What Is AIA Billing? A Guide for Subcontractors

Why do subcontractors use AIA billing?

Commercial projects often last for months, while subcontractors need to pay crews and suppliers throughout the job. Progress billing gives the project team a consistent way to review work completed to date, account for earlier payments, and calculate the current request. Your general contractor or owner may specify the forms, submission dates, supporting documents, and approval process in the contract.

For a subcontractor, the practical benefit is a clearer record of what has been billed against each part of the job. A well-prepared application helps the reviewer compare the request with the agreed scope and identify questions before certifying payment. It does not replace the contract or guarantee when payment will arrive.

How does an AIA payment application work?

Begin with an agreed schedule of values: a breakdown of the contract into billable work items and their dollar amounts. During each period, update the completed work for each item and include eligible stored materials where your contract permits. The schedule should reflect approved changes and reconcile to the current contract sum.

The continuation sheet totals the work completed and materials stored to date. The cover sheet then subtracts retainage and prior certified payments to calculate the current payment due. The reviewer checks the application and supporting documents under the project’s process. Keep the last certified application so the next period starts from the correct cumulative amounts rather than billing the same work twice.

What are G702 and G703?

The G702 payment application is the summary. It brings together the original contract, approved change orders, completed and stored work, retainage, previous certificates, and the amount due this period. Its figures should agree with the supporting schedule and the last certified application.

The G703 continuation sheet provides the detail behind that summary. It lists the schedule of values line by line, including each item’s scheduled value, progress, stored materials, balance, and retainage. Read it first to see where the amounts on the cover sheet come from.

Official AIA documents and AIA-style forms are not automatically interchangeable. Check your contract and the reviewer’s instructions before submitting. PayAppKit creates an original-layout PDF with a G702-style summary and supporting detail; it is not an official or licensed AIA document. For the official forms, see AIA Contract Documents’ explanation of G702 and G703.

A simple AIA billing example

Suppose a subcontract is worth $100,000, with no approved changes. Your accepted schedule divides it into $40,000 for materials and $60,000 for installation. At the end of the first billing period, eligible completed work totals $30,000 and eligible stored materials total $10,000. The continuation sheet therefore reports $40,000 completed and stored to date.

If the contract applies 10% retainage to both categories, $4,000 is held back. Earned less retainage is $36,000. If there were no prior certificates, the current payment due is $36,000. In a later period, subtract the amount previously certified when computing the next request. Actual retainage rates, treatment of materials, and releases depend on the agreement; use the retainage calculator to review the figures for your job.

How often do you submit an application?

Many commercial projects use monthly progress applications, but the contract controls the billing cycle and submission deadline. Before each cutoff, agree on what work is complete, update the schedule, and collect the documents your reviewer asks for. A payment application reports cumulative progress through its stated period, so retain the certified version and any approved adjustments for the next cycle. If a reviewer corrects a quantity or amount, reconcile that change before preparing the following application instead of carrying forward an unapproved draft.

What should you check before submitting?

Confirm that the schedule of values adds up to the original contract plus approved changes. Record pending changes separately until the project’s approval requirements are met. Compare prior work and certificates with the last accepted application; a mismatch can make the current request difficult to reconcile. Include stored materials only where eligible, and transfer their value to completed work when installed so it is not counted twice.

Check the applicable retainage rates and release conditions. Then review the required attachments, billing period, project identifiers, signatures, and deadline with the general contractor. Requirements vary: some projects ask for lien waivers, invoices, or other backup, while the form and approval steps can differ by contract.

How is AIA billing different from a regular invoice?

An ordinary invoice can simply state a charge for goods or services. An AIA-style application presents a cumulative project calculation: the contract value, work completed to date, eligible materials, retainage, prior certificates, and the current amount due. This makes it easier to trace the request to individual scope lines and reconcile successive periods. Some customers still require a separate invoice or additional forms alongside the application.

Prepare your next payment application

Gather your contract, approved schedule of values, change orders, and last certified application. Use PayAppKit’s free AIA billing software to enter line items, review progress and retainage, and export an original-layout PDF. Replace the sample values with your own project figures and review the output against your contract before sending it.