How to Fix a Rejected Pay Application

Step 1: Identify the Exact Reason for Rejection

Start by reading the GC or reviewer’s feedback carefully. Rejections usually fall into one of these categories:

• Math or total mismatch
• SOV does not match contract
• Missing or incorrect documents
• Change orders not reflected
• Stored materials issues

If the feedback is vague, ask directly: “Which line item or total needs correction?”

Step 2: Recheck G702 vs G703 Totals

The G702 summary must tie exactly to the G703 continuation sheet.

• Total completed to date must match the sum of G703 line items
• Retainage must be consistent across both forms
• Previous billing should not change from prior months

If you’re using Excel, this is where broken formulas often cause repeat rejections.

Step 3: Verify the Schedule of Values

Compare your pay app against the approved SOV:

• No new line items unless approved
• No value shifts between categories
• Descriptions match the contract

If the SOV changed due to change orders, confirm the GC approved the revised version.

Step 4: Fix Change Order Billing

Only bill approved change orders—and make sure:

• They appear as separate line items if required
• Values match the signed CO exactly
• They roll correctly into contract totals

Step 5: Attach Missing Documents

Most rejected pay apps are missing at least one required attachment:

• Lien waivers
• Supplier invoices
• Certified payroll
• CO approvals

Step 6: Double-Check Retainage

Confirm the retainage percentage matches the contract and is applied consistently to both current billing and total-to-date amounts.

Preventing Repeat Rejections

Once corrected, prevent the same issue next month by:

• Locking previous billing amounts
• Using consistent SOV templates
• Automating calculations where possible