Construction glossary · Process and contract terms
What is AIA G702/G703 in construction?
AIA G702/G703 is the American Institute of Architects' standard pair of pay application forms: G702 is the Application and Certificate for Payment summary sheet, and G703 is the Continuation Sheet that breaks the contract sum into schedule of values line items. Contractors submit the pair, usually monthly, to bill for work completed and materials stored, and the architect certifies the amount due. Together they are the default progress billing format on US commercial projects.
Updated June 2026 · Reviewed by the Ruh construction team
How G702 and G703 work together
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Book a walkthroughG702 and G703 are companion AIA contract documents used for monthly progress billing on commercial work. G702 (Application and Certificate for Payment) is the one-page summary the contractor signs and notarizes and the architect certifies. G703 (Continuation Sheet) is the line-item backup behind it: every schedule of values line with its scheduled value, work completed, stored materials, percent complete, balance to finish, and retainage. You will see them referenced in the owner contract's payment article, in subcontract billing requirements, and in lender draw packages. GCs use them to bill owners, subs submit them (or G702-style equivalents) to GCs, and project accounting lives off them. The estimator connection: the schedule of values in column C is usually a re-sort of the estimate, so how you structure bid line items determines how cleanly the project can bill. Common rookie mistakes: building an SOV so coarse the PM cannot defend percent complete, letting G703 lines drift away from the estimate's cost codes, and forgetting that the G703 must foot exactly to the G702 contract sum.
Everything on these forms is measured in dollars and percent complete. On the G703, columns run A through I: A item number, B description of work, C scheduled value, D work completed from previous applications, E work completed this period, F materials presently stored, G total completed and stored to date (D + E + F), H balance to finish (C minus G), and I retainage. Percent complete per line is G divided by C. Column C must total the current contract sum, including approved change orders. G703 totals carry to the G702, which nets out retainage and previous certificates to reach current payment due. For estimators, the practical unit is the line: each SOV line needs a dollar value the field team can measure progress against by percent complete, not by cost spent.
Worked example
Illustrative numbers: a $1,200,000 contract, billing month 3, 10% retainage. Through month 2, G703 column D (previous applications) totals $300,000. This month the team completes $180,000 of work (column E) and stores $20,000 of approved material on site (column F). Column G, total completed and stored to date: $300,000 + $180,000 + $20,000 = $500,000. Percent complete: $500,000 / $1,200,000 = 41.7%. Column H, balance to finish: $1,200,000 minus $500,000 = $700,000. Carry it to the G702: retainage at 10% of $500,000 is $50,000, so total earned less retainage is $450,000. Previous certificates for payment totaled $270,000 ($300,000 earned less $30,000 retainage). Current payment due: $450,000 minus $270,000 = $180,000. Sanity check: new money this month is $180,000 + $20,000 = $200,000, less 10% retainage of $20,000, which lands on the same $180,000.
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How Ruh handles AIA G702/G703
Ruh reads the drawings, runs the takeoff, and prices the quantities against the contractor's own price book, then hands the estimator a line-item draft to review, adjust, and sign off. Because that draft is already organized into cost-coded line items backed by real unit costs, it converts directly into a defensible schedule of values for G703 column C instead of a lump-sum guess. The estimator still owns the judgment calls, like how finely to split billing lines and where retainage exposure sits.
See construction invoice and pay app softwareAIA G702/G703: frequently asked questions
Who signs and certifies AIA G702?+
The contractor signs the G702 and typically has it notarized, certifying that the work claimed is complete and prior payments were properly applied. The architect then certifies the amount due, which can be less than the amount applied for if they dispute percent complete on any line. The owner, and often a lender or title company behind them, pays off the certified amount, not the requested one.
How does retainage work on G702/G703?+
Retainage is withheld at the rate set in the contract, commonly 5% to 10% on US commercial work, and shows on G702 line 5, split between completed work and stored materials. G703 column I tracks it line by line when rates vary. Many contracts step retainage down at 50% completion or release it at substantial completion, so read the payment article rather than assuming.
Can I bill for stored materials on the G703?+
Yes, column F covers material purchased but not yet installed, if the contract allows it. Owners usually require backup such as supplier invoices, proof of insurance, and storage on site or in a bonded warehouse. When the material is installed, its value moves out of column F and into the work completed columns, so never count it in both places on the same application.
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Figures on this page are illustrative. Construction estimates depend on project-specific conditions, source documents, market pricing, and professional judgment. Ruh's AI assists the estimator and does not replace professional review: your team reviews, validates, and approves every estimate, bid, and pricing decision.