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AIA G702 Pay Application Calculator

The arithmetic of a G702 application for payment, from the totals or from a G703-style schedule of values: contract sum to date, retainage on completed work and on stored materials at two separate rates, total earned less retainage, current payment due and balance to finish.

The application

Amounts in dollars. A deductive change order can be entered as a negative figure, for example -20,000 or (20,000). The calculation runs in your browser and the figures are not sent to us.

Line 6 of the previous certificate.

Work completed and stored, entered as

Previous applications plus this period (G703 columns D and E).

Not yet in the work (G703 column F).

You checked one pay application. Mirage builds them.

Mirage builds your AIA G702/G703 pay application from progress data, every line traced to its source. Send us a past pay app and we send back a plan, no commitment.

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How is each G702 line calculated from the G703?

Line by line, where each figure comes from, described in our own words from the AIA's published instructions. The schedule of values is the G703; the application is the G702.

Where each G702 line comes from
LineNameComes fromIn this calculator
1Original contract sumThe signed contractEntered
2Net change by change ordersThe change order log, additions minus deductionsEntered
3Contract sum to dateLine 1 plus line 2Computed
4Total completed and stored to dateG703 column G: columns D + E + F summed over every lineComputed from the schedule, or entered as two totals
5RetainageYour rate on completed work (D + E) plus your rate on stored materials (F); line by line in column I where it variesComputed
6Total earned less retainageLine 4 minus line 5Computed
7Less previous certificates for paymentLine 6 of the previous application, as certifiedEntered
8Current payment dueLine 6 minus line 7Computed
9Balance to finish, including retainageLine 3 minus line 6Computed
  • Contract sum to date (line 3) is the original contract sum plus the net change by change orders.
  • On the schedule of values, each line's work completed is what earlier applications covered plus this period's work. Adding the materials presently stored gives the line's total completed and stored; divided by its scheduled value, its percent complete; subtracted from it, its balance to finish.
  • Total completed and stored to date (line 4) is the sum of that column, or the two totals you enter.
  • Retainage (line 5) is your rate on completed work times the work completed to date, plus your rate on stored materials times the materials presently stored, each rounded to the cent. The retainage shown per line of the schedule is the same calculation line by line, for reference: a cent of rounding can separate their sum from line 5.
  • Total earned less retainage (line 6) is line 4 minus line 5.
  • Current payment due (line 8) is line 6 minus the previous certificates for payment (line 7).
  • Balance to finish, including retainage (line 9) is line 3 minus line 6.

Worked example, invented figures

Original contract sum $480,000, change orders $20,000: contract sum to date $500,000. Work completed $200,000 and materials stored $40,000: line 4 is $240,000. Retainage at 10% on the work and 5% on the materials: $20,000 + $2,000 = $22,000. Total earned less retainage $218,000; previous certificates $81,000; current payment due $137,000; balance to finish, including retainage, $282,000. Load the example above to see it with a schedule of values.

Limits and assumptions

  • Two fixed retainage rates, one on completed work and one on stored materials. Retainage that varies line by line, or a rate reduced partway through the job, has to be entered as the resulting totals.
  • The rates come from your contract, and applicable law can limit them. The calculator does not know either.
  • It does not check whether stored materials qualify for payment under the contract, nor the change order log behind line 2.
  • It does the contractor's arithmetic. The architect may certify a different amount, and the owner's or lender's own requirements still apply.
  • It does not produce or reproduce the AIA documents. AIA, G702 and G703 are trademarks of The American Institute of Architects; this calculator is not affiliated with or endorsed by the AIA.

Sources

Checked on .

This calculator is not legal, accounting or compliance advice and does not replace a review by your compliance officer, counsel or the contracting agency, nor the architect's certification.

Questions

How do you fill out a G702 from a G703?

Fill the G703 first: one line per portion of the work with its scheduled value, the work completed on previous applications, the work completed this period and the materials presently stored. Column G sums the three; the total of column G is line 4 of the G702. Then take the contract sum and change orders for lines 1 to 3, apply the retainage rates for line 5, enter the previous certificate for line 7, and the form computes lines 6, 8 and 9. The calculator on this page does exactly that from a schedule you type in.

What is the difference between the G702 and the G703?

According to the AIA, the G702 is the contractor's application for payment and the architect's certificate for payment, and the G703 continuation sheet breaks the contract sum into portions of the work following the contractor's schedule of values. The totals of the continuation sheet feed the application.

How is retainage calculated on a pay application?

With a fixed rate, as a percentage of the work completed to date and a percentage of the materials presently stored, which can differ. The rates come from the contract, and applicable law can also affect them, as the AIA notes. Where retainage varies from one line to the next, it is set line by line on the continuation sheet instead.

What goes on the previous certificates line?

The total earned less retainage from the prior certificate for payment, that is line 6 of the previous application as certified, according to the AIA's instructions. The current payment due is this application's line 6 minus that figure.

Why does the balance to finish include retainage?

Because it is the contract sum to date minus the total earned less retainage. Whatever has been held back as retainage is still to be paid, so it stays in the balance until it is released.

Should the schedule of values add up to the contract sum?

Yes. The AIA's instructions say the scheduled values should equal the original contract sum at the start, adjusted as change orders come in. The calculator flags a schedule that does not add up to the contract sum to date.

Can the architect certify a different amount?

Yes. The AIA's summary of the G702 notes that the architect may certify an amount different from the one applied for, with an explanation. This calculator only does the contractor's side of the arithmetic.

Is this the AIA form?

No. It reproduces the arithmetic, not the form, which is a copyrighted AIA document. AIA, G702 and G703 are trademarks of The American Institute of Architects, and this calculator is not affiliated with or endorsed by the AIA.

Pay applications built from the schedule of values

This page does the arithmetic once. Mirage deploys agents that build the G702 summary and the G703 continuation sheet from your schedule of values and progress records every period, with retainage and stored materials tracked line by line, for your team to review and sign.

See pay application automation