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What the G702 and G703 are
A pay application is how a subcontractor asks the general contractor to be paid for work done so far. On most commercial jobs it follows the AIA layout: the G702, a one-page cover sheet, and the G703, a continuation sheet with one row per line of your schedule of values.
You bill by progress, not by invoice. Each month you say how far along each line is, the sheet works out the dollars, the GC holds back retainage, and you’re paid the difference between what you’ve earned and what you’ve already been paid. Your GC may send their own Excel or PDF version of the same thing. The columns and lines work the same way.
What you need before you start
- The approved schedule of values. The line items and amounts from your contract, worded exactly as the GC approved them.
- Last month’s approved pay app. Its totals become this month’s starting point. Use the version the GC approved, not the one you sent if they changed it.
- Signed change orders. Only executed change orders go on the pay app. Pending ones wait.
- Your progress for the period, line by line, and invoices for any materials stored but not installed.
- The GC’s form and due date. Most GCs collect sub pay apps by a set day, often the 20th or 25th, and bundle them into one draw.
Fill out the G703, column by column
Start with the continuation sheet. Every number on the cover sheet comes from it. Hover or tap a column to see what goes in it.
G703 · Continuation sheet
| AItem no. | BDescription | CScheduled value | DFrom previous | EThis period | FStored materials | GCompleted and stored | HBalance to finish | IRetainage |
|---|---|---|---|---|---|---|---|---|
| 4 | Rough-in, Level 1 | 96,000 | 86,400 | 9,600 | 0 | 96,000 | 0 | 9,600 |
| 5 | Rough-in, Level 2 | 96,000 | 52,800 | 19,200 | 0 | 72,000 | 24,000 | 7,200 |
| 6 | Switchgear and panelboards | 142,000 | 35,500 | 12,000 | 26,000 | 73,500 | 68,500 | 7,350 |
| CO-1 | Change Order 1: add 4 EV chargers | 22,400 | 4,480 | 8,960 | 0 | 13,440 | 8,960 | 1,344 |
From previous= last month’s D + E
Everything billed on this line before this month. It must equal D + E from the last approved pay app.
You type three columns each month: E, work completed this period; F, materials stored; and, if your GC holds a different rate on different lines, I, retainage. Column D is carried from last month. Columns G and H and the percent complete are math.
Change orders
Each executed change order gets its own row at the bottom with its own scheduled value, usually numbered CO-1, CO-2 and so on. Bill against it like any other line. A proposed or pending change order doesn’t go on the sheet until it’s signed. It’s one of the most common reasons a pay app is sent back.
Stored materials
Materials bought for the job but not installed go in column F. When you install them, move the amount out of F and into E. Don’t leave it in F and bill it again in E, and don’t let it disappear from F without showing up as installed work.
Already have a G703 in Excel?
The free checker reads it in your browser and lists anything a GC would catch. Nothing is uploaded.
Fill out the G702, line by line
The cover sheet is nine lines. Five of them are calculated from the others, so if the continuation sheet is right and the formulas are right, the cover sheet ties.
G702 · Application and certificate for payment
- 1Original contract sumYour contract710,000.00
- 2Net change by change ordersApproved change orders only22,400.00
- 3Contract sum to date732,400.00
- 4Total completed and stored to dateColumn G total425,440.00
- 5RetainageColumn I total42,544.00
- 6Total earned less retainage382,896.00
- 7Less previous certificates for paymentLine 6 of last month’s pay app308,209.50
- 8Current payment due74,686.50
- 9Balance to finish, including retainage349,504.00
Line 3 = 1 + 2
- Original contract sum. From your contract. It never changes.
- Net change by change orders. The total of approved change orders to date. Not pending ones.
- Contract sum to date. Line 1 plus line 2.
- Total completed and stored to date. The column G total from the continuation sheet.
- Retainage. 5a is retainage on completed work (columns D + E), 5b on stored materials (column F). Their total should equal the column I total.
- Total earned less retainage. Line 4 minus line 5.
- Less previous certificates for payment. Line 6 from your last approved pay app.
- Current payment due. Line 6 minus line 7. This is the check you’re asking for.
- Balance to finish, including retainage. Line 3 minus line 6.
The cover sheet also has a change order summary: additions and deductions approved in earlier months and this month. Its net should equal line 2.
A worked example
Ridgeline Electric is an electrical sub on the Cedar Park Medical Office Building, a fictional job for Northgate Builders. This is pay application #5. The contract is $710,000.00 and one change order, adding EV chargers, has been signed for $22,400.00.
| Line | How it’s worked out | Amount |
|---|---|---|
| 3 · Contract sum to date | 710,000.00 + 22,400.00 | 732,400.00 |
| 4 · Completed and stored | 399,440.00 of work + 26,000.00 stored | 425,440.00 |
| 5 · Retainage at 10% | 10% of 425,440.00 | 42,544.00 |
| 6 · Earned less retainage | 425,440.00 − 42,544.00 | 382,896.00 |
| 7 · Previous certificates | Line 6 of pay app #4 | 308,209.50 |
| 8 · Current payment due | 382,896.00 − 308,209.50 | 74,686.50 |
| 9 · Balance to finish | 732,400.00 − 382,896.00 | 349,504.00 |
Notice that line 8 isn’t the work done this month times 90%. It’s everything earned to date, less retainage, less what’s been certified before. That’s why a mistake in an earlier month, or in column D, flows straight into the amount due.
Want to run your own numbers?
The retainage calculator works out lines 4 to 9 from four numbers. It runs in your browser.
Seven checks before you submit
- Column D on every line equals D + E from last month’s approved pay app.
- No line is billed past 100% of its scheduled value.
- Retainage on each line matches the contract rate, and column I totals to line 5.
- Only signed change orders are on the sheet and in line 2.
- Line 4 equals the column G total, and line 7 equals last month’s line 6.
- Stored materials have backup, and installed materials moved from F to E.
- The period date, application number and signatures are all current.
These are the mistakes GCs catch most often. Our guide to why pay apps get sent back goes through each one, and the free checker tests for them automatically.
Signing, notarizing and sending
The contractor signs the G702, and many GCs and lenders want it notarized. Send it with whatever else your GC asks for each month. That’s usually a conditional lien waiver for this payment, an unconditional waiver for the last one, and invoices for stored materials. Some jobs also need certified payroll.
Send it before the GC’s cutoff. A pay app that arrives late, or comes back for a correction, usually waits for the next month’s draw. On a monthly cycle that can mean waiting 30 days for money you’ve already earned.