Pay application generator
An application for payment is nine arithmetic lines that decide 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 nine lines and shows the money still outside your account.
The nine 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 |
Money still outside your account
| Earned to date | 148,000.00 |
| Retainage held (5%) | -7,400.00 |
| Left to bill | 0.00 |
| Due on this application | 16,150.00 |
The nine 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 2026-09-04
- 31 U.S.C. § 3903(a)(6)
Retained amounts on a federal contract must be released by the date the contract specifies or, if it specifies none, by the 30th day after final acceptance.
Read 2026-09-04
- 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 2026-09-04