How to Bill for Stored Materials on AIA G702/G703

What Does “Stored Materials” Mean?

In AIA-style billing, stored materials are materials you’ve purchased for the project that haven’t been fully installed yet but are sitting in a warehouse, staging yard, or secure on-site storage. Think: HVAC units, doors and frames, windows, switchgear, long-lead light fixtures, and so on.

Owners and lenders often allow you to bill for these items so you’re not financing all of that inventory out of pocket. In return, they expect extra documentation and clear tracking on the pay application.

Where Stored Materials Show Up on G702 & G703

Most of the detail lives on the AIA G703 Continuation Sheet. For each line item on your Schedule of Values (SOV), you’ll usually see:

• Scheduled value (total amount for that line)
• Work completed from previous applications
• Work completed this period
• Materials presently stored (not in D or E)
• Total completed and stored to date
• Balance to finish and retainage

The “Materials Presently Stored” column is where stored materials live, by line item. On the AIA G702 Application and Certificate for Payment, those values roll up into your overall “work completed and stored to date” and help drive the current payment due.

Typical Requirements to Bill Stored Materials

Every GC and owner has their own flavor of requirements, but you’ll commonly be asked for:

• Supplier invoices or proof of purchase for the materials
• Evidence that the materials are specifically for this project (tags, labels, PO references)
• The storage location (warehouse address, yard, or jobsite storage area)
• Photos or inspection reports for higher-value items
• Insurance documentation or proof that the materials are covered while stored

If the expectations aren’t clear, ask up front: “What do you need to see from us when we bill stored materials?” That one email can save a lot of “please resubmit with more backup” delays.

Step-by-Step: Billing Stored Materials on an AIA-Style Pay App

1. Confirm Stored-Material Eligibility

Start with your subcontract or prime contract. Some agreements spell out exactly:

• Which items can be billed as stored materials
• Where they must be stored (on site vs. an approved warehouse)
• What documentation or insurance is required

If your contract is silent, lean on your GC’s standard practice or ask for written confirmation before you load stored materials into your pay app.

2. Match Stored Materials to SOV Line Items

Stored materials should always tie back to specific SOV lines, not a miscellaneous bucket. For example:

• “08 10 00 – Doors & Frames” – doors and frames stored in your warehouse
• “23 73 13 – Rooftop Units” – RTUs received but not yet set on the roof

Billing the stored materials under the correct line item keeps your payment application aligned with the contract.

3. Enter the Amounts in “Materials Presently Stored”

On the G703, enter the value of the stored materials in the “Materials Presently Stored” column for each affected line item.

Two simple rules:

• The total of “previously completed + this period + stored” cannot exceed the scheduled value.
• You should be able to point to invoices and documentation that match the stored amount.

4. Apply Retainage Correctly

Most contracts apply retainage to stored materials as well as installed work. Your retainage calculation is usually based on:

• Total completed and stored to date for that line item
• Times the agreed retainage percentage (5%, 10%, etc.)

If your retainage rate changes mid-project, note that clearly or have the GC confirm how they want it shown.

5. Attach Supporting Documentation

Along with your pay app, include enough backup so the reviewer doesn’t have to guess:

• Supplier invoices showing quantities and pricing
• Proof of payment, if required by contract
• Photos of staged materials, especially for big-ticket items
• Insurance certificates or storage agreements if they’ve asked for them

In PayAppPro, you can upload these documents directly to the specific pay application, so everything travels together as one package.

What Happens When Stored Materials Are Installed?

This is the step that often gets overlooked. Once materials move from storage to installed work:

• The “Materials Presently Stored” amount should go down, and
• The corresponding “Work in Place / Completed” amount should go up.

In other words, you’re not billing for the materials twice—you’re just shifting them inside the same SOV line item from “stored” to “installed.” Reviewers watch for this, especially on longer projects.

Common Pitfalls When Billing Stored Materials

• Billing stored materials under the wrong SOV line item
• Over-billing a line so that completed + stored exceeds the scheduled value
• Leaving materials in “stored” forever and never shifting them to installed
• Submitting stored-material amounts without invoices or proof of purchase
• Applying the wrong retainage percentage (or forgetting retainage entirely)

These are some of the most common issues that get pay apps kicked back. A little structure goes a long way in keeping those emails out of your inbox.

How PayAppPro Handles Stored Materials

PayAppPro is built around AIA-style G702 and G703 billing, so stored materials are part of the normal workflow—not a “hack” you bolt on at the last minute.

• Track “this period” work and “materials presently stored” by SOV line item
• Let the software handle total-complete, retainage, and balance-to-finish math
• Upload invoices, photos, and other backup directly to each pay application
• Generate clean PDF pay apps that look the way reviewers expect

You focus on honestly representing where the job stands. PayAppPro focuses on keeping the numbers tight and the paperwork consistent from month to month.

Related Guides

• What Is a Schedule of Values (SOV)?
• Construction Payment Application Guide
• Common G702 & G703 Errors (and How to Avoid Them)