AIA Billing vs. Non-AIA Construction Billing
Not every job needs AIA forms. This guide walks through when G702/G703 billing is required, when a simple invoice is enough, and how to keep owners, GCs, and lenders happy either way.
What Is AIA Billing?
AIA billing is a structured way of billing for progress payments using the AIA G702 Application and Certificate for Payment and the AIA G703 Continuation Sheet. These forms come from the American Institute of Architects and are standard on many commercial and institutional projects.
With AIA billing, you break the project down into a Schedule of Values (SOV), then update each line item every billing period. The G703-style sheet shows the detail, and the G702-style summary rolls it all up into a single request for payment.
What Is Non-AIA Billing?
Non-AIA billing is simply any construction billing that doesn’t use the G702/G703 structure. Instead of standardized forms, you might send:
- Basic progress invoices
- Percentage-of-completion invoices
- Fixed-fee or lump-sum milestone invoices
- Simple draw requests
- Custom contractor-created invoice templates
These formats are usually easier to create and explain to residential owners, but they may not give the level of detail that architects, lenders, or large owners are used to seeing on bigger projects.
When AIA Billing Is Required
AIA-style billing is often required when:
- The project is commercial, institutional, or public
- The contract specifically mentions AIA G702/G703 or “AIA-style billing”
- An architect or lender has to review and approve pay applications
- The owner or GC wants standardized documentation from all trades
If the agreement calls out AIA forms by name, you’re expected to follow that format. In those cases, using simple invoices can slow down approvals or trigger rejections.
When Non-AIA Billing Is Perfectly Fine
Plenty of projects do not need AIA billing. Non-AIA billing is common when:
- You’re working on residential projects
- You bill a homeowner directly
- The GC doesn’t require standardized forms
- The contract never mentions AIA documentation
- The job is small and billed in one or two simple draws
For these situations, AIA-style forms can feel like overkill. A clean, detailed invoice or a simple progress billing format is usually enough—as long as expectations are clear.
AIA vs. Non-AIA at a Glance
| AIA Billing | Non-AIA Billing |
|---|---|
| Uses G702/G703-style forms | Uses simple invoices or custom formats |
| Based on a detailed Schedule of Values | Often summarized by phase or milestone |
| Common on commercial and institutional projects | Common on residential and smaller jobs |
| More structured and consistent from month to month | More flexible and faster to throw together |
| Often reviewed by architects and lenders | Typically reviewed by the owner or GC only |
Pros and Cons of Each Billing Method
AIA Billing Pros
- Highly standardized and widely recognized
- Line-by-line documentation of work completed and retainage
- Easier for owners, architects, and lenders to review
- Helps reduce disputes by keeping everyone on the same page
AIA Billing Cons
- Can be time-consuming if you manage it in Excel
- Requires tracking retainage, change orders, and stored materials carefully
- Manual templates are fragile—formula errors can hold up payment
Non-AIA Billing Pros
- Simple and quick to prepare
- Flexible formatting that’s easy to customize
- Great fit for smaller, less formal projects
Non-AIA Billing Cons
- Less detail than AIA billing in many cases
- Often not accepted on larger commercial jobs
- More room for misunderstanding if documentation is thin
Which Billing Method Should You Use?
The starting point is always the contract. If the language calls for “AIA format” or specifically mentions G702/G703, that’s your roadmap. In those cases, AIA-style billing isn’t optional—it’s part of the agreement.
When the contract is silent on AIA forms and the project is straightforward, non-AIA billing can work just fine. The key is making sure your invoices still tell a clear story: what was done, what’s being billed, and what remains.
If you’re unsure which way to go, it’s worth asking the GC, owner, or architect how they prefer to see pay applications. A quick conversation up front is much cheaper than a rejected pay app later.
How PayAppPro Fits In
PayAppPro is built for contractors who need accurate progress billing without wrestling with fragile spreadsheets. You can:
- Create AIA-style G702 & G703 pay applications with automatic math
- Use line-item or milestone style billing for simpler, non-AIA projects
- Track retainage, stored materials, and percent complete in one place
- Export clean PDF packages ready for submission
That means you don’t have to pick one approach forever. You can use AIA-style billing where it’s required, and keep things lighter on jobs where a detailed form would just slow everyone down.
Related Guides
Supports both AIA G702/G703 and simplified non-AIA billing.