How to Read an AIA G702 and G703, Line by Line

The AIA G702 and G703 look intimidating the first time you see them, but they are two simple forms. The G703 lists the work, line by line. The G702 adds it up and works out what you are owed this month. Once you can read one, you can spot a mistake in seconds, whether you are the contractor sending it or the owner or GC checking it.

This post follows one example, a $480,000 job at the end of its second month with 10 percent retainage. The numbers are made up for illustration. Your contract and your architect's requirements decide the details.

The G703 first: the continuation sheet

The G703 is the schedule of values. Each row is a piece of the job with a price, and each month you record how much of it is done. The example below is cut down to three rows.

• Mobilization and submittals: scheduled value $30,000. Previous applications $25,000, this period $5,000, total completed $30,000 (100 percent), balance to finish $0.
• Rough-in: scheduled value $240,000. Previous $80,000, this period $110,000, total completed $190,000 (79.2 percent), balance to finish $50,000.
• Finishes and trim: scheduled value $210,000. Previous $15,000, this period $25,000, total completed $40,000 (19.0 percent), balance to finish $170,000.

The columns, left to right:

• A and B: the item number and a description of the work.
• C, scheduled value: what this piece of the job is worth. The column adds up to the contract sum.
• D, work completed from previous applications: what you already billed.
• E, work completed this period: what you are billing now.
• F, materials presently stored: material bought and stored but not yet installed, if your contract lets you bill for it.
• G, total completed and stored to date: D plus E plus F.
• H, percent complete: G divided by C.
• I, balance to finish: C minus G.
• J, retainage: shown here only when the rate differs from row to row.

Add the totals: $120,000 previously, $140,000 this period, $260,000 completed to date, and $220,000 left to finish.

The G702: the application and certificate for payment

The G702 takes the totals from the G703 and works through nine numbered lines.

1. Original contract sum: $480,000.
2. Net change by change orders: $0 in this example. Approved change orders add or subtract here, so the next line reflects the real contract.
3. Contract sum to date: line 1 plus line 2, $480,000.
4. Total completed and stored to date: the G703 total, $260,000.
5. Retainage: 10 percent of completed work, $26,000. If you also hold retainage on stored material, it appears separately.
6. Total earned less retainage: line 4 minus line 5, $234,000.
7. Less previous certificates for payment: what earlier applications already certified, $108,000.
8. Current payment due: line 6 minus line 7, $126,000.
9. Balance to finish, including retainage: line 3 minus line 6, $246,000.

Line 9 is easy to misread. It includes the $26,000 held in retainage, because that money is still owed to the contractor when the job is done.

A quick way to check an application

• Does the G703 total in column G match line 4 on the G702?
• Is retainage worked out from the cumulative total, not just this month's work?
• Do the previous applications on line 7 match what was certified last time?
• Do change orders on line 2 match the approved ones, not pending ones?
• Do the line-9 balance and the G703 balance to finish agree once retainage is added back?

Signatures and certification

The G702 carries the contractor's signature, usually with a notary, and the architect's certification. Whether you need the notary, and what the architect checks before certifying, depends on your contract. Check it, and ask your architect if you are unsure.

Doing it without retyping

The part that goes wrong in a spreadsheet is the carry-forward: last month's total completed has to become this month's previous work, and the retainage has to follow. In PoPs Project Tracker, AIA progress billing is built in. Contract and schedule of values come from the job, the previous-work carry-forward and retainage are worked out for you, and each application is logged on the job.

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Related reading: Retainage explained with a real example · AIA progress billing, defined · Change order, defined