Pay application generator
An application for payment is a short column of arithmetic that decides whether a cheque goes out this month. Reviewers reject them for arithmetic, for a schedule of values that does not total, and for retainage applied to the wrong base. This produces the summary lines and shows how the payment due is reached.
The summary lines of a standard application for payment, in order. Change any input; every derived line recalculates.
Application no. 4 · period ending 2026-08-31
| 1 | Original contract sum | 148,000.00 |
| 2 | Net change by change orders | 0.00 |
| 3 | Contract sum to date | 148,000.00 |
| 4 | Total completed and stored to date | 148,000.00 |
| 5 | Retainage (5%) | -7,400.00 |
| 6 | Total earned less retainage | 140,600.00 |
| 7 | Less previous certificates for payment | -124,450.00 |
| 8 | Current payment due | 16,150.00 |
| 9 | Balance to finish, plus retainage | 7,400.00 |
How the payment due is reached
| Earned to date (line 4) | 148,000.00 |
| Retainage held, 5% (line 5) | -7,400.00 |
| Previous certificates (line 7) | -124,450.00 |
| Due on this application | 16,150.00 |
The summary lines, in order
The industry-standard application (the AIA G702 family, with the G703 continuation sheet behind it) is arranged so that each line derives from the one above. Original contract sum, plus net change orders, gives the contract sum to date. Completed and stored work, less retainage, gives total earned less retainage. Subtract everything previously certified and you have the current payment due.
Two lines cause most rejections. Stored materials need to be suitably stored, insured and documented — otherwise line 4 is overstated. And retainage is calculated on completed-and-stored, not on the contract sum, so it grows every period. Build the continuation sheet with the schedule of values builder before you fill this in.
Why an application gets kicked back
| Reason | What the reviewer sees | Fix |
|---|---|---|
| SOV does not total | Continuation sheet ≠ contract sum | Reconcile to the penny before submitting. |
| Front-loaded lines | Mobilisation at 15% of contract | Expect a challenge; keep early lines defensible. |
| Stored materials | No invoice, no insurance certificate | Attach both, or bill it when installed. |
| Retainage base | Applied to contract sum | Apply to completed and stored to date. |
| Missing waivers | No conditional waiver attached | Send the waiver with the application, not after. |
On federal construction work, a progress payment is due 14 days after the designated billing office receives a proper payment request, and an improper invoice must be returned within 7 days with reasons. If neither has happened, the clock is running — work the interest with the prompt payment calculator.
Sources
- FAR 52.232-27(a)
On a federal construction contract, a progress payment is due 14 days after the designated billing office receives a proper payment request; an improper invoice must be returned within 7 days with reasons.
Read 2026-10-18
- 31 U.S.C. § 3903(a)(6)
On a federal construction contract, interest is owed on retained amounts approved for release that are not paid by the date the contract specifies or, if it specifies none, by the 30th day after final acceptance.
Read 2026-10-18
- Tex. Prop. Code § 53.101
Texas requires the owner to reserve 10 percent of the contract price (or 10 percent of the value of the work) during the job and for 30 days after completion — statutory retainage.
Read 2026-10-18
Related
- AIA G702 and G703 Explained2026-09-047 min readEvery line of the application and continuation sheet.
- Schedule of Values BuilderThe continuation sheet behind line 4.
- Retainage CalculatorLine 5, in detail.
- Pay Application Software ComparedWhen a spreadsheet stops scaling.
- Construction Invoice GeneratorFor work billed without a pay app.