AIA Billing vs. Non-AIA Construction Billing

What Is AIA Billing?

AIA billing refers to a standardized method of construction billing using the AIA G702 Application and Certificate for Payment and the AIA G703 Continuation Sheet. These forms were developed by the American Institute of Architects and are widely used on commercial projects.

AIA billing requires contractors and subcontractors to break down the entire project into a Schedule of Values (SOV), then track work completed each period line by line. It is the most widely recognized format for progress billing.

What Is Non-AIA Billing?

Non-AIA billing refers to any construction billing that does not use G702/G703 forms. This can include:

• Simple progress invoices
• Percentage-of-completion invoices
• Fixed-fee invoices
• Lump-sum milestone invoices
• Custom contractor-created invoice templates

These formats are typically less formal, easier to create, and more flexible - but may not provide the level of detail required for architect or lender-reviewed projects.

When AIA Billing Is Required

AIA forms are commonly required when:

• The project is commercial or institutional
• The owner or GC specifies AIA billing in the contract
• An architect or lender must approve pay applications
• There is a requirement for standardized documentation

If the contract states “AIA format,” “G702/G703,” or “AIA-style billing,” you must follow that process.

When Non-AIA Billing Is Acceptable

Many projects do not require AIA billing. Non-AIA billing is common when:

• The project is residential
• You work directly with a homeowner
• The GC does not require standardized forms
• The contract does not reference AIA documentation
• The billing structure is simple (e.g., 50% deposit / 50% final)

For smaller jobs, AIA billing can be unnecessarily complex- and non-AIA methods may be faster for everyone.

Key Differences at a Glance

AIA Billing	Non-AIA Billing
Uses G702 & G703 forms	Uses simple invoices or custom formats
Requires a detailed Schedule of Values	Often summarized or milestone-based
Common on commercial projects	Common on residential and small projects
More structured and consistent	More flexible and faster to create
Reviewed by architects or lenders	Typically reviewed by owner/GC only

Pros and Cons of Each Billing Method

AIA Billing Pros

• Highly standardized and widely accepted
• Clear documentation for every line item
• Easier for owners, architects, and lenders to review
• Reduces disputes through uniform formatting

AIA Billing Cons

• More time-consuming without software
• Requires managing retainage and stored materials
• Excel-based G702/G703 templates are error-prone

Non-AIA Billing Pros

• Simple and fast to prepare
• Flexible formatting
• Ideal for smaller projects

Non-AIA Billing Cons

• Less detailed than AIA billing
• Not accepted on many commercial projects
• Higher chance of disputes without clear documentation

Which Billing Method Should You Use?

The best method is the one that aligns with your contract requirements. If the GC or owner calls for AIA billing - or if an architect or lender is reviewing pay applications - you should use G702/G703 forms.

If the contract does not require AIA billing and the project is smaller or less formal, non-AIA billing may be perfectly acceptable and faster to prepare.

How PayAppPro Supports Both AIA and Non-AIA Billing

PayAppPro was built for contractors who need clean, professional billing without the hassle of spreadsheets:

• Create accurate AIA G702 & G703 pay applications
• Generate non-AIA progress billing with line items or milestones
• Track retainage, stored materials, and percentage complete
• Produce PDF billing packages ready for submission

Whether you're on a large commercial project or a small subcontract, PayAppPro gives you the tools to bill accurately and confidently.