is the project’s line-item billing breakdown. It becomes the source of truth for progress, retainage, stored materials, and balance to finish.
2. G703 Continuation Detail
The G703-style continuation sheet shows billing detail by SOV line: previous work, current work, stored materials, retainage, and remaining balance.
3. G702 Payment Summary
The G702-style summary page rolls the continuation detail into project-level totals: contract sum, earned to date, retainage, previous payments, and current amount due.
What Is AIA Billing?
In plain English, AIA billing is a structured way to submit construction pay applications. Instead of sending a simple invoice, a contractor bills from a Schedule of Values, tracks progress to date by line item, accounts for retainage, includes stored materials when allowed, and rolls the detail into a project-level payment summary.
Some projects require official AIA Contract Documents. Others accept an AIA-style equivalent that follows a similar structure. Either way, the review logic is similar: the continuation detail has to support the summary totals.
The central rule
If the G703-style continuation detail does not tie to the G702-style summary, reviewers will usually ask questions, request revisions, or reject the pay application until the math is corrected.
The Schedule of Values Is the Source of Truth
If you only remember one thing from this guide, remember this: the SOV drives everything. The Schedule of Values is the project’s line-item breakdown. If the SOV is vague, front-loaded, incomplete, or inconsistent with the contract, the billing package will be harder to review every month.
A review-friendly SOV makes the rest of the process easier because reviewers can quickly see what changed, how much is complete, and what remains to finish.
- Break scope into reviewable chunks. Broad line items create questions.
- Match the contract structure. Divisions, alternates, and approved scope should line up.
- Use realistic values. Overloaded line items attract scrutiny.
- Plan for retainage and stored materials. Decide how they will be handled before billing starts. Many billing disputes happen because retainage tracking changes from month to month or is handled inconsistently.
Go deeper: What Is a Schedule of Values?, How to Create an SOV Template, and Schedule of Values Example.
SOV checkpoint
- Does each line match the contract?
- Can a reviewer understand each scope?
- Are stored materials separated clearly?
- Do change orders have a home?
G703 vs G702: Detail First, Summary Second
The most important relationship in AIA-style billing is simple: the detail supports the summary. The G703-style continuation sheet shows the line-item story; the G702-style application summarizes the current payment request.
When the detail and summary stop matching, reviewers notice quickly. Many rejected pay applications come from continuity mistakes, missing approved change orders, retainage mismatches, or formulas that changed between billing periods. See why pay applications get rejected for common review problems.
G703-Style Continuation Sheet
The G703-style continuation sheet is where your billing becomes auditable. It usually shows the SOV line items and the billing detail for each line.
- Scheduled value
- Previous work completed
- Current work completed
- Stored materials
- Total completed and stored to date
- Retainage
- Balance to finish
Go deeper: G703 instructions · What is a G703 continuation sheet?
G702-Style Application Summary
The G702-style summary rolls the continuation detail into the project-level payment request. Reviewers use it to quickly understand the contract sum, earned amount, retainage, previous payments, and current amount due.
- Original contract sum
- Net change by change orders
- Contract sum to date
- Total completed and stored to date
- Retainage
- Previous certificates/payment history
- Current payment due
Go deeper: G702 instructions · G702 line-by-line explanation
How they work together
The G703-style detail explains where the numbers come from. The G702-style summary explains what is being requested this period. If they do not match, the pay application is vulnerable to delay or rejection. For a side-by-side explanation, read G702 vs G703 differences.
Retainage, Stored Materials and Change Orders
These are three of the most common areas where AIA-style pay applications get questioned. The issue is not just whether the amounts are valid. The issue is whether they are documented, approved, and reflected consistently across the SOV, continuation detail, summary page, and billing history.
Retainage
Retainage is the portion of earned value withheld under the contract. It must be applied consistently and shown clearly.
- Use the contract retainage rate
- Confirm whether retainage applies to stored materials
- Keep retained amounts consistent across periods
Stored Materials
Stored materials can be valid billings, but they often require backup and careful roll-forward into future billing.
- Confirm the contract allows stored materials
- Attach invoices and proof of storage
- Avoid double-counting when materials are installed
Change Orders
Change orders affect the contract sum and the SOV. Pending and approved changes should not be treated the same.
- Separate approved from pending
- Update the contract sum consistently
- Make sure SOV and summary totals match
Why AIA Pay Applications Get Rejected
Reviewers often say the billing “doesn’t tie.” That usually means they cannot reconcile the G702-style summary, G703-style continuation sheet, supporting documents, and prior billing history.
- Summary totals do not match continuation totals
- Prior payment history does not match the last approved application
- Retainage was applied inconsistently
- Stored materials were billed without backup
- Pending change orders were treated like approved work
- Spreadsheet formulas or copied values changed from one period to the next
Before submitting, use the AIA G702/G703 rejection checklist, review common G702/G703 errors, or read how to fix a rejected pay application.
Reviewer mindset
Reviewers are not just checking whether the current amount looks reasonable. They are checking whether the entire billing package is internally consistent.
QuickBooks and AIA-Style Billing
QuickBooks Online can be part of the accounting workflow, but it does not natively generate a complete AIA G702/G703-style pay application package. Many contractors use QuickBooks for accounting and use AIA-style billing software to prepare the reviewer-facing pay app.
The important thing is keeping the pay application, approved amount, invoice, retainage, and payment history aligned. When those values drift, the billing team ends up reconciling QuickBooks, spreadsheets, and submitted pay app documents manually.
Go deeper: Does QuickBooks do AIA billing?, Progress billing in QuickBooks Online, retainage in QuickBooks Online, and QuickBooks Online integration.
Simple split
QuickBooks: accounting, invoices, payments.
PayAppPro: AIA-style pay app package, SOV, retainage, stored materials, and G702/G703-style output.
How to Fill Out G702 and G703 Correctly
Once the SOV is clean, the real job is consistency. Each month’s pay application must match prior approved history, current progress, approved change orders, retainage rules, and supporting backup.
Before billing
- Confirm the approved contract amount
- Review the SOV structure
- Confirm retainage rules
- Separate approved and pending change orders
- Gather stored materials backup
Before submitting
- Check G703 totals against G702 summary
- Confirm prior billing matches last approved pay app
- Review retainage math
- Make sure backup documents are included
- Verify current amount due
For the practical step-by-step version, read How to Fill Out AIA-Style G702 and G703.
How PayAppPro Helps with AIA-Style Billing
PayAppPro is built to make AIA-style billing easier to manage without rebuilding spreadsheets every month. You set up your SOV, update progress, track retainage and stored materials, manage approved change orders, and generate consistent AIA-style outputs from the same source of truth.
- Build your SOV once per project
- Track progress, stored materials, and retainage by line item
- Keep approved and pending change orders organized
- Generate AIA-style PDF outputs in a G702/G703-style layout
- Reduce rejected pay apps caused by inconsistent math
- Connect billing workflows with accounting using the QuickBooks Online integration for AIA billing
Need one pay app?
PayAppPro includes a low-cost starting path for contractors who only need to create one AIA-style pay application package, with upgrade options for recurring billing.
More AIA Billing Guides
This page is the master overview. These supporting guides go deeper into specific parts of the billing process.
SOV, Retainage and Stored Materials
Rejections and Workflow
Recommended Next Steps
Most contractors reviewing this guide usually continue into one of these workflow topics next. These are the areas where billing mistakes, reviewer questions, and month-to-month continuity problems tend to show up.
Understand Retainage Better
Learn how retainage affects continuity, balances to finish, and monthly billing accuracy.
Read the retainage guidePrevent Rejected Pay Applications
Review the most common continuity, retainage, documentation, and math problems that cause pay apps to get kicked back.
Why pay applications get rejectedSee the Contractor Workflow
Understand how contractors prepare, submit, and revise monthly payment applications.
Construction payment application processUnderstand the Review Side
See what general contractors and reviewers look for before approving a billing package.
How GCs review pay applicationsCompare G702 and G703 Roles
Review how the continuation sheet detail supports the summary page.
G702 vs G703 differencesMove Beyond Spreadsheet Billing
See how PayAppPro helps manage continuity, retainage, SOVs, change orders, and billing rollforward.
Compare software for AIA-style billingAIA G702/G703 Billing FAQ
Quick answers to the questions contractors usually ask before preparing or submitting an AIA-style pay application.
What is AIA-style billing?
AIA-style billing is a structured progress billing process commonly used in construction. Contractors bill from a Schedule of Values, show work completed to date, account for retainage and stored materials, and summarize the payment request in a G702/G703-style pay application package.
What is the difference between G702 and G703?
The G703-style continuation sheet shows the line-item Schedule of Values detail. The G702-style summary page rolls those line items into project-level totals, including contract sum, completed work, retainage, previous payments, and current amount due.
What is a Schedule of Values in AIA billing?
A Schedule of Values is the project’s line-item billing breakdown. It is the source of truth for AIA-style billing because progress, stored materials, retainage, and balances to finish are tracked against those line items.
Why do AIA pay applications get rejected?
Common rejection reasons include G703 detail not tying to the G702-style summary, prior billing mismatches, inconsistent retainage, missing stored materials backup, pending change orders being billed incorrectly, and broken spreadsheet formulas.
Can QuickBooks Online generate G702 and G703 pay applications?
QuickBooks Online does not natively generate full AIA G702/G703-style pay application packages. Many contractors use QuickBooks for accounting and use AIA-style billing software to prepare the pay app package.
Does PayAppPro provide official AIA Contract Documents?
No. PayAppPro creates AIA-style pay application outputs in a G702/G703-style layout. PayAppPro is not affiliated with or endorsed by the American Institute of Architects and does not provide official AIA Contract Documents.
Create Cleaner AIA-Style Pay Applications
Build your SOV, track progress, manage retainage and stored materials, and export G702/G703-style PDFs without spreadsheet chaos.
PayAppPro outputs are AIA-style only and are not official AIA Contract Documents.