The AIA G702 Application for Payment is the construction industry’s standard form for requesting a progress payment: you fill out the top half to declare how much work you’ve completed and how much you’re owed, and the architect fills out the bottom half to certify (or dispute) those numbers so the owner can release funds. It lives on a single page on purpose. Putting the payment request and the independent verification on the same document creates a traceable record that protects the contractor, the owner, and the architect at every billing cycle.
When you sign it, you’re doing more than sending an invoice. Under the AIA A201 general conditions, the contractor warrants that title to all work covered by the application passes to the owner at the time of payment, and that all previously paid work is free of liens, claims, and security interests to the best of the contractor’s knowledge.1AIA Contract Documents. Document A201-2017 General Conditions of the Contract for Construction The form is notarized, so a false statement carries legal weight beyond a normal contract dispute.
The Nine Lines That Do the Math
The financial core of the G702 is a nine-line summary that tracks the project from the original contract price through the current billing period. Each line builds on the one above it, and every number has to reconcile with your supporting documents.
- Line 1 — Original Contract Sum: the price agreed to at the start of the project, before any changes.
- Line 2 — Net Change by Change Orders: the total dollar impact of all approved change orders to date, positive or negative. A change order summary table at the bottom of the form breaks this down.
- Line 3 — Contract Sum to Date: Line 1 plus Line 2.
- Line 4 — Total Completed and Stored to Date: the cumulative value of work performed and materials properly stored, pulled directly from the G703 continuation sheet.
- Line 5 — Retainage: the dollar amount withheld as security, split into 5a for completed work and 5b for stored materials. Rates typically run 5% to 10% depending on the contract.
- Line 6 — Total Earned Less Retainage: Line 4 minus Line 5.
- Line 7 — Less Previous Certificates for Payment: the total of all payments already received under prior applications.
- Line 8 — Current Payment Due: Line 6 minus Line 7. This is the amount you’re requesting.
- Line 9 — Balance to Finish, Including Retainage: Line 3 minus Line 6.
The arithmetic is simple. The exposure is not. If Line 2 doesn’t match the actual approved change order amounts, Lines 3, 8, and 9 are all wrong, and the architect has grounds to reject the entire application. Treat the table as an audit trail.
What You Have to Submit With It
The G702 never travels alone. At minimum, it goes out with the AIA G703 Continuation Sheet, which provides the line-by-line breakdown behind the summary numbers.2AIA Contract Documents. Completing G702 and G703 Forms The G703 lists every item from the schedule of values, shows the percentage complete for each, and calculates the earned amount. Its totals feed directly into Line 4 of the G702, so any mismatch between the two will stall the review.
Under A201, the application must also be supported by whatever data the owner or architect requires to substantiate the request. In practice that usually means copies of subcontractor requisitions and lien waivers or releases from subcontractors and suppliers.1AIA Contract Documents. Document A201-2017 General Conditions of the Contract for Construction A lien waiver is a document in which a subcontractor or supplier gives up the right to file a mechanic’s lien against the property for the amount they’ve been paid. Without waivers, the owner has no assurance that prior payments actually reached the parties who did the work.
On federally funded projects covered by Davis-Bacon prevailing wage requirements, you also need certified payroll records. The Department of Labor’s Form WH-347 is the standard vehicle, documenting that every worker was paid at or above the required prevailing wage.3U.S. Department of Labor. Instructions For Completing Davis-Bacon and Related Acts Weekly Certified Payroll Form, WH-347 Private projects without federal funding generally don’t require certified payroll, though some owners include it as a contract requirement anyway.
Billing for Off-Site Materials
Materials delivered and stored at the job site can be billed without special approval under standard AIA contracts. Off-site storage is a separate matter. The A201 requires the owner’s advance written approval before you can bill for materials stored at a separate location, and payment is conditioned on procedures that establish the owner’s title to those materials or otherwise protect the owner’s financial interest.1AIA Contract Documents. Document A201-2017 General Conditions of the Contract for Construction
That typically means proof of insurance covering the storage location, clear identification of the materials for the specific project, and documentation such as invoices and photographs. The architect may want to physically inspect the stored materials before certifying payment. Insurance, storage, and transportation costs are usually included in the payment amount. Skip any of these steps and the architect has a clean reason to exclude the off-site materials from the current application.
Submitting and Getting Certified
Once the G702 and its attachments are assembled, sign the application and have it notarized.4AIA Contract Documents. Instructions: G702-1992, Application and Certificate for Payment Under A201, the application should be submitted to the architect at least ten days before the date established for each progress payment.1AIA Contract Documents. Document A201-2017 General Conditions of the Contract for Construction Miss that window and your payment can slide into the next cycle.
The architect reviews both the G702 and G703, compares the claimed percentages against observed site progress, and confirms the math ties out across both forms. If everything holds up, the architect completes the Certificate for Payment section and forwards the package to the owner, who then pays the contractor based on the certified amount.4AIA Contract Documents. Instructions: G702-1992, Application and Certificate for Payment The payment window itself is set in the owner-contractor agreement; A201 defers to whatever the contract documents specify.
If the architect finds discrepancies, the application may come back for corrections, or the architect may certify a reduced amount instead of the full request. Partial certification is common and doesn’t automatically mean something is wrong. Often it just means the architect’s field observations don’t fully match the claimed percentages.
Electronic Signatures and Remote Notarization
The AIA’s online platform supports electronic execution of the G702. You can use the built-in e-signature feature powered by DocuSign, or download the finalized PDF and apply a digital signature through third-party software like Adobe Acrobat.5AIA Contract Documents. Enabling E-Signature or Digital Signature in the Online Service For the notarization requirement, remote online notarization is now authorized in 47 states and the District of Columbia, which means you can complete the notarization by video call with a commissioned online notary rather than appearing in person.6National Association of Secretaries of State. Remote Electronic Notarization Check your contract language first. Some owners and lenders still require wet signatures and in-person notarization regardless of what the state allows.
Why Applications Get Rejected
The fastest way to delay your own payment is to submit a G702 with internal inconsistencies. The financial chain works like a ledger: the approved contract sum, plus approved change orders, has to produce a contract sum to date that matches across the G702, the schedule of values, and the G703 totals. When one document reflects updated change orders and another doesn’t, the reviewer stops and questions the whole submission.
The problems architects and owners flag most often:
- Billing unapproved change orders. If a change order isn’t fully executed, keep it out of your contract sum and schedule of values. Many general contractors, owners, and lenders will reject the entire application or deduct the unapproved amount until approval is finalized.
- Mismatched totals between the G702 and G703. When continuation sheet totals don’t equal the corresponding lines on the G702, the reviewer has immediate grounds for rejection. Even small rounding discrepancies can trigger a return.
- A front-loaded schedule of values. If early-phase line items are priced disproportionately high relative to their actual cost, the architect will scrutinize every percentage-complete claim more carefully. This erodes trust with the review team fast.
- Overbilling on percentage complete. Claiming 90% on a line item that’s visibly at 60% during a site visit will produce a reduced certified amount. Do it repeatedly and expect heavier scrutiny on every line going forward.
- Missing lien waivers or supporting documents. Submitting the G702 and G703 without required lien waivers, stored-material documentation, or other contractually required attachments is a procedural deficiency the architect can hold the application on.
When you catch an error after submission, the standard practice is to correct it transparently in the next billing cycle by adjusting cumulative totals and documenting the revision. Trying to bury a correction makes reconciliation harder and raises questions about the reliability of every number you submit going forward.
Retainage and Final Payment
Retainage sits in a holding pattern throughout the project. The rate, typically 5% to 10%, is set in the contract and applied to each payment application. Some contracts reduce the percentage after substantial completion, dropping from 5% to 2% or to zero, but the reduction is triggered by the architect’s formal certification of substantial completion.
Final payment works differently from progress payments. At closeout, the contractor submits AIA Document G706, the Contractor’s Affidavit of Payment of Debts and Claims, alongside the final G702. In this notarized affidavit, the contractor swears that all payrolls, material invoices, equipment costs, and other project-related debts have been paid or resolved. Any unpaid debts must be listed as exceptions, and the owner can require a lien bond or indemnity bond to cover each one.7AIA Contract Documents. Instructions: G706-1994, Contractors Affidavit of Payment of Debts and Claims
If the project has a surety bond, the owner also needs a Consent of Surety (AIA G707A) before releasing final retainage. The document confirms that the surety has no objection to the final payment. Without it, the owner can’t release the funds. Getting the surety’s consent can take weeks, so start the paperwork well before your final application.
Legal Exposure for a False G702
On private projects, knowingly submitting a false G702 exposes you to breach-of-contract claims and potential civil fraud liability. Because of the warranty language in the contract, the owner doesn’t need to prove a crime. They only need to show you made a false statement on the application that caused them financial harm.
On federal or federally funded projects, the stakes climb sharply. The False Claims Act imposes civil penalties of $14,308 to $28,619 per false claim, plus three times the government’s actual damages. Each fraudulent payment application counts as a separate violation, so a contractor who inflates billing over multiple pay periods faces per-application penalties that compound quickly. A contractor who self-reports within 30 days, fully cooperates, and acts before any investigation begins may see damages reduced to double rather than triple, but the per-violation civil penalties still apply.8Office of the Law Revision Counsel. 31 USC 3729 False Claims
Even honest mistakes, if they look like a pattern, can trigger scrutiny that slows payment across every active project you have with the same owner or agency. The G702 is a legal document, not an invoice. Every number on it should be one you’re prepared to defend under oath.