How to Avoid Pay Application Rejections

The easiest pay application to fix is the one that never gets rejected. This checklist shows how contractors avoid common G702/G703 mistakes before submitting their pay app.

Start With the Contract (Not the Form)

Most pay app issues begin before billing even starts. Confirm whether the contract requires:

  • AIA G702/G703
  • A specific Schedule of Values format
  • Retainage percentages
  • Monthly backup documents

Lock the Schedule of Values Early

Once the SOV is approved, treat it as read-only:

  • No new line items without approval
  • No shifting values between categories
  • Descriptions should mirror the contract

Double-Check G702 & G703 Math

Before submitting:

  • Verify G702 totals match G703 totals exactly
  • Confirm previous billing did not change
  • Check retainage math line by line

Handle Change Orders Correctly

  • Only bill approved change orders
  • Add them properly to the SOV
  • Reference CO numbers clearly

Attach Required Documents Every Time

  • Lien waivers
  • Supplier invoices
  • Certified payroll (if required)
  • Approved change orders
Related: Why Pay Applications Get Rejected
Create a Pay App That Gets Approved

Avoid rejections by using AIA-style logic from day one.