Construction
Pay Application
A formal request for payment submitted by the contractor to the owner, documenting work completed during a billing period.
What is a Pay Application?
A pay application (or application for payment) is the formal document a contractor submits to the owner requesting payment for work completed during a specific billing period. It is typically prepared monthly and follows a standardized format.
AIA G702/G703 Format
The most common format in the US:
- **G702** — Application and Certificate for Payment (summary)
- **G703** — Continuation Sheet (detailed breakdown by line item)
What's Included
- Original contract sum
- Change orders (approved and pending)
- Total contract sum
- Work completed to date
- Materials stored (stored materials)
- Retainage
- Current payment due
Digital Pay Applications
Modern construction software automates pay application calculations, tracks retainage, and integrates with accounting systems.
Related Terms
- Retainage
A portion of the contract price withheld by the owner until the work is substantially complete, ensuring the contractor fulfills all obligations.
- Change Order
Work that is added to or deleted from the original scope, which alters the original contract amount and/or completion date.
- Construction Contract
A legally binding agreement between the owner and the contractor that defines the scope, schedule, price, and terms of a construction project.
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