Free construction template
Pay application template
A pay application is the monthly request for payment a subcontractor sends the general contractor. This free Excel template does both parts: an application summary and a schedule of values, with retainage, payment due, and balance to finish calculated for you.
What is in the workbook
- Application summary: contract sum, change orders, work completed and stored, retainage, payment due, balance to finish
- Schedule of values: each line's scheduled value, work completed before and this period, stored materials, percent complete, and retainage
- A worked sample on three lines that you overwrite, and a short checklist before you send it
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Two pages that have to agree. The application summary states the contract sum, adds approved change orders, and works down from the total completed and stored to the payment due now. The schedule of values behind it lists every line of the contract with its scheduled value and what was completed on that line before this period, during it, and as materials stored on or off site.
The AIA publishes these as the G702 application and the G703 continuation sheet, and many contracts require them; read more in the AIA G702 and G703 glossary entry. This template follows the same logic in our own layout, for subcontracts that accept a standard pay application.
A worked pay application example
A masonry subcontract of $152,700 on three lines: general conditions billed in full, CMU walls part complete with $4,000 of block stored, and brick veneer started with $6,500 of brick stored. Retainage is 10 percent on completed work and on stored materials.
| Line | What it is | Amount |
|---|---|---|
| 1 | Original contract sum | $152,700.00 |
| 2 | Net change by approved change orders | $0.00 |
| 3 | Contract sum to date (1 + 2) | $152,700.00 |
| 4 | Total completed and stored to date | $85,240.00 |
| 5 | Retainage, 10 percent of completed work and stored materials | $8,524.00 |
| 6 | Total earned less retainage (4 - 5) | $76,716.00 |
| 7 | Less previous payments applied for | $38,047.50 |
| 8 | Current payment due (6 - 7) | $38,668.50 |
| 9 | Balance to finish, including retainage (3 - 6) | $75,984.00 |
The same sample is in the workbook, so you can check every formula against it.
Retainage on completed work and stored materials
Retainage is held on two bases, and the template keeps them apart because many contracts set different rates. In the example, 10 percent of the $74,740 of work completed to date is $7,474, and 10 percent of the $10,500 of stored materials is $1,050, so $8,524 is held and $76,716 is earned. Change either rate on the summary sheet and every line of the schedule of values follows. More on how it works in the retainage glossary entry.
Before you send it
- Line 4 of the summary must equal the schedule of values total; the template pulls it, so they cannot drift apart.
- Bill only for work in place and materials you can prove are stored.
- Attach the lien waivers your subcontract asks for. See lien waivers and pay applications.
- Keep the schedule of values the general contractor approved; a changed line is a common reason a pay application comes back.
The full monthly sequence, from the pencil draw to payment, is in the pay application process guide. Related terms: schedule of values, lien waiver, and change order.
Pay application template FAQs
What is a pay application in construction?+
A pay application is the request for payment a subcontractor sends the general contractor, usually once a month: a summary of the contract sum, the work completed and materials stored to date, the retainage held, and the payment due now, backed by a schedule of values that breaks the contract into lines.
Is this the AIA G702 and G703 form?+
No. This is Ruh's own template with the same two parts most general contractors ask for: an application summary and a schedule of values, which the AIA calls the G702 application and the G703 continuation sheet. If your contract requires the AIA documents themselves, use the forms licensed from AIA.
How is retainage calculated on a pay application?+
Retainage is the contract's percentage held back from each payment, applied to work completed and, where the contract says so, to stored materials. At 10 percent on $74,740 of completed work and $10,500 of stored materials, retainage is $7,474 plus $1,050, or $8,524.
What is a schedule of values?+
A schedule of values splits the contract sum into lines of work, each with a scheduled value, so every pay application can show what was completed on each line this period and to date. The lines must add up to the contract sum.
What should I attach to a pay application?+
Usually the lien waivers the contract asks for, conditional for this payment and unconditional for the previous one, plus proof for any stored materials such as invoices and photos. Check your subcontract, since requirements vary by general contractor and state.
Why do pay applications get sent back?+
Most rejections come from math that does not tie out, a schedule of values that does not match the one the general contractor approved, billing ahead of the work in place, or missing lien waivers. The template pulls line 4 straight from the schedule of values so the two cannot drift apart.
Is the pay application template free?+
Yes. Enter your work email to download the Excel file, use it on as many jobs as you like, and change it to fit your contracts.
This template is a starting point, not legal or accounting advice. Your subcontract decides the format, retainage, and attachments.