AIA Billing Glossary

Looking for the full workflow? Start with the Complete AIA Billing Guide.

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.

Balance to Finish

The remaining contract value after subtracting total completed work to date.

Billing Period

The timeframe covered by a pay application (for example, “through 03/31/2026”).

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.

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.

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.

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.

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.

Pending Change Order

A proposed change not yet approved. Should not be included in official contract totals.

Previous Certificates for Payment

Total amount previously certified and paid on earlier applications.

Progress Billing

A billing method where payment is requested periodically based on percentage of completion. See construction progress billing.

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.

Schedule of Values (SOV)

A detailed breakdown of the contract sum into specific work categories. See SOV explained and how to create an SOV.

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.

Work Completed This Period

The dollar value of work performed during the current billing cycle.