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Reconciling a pay application line by line
A pay application has to agree with itself: the continuation sheet, the summary page and the previous application. Small breaks add up.
What it is
On the AIA forms, the continuation sheet (G703) carries each schedule-of-values line: scheduled value, work completed previously and this period, materials stored, retainage. The application (G702) summarizes it: original contract sum, net change by change orders, contract sum to date, retainage, and the current payment due (line 6 minus line 7).
How Main checks it
Main checks that each line's “completed to date” equals previous plus this period plus stored, that the line totals match the summary page, that this application's “previous” matches the last application's “completed to date”, and that the contract sum to date equals the original sum plus approved changes.
A worked example Sample
SAMPLE: a synthetic project with made-up figures, to show the arithmetic. Not a real company.
Project “Eastside Parking Deck (SAMPLE)”, pay app 5, line 12 (conduit and wire):
| Column | Amount |
|---|---|
| Previously billed (app 4 completed to date) | $84,600.00 |
| This period | $22,300.00 |
| Materials stored | $0.00 |
| Completed to date, as submitted | $101,900.00 |
| Completed to date, recomputed | $106,900.00 |
84,600 + 22,300 + 0 = $106,900.00, but the line says $101,900.00: a $5,000.00 break, likely a typed figure.
What to do
- Fix the line before the next application, so the error doesn't carry forward as the new “previous”.
- Reconcile the change-order summary on the G702 with your change-order log.
Sources
- AIA Contract Documents, “Completing payment applications” (G702 line by line)
- AIA Contract Documents, “Instructions: G703–1992, Continuation Sheet”
Check your own numbers. Upload a change-order log and pay-app lines for one project to the free check: an automated preview, not reviewed by a person.