AIA G702 & G703 Forms Explained: What Owners Need to Know

If you're involved in construction project management, you've seen AIA G702 and G703 forms. They're the industry standard for contractor payment applications—used on everything from small renovations to billion-dollar capital programs.

But understanding these forms well enough to catch billing errors? That's where many project managers struggle.

What Are AIA G702 and G703?

The American Institute of Architects (AIA) publishes standard contract documents used throughout the construction industry. The G702 and G703 forms work together:

• AIA G702: Application and Certificate for Payment (the summary page)
• AIA G703: Continuation Sheet (the detailed schedule of values)

Think of G702 as the cover letter and G703 as the supporting spreadsheet.

Breaking Down the G702

The G702 is a single-page summary that captures:

Application Information

• Project name and location
• Owner, architect, and contractor details
• Contract date and application number
• Billing period covered

Financial Summary

• Original contract sum
• Approved change orders (additions and deductions)
• Current contract sum
• Total completed and stored to date
• Retainage
• Amount due this application

Certifications

• Contractor certification that work is complete as stated
• Architect certification (if required by contract)
• Space for owner approval

The G702 should tie exactly to the detailed line items on the G703.

Understanding the G703

The G703 is where the real information lives. Each row represents a line item from the Schedule of Values, with columns for:

| Column | What It Shows | |--------|---------------| | Item Number | Reference number for each line item | | Description of Work | What the line item covers | | Scheduled Value | Original budgeted amount | | Previous Applications | Work billed in prior periods | | This Period | Work completed this billing cycle | | Materials Stored | Materials on-site but not installed | | Total Completed | Cumulative work plus stored materials | | % Complete | Percentage of scheduled value completed | | Balance to Finish | Remaining value on the line item | | Retainage | Amount held back per contract terms |

How to Review G702/G703 Forms

Step 1: Verify Totals

Start with the math:

• Do G703 line items sum to G702 totals?
• Is retainage calculated correctly?
• Do change orders match approved amounts?

Calculation errors happen more often than you'd expect—especially when contractors prepare forms manually.

Step 2: Analyze Progress Claims

For each significant line item, ask:

• Is the claimed percentage complete reasonable?
• Does it match site observations?
• Are there sudden jumps from the previous period?

A line item jumping from 30% to 80% in one month deserves scrutiny.

Step 3: Check Materials Stored

Stored materials can be a billing trap:

• Is there documentation for stored materials?
• Are they on-site or off-site?
• Will they actually be used on this project?

Some contractors bill for materials that end up on other jobs.

Step 4: Review Change Orders

The G702 shows net change orders, but you need to verify:

• Are only approved changes included?
• Do amounts match signed change orders?
• Is markup calculated per contract terms?

Never approve payment for unapproved change orders.

Common G702/G703 Errors

Watch for these issues:

Front-Loading

Contractors bill more than actual progress early in the project to improve cash flow. This leaves you overexposed if they default.

Vague Line Items

Generic descriptions like "General Conditions" or "MEP Rough-In" hide what you're actually paying for.

Retainage Manipulation

Incorrect retainage calculations—either in the contractor's favor or requesting early release.

Change Order Padding

Including unapproved changes or inflating approved amounts.

Stored Material Inflation

Billing for materials not actually on-site or not intended for this project.

AIA G702/G703 vs. Other Formats

Not all projects use AIA forms. You might see:

• Custom contractor formats: Harder to compare across projects
• Pencil requisitions: Informal pay apps requiring more scrutiny
• Owner-specific templates: May lack standard AIA protections

Whatever format you receive, the review principles remain the same.

Using Technology for G702/G703 Review

Manual review of complex G702/G703 forms is time-consuming and error-prone. AI-powered tools can:

• Extract data from PDF forms automatically
• Verify all calculations instantly
• Flag anomalies and unusual patterns
• Compare against previous applications
• Generate specific questions for contractors

Try our free AIA G702/G703 Review tool to see AI-assisted form analysis in action.

Industry Applications

G702/G703 review matters across all construction sectors:

• Commercial construction: High volume of change orders requires careful tracking
• Infrastructure projects: Federal funding may require additional documentation
• Data centers: Complex MEP billing needs line-by-line verification
• Life sciences: Validation costs often buried in generic line items

Key Takeaways

1. G702 summarizes, G703 details: Always review both together
2. Math matters: Verify calculations before analyzing content
3. Trends reveal problems: Compare against previous pay apps
4. Site verification is essential: Paper should match reality
5. Technology helps: AI can catch what manual review misses

Ready to streamline your G702/G703 review? Try the free analyzer or join our pilot program for comprehensive invoice verification.