Glossary

Application for Payment (AIA G702/G703)

Also known as: Pay Application, Draw Request, G702/G703

An application for payment is the contractor's periodic, typically monthly, request for payment on a construction contract, itemizing work completed to date by line item against the approved schedule of values, most commonly formatted on AIA forms G702 (summary) and G703 (continuation sheet).

The G702 provides the summary figures—total contract sum, amount completed and stored to date, retainage withheld, and net amount due—while the G703 breaks that total down by individual line item of the schedule of values, allowing the architect (and any lender-side draw inspector) to verify percentage-complete claims trade by trade rather than accepting a single aggregate number. The architect reviews and certifies the application before the owner pays it, and on a financed project the certified pay application becomes the basis for the borrower's draw request to the construction lender, which typically requires its own independent inspection to confirm progress before releasing funds. Retainage is deducted at this stage, and any pending or newly approved change orders are reflected as adjustments to the contract sum before the current payment is calculated.