AIA G702 and G703: how to bill a large project without stalling payment
The billing standard that GCs and public agencies require. How to fill it out, where the hidden details are and why the numbers need to match down to the cent.
When projects get bigger, the way you bill changes. Commercial contracts, large general contractors and public agencies almost always require the AIA billing standard: forms G702 and G703. Those who know how to fill them out get paid on time. Those who don't lose the contract or end up with payment stalled.
AIA billing is the standard created by the American Institute of Architects for requesting payment on construction projects. Two forms go together: the G702 summarizes, the G703 details.
What the G702 and G703 are
| G702 | The cover sheet. Shows the total contract amount, what has already been paid, the retainage and how much is being requested now. |
| G703 | The detail. Breaks the project into line items, each with the scheduled value, the work already completed, the work completed this period and the stored materials. |
Schedule of Values: the basis of everything
The G703 comes from the Schedule of Values, which is the project divided into line items of work, each with its own value. The sum of all the lines is the contract amount. This map is what justifies each payment request. A well-built schedule is what keeps billing flowing.
Retainage: the money that is held back
Retainage is the share of each payment that the client holds until the project is finished. It is usually 5% to 10% of completed work and stored materials. In AIA billing, you apply it line by line on the G703 and total it on Line 5 of the G702, which separates 5a, completed work, and 5b, stored materials.
The mathematical handshake happens on Line 4 of the G702: the total completed and stored to date must match exactly the total of column G on the G703. If it doesn't match, the application is rejected.
The details almost nobody tells you
- Stored materials count. You can bill for materials purchased and stored for the project, even before installation, if the contract allows it. This improves your cash flow.
- The order of the Schedule of Values matters. Distributing the value well across the phases helps cash flow at the start of the project. Do it with care: the value must reflect real work, or it becomes a problem in an audit.
- Notarization when the contract requires it. Many G702 forms need to be notarized. Forgetting this is a common cause of administrative delay.
- Always attach the G703. The G702 alone does not hold up. Without the G703 detail, the billing comes back.
The mistakes that stall payment
- Numbers that don't match. If the G703 doesn't tie to the G702, it is rejected immediately.
- Wrong retainage. Applied outside the contract percentage, it comes back for correction.
- Missing signature or notarization. Small detail, big delay.
- Vague schedule. Line items that are too generic give the client room to question every request.
Forms and rules may vary by contract and by state. Confirm what your contract requires before sending the first application.
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Founder of FourRise Consulting. Business owner with direct experience in the construction industry in the United States and creator of the F.O.U.R. Method.