How to Add Change Orders to AIA G702 & G703
Approved change orders must be reflected correctly in both your Schedule of Values (G703) and your summary totals (G702). If they aren’t, your pay application will almost certainly be rejected.
Why change orders break so many pay applications
Change orders are where most pay apps fall apart—not because they’re complicated, but because they affect every layer of the billing:
- They change the contract sum on the G702
- They change the Schedule of Values on the G703
- They impact retainage and percent complete
- They must match the GC/owner’s official change order log
If even one of those pieces is out of sync, reviewers lose confidence quickly. Use this alongside: rejection checklist and billing guide.
The Non-Negotiable Rule
If your SOV total does not match the contract sum to date, every downstream total on the G702 will be wrong.
Step 1: Confirm the Change Order Is Approved
Do not add pending or disputed change orders to your pay application.
- Confirm the CO is signed or formally approved
- Confirm the exact dollar value
- Confirm whether retainage applies
Step 2: Update the Contract Sum on the G702
On the G702 summary page, the contract sum to date must reflect:
- Original contract amount
- Plus approved change orders
- Minus any deductions (if applicable)
Example:
- Original Contract: $500,000
- Approved CO #1: +$25,000
- Approved CO #2: +$10,000
Step 3: Add the Change Order to the G703 (SOV)
On the G703 continuation sheet, you must reflect the change order in the Schedule of Values.
You have two common options:
- Add value to an existing line item (if appropriate)
- Create a dedicated CO line item (often preferred for clarity)
Where Most Teams Get This Wrong
- Updating G702 but forgetting to update SOV
- Adding CO value but not distributing it correctly across line items
- Using different numbers than the GC’s official CO log
- Mixing approved and pending COs together
These issues are subtle—but they are exactly what reviewers look for.
Step 4: Bill the Change Order Work Properly
Once the SOV is updated, you may bill completed work for the CO.
- Bill based on percent complete or installed value
- Apply retainage consistently with contract terms
- Ensure totals roll correctly into G702 summary
Common Change Order Mistakes
- SOV total not updated to match contract sum
- CO billed before approval
- Different CO values than GC’s log
- Retainage not applied correctly to CO work
- CO line items exceeding approved amount
How PayAppPro Helps Keep COs Aligned
- Tracks contract sum changes automatically
- Keeps SOV totals aligned with approved COs
- Prevents over-billing beyond approved amounts
- Rolls CO math directly into G702 summary totals
Keep contract sums, SOV totals, and G702 summaries aligned automatically.