In many industries, businesses send invoices to request payment. Construction projects often work differently.

Instead of simple invoices, contractors submit pay applications, commonly referred to in the industry as AIA G702 / G703 style billing which provide detailed documentation of project progress.

Understanding the difference between invoices and pay applications helps contractors avoid billing confusion and payment delays.

What Is a Construction Invoice? Pay App

A construction invoice is a request for payment issued after work has been completed.

Invoices typically include:

  • Description of services

  • Total amount owed

  • Payment due date

While invoices work well for smaller projects, large construction projects usually require more detailed documentation.

What Is a Pay Application?

A construction pay application is a formal request for payment based on work completed during a billing period.

Most projects use AIA Forms G702 and G703.

If you want to understand how these forms work, read our guide “How to Generate a PAYearned Comparable AIA® G702® Pay Application.”

How the Schedule of Values Connects to Pay Applications

Pay applications rely heavily on the Schedule of Values to determine how much work has been completed.

Each billing period references the SOV to calculate payment amounts.

Learn more about this document in our article “What Is a Schedule of Values in Construction? A Complete Guide for Subcontractors.”

Simplifying Pay Applications with PAYearned

Preparing pay applications manually can require hours of spreadsheet work.

PAYearned simplifies the process by:

  • Automatically generating pay applications designed for users accustomed to standard construction AIA G702 style billing

  • Tracking Schedule of Values across projects

  • Preventing billing calculation errors

  • Storing project documentation in one place

Try PAYearned free today and simplify how you manage pay applications.
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External links in this blog are provided for reference only. PAYearned is not affiliated with or endorsed by the American Institute of Architects (AIA)