How to Bill Change Orders on AIA G702/G703

Change orders are one of the fastest ways to turn a clean pay app into a rejection. This guide shows how approved change orders should flow through an AIA-style G702/G703 workflow — so your totals tie out and your billing gets approved.

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Educational content. PayAppPro provides AIA-style outputs and is not affiliated with or endorsed by the AIA.

Quick links: How to fill out G702/G703 · What is an SOV? · Common errors · Fix a rejected pay app
Big rule: If the change order isn’t approved (executed), don’t assume you can bill it. Many GCs/owners/lenders will reject the pay app or deduct the amount until it’s approved.

What Changes When a Change Order Is Approved?

In an AIA-style workflow, an approved change order impacts your billing in a few specific places:

  • Contract Sum to Date increases or decreases (base contract ± approved COs).
  • Your Schedule of Values (SOV) must still total to the updated contract amount.
  • Your G703-style continuation totals must tie to the SOV.
  • Your G702-style summary totals must tie to the G703 totals.

If you only remember one thing…

AIA-style billing is a chain: Approved Contract + COs → SOV → G703 totals → G702 totals. If one link is off, the reviewer finds it.

Where Change Orders Show Up on G702/G703

Exact field names vary by template, but the logic is consistent: change orders affect the contract amount and the SOV. That’s why CO mistakes commonly create “totals don’t match” rejections.

G702-Style Summary

  • Original Contract Sum (base contract)
  • Net Change by Change Orders (approved CO total)
  • Contract Sum to Date = base + approved COs
  • Everything else rolls from the continuation totals
See also: G702 instructions and filled-out example.

G703-Style Continuation / SOV

  • COs usually appear as new line items or as adjustments to approved lines
  • Line item values must match the approved SOV revision
  • Progress billing continues cumulatively per line item
See: G703 instructions and SOV template guide.
Tip: If your reviewer wants CO traceability, label CO lines clearly (e.g., “CO-003: Additional Demo”). It reduces back-and-forth and keeps approvals moving.

Two Common Ways to Handle COs in the SOV

Different jobs enforce different standards. The “right” method is whatever your approved SOV and contract require — but these are the two patterns you’ll see most often:

Method A: Add New CO Line Items

You add one or more new SOV lines for each approved change order (or for each major CO scope bucket).

  • Best for review: easy to audit by CO number
  • Cleaner history: base scope stays base scope
  • Reduces confusion when CO scope doesn’t match existing lines

Method B: Adjust Existing Line Values

You modify scheduled values on existing line items (only if the SOV revision is approved).

  • Can be acceptable when CO aligns tightly to an existing scope bucket
  • Risk: reviewers may ask “why did line 05 value change?”
  • Must keep strong documentation and version control

What *not* to do

  • Don’t “hide” CO dollars by shifting values between unrelated lines.
  • Don’t change prior period values to make totals work. That’s an instant red flag.
  • Don’t bill COs at a different retainage rule unless the contract explicitly says so.

The CO Mistakes That Get Pay Apps Rejected

Mismatch problems

  • G702 contract sum includes COs, but SOV total doesn’t
  • SOV includes COs, but G702 “Net Change by COs” is wrong
  • CO values don’t match signed amounts
  • G702 totals don’t tie to G703 totals

Process problems

  • Billing “pending” COs without written approval
  • Missing CO backup documentation
  • Line renumbering or scope drift between periods
  • Retainage applied inconsistently
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Change Orders + QuickBooks: Keep the Story Straight

Many contractors submit pay apps to the GC/owner/lender, then record billing in accounting. If QuickBooks is part of your workflow, your biggest goal is keeping the same story consistent: contract value, CO totals, and what was billed this period.

Practical advice: Don’t let your pay app show one CO total while your accounting shows another. That mismatch is how disputes and payment delays start.

FAQ: Billing Change Orders on G702/G703

Do change orders change the G702 contract sum?

Yes. In an AIA-style workflow, approved change orders increase or decrease the Contract Sum to Date. If the contract sum changes, your SOV totals and your G702/G703 rollups must still tie exactly.

Should change orders be separate line items on the Schedule of Values?

Often, yes—especially when the GC, owner, or lender expects traceability by CO number. The key is consistency: use the approved SOV structure and don’t move dollars between categories without approval.

Can I bill a pending change order?

Usually no. Many reviewers only allow billing for approved (executed) change orders. If you bill a pending CO, expect a rejection or a deduction until approval is finalized.

Why do pay apps get rejected when change orders are involved?

Common reasons: the G702 contract sum doesn’t include COs, the SOV doesn’t match the approved revision, CO values don’t match the signed amount, or totals drift between G702 and G703.

How does retainage apply to change order work?

Typically retainage applies to the value earned (including approved CO work) the same way it applies to base contract work—unless your contract says otherwise. Apply retainage consistently in the same method each period.

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Keep SOV + CO totals + rollups aligned every billing period.