PayApp Builder

How to fill out a G702 and G703

The G703 is the arithmetic; the G702 is the conclusion. Almost every rejection comes from one of them disagreeing with the other, or with the contract. This walks both, line by line, with a worked example that ties out.

The G703

One row per schedule of values line.

ColumnWhat goes in it
A · Item no.The SOV line number.
B · DescriptionThe scope of that line.
C · Scheduled valueThat line's share of the contract sum.
D · From previous applicationWork completed on earlier applications.
E · This periodWork completed since the last application.
F · Materials presently storedDelivered but not installed — only if the contract allows it and you have the paperwork.
G · Completed and stored to dateD + E + F. This is the number that carries to the G702.
% (G ÷ C)Percent complete for that line.
H · Balance to finishC − G.
I · RetainageG × the contract rate, unless the rate varies by line.

Columns G, H and I are the ones people calculate by hand and get wrong. Every rejection story starts with one of these being off by a rounding error that propagated.

The G702

Nine lines, in order.

LineWhat it is
1Original contract sum.
2Net change by change orders — approved only.
3Contract sum to date = 1 + 2.
4Total completed and stored to date = the G703 column G total.
5Retainage on completed work and stored material.
6Total earned less retainage = 4 − 5.
7Less previous certificates for payment.
8Current payment due = 6 − 7.
9Balance to finish, including retainage = 3 − 6.
Worked example

A $4.0M job at application No. 6.

Original contract $3,862,000, approved change orders $138,000, 10% retainage, previous certificates $862,500. Twelve G703 lines totalling $4,000,000 scheduled, $1,150,000 completed and stored (one line carries $40,000 of stored windows).

G702 lineAmount
1 · Original contract sum$3,862,000.00
2 · Net change by change orders$138,000.00
3 · Contract sum to date$4,000,000.00
4 · Total completed and stored$1,150,000.00
5 · Retainage (10%)$115,000.00
6 · Total earned less retainage$1,035,000.00
7 · Less previous certificates$862,500.00
8 · Current payment due$172,500.00
9 · Balance to finish incl. retainage$2,965,000.00

Those numbers are the ones the builder produces from the sample — load it and compare.

Stored material

The trap in column F.

Material delivered but not installed can be billed if the contract allows it, which most AIA-based contracts do with conditions:

The most common stored-material rejection is billing the full supplier price for a partial delivery.

Rejections

Why they come back.

Every one of the first six is arithmetic or state, which means a tool can check it. That is exactly what the builder's pre-submission checks do.

Questions

FAQ

What is the difference between G702 and G703?

The G703 is the continuation sheet with one row per schedule of values line. The G702 is the nine-line summary. G702 line 4 equals the G703 column G total.

How is the current payment due calculated?

Completed and stored, minus retainage, minus previous certificates. That is line 8.

Can unapproved change orders go on a pay application?

No. Only approved change orders belong in line 2.

Open the builder with this example loaded