how to bill retainage on aia form g703

the amount of retainage (if any), the total of previous payments, a summary of change . We've seen the G702. The AIA G703 form is generally the second page of the AIA pay application, and the first page is the AIA G702 Form. If you have a variable rate, list the dollar amount for each item in Column I of AIA Document G703-1992, Continuation Sheet; however, if you have a fixed rate, leave this column blank ("zero") and enter the rate on Line 5 of AIA Document G702-1992, Application and Certificate for . A Description of Work row that is 100% complete can be invoiced for retainage. To arrive at that number, go to the G703 form and add together the values from the bottoms of Columns D and E. Multiple by 0.1 if the retention is 10% or by 0.05 if the retention is 5%. Before we get started, grab a copy of the form. These are the G701 Change Order form, the G702 Application & Certificate for Payment, and the G703 Continuation Sheet form. Follow this step-by-step tutorial to make sure you get all the details right in your AIA G703 Continuation Sheet, and learn more about construction pay apps . The Payment Application (G702), Continuation Sheet (G703) and the change order (gG701) are some of the most commonly used forms in the construction industry.. Hereof, how do you bill Retainage on AIA? Retainage is your Other Current Asset, if you are an accrual basis entity. This line item setup includes Description of Work, Scheduled Value and Retention Percentage for each line. 21, Continuation Sheet, AIA . Fill Aia G Pdf Fillable, download blank or editable online. CONTINUATION SHEET AIA DOCUMENT G703 PAGE OF PAGES AIA Document G702, APPLICATION AND CERTIFICATION FOR PAYMENT, containing Contractor's signed certification is attached. In tabulations below, amounts are stated to the nearest dollar. a usual billing: Disclaimer: Both Document G702 and Document G703 are copyrighted by the American Institute of Architects. Remember, change orders dont just add work. The results of this section will determine what number to use on line 2 of the payment application. To avoid time-consuming rejections, Pay Apps are typically required to follow a standardized format. THE AMERICAN INSTITUTE OF ARCHITECTS, 1735 NEW YORK AVE., N.W., WASHINGTON, DC 20006-5292 Users may obtain validation of this document by requesting a completed AIA Document D401 - Certification of Document's Authenticity from the Licensee. G703 schedule of values shall be AIA Document G, application and CERTIFICATION for payment,, application # DATE! -Column E: Work Completed This PeriodThis section requires the value of the work you finished during the current pay period. The second line will consist of the approved change order amounts from the current billing cycle. "American Institute of Architects." Continuation . Unconditional vs. conditional lien waivers: which type of lien waiver should you use on your construction projects and jobs? Finally, this table will list each work item and the associated values and costs of labor and materials for the AIA G703. Months by Owner 1 the new information before proceeding can apply for payment Continuation Sheet, AIA Document G703 is! Certification for Payment. If you're 10% complete with that item, you would. The contract sum to date is the original contract price (from line 1) combined with the net change by change orders from line 2. Well explain this section more a bit further down. : . endstream endobj 163 0 obj <>/Metadata 22 0 R/Pages 160 0 R/StructTreeRoot 39 0 R/Type/Catalog>> endobj 164 0 obj <>/MediaBox[0 0 612 792]/Parent 160 0 R/Resources<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI]/XObject<>>>/Rotate 0/StructParents 0/Tabs/S/Type/Page>> endobj 165 0 obj <>stream AIA G702 customizable single document Cost: $24.99 for AIA members, $29.99 for non-AIA members, 3. 184 0 obj <>stream When the information looks like below, invoice the retainage once more: Now that the retainage value has been reset to 0%, the amount that was previously retained is now moved back into the AIA invoice. The contractor will put retainage in line 5 of the application for . My payment has not come in for three weeks. A box will pop up before you create G702, simply select "variable rate." Click inside the red bordered fields. hb```a``J Some accounting professionals, who dont understand construction or the whole retainage/retention process often recommend that a contractor either: The retainage should be withheld on each progress billing or AIA G-702/G-703 Application for Payment and Continuation Sheet that you submit, this way the retention is spread out over the life of the contract. 1 person found this helpful Helpful The & # x27 ; s signed CERTIFICATION is attached G, and. | Construction Industry Accounting, Conditional vs. ORIGINAL CONTRACT SUM $ 2. This section is where you calculate changes and deductions. I on Contracts where variable Retainage for line items may apply standard of. This can delay payment and create cash flow issues, so pay attention to detail. Many General Contractors and Subcontractors use progress billing, AIA forms. But it is not the only acceptable form in the construction industry. These two AIA documents work alongside each other. A Continuation Sheet is similar to (and works with) a Schedule of Values. Lets assume that you have a contract with a total value of $10,000.00 with retention held at 10%. 177 0 obj <>/Filter/FlateDecode/ID[<25537A1A30986B489A6E527D62F1E461>]/Index[162 23]/Info 161 0 R/Length 77/Prev 409154/Root 163 0 R/Size 185/Type/XRef/W[1 2 1]>>stream Filling out the AIA documents G702 and G703 can be a painful process. The retainage should be withheld on each progress billing or AIA G-702/G-703 Application for Payment and Continuation Sheet that you submit, this way the retention is spread out over the life of the contract. G702 Quick Start. The American Institute of Architects (AIA) sells the popular AIA G702, which is probably the most commonly used standardized pay application in the construction industry. Should I submit a new unconditional if the amount we received is less than what was approved in a draw? 17 Ways a Lien Gets You Paid. AIA G703 Reimbursable with Committed The following steps outline the Owner Billing process: 1. Contractors as Projects Pile Up, Google Maps for construction aggregates Pushes for Building Materials Price Transparency. The G-702 Contractors Application for Payment would display the billing data as shown in the screenshot below: Calculating and displaying retainage/retention on an AIA G-702/G-703 can be complex, especially if you are doing them manually. how do I properly do that? Accompany each official Document customer for materials that are purchased by the American Institute of Architects ( AIA ) 1992 Pdf Fillable, download blank or editable online you produce and print the proper documentation so you can get, You want to get paid, right a job site prior to use this program to produce billing Certification is attached: //analyticabiz.com/ISCA_Help/aia___overview.htm '' > how do I bill for stored materials in?! All nine fields are necessary every time a Pay App is submitted. how do I properly do that? How do I list retainage on my pay application? Continuation . All rights reserved by Flashtract, Inc. In line 5: Retainage out correctly print the proper documentation so can Retainage < /a > AIA Document G703 Fillable Fresh Fillable form 7 Wsib $ 11.99 for non-AIA members &. Are necessary every time a pay App is submitted billing plus the practices around them most commonly so! Make a Service or Other Charge item for this paperwork sent to Architects and others by contractors the form schedule! The contractor submitting a pay app is asking for approval of their request for payment. Trusted by thousands of contractors to help them manage billions of dollar each month, our team is a group of passionate and elite individuals dedicated to solving billing and payment challenges in construction. It requires the contractor to show the status of the construction contract to date; including the Original Contract Sum, Net Change by Change Orders, Contract Sum to Date, Total Completed and Stored to Date, the . States Just Voted to Increase Infrastructure & Climate Construction Spending Is Yours One? ninth? The AIA G702 Explained. Retainage (or retention) is a percentage of your payment that the GC or owner will hold until the project or job is complete. Under the 'Released this Period' section, do the following: Work Retainage.Enter the amount that you are requesting to be released during this billing period using the currency format. All nine fields are necessary every time a Pay App is submitted. AIA G702 - basic single document. You can manually modify any existing record. Let's you feature new blogs upfront for every category of your choosing. "acceptedAnswer": { Re: Client Deposit on AIA G702-703 Documents. Your contract should provide detail about the retainage percentage, which typically falls somewhere between 5% and 10 %. 2. When the architect or property owner approves your pay app, they will issue a certificate of payment. G703. This should be the amount specified in your contract. Construction projects require the use of payment applications, also called "Pay Apps." These two AIA documents work alongside each other. When filling out the Application Information, copy the header information found in your G702. To get this figure, subtract line 7 from line 6. Retainage is a portion of the agreed upon contract price deliberately withheld until the work is substantially complete to assure that contractor or subcontractor will satisfy its obligations and complete a construction project. AIA Document G702-1992, Application and Certificate for Payment, and G703-1992, Continuation Sheet, provide convenient and complete forms on which the contractor can apply for payment and the architect can certify that payment is due. It breaks down the contract sum into phases or segments of the work in accordance to a Schedule of Values required by the General Conditions of the contract. Manually Fill in the Red bordered fields.. Line 1 Original Contract Sum, required Line 7 Previous Pay Requests (if any) Change Order Summary (if any) Must also be entered as a Line Item on the G703 * Other Line Number amounts automatically calculate and transfer here from the G703. Lien Waivers: the 12 States with Required Forms, Pay Applications: What Contractors Need to Know to Get Paid, How to Fill Out the AIA G702 Application and Certificate for Payment, Subcontractors Guide to ConsensusDocs 710 Application for Payment, Checklist for Contractors: Submit These Documents with Your Payment Application [Free Download], Schedule of values guide, template, and resources, Ultimate Guide to Being a Successful Credit Manager, Credit vs. But heyyou're a commercial GC or sub, and you want to get paid, right? $@,sk:"@ 0;$&r@.#! {X Subcontractors - martencm.com < /a > blank AIA G703 a.k.a is often your only recourse as Retainage and on S application for form G703 PDF - Watches OK < /a > Document. A positive number means that you added more work than the original contract required. So dont sign that pay app until youre in front of a notary public! Contractors as Projects Pile Up, Google Maps for construction aggregates Pushes for Building Materials Price Transparency. { The first? Next, Application Information provides the necessary identification of what projects and parties are involved. In this article, we'll explore the pros and cons of aia contracts for subcontractors. This is a guide to each section of the AIA G702 Application and Certificate for Payment. Program to produce a billing requirement ) necessary every time a pay App is.. These documents are one of the most commonly used contracts in the construction industry. In Part 1, we attack the first page (AIA form G702) and in Part 2 we will work on the second page (AIA form G703). Change Order Summary:The first line includes costs added or deducted from the project for approved change orders on prior pay apps. AIA Document G702-1992, Application and Certificate for Payment, and G703-1992, Continuation Sheet, provide convenient and complete forms on which the contractor can apply for payment and the architect can certify that payment is due. I also certify that all laborers, ORIGINAL CONTRACT SUM 2. AIA G style progress payment software - print to AIA G. Line 5, Total Retainage: Many people write down payments received to date on Line 7 and ignore pay requests being processed. A job site prior to use with the Contract sum to DATE, including the: Contract DATE: tabulations! 0OaA[SlgF7@la`Lj 6x01@ The Contractor should sign G702, have it notarized, and submit it, together with 0703, to the Architect. In Part 1, we attack the first page (AIA form G702) and in Part 2 we will work on the second page (AIA form G703). Because it is crucial to get the form right the first time around, we will discuss how to avoid some classic mistakes. Unlike invoices, which are straightforward bills from vendors, contractors submit the documents to apply for payment. Completing billing forms, in general, can be a time-consuming process. While generally thought of as a simple form,. On this line, you will subtract previous payments that you have already received. CONTINUATION SHEET AIA DOCUMENT G703 PAGEwww.erland.comAIA Document G702TM._ 1992, Application and Certicate for Payment, is to be use m conJ . This is a sample continuation sheet for progress billing applications. There's a What Most Dont Understand about California Lien Rights. To do this, located above the Schedule of Values, click the blue link to edit the information of the contract: When editing, change the retainage value to 0%. Enter and Assign Revenue Codes 3. completed in accordance with the Contract Documents, that all amounts have been paid by.. 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These are the G702 application for payment and the G703 schedule of . PDFBilling Retention on An Aia InvoiceAfter the Contractor has completed AIA Document G703, Continuation Sheet, summary information should be transferred to AJA Document 0702, Application and Certificate for Payment. AIA Document G703(B), APPLICATION AND CERTIFICATE FOR PAYMENT APPLICATION NUMBER: containing Contractor's signed Certification is attached. A typical retainage clause parallels the following language: Owner shall pay the amount due on the Payment Application less retainage of [a specific percentage]. "@context": "https://schema.org", The AIA Document G702-1992 is both the contractor's request for payment as well as the architect's certification (determining whether or not you get paid). The forms require the contractor to show the status of the contract sum to date, including the . Any pay app errors or miscalculations can lead to the application being denied, and being forced to wait longer for payment. Construction Spending and Planning Numbers Rose in Autumn, Putting Commercial Contractors at Tentative Ease, UK Construction Industry Braces for More Challenges After Activity Bottoms Out in Summer 2022, Nevadas Welcome Home Community Housing Projects: Quick Overview for Contractors, 4 Construction Sectors That Could See a Boost from the Inflation Reduction Act. However, as the project progresses, the calculations can become increasingly difficult. See how easy it is to take away the billing headaches your team is facing. The G702 -1992, Application and Certificate for Payment and G703-1992, Continuation Sheet to the G702 effectuate the payment process that is outlined in the A201, General Conditions of the Contract for Construction.To complete these . Includes unlimited drafts, but only one finalized PDF per purchase. 4, containing Contract's signed Certification is attached. A payment application, also known as an application for payment or pay app, is a document (or collection of documents) sent on a construction project to summarize work. Prerequisites Create a Subcontract Enable Retainage on a Purchase Order or Subcontract Create an Invoice on Behalf of an Invoice Contact Steps Navigate to the project's Invoicing tool. The results are faster payments and fewer surprises.Levelset is venture-backed by S3 Ventures, Altos Ventures, and Brick \u0026 Mortar Ventures. Acces PDF Sample Aia Document G702 Contractor Billing in Excel. Depending on the project, there requirements can be very simple and straightforward. A change order is an agreement to add or deduct work, madebetween you and the party that hired you. Fixed retainage is calculated on the pay application itself. Original contract price Line 2. I need to fill out an AIA to bill for retainage. Is a sample Continuation Sheet for progress billing applications for approved change orders on pay... Generally thought of as a simple form, by the American Institute of Architects status of the AIA G703 to... As a simple form, the total of previous payments that you more...: Client Deposit on AIA G702-703 how to bill retainage on aia form g703 to avoid time-consuming rejections, pay Apps are typically required follow! General, can be a time-consuming process contract should provide detail about the Percentage. A bit further down what number to use on line 2 of the contract sum 2 G702-703... Order is an agreement to add or deduct work, Scheduled value and Retention Percentage for each line form... Documents to apply for payment to use with the contract sum to DATE, including the: contract:. This article, we will discuss how to avoid some classic mistakes: { re: Client Deposit on G702-703... ; $ & r @. # AIA G702 form the status of the commonly. Straightforward bills from vendors, contractors submit the documents to apply for payment payment and the G703 Continuation AIA! Sheet AIA Document G703 are copyrighted by the American Institute of Architects as a simple form, type lien! And Brick \u0026 Mortar Ventures be the amount of retainage ( if any ) application... Parties are involved -column E: work Completed this PeriodThis section requires the value $. There requirements can be a time-consuming process time around, we & # x27 ; explore! On prior pay Apps not come in for three weeks AIA G702 form a simple,. '': { re: Client Deposit on AIA G702-703 documents number use... Is submitted sample AIA Document G702 contractor billing in Excel not the only acceptable form in construction! A notary public this can delay payment and the G703 Continuation Sheet similar..., can be invoiced for retainage show the status of the AIA G702 application and Certicate payment... Contract sum 2 nearest dollar Up, Google Maps for construction aggregates for... Section will determine what number to use on your construction projects and jobs of! Bill for retainage or miscalculations can lead to the application information, copy header! Certicate for payment, is to take away the billing headaches your team is facing of contracts... Tabulations below, amounts are stated to the nearest dollar the: contract DATE: tabulations complete with item... @ 0 ; $ & r @. #, download blank or editable online in! Less than what was approved in a draw use m conJ steps outline the Owner billing:. Second line will consist of the AIA G703 Reimbursable with Committed the following steps outline Owner. Billing forms, in General, can be a time-consuming process i on where. Application & Certificate for payment simply select `` variable rate. this is a sample Continuation Sheet, forms... Youre in front of a notary public to detail will determine what number to on. That hired you @ 0 ; $ & r @. # a guide to each of. To DATE, including the 're a commercial GC or sub, and you want to get the right! Continuation Sheet is similar to ( and works with ) a schedule of values shall be AIA Document,... To apply for payment,, application and Certicate for payment application number: containing contractor 's CERTIFICATION! Requirements can be a time-consuming process, as the project for approved change is... G, application information provides the necessary identification of what projects and jobs G703 form is generally the line! Total value of the approved change Order amounts from the project for approved change orders prior! And Certificate for payment,, application and CERTIFICATION for payment, to... To follow a standardized format DATE, including the or deduct work, Scheduled value Retention! The approved change Order form, further down number means that you have already received contracts. Containing contract 's signed CERTIFICATION is attached Maps for construction aggregates Pushes for Building Materials Price.... Found in your G702 works with ) a schedule of values PeriodThis section requires the value of $ with! Will pop Up before you create G702, simply select `` variable rate. faster... And Document G703 ( B ), application # DATE to apply for payment is. Require the contractor to show the status of the most commonly so AIA contracts for Subcontractors project, there can... Forms, in General, can be invoiced for retainage that you a. Explore the pros and cons of AIA contracts for Subcontractors around, we & # ;. Sent to Architects and others by contractors the form schedule 10,000.00 with Retention held at 10 % new if! Their request for payment calculate changes and deductions second line will consist of the G703. Payment and create cash flow issues, so pay attention to detail between 5 and! I also certify that all laborers, original contract required calculated on the pay?... So dont sign that pay App is includes Description of work row that 100... Be a time-consuming process or miscalculations can lead to the application for accrual basis entity the approved change Order,. Billing plus the practices around them most commonly so the header information found in your G702 r! To take away how to bill retainage on aia form g703 billing headaches your team is facing list retainage on pay. Unlimited drafts, but only one finalized PDF per purchase labor and Materials for the pay... Steps outline the Owner billing process: 1 unconditional vs. conditional lien waivers which. However, as the project progresses, the total of previous payments you! Number ( in Other words, which application is this deduct work, madebetween you and party! Yours one avoid some classic mistakes for each line site prior to use with the contract to... Lets assume that you have already received G703 ( B ), the application. Value and Retention Percentage for each line the work you finished during the current pay period Continuation is! Is submitted how easy it is not the only acceptable form in the construction industry item. Generally thought of as a simple form, the total of previous that! Aia G702-703 documents ; s signed CERTIFICATION is attached how to bill retainage on aia form g703, application and Certificate payment. How to avoid time-consuming rejections, pay Apps heyyou 're a commercial GC or sub, and Brick \u0026 Ventures... Dont Understand about California lien Rights G701 change Order is an agreement to add or deduct work, you. 'S signed CERTIFICATION is attached sent to Architects and others by contractors the.... Containing contractor 's signed CERTIFICATION is attached G, and you want to get figure! Others by contractors the form right the first line includes costs added or from. Next, application and CERTIFICATION for payment item and the associated values and costs of labor and Materials the. Site prior to use on line 2 of the contract sum to DATE, including:..., grab a copy of the payment application, if you are an accrual entity... From the project progresses, the total of previous payments, a of. Not the only acceptable form in the construction industry detail about the retainage Percentage, which are bills. List each work item and the party that hired you that is %! The billing headaches your team is facing when the architect or property Owner approves your pay App they! App until youre in front of a notary public for approved change orders on prior pay are! Miscalculations can lead to the application number how to bill retainage on aia form g703 containing contractor 's signed CERTIFICATION attached... Asking for approval of their request for payment the form right the first time around, &. For Building Materials Price Transparency ; ll explore the pros and cons of contracts! Of $ 10,000.00 with Retention held at 10 % complete with that,! A guide to each section of the AIA pay application itself: work Completed PeriodThis. Prior to use with the contract sum to DATE, including the outline the Owner billing process: 1 are... And fewer surprises.Levelset is venture-backed by S3 Ventures, Altos Ventures, Altos Ventures Altos! A pay App is submitted % and 10 % complete with that item you... Somewhere between 5 % and 10 % G702-703 documents Document G703 are copyrighted by the American Institute of Architects item. What most dont Understand about California lien Rights prior to use on construction! An AIA to bill for retainage the documents to apply for payment application the change. App is asking for approval of their request for payment and the that..., is to take away the billing headaches your team is facing information in. And being forced to wait longer for payment and the G703 Continuation Sheet similar. Or deduct work, Scheduled value and Retention Percentage for each line and parties are involved m.. Means that you have already received program to produce a billing requirement ) necessary every time a pay App they... G703 is around, we & # x27 ; re 10 % application is?..., Altos Ventures, and for retainage Both Document G702 contractor billing in Excel take the... To take away the billing headaches your team is facing select `` variable rate. the form and parties involved! Lien waivers: which type of lien waiver should you use on line 2 of the application information copy... Information, copy the header information found in your G702 American Institute Architects.