How to Bill Stored Materials on AIA G702 & G703

What Are Stored Materials in Construction?

Stored materials in construction are materials purchased for a project that have not been fully installed yet. They may be sitting in a warehouse, yard, staging area, or secure on-site storage, waiting for the point in the job when they can actually be put in place.

Common examples include rooftop units, switchgear, doors and frames, windows, specialty fixtures, electrical gear, and other long-lead or high-value items. When the contract allows it, contractors may bill for these materials before installation so they are not financing all of that inventory out of pocket.

If you want the broader concept page, see What Are Stored Materials in Construction?. This page focuses on the actual billing workflow.

Where Stored Materials Show Up on G702 & G703

Most of the detail lives on the AIA G703 Continuation Sheet. For each line item on your Schedule of Values (SOV), you’ll usually see:

• Scheduled value
• Work completed from previous applications
• Work completed this period
• Materials presently stored
• Total completed and stored to date
• Retainage
• Balance to finish

The Materials Presently Stored column is where stored materials are entered by line item. On the AIA G702 Application and Certificate for Payment, those values roll up into the overall total for work completed and stored to date, which affects the amount currently due.

Typical Requirements to Bill Stored Materials

Every GC, owner, lender, or architect team has its own process, but the most common requirements include:

• Supplier invoices or proof of purchase
• Evidence that the materials are specifically for this project
• The storage location
• Photos, tags, or inspection notes for higher-value items
• Insurance coverage or proof the materials are protected while stored

The easiest way to prevent delays is to clarify expectations before the first stored-material billing. A simple question like “What backup do you want to see when we bill stored materials?” can save a lot of rework.

Step-by-Step: How to Bill Stored Materials on an AIA-Style Pay App

1. Confirm the Materials Are Eligible to Be Billed

Start with your subcontract or prime contract. Some contracts say exactly which stored materials can be billed, where they must be stored, and what documents have to be included with the pay app.

• Some jobs allow only on-site stored materials
• Some allow approved off-site warehousing
• Some require proof of insurance or proof of payment

If the contract is vague, get written direction before you include stored materials in the billing.

2. Tie Stored Materials to Specific SOV Line Items

Stored materials should be billed under the correct SOV lines, not in a vague miscellaneous bucket. That keeps the pay app tied to the contract and makes the reviewer’s job much easier.

• 08 10 00 – Doors & Frames for stored doors and frames
• 23 73 13 – Rooftop Units for RTUs received but not yet installed
• 26 24 16 – Panelboards for electrical equipment waiting on installation

This is one of the main reasons a clean Schedule of Values matters so much in AIA-style billing.

3. Enter the Amount in the Materials Presently Stored Column

On the G703, enter the value of the stored materials in the Materials Presently Stored column for each affected line item.

Two simple rules make this easier:

• The total billed on the line cannot exceed the scheduled value.
• You should be able to support the amount with invoices and backup.

4. Apply Retainage Correctly

Many contracts apply retainage in construction to stored materials, but not every contract handles it the same way. The important thing is to apply the contract rule consistently.

• Some jobs apply the full retainage rate to stored materials
• Some jobs use a different treatment for stored materials
• Some reviewers are especially sensitive to retainage mismatches from one month to the next

If retainage changes midstream, document that clearly so the reviewer understands why.

5. Attach the Supporting Documentation

Stored materials usually get approved faster when the backup is organized and predictable. Include whatever the project requires, such as:

• Supplier invoices showing quantity and value
• Photos of the materials
• Storage location details
• Insurance proof or storage agreements
• Tagging or project-identification documentation

6. Track What Happens Next Month

This is where many teams get into trouble. Once materials are installed, they should move from the stored-materials column into installed work within the same SOV line item. You are not billing them twice. You are shifting them from stored to in place.

• Stored amount goes down
• Installed amount goes up
• The line history stays consistent

Tracking Stored Materials Across Pay Applications

The hardest part of stored-material billing is usually not the first entry. It is the month-to-month tracking. Contractors need to know what was previously billed as stored, what has since been installed, what balance is still stored, and whether retainage is being applied correctly the whole way through.

That is exactly why stored materials can create confusion on longer jobs. Without a clear record, teams can end up with:

• Double billing concerns
• Stored balances that do not tie out
• Materials staying “stored” too long
• Retainage inconsistencies from period to period

Common Pitfalls When Billing Stored Materials

• Billing stored materials under the wrong SOV line
• Letting completed plus stored exceed the scheduled value
• Leaving materials in stored forever instead of moving them to installed work
• Submitting stored-material values without backup
• Applying the wrong retainage percentage
• Failing to keep a clean running history across pay periods

These are some of the most common reasons pay apps get delayed or rejected. For the broader rejection process, see Common G702 & G703 Errors and Why Pay Applications Get Rejected.

How PayAppPro Handles Stored Materials

PayAppPro is built around AIA-style G702 and G703 billing, so stored materials are part of the normal workflow, not a spreadsheet workaround. If you're managing this process manually today, AIA billing software can help keep stored materials, retainage, and totals aligned automatically.

• Track installed work and stored materials by SOV line item
• Keep the math clean for total completed, retainage, and balance to finish
• Upload invoices, photos, and backup with the pay application package
• Generate AIA-style PDF outputs that reviewers can follow
• Maintain cleaner continuity from one billing period to the next

For the bigger picture, see our AIA Billing Guide.

Organize Stored Materials Backup Before Submission

Stored materials billing gets easier to approve when the support documents are organized around the same line items shown in the pay application. Do not make the reviewer match invoices, delivery tickets, photos, storage records, and SOV line items by memory.

Group backup by SOV line

Attach invoices, delivery documentation, and storage information in the same order the reviewer sees on the continuation sheet.

Show what changed this period

If stored materials increased, decreased, or moved into completed work, make that movement clear so billing continuity is easy to follow.

Stored materials can also affect retainage tracking. Depending on the contract, retainage may apply to stored materials differently than completed work.

How Reviewers Look at Stored Materials

Reviewers are not only checking whether the material exists. They are checking whether the amount is allowed, whether the backup is organized, and whether the stored material value ties cleanly into the current pay application.

A GC or owner reviewer may compare the stored material amount against purchase documentation, delivery records, storage location, insurance requirements, prior billing, and the G703-style continuation sheet. If the package makes them hunt for support, the review slows down.

For the broader review process, see how general contractors review pay applications. If the pay app has already been kicked back, review what to check after a rejected G702/G703 pay application.

Why Stored Materials Are Hard to Track in Spreadsheets

Stored materials are easy to enter once. They are harder to manage across multiple billing periods. Materials may be billed as stored one month, moved into completed work later, partially used, or reduced after review.

When that history lives in copied spreadsheets, continuation sheet accuracy becomes fragile. One overwritten value can affect stored materials, completed work, retainage, balance to finish, and current amount due.

A structured AIA billing software workflow helps keep stored materials, retainage, SOV line items, and prior billing tied together. If your accounting workflow also runs through QuickBooks, review the QuickBooks Online integration for AIA billing.

Recommended Next Steps

Stored materials touch several parts of the billing workflow. These are the next topics to review before submitting.

Understand the pay application workflow

See how stored materials fit into the broader payment request package.

Application for payment in construction

Review retainage impact

Confirm whether retainage applies to stored materials and how it should roll forward.

What is retainage in construction?

Avoid rejected pay apps

Missing backup and continuation sheet errors are common rejection triggers.

GC rejected your G702? What to check next

Move beyond manual tracking

See how PayAppPro helps keep stored materials and billing history organized.

Explore AIA billing software

Related Guides

• What Are Stored Materials in Construction?
• What Is a Schedule of Values (SOV)?
• AIA Billing Guide: Understanding G702 and G703
• Common G702 & G703 Errors (and How to Avoid Them)