PAYearned  the smart alternative for generating comparable AIA® G702® to avoid errors which is critical for getting paid on time in construction projects. Whether you’re submitting your first application for payment or managing recurring monthly billings, even small errors on the form can delay approvals and effect your cash flow.

Pay applications are used by contractors and subcontractors in the construction industry to request progress payments for work completed on a project. General contractors can use PAYearned to submit an alternative G702 form to owners for payment approval, while subcontractors use them to receive payment from general contractors in accordance with contract terms and project milestones.

This guide walks you through how to complete AIA® G702® forms step by step, explains common mistakes to avoid, and shows how subcontractors can streamline the entire pay application process using modern software like PAYearned instead of manual forms and spreadsheets.

What Is an Application for Payment?

PAYearned is designed to be compatible with with AIA® G702®. The industry standard application for payment used across the construction industry to request progress payments. It summarizes the overall contract amount, approved changes, work completed to date, retainage withheld, and the amount currently due. 

PAYearned’s equivalent G702 form also works alongside of PAYearned’s equivalent G703 Continuation Sheet, which itemizes the Schedule of Values (SOV). Together, these forms make up a complete construction payment application that general contractors, owners, and architects rely on to approve payments. 

How to Fill Out an Application for 

1. Project & Contractor Information

Start by entering basic identifying details:

  • Project name and location
  • Owner information
  • Contractor or subcontractor name
  • Architect (if applicable)

This information must match the original contract exactly. Inconsistencies here can cause unnecessary back-and-forth or outright rejection of your AIA pay application.

2. Application Number & Date

Each application for payment must be numbered sequentially (Application No. 1, 2, 3, etc.) and include the billing date and period covered.

Avoid skipping numbers or reusing application numbers—this is a common issue that creates confusion when reconciling previous payments.

3. Original Contract Sum

Enter the original contract amount before any changes. This number should remain constant throughout the life of the project.

Do not include change orders here—those are accounted for separately. Incorrect contract sums are one of the most frequent reasons a construction payment application gets flagged.

 4. Approved Change Orders

List the net total of all approved additions and deductions to the contract. Only include change orders that are fully executed and approved.

Unapproved or pending changes should never be billed on the G702, as this often leads to rejection or delayed approval.

5. See How to Calculate Retainage

Calculate the Retainage by using the percentage of payment withheld until project completion or milestone approval, this is your retainage amount. The Pay App requires you to clearly show retainage held on work completed and stored materials.

Retainage calculations must be accurate and consistent with contract terms. Even small miscalculations can delay payment.

 6. Total Earned Less Previous Payments

This section calculates the amount currently due:

  • Total earned to date
  • Minus retainage
  • Minus previous payments received

The result is the payment you are requesting for this billing period. Errors here are especially problematic, as they directly impact the amount being paid.

Using PAYearned Avoids Common Errors That Delay Payments 

Many pay applications are rejected not always because of missing work, but because of avoidable paperwork mistakes. There are many reasons why pay applications get rejectedthat can be avoided with proper review, and corrections. 

Common issues include:

  • Incorrect retainage calculations
  • Math errors between G702® and G703® totals
  • Billing unapproved change orders
  • Inconsistent application numbering
  • Totals that don’t roll forward correctly from previous applications

Avoiding these issues can help approvals remain on schedule with project timelines, avoid payment delaysand maintain positive relationships with the GC.

You can find more guidance on GC expectations for pay apps, best practices, and resources through the Associated General Contractors of America.

What a PAYearned’s equivalent G702®Looks Like

 

Why PAYearned Is the Best Solution for Completing AIA G702 Forms

While it’s possible to fill out G702®

forms manually using Excel or PDFs, those methods are time-consuming, and increase the risk of errors, rejected pay apps, and delayed payments.

PAYearned simplifies the entire process by:

  • Automatically calculating totals and retainage
  • Preventing formula and rollover errors 
  • Storing every pay application in one place
  • Generating clean, professional, GC-ready form

Instead of worrying about spreadsheets and time-consuming calculations, subcontractors can focus on submitting accurate pay applications the right way—every time. If you want a faster, more reliable way to manage AIA billing, PAYearned helps ensure your applications are correct, compliant, and approved without unnecessary delays.

 

Try PAYearned free todayand simplify how you manage pay applications.

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PAYearned software is an independent product and has not been developed, endorsed, or approved by the American Institute of Architects (AIA) or ACD Operations, LLC. External links in this blog are provided for reference only. PAYearned is not affiliated with or endorsed by the American Institute of Architects (AIA) or the Associated General Contractors of America (AGC)