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What Is an AIA Pay Application?

How does a contractor actually bill for work in progress?

A pay application is the periodic, line-item billing a contractor submits for completed work, certified by the owner or architect before payment releases.

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What it is

A pay application (or pay app) is the billing artifact a contractor submits each period to get paid for the work completed so far. It bills against the schedule of values line by line, applies retainage, accounts for change orders, and is certified by the architect or owner before payment is released. On commercial work it usually takes the AIA G702/G703 form.

Why it matters

The pay app is where the money meets the work. If its math does not match the schedule of values, or it bills progress the field did not actually complete, it gets rejected or, worse, overpays and creates a clawback. Getting paid on time depends on a clean, certified pay app every cycle.

How it works

  1. Bill against the SOV
    Each line of the pay app references a schedule-of-values line; you can only bill what the SOV authorizes.
  2. Apply progress from the field
    Percent complete per line should reflect the actual field progress, not an estimate.
  3. Withhold retainage
    The contract retainage is withheld on the billed amount each cycle.
  4. Certify and submit
    The architect or owner certifies the pay app before payment releases.

Common mistakes

Try
Rebuilding the pay app by hand each month
Reality
Re-deriving it in a spreadsheet reintroduces math errors and drift from the SOV every cycle.
Try
Billing ahead of the field
Reality
Billing progress the field has not completed invites rejection or a future clawback.
Try
Losing change orders
Reality
A change order not reflected in the SOV and pay app bills against the wrong contract value.

How Scaftra handles it

Scaftra builds the pay application from the schedule of values against captured field progress, applies retainage by the contract, and accounts for executed change orders, all on one project record. The pay app matches the SOV because it is computed from it, not re-typed from a spreadsheet.

Scaftra runs the pay app off the SOV and the field record, so the billing matches the work by construction.

Frequently asked questions

What is the AIA G702/G703?
The AIA-standardized pay application form used on most commercial contracts: G702 is the summary certificate, G703 is the line-item continuation against the schedule of values.
What's the difference between a pay app and an invoice?
A pay app bills progress against a schedule of values with retainage and certification; a plain invoice bills a flat amount. Commercial construction uses pay apps.
How does Scaftra generate pay apps?
From the schedule of values against captured field progress, with retainage and change orders applied, so the math matches the contract every cycle.

One job. One record. From the field to the books.

Bring one project onto Scaftra. We'll set up your trades, your rooms, your proof chain, and your vendor portal, and connect it to the financial system you already run.