Free construction pay application template (G702/G703 style)

What is in the free pay application template

One Excel file (.xlsx). Opens in Excel, Google Sheets and Numbers. No sign-up and no email address.

• Application summary: the nine summary lines, from original contract sum to current payment due, with retainage rates for completed work and stored material.
• Continuation sheet: 40 lines with columns A to I. Total to date, percent complete, balance to finish and retainage calculate.
• Change orders: a log of approved change orders that feeds line 2.
• A check cell that turns red when the continuation sheet total does not match the contract sum to date.
• Example tabs: application no. 3 on a fictional $412,000 tenant improvement, all formulas working.

This is Bidmere’s own layout. It follows the G702/G703 column logic, but it is not an AIA document. AIA’s forms are copyrighted, and “AIA,” “G702” and “AIA Contract Documents” are AIA’s registered trademarks. If your contract names the AIA forms, buy them from AIA Contract Documents and use this file as your working copy.

How a construction pay application works

A pay application, or pay app, is the contractor’s monthly request for payment for work done. It has two parts:

• The summary page (the G702 on AIA jobs, titled “Application and Certificate for Payment”) totals the job: contract sum, work done, retainage, what was paid before and what is due now. The architect certifies it.
• The continuation sheet (the G703) shows the same figures line by line, one row for each line of the schedule of values.

The continuation sheet is filled in first. Its totals carry to the summary page.

The nine summary lines, explained

Fictional example: application no. 3 on a $412,000 tenant improvement with two change orders. Retainage is 10% in this example; your contract sets the rate.

Line 7 is the amount certified on earlier applications (line 6 of the last certified application), not the amount actually received. Line 9 includes the retainage still held, because it has not been paid yet.

The continuation sheet, column by column

• A. Item no. and B. Description of work: from the approved schedule of values.
• C. Scheduled value: the value of each line. Approved change orders go in as new lines.
• D. From previous application: work completed on all earlier applications. Each period it equals last period’s D plus E.
• E. This period: work completed since the last application.
• F. Materials presently stored: materials delivered but not installed, and not in D or E. When they are installed, they move from F to E.
• G. Total completed and stored to date: D + E + F.
• % (G / C) and H. Balance to finish (C − G).
• I. Retainage: the amount held back on each line. AIA’s form uses column I where retainage varies by line. The template calculates it from the rates on the summary page.

Pay application example

Application no. 3 for the fictional tenant improvement. Drywall is 75% done, door hardware is partly installed with more stored on site, and millwork is fabricated and stored but not yet installed. The full example is in the download.

Six of the 19 lines from the Example continuation tab of the download.

With every line totalled, the summary comes out at $246,550.00 completed and stored, $24,655.00 retainage and a current payment due of $107,145.00.

Change orders piling up? Bidmere prices change orders from revised plans, bulletins or directives at your rates, with backup the owner can check. Single-trade pricing from $195 in 48 hours. See change order pricing.

How to fill out a pay application, step by step

1. Set up once: copy the approved schedule of values into columns B and C, enter the original contract sum and the retainage rates from your contract.
2. Roll forward: at the start of each period, set column D to last period’s D + E.
3. Walk the job: enter work completed this period in column E, line by line, in dollars that match the percent you can show.
4. Stored materials: enter delivered but uninstalled materials in column F, and take installed materials out of F.
5. Change orders: log each approved change order and add it as a new line on the continuation sheet.
6. Previous certificates: enter line 6 from the last certified application on line 7.
7. Check: the check cell must read $0.00, and no line should pass 100%.
8. Attach and send: add what the contract requires, sign, and send by the contract’s billing date.

Retainage on a pay application

Retainage is the share of each payment the owner holds until the work is finished, as security for completion. Rates typically range from 5% to 10%, according to ConsensusDocs, and many contracts reduce or stop retainage once the job is half done. Your contract sets the rate.

• Federal jobs: under FAR 52.232-5, the contracting officer may retain at most 10 percent of a payment until progress is satisfactory.
• Some states cap it on public work: California’s Public Contract Code §7201 limits retention to 5 percent, and Texas limits it to 5 percent on state contracts of $5 million or more.
• Two rates: the summary page takes one rate for completed work (D + E) and one for stored material (F), because some contracts treat them differently.

What to attach to a pay application

• Lien waivers: conditional waivers for this payment and unconditional waivers for the last one, from you and often from your subs and suppliers. About a dozen states mandate the waiver wording; California’s forms are in Civil Code §§8132 to 8138.
• A notarized signature, if asked: the AIA G702 includes a notary section, and AIA’s instructions say the contractor should have it notarized. Many owners do not require it; check your contract.
• Stored-material proof: invoices, bills of sale or insurance certificates, when column F has a value.
• Anything else the contract lists: updated schedule, certified payroll on prevailing-wage jobs, or the owner’s own pay request form.

Pay applications on federal jobs

Federal fixed-price construction uses FAR 52.232-5 and 52.232-27 instead of AIA forms. Each request must itemize the amounts requested by element of work, which is what a continuation sheet does, and include the contractor’s certification. A progress payment is due 14 days after the designated billing office receives a proper payment request. Use the agency’s required forms and submission system.

Why pay applications get sent back

• The continuation sheet total does not match the contract sum to date.
• Percent complete is higher than what the architect sees on site.
• A change order is billed before it is approved.
• Stored materials are billed without proof of delivery or insurance.
• Lien waivers or other required attachments are missing.
• Line 7 does not match what was certified last time.

The template’s check cell and formulas catch the first and last; the rest are on the checklist in its How to use tab.

Frequently asked questions