AIA Billing Glossary
Construction billing terms explained in plain English. This glossary covers AIA-style G702 & G703 pay applications, Schedule of Values (SOV), retainage, stored materials, change orders, and related billing concepts.
If you are dealing with commercial pay apps, owner billing packages, subcontractor billing support, or monthly progress billing requirements, this glossary is designed to help you quickly understand the terminology that shows up on contracts, billing forms, and review comments.
Looking for the full workflow? Start with the Complete AIA Billing Guide.
How to Use This AIA Billing Glossary
This page works best as a quick reference for contractors, subcontractors, office managers, and project teams who need to understand construction billing language without digging through a contract every time a term comes up. If you are trying to figure out the difference between a G702 and a G703, how retainage works, what belongs in a Schedule of Values, or why a pay app got kicked back, this glossary gives you the plain-English version first and then links you to deeper guides.
In other words, this is not just a definition page. It is a shortcut into the larger PayAppPro learning hub for AIA-style billing, progress billing, and contractor payment workflows.
Most Commonly Confused AIA Billing Terms
- G702 vs. G703: the G702 is the summary page; the G703 is the line-by-line continuation sheet.
- Retainage vs. Balance to Finish: retainage is money withheld; balance to finish is remaining contract value.
- Change Order vs. Pending Change Order: approved change orders affect official billing totals; pending ones generally should not.
- Completed & Stored to Date vs. Work Completed This Period: one is cumulative, the other is just the current billing cycle.
- Application for Payment vs. Basic Invoice: a pay app is a formal progress billing document; an invoice is usually simpler.
Core Billing Terms
Application for Payment
A formal request for payment submitted periodically during a project. In AIA-style workflows, this typically includes a G702-style summary and a G703-style continuation sheet.
AIA-Style Billing
A structured progress billing format commonly used in commercial construction that follows the familiar G702/G703 layout tied to a Schedule of Values.
Application Number
The sequential number assigned to each pay application (Application #1, #2, etc.). Consistent numbering prevents confusion in payment history.
Billing Period
The timeframe covered by a pay application (for example, “through 03/31/2026”).
Pay Application (Pay App)
A periodic request for payment based on work completed under the contract. For a walkthrough, see how to fill out G702/G703.
Pay Application Rejection
When a submitted pay app is returned due to math inconsistencies, missing documentation, or contract mismatches. See rejection checklist and common errors.
Progress Billing
A billing method where payment is requested periodically based on percentage of completion. See construction progress billing.
Form & Document Terms
G702 (Application and Certificate for Payment)
The summary page showing contract value, completed work, retainage, previous payments, and payment due. See G702 instructions, line-by-line explanation, and what a G702 is.
G703 (Continuation Sheet)
The line-by-line breakdown tied to the Schedule of Values. Totals roll up into the G702 summary. See G703 instructions and what a G703 is.
Lien Waiver
A document confirming payment has been received and lien rights are waived to a certain date or amount. See Lien waivers explained.
Schedule of Values (SOV)
A detailed breakdown of the contract sum into specific work categories. See SOV explained and how to create an SOV.
Contract & Money Terms
Balance to Finish
The remaining contract value after subtracting total completed work to date.
Completed & Stored to Date
The cumulative value of completed work and approved stored materials through the current billing period.
Contract Sum to Date
The original contract sum plus or minus approved change orders.
Current Payment Due
The amount requested for the current billing period after subtracting retainage and previous payments.
Front-Loading
Allocating excessive contract value to early-stage work. Often scrutinized by reviewers.
Net Change by Change Orders
The total value of approved change orders added to or deducted from the contract.
Original Contract Sum
The contract value before any change orders.
Previous Certificates for Payment
Total amount previously certified and paid on earlier applications.
Retainage
A percentage (often 5–10%) withheld from earned work until milestones or completion. See retainage explained and retainage math on G702/G703.
Retainage Release
The reduction or elimination of retainage near substantial or final completion.
Work Completed This Period
The dollar value of work performed during the current billing cycle.
Change Order Terms
Change Order (CO)
A written modification to the contract scope and price. Approved change orders adjust the contract sum to date. See how to bill change orders.
Pending Change Order
A proposed change not yet approved. Should not be included in official contract totals.
Other Construction Billing Terms
Stored Materials
Materials purchased but not yet installed that may be eligible for billing with documentation. See billing stored materials.
Substantial Completion
The stage at which the project is sufficiently complete for its intended use.
AIA Billing Glossary FAQ
What is AIA-style billing?
AIA-style billing is a structured way of handling progress billing on construction projects. It commonly uses a G702-style summary, a G703-style continuation sheet, and a Schedule of Values to track prior billing, current billing, retainage, and balance to finish.
What is the difference between G702 and G703?
The G702 is the summary page that rolls up project billing totals. The G703 is the continuation sheet that breaks the contract into line items and shows the detailed math behind the summary.
What is a Schedule of Values in construction billing?
A Schedule of Values, or SOV, is the line-item breakdown of the contract amount. It helps owners, GCs, and subcontractors track progress billing in a consistent format over time.
What does retainage mean?
Retainage is the portion of earned work that is withheld from payment until later in the project. Many contracts use retainage to protect against incomplete or deficient work until the job reaches a milestone or final completion.
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