How General Contractors Review Pay Applications

Step 1: Math & Reconciliation Review

The first filter is always numerical accuracy. If the numbers don’t tie out, the review often stops immediately.

• Do summary totals match continuation sheet totals?
• Do prior-to-date amounts roll forward correctly?
• Does retainage calculate consistently with prior months?
• Does the contract sum reflect approved change orders?

Even small discrepancies raise red flags because GCs often have to submit consolidated billing to owners or lenders. One incorrect subcontractor pay app can delay the entire project billing cycle.

Helpful: Rejection Checklist

Step 3: Change Order Verification

Change orders are one of the most common rejection triggers. GCs confirm:

• Only approved COs are included
• Contract sums reflect signed documentation
• CO values match executed agreements exactly

Guide: How to Bill Change Orders Properly · Approved vs Pending Change Orders

Step 5: Compliance & Risk Review

Before approval, GCs verify compliance documentation:

• Correct lien waivers attached
• Proper billing period dates
• Insurance or certified payroll if required

Background: Lien Waivers in Construction · Retainage in Construction

Real-World Scenario

A subcontractor submits an $85,000 pay application. During review, the GC notices retainage was calculated at 5% instead of the contractually required 10%. Because prior months used 10%, the historical totals no longer reconcile.

The pay application is returned for correction. The owner billing deadline passes. Payment is delayed 30 days.

Small discrepancies can create large cash flow consequences.

Why Many Reviewers Prefer Structured Billing Workflows

Many GC accounting teams are reviewing dozens or even hundreds of subcontractor billing packages every month. When spreadsheets are rebuilt manually each period, continuity problems become harder to detect and review time increases significantly.

Reviewers are not just checking the current billing amount. They are checking whether prior billing, retainage, approved change orders, stored materials, and current totals all reconcile cleanly with historical submissions.

That is why many contractors eventually move from spreadsheet-based billing to dedicated AIA billing software that helps maintain continuity from one billing cycle to the next.

Teams using accounting platforms often also connect their reviewer workflow with QuickBooks Online integration for AIA billing to help reduce duplicate entry and reconciliation work.