How to Bill in AIA Format: A Subcontractor's Step-by-Step Guide

DEFINITION

G702

AIA Application and Certificate for Payment — the cover page that summarizes the pay application. Shows contract value, change orders, total billed to date, retainage, and the amount due this period.

DEFINITION

G703

AIA Continuation Sheet — the line-by-line breakdown tied to the Schedule of Values. One row per SOV line item, with columns for scheduled value, prior billings, this-period billing, stored materials, and percent complete.

DEFINITION

billing cutoff date

The date each month by which you must submit your AIA application to be included in that month's payment cycle. Typically the 20th to 25th for a month-end payment cycle. Missing it means waiting another 30 days.

DEFINITION

stored materials

Materials delivered to site or an approved off-site location but not yet installed. Listed separately on the G703 and typically require documentation (delivery receipts, photos) for GC approval.

Why the SOV Is More Important Than the Forms

Most subs treat the Schedule of Values as paperwork to knock out before mobilization. It is actually the document that controls your cash flow for the entire job.

Every line item on your G703 ties back to the SOV. If a line item is undervalued, you’ll be chronically underpaid on that work until the job closes — and retainage is held against the certified amount, so the shortfall compounds. If you front-loaded line items to collect cash early, expect the GC to push back on your percent-complete claims mid-job.

Set the SOV at realistic values, get it signed before work starts, and treat any change orders as formal SOV amendments. One hour spent negotiating the SOV at the project kickoff prevents months of payment disputes.

The Monthly Billing Cycle Timing

AIA billing runs on a predictable calendar. The GC posts a schedule at project start with the billing cutoff date, the GC review period, the owner approval date, and the payment date. A typical sequence: subcontractors submit by the 20th, the GC reviews through the 25th, the owner approves by the 30th, and payment goes out by the 30th of the following month.

That means your work completed in month one does not turn into cash until the end of month two at the earliest. On a large project with retainage held at 10%, your actual cash receipt is further reduced.

Know the full schedule before you bid. If the payment cycle is 60+ days and retainage is 10%, you need to fund that float. It changes the economics of the job.

When the GC Certifies Less Than You Applied For

Short certifications are common. Most of the time it is one of three things: the GC disputes your percent-complete on a specific line item, you’re missing documentation for stored materials, or there is a back-charge being processed against your contract.

Get the written reason before you accept the certified amount. Most construction contracts require you to submit a written exception within 14 to 21 days if you disagree with the certified amount. Missing that window can mean you’ve implicitly accepted the reduction.

Keep the documentation chain clean: save every G702/G703 submission with a time-stamped confirmation of receipt, every short-certification notice, and every written exception you file. If the dispute escalates to a payment bond claim or lien, that paper trail is your case.