Pay applications: the G702 and G703 mistakes that delay your check

On most commercial jobs you do not get paid by sending an invoice. You get paid by submitting a pay application: a summary of how much of each part of the contract is finished, what you have already been paid, and what is due now. The most common format is based on the AIA G702 (the application and certificate for payment) and G703 (the continuation sheet with the line items).

Getting paid is slow enough already. Billd’s 2026 National Subcontractor Market Report found subcontractors wait an average of 51 days to be paid after submitting a pay application. A pay app that comes back for corrections restarts part of that clock.

How the two pages fit together

The G703 continuation sheet is the detail. It is built from your schedule of values, the breakdown of your contract amount into work items. For each line you show:

• The scheduled value for that item
• Work completed in previous periods
• Work completed this period
• Materials presently stored and not yet installed
• Total completed and stored to date, and the percentage
• Balance to finish
• Retainage held on that line

The G702 application is the summary. It carries the original contract sum, net change orders, the total completed and stored to date, retainage, what was previously certified, and the current payment due. It is signed by you, often notarized, and then certified by the architect or GC.

Why pay apps get returned

Unapproved change orders are billed

Only executed change orders belong on the schedule of values. Work that is pending, verbal or “definitely getting approved” usually needs to wait. Adding it early is one of the fastest ways to get the whole application sent back.

Retainage is calculated the wrong way

Contracts differ. Retainage might be 10% until 50% complete and then 5%, or it might not apply to stored materials. Some contracts reduce retainage at substantial completion. If your spreadsheet applies a flat rate everywhere, the numbers will not match the GC’s.

Percentages are optimistic

Superintendents and project managers review the percentages against what they see in the field. If you bill 80% on rough-in when the walls on one floor are still open, expect a markdown and a resubmission.

Stored materials lack backup

Billing for materials stored on site or off site typically requires invoices, proof of insurance and sometimes photos or a bill of sale. Without them, the line gets cut.

Previous period numbers do not tie

The “previous applications” column must match what was actually certified last time, not what you asked for. If the GC cut your last application, carry their number forward.

The waiver is missing

Many GCs will not release payment without a conditional waiver for the current payment and an unconditional waiver for the previous one. The pay app can be perfect and still sit in a queue waiting for that document.

Set up the job so every month is easy

1. Build a detailed schedule of values at the start. Break big items into pieces you can measure, such as rough-in by floor, so percentages are easy to defend.
2. Track change orders in one log with status, amount and the date they were executed.
3. Read the retainage clause once and write down the rules for this job before the first pay app.
4. Know the due date. Many GCs have a cutoff, often around the 20th to 25th of the month, for the next payment cycle. Missing it can cost you a month.
5. Send waivers with the application, not after someone asks.

Where Payrung fits

Payrung is being built to generate the pay application from your schedule of values and change order log, apply the retainage rules for each contract, and attach the right waivers automatically. Join the waitlist for early access and founding pricing.

This guide is general information, not legal or financial advice. Your contract terms always control.