G702 and G703 explained, line by line

If you bill a general contractor every month, you have probably filled in a G702 and a G703. They look simple. Then one number doesn't match last month's, the GC sends it back, and your payment waits another cycle.

This guide walks through both forms in plain words, with one small job carried all the way through so you can see the numbers tie. It also covers what to do when a GC asks for a different form, because that happens too.

Want the math checked for you? NailMyPay carries forward what you've billed, checks the math and the format, and emails your GC a clean PDF. Your first pay app is free, no card. Start free

What the G702 and G703 are

The G702 is the cover page: the application and certificate for payment. It shows the contract total, how much work is done, how much is held back, and what you are asking to be paid this month.

The G703 is the continuation sheet. It is the schedule of values: one row per piece of work, and for each row, what was billed before, what you are billing now, and what is left.

The two forms are published by the American Institute of Architects. The G703 feeds the G702. If the G703 totals are right, most of the G702 follows from them.

The G702, line by line

Here is each line in order, in our own words. Line numbers follow the current edition of the form; your GC's version may differ.

Line 1 — Original contract sum. The price in your subcontract before any changes.

Line 2 — Net change by change orders. Approved additions minus approved deductions, added up.

Line 3 — Contract sum to date. Line 1 plus or minus line 2. This is the number the G703 must add up to.

Line 4 — Total completed and stored to date. All work in place plus materials stored, since day one. It comes from the G703.

Line 5 — Retainage. The part the owner holds back until the job is done. It is a percentage of completed work and, if your contract says so, of stored materials. Add the two for the total.

Line 6 — Total earned less retainage. Line 4 minus line 5.

Line 7 — Less previous certificates for payment. What you were already certified last month. It must equal line 6 from last month's application.

Line 8 — Current payment due. Line 6 minus line 7. This is what you are asking for.

Line 9 — Balance to finish, including retainage. Line 3 minus line 6.

The G703, column by column

The columns below follow NailMyPay's AIA-style continuation sheet. Other editions of the form can letter or order the columns a little differently, so match by the headings.

• A, Item number and B, Description of work. One row per piece of work, plus a row for each approved change order.
• C, Scheduled value. What that piece of work is worth in the contract. The rows add up to line 3 of the G702.
• D, From previous. What you billed in all earlier months. This is the number that most often goes wrong, because it has to match what the GC already has.
• E, This period. What you are billing this month.
• F, Stored. Material bought and on site or in storage but not yet installed, if your contract allows billing for it. It must not be counted twice.
• G, Completed. D plus E plus F: everything completed and stored to date.
• H, Percent complete. G divided by C.
• I, Balance. C minus G: what is left to bill on that row, before retainage.
• Retainage. The amount held back on that row, shown in its own column at the end.

One job, all the way through

A drywall sub, a small job. 10% retainage on everything. Every number below ties; check it.

• Metal framing: Scheduled value 48,000, Previous 38,400, This period 9,600, Stored 0, Total to date 48,000, % 100%, Balance 0
• Hang and finish drywall: Scheduled value 72,000, Previous 36,000, This period 21,600, Stored 2,000, Total to date 59,600, % 82.8%, Balance 12,400
• Change order 01, added soffit framing: Scheduled value 6,000, Previous 0, This period 3,000, Stored 0, Total to date 3,000, % 50%, Balance 3,000
• Total: Scheduled value 126,000, Previous 74,400, This period 34,200, Stored 2,000, Total to date 110,600, % 87.8%, Balance 15,400

Now the cover page:

• 1 Original contract sum: $120,000, the subcontract price
• 2 Net change by change orders: $6,000, change order 01
• 3 Contract sum to date: $126,000, 120,000 + 6,000, matches the G703 total
• 4 Total completed and stored: $110,600, total of the G703
• 5 Retainage: $11,060, 10% of 108,600 completed work = 10,860, plus 10% of 2,000 stored = 200
• 6 Total earned less retainage: $99,540, 110,600 − 11,060
• 7 Less previous certificates: $66,960, last month's line 6: 74,400 less 10% = 66,960
• 8 Current payment due: $32,580, 99,540 − 66,960
• 9 Balance to finish, incl. retainage: $26,460, 126,000 − 99,540

Two quick checks you can always run: line 9 should equal the G703 balance to finish (15,400) plus total retainage (11,060), which is 26,460. And the G703 total-to-date column should equal line 4.

When your GC wants a different form

The G702 and G703 are the most common format, but not every GC uses them. Some have their own pay application form, with their own layout, extra columns, or an extra page for their project number, cost codes or lien waiver. Requirements also change from job to job and from year to year, so the form that was right last spring may not be right this fall.

The math underneath is the same: contract sum, work completed, retainage, what's due. What changes is the paper. Retyping your numbers into a GC's template by hand is where carry-forward errors creep in.

NailMyPay handles this on paid plans. Send us your GC's form and we build it into a reusable template, so your numbers flow into their layout instead of yours. You can also pull a form from the shared library of forms other subs have already built. Core includes one custom GC form. Pro includes unlimited custom GC forms, for subs who work with several GCs.

The mistakes that get pay apps sent back

1. Previous-period figures don't match last month. Someone retyped them, or last month's file was edited afterward. Carry them forward; don't re-enter them.

2. The math doesn't foot. A column total is off by a few dollars because one row was changed and the total wasn't.

3. A change order that isn't on the schedule. The cover page shows it in line 2, but there is no row for it on the continuation sheet.

4. Retainage worked out on the wrong base. Applied to this month only, or applied to stored material when the contract says not to.

5. Stored materials counted twice. They show in the stored column this month and again in work completed the month they are installed.

6. Percent complete over 100%. A row billed past its scheduled value.

Most of these are arithmetic and carry-forward problems, not judgment calls. They are also the ones a check can catch before you send.

Retainage, stored materials and change orders in one minute each

Retainage. A set percentage, often 5 or 10, held back from each payment and released when the work, or the job, is complete. Your contract sets the rate and when it is released.

Stored materials. Some contracts let you bill for material that is bought but not yet installed. It usually needs paperwork such as invoices, proof of storage or insurance. Check your contract before billing it.

Change orders. A change order is a contract change that is approved in writing. It adds a row to the continuation sheet and moves line 2 of the cover page.

Before you send: a checklist

• [ ] Contract sum to date (line 3) equals the total scheduled value on the continuation sheet.
• [ ] Every "previous" figure matches last month's application exactly.
• [ ] Each row's total to date is previous plus this period plus stored.
• [ ] No row is over 100%.
• [ ] Every approved change order has a row.
• [ ] Retainage is on the right base at the right rate.
• [ ] Line 7 equals last month's line 6.
• [ ] Line 9 equals the continuation-sheet balance plus total retainage.
• [ ] Your lien waiver for this period is ready, if your contract requires one.
• [ ] The application period dates are correct.

Questions people ask

What is a G702? The cover page of the monthly pay application. It states the contract total, work to date, retainage, and the amount due this month.

What is a G703? The continuation sheet that lists each piece of work with its value, what has been billed, and what remains. It supports the G702.

Is a pay application the same as an invoice? No. An invoice asks for payment; a pay application also certifies the contract sum, work done to date and retainage, and is usually approved by the GC or owner before payment.

Can I just use Excel? Many subs do. The risk is the carry-forward: previous figures retyped by hand, formulas broken by an edit, and no check before it goes out.

My GC has its own pay app form. Do I have to use the G702? Use whatever form your contract and your GC require. If it is their own layout, a tool that can fill that form from your numbers saves retyping. NailMyPay builds a GC's own form into a reusable template on a paid plan.

Who signs it? You sign as the contractor. Whether it also needs notarizing or other signatures depends on your contract and the owner.

What happens if the numbers don't tie? The GC may send it back, which usually pushes your payment to the next cycle. This is why checking before you send matters.

Check yours before it goes out

NailMyPay carries forward what you've billed, checks the math and the format, and emails your GC a clean PDF, on the standard G702/G703 layout or on your GC's own form. It won't send a pay app that fails its own check, and it flags a number that doesn't match last month so you can fix it on purpose.

Your first pay app is free. No card. Start free

NailMyPay generates pay applications in the AIA® G702™/G703™ format. NailMyPay is not affiliated with, endorsed by, or licensed by The American Institute of Architects. "AIA" and the form numbers are trademarks of their owner. This guide is general information, not legal or accounting advice; follow your contract and your general contractor's requirements.