Inside this article:
Understanding the AIA billing format
Free AIA-style templates and examples you can download
How to complete the AIA invoices
Examples of AIA-style bills
Common AIA Invoice Mistakes to Avoid
AIA Invoicing Options for Digital Submission and Automation
Simplify Architect Invoicing with BQE CORE
FAQs on AIA Billing and Invoicing
AIA billing is a standard method for handling payments on construction projects. The American Institute of Architects (AIA) created it for jobs where the owner pays the contractor over time. Many contracts require AIA billing (or AIA-style billing) when a project owner pays a contractor at particular milestones.
AIA billing is based on the progress billing model, in which contractors are paid as they complete parts of a project rather than receiving a single large payment at the end. AIA is one particular type of overall architecture invoicing.
The American Institute of Architects (AIA) created AIA billing for projects where an architect collaborates with a project owner and oversees the work of the construction contractor. The AIA Contract Documents outline the basic roles of each party in the payment process. The two main ones are A201 (General Conditions of the Contract for Construction) and B101 (Standard Form of Agreement Between Owner and Architect). The contractor prepares the pay application, the architect reviews and certifies it, and the owner releases payment based on that certification.
Over time, AIA billing has become the industry standard for progress payments because it’s clear, structured, and consistent. Today, many construction projects, even those without an architect, use AIA billing forms to keep billing organized and transparent. It is one of the most widely accepted billing and invoicing methods in the construction and design space.
Understanding AIA billing can open doors to larger contracts and public projects, where progress billing and AIA invoicing are often standard requirements.
The AIA billing format uses two forms — the G702 and G703 — that contractors submit each month to request payment. The G702 summarizes project progress and calculates how much the contractor is billing for that period, while the G703 provides the detailed breakdown behind those totals.
Most AIA-type projects are based on a lump-sum (or stipulated-sum) contract, meaning the owner and contractor agree to one fixed price for the entire project. Instead of billing for actual costs, the contractor earns payment based on the percentage of work completed toward that agreed total.
Before construction starts, the contractor and owner create a schedule of values (SOV) that divides the total contract price into specific parts — such as site work, framing, and finishes. Each part is assigned a dollar value.
Every month, the contractor uses the SOV to calculate progress and prepare two forms:
The two AIA-style templates offered later in this article follow a similar structure to official AIA forms. They’re intended for training, estimating, or projects in which AIA-style documentation is acceptable. However, they are not official AIA documents and should not be used when a contract specifically requires licensed AIA forms.
Form G702 is a construction pay application to track project progress. It calculates how much the contractor earns each billing cycle, and it turns on-site progress into a record of earned value. The contractor reports work completed, subtracts prior payments, and shows the new amount due.
The G702 provides a monthly snapshot of the project’s financial status. It tracks total work completed, prior payments, and retainage to determine what’s owed for the current billing period. Each section guides the contractor in turning project progress into a running billing record.
“Each month, the contractor updates the same running totals, so the G702 reflects both the cumulative value of the project and acts like a monthly invoice,” says Austin Miller, Chief Marketing Officer at BQE. “As pay applications continue through the project, each G702 builds on the one before it.”
For every G702, an architect or other designated signatory reviews the figures to confirm that the contractor’s calculations reasonably reflect the work that’s been done. Their signature certifies the payment application and formally approves the payment request.
The G703 accompanies the G702 and provides the detailed backup for the totals on the payment application. Each row lists a specific phase or trade from the project’s original Schedule of Values (SOV), along with related materials, and tracks the cost of work completed and billed for that item.
Each row on the G703 matches a specific part of the project that comes directly from the SOV that the contractor and owner created before signing the contract. For example, a line might cover “Electrical Work” or “Framing.” For each row, the columns track how much money the contractor has spent over time for that phase, including the value of any materials purchased.
All these amounts add up to Column G, labeled “Total Completed and Stored to Date.” This column shows how much work and material value the contractor has earned up to the current billing period.
At the bottom of the sheet, the totals from the G703 feed directly into the G702. The sum of the “Total Completed and Stored to Date” column becomes Line 4 on the G702 (“Total Completed & Stored to Date”). That’s to ensure the G702 reflects accurate, itemized progress from the schedule of values.
Here’s an overview of key fields from the G703:
In short, while the G702 presents the project’s financial summary, the G703 provides detailed line-by-line proof that supports the contractor's calculations.
AIA offers other pay application forms that adapt the G702 and G703 formats to accommodate different payment methods and different working relationships. Some forms fit cost-of-the-work contracts, while others apply to subcontractors, joint ventures, or design-build teams that manage both design and construction.
Here’s a summary of other AIA pay application types. Remember, all AIA contract forms, including the G702 and G703, are copyrighted materials owned by the AIA.
The form titles are:
When to use: Subcontractors use these forms to bill the general contractor for their work under a standard “lump-sum” contract. They follow the same AIA format the general contractor later uses to bill the owner.
How it’s different from G702/G703: The layout and calculations are identical to the standard forms, but the language changes to reflect the different relationships between the entities. For example, the G702S replaces “Owner” with “Contractor” and “Contractor” with “Subcontractor.” In this case, the general contractor certifies the pay application instead of the architect.
The form titles are:
When to use: Contractors use these forms for cost-of-the-work projects that include a Guaranteed Maximum Price (GMP). In a cost-of-the-work contract, the contractor bills for actual project costs, such as labor, materials, subcontractors, and general conditions, rather than a percentage of completed work. The GMP sets a cap on how much the project owner will pay, in order to protect the owner from unexpected cost overruns.
How it’s different from G702/G703: To fit this payment model, the forms replace all “Contract Sum” or “Owner–Contractor Sum” references with “Guaranteed Maximum Price.” For instance, Line 1 on the G702GMP-2021 reads “Original Guaranteed Maximum Price” instead of “Original Contract Sum.” This change makes the form align with the financial limits defined in a GMP contract.
Beyond language, the continuation sheet, the G703CW-2021, includes additional columns for each cost item that allow the contractor to show both estimated values and current costs to date.
The form titles are:
When to use: Contractors use these forms for cost-of-the-work contracts that do not include a guaranteed maximum price (GMP). In this type of agreement, the project owner reimburses the contractor for actual costs plus a management or overhead fee. Because there is no fixed price cap, the owner assumes responsibility for any cost overruns. This form pair suits projects with flexible budgets or projects where the total cost is difficult to estimate before construction begins.
How it’s different from G702/G703: The G702CW-2021 replaces “Contract Sum” with “Approved Control Estimate” since there is no guaranteed maximum price. It omits the “Balance to Finish” line because no set amount remains to reach a final total.
The contractor uses the same G703CW-2021 continuation sheet as in cost-of-the-work projects with a GMP. Together, these forms help owners and contractors manage open-ended budgets while maintaining accurate, transparent cost records each billing cycle.
The form titles are:
When to use: Contractors use these forms when they have a design-build contract, which is when a single company handles both the design and construction of the project. In this case, the design builder” will use this pair of forms to request payment for both design and construction activities. These forms apply specifically to design-builder contracts that have a GMP.
How it’s different from G702/G703: The G742 and G743 forms follow the same overall billing structure as the G702/G703 pair but adapt the language and layout to fit the design-build relationship. Because the design-builder performs both roles, they self-certify the G742-2024 pay application instead of submitting it to a separate architect for certification.
The G743-2024 Continuation Sheet works alongside the G742 to track each phase of design and construction. It includes space for detailed line items, cost categories, and progress tracking for both design services and field work.
In 2024, the AIA expanded its design-build pay application series to include new forms that cover different contract setups, such as design-build agreements without a GMP and cost-of-the-work design-build contracts.
Here’s a quick overview of the other documents:
Our free AIA-style templates, modeled on the G702 and G703 forms, walk you through preparing pay applications step by step. Each file includes a blank tab plus examples from mid-project and project completion, showing how values update over time. Templates come in Excel, Google Sheets, and other formats.
Here’s an example of an AIA-style Application & Certificate for Payment using our template.
Download the AIA-style pay application template:
Excel or Google Sheets
Our G702-style template includes all nine payment summary lines, certification and project detail sections, and automatic total calculations. You’ll also get a blank tab to fill in, an instructions tab, and filled-in AIA-style pay application examples from the middle and end of a project.
Our free AIA-style Pay Continuation template walks you through the process of filling out a pay continuation sheet like the AIA G703.
Download the AIA-style pay continuation template:
Excel or Google Sheets
Our G703-style template includes all standard columns from the G703, with sections for line items, work completed, stored materials, retainage, and balance to finish. You’ll also find AIA-style pay continuation examples showing how values update from mid-project through final billing.
To complete AIA billing forms, start with the G703. Enter each line item’s value, percent complete, and retainage. The total in Column G transfers to Line 4 on the G702. Then fill out the G702 to summarize the project’s progress and calculate the current payment due.
To complete the G703, list each line item from your schedule of values, then enter the scheduled value, work completed this period, and in prior periods, materials purchased but not yet installed, and retainage. These calculations give your total completed to date and the balance to finish.
The G703 Continuation Sheet includes ten columns (A–H) that track the progress of each line item from the contractor’s Schedule of Values (SOV). Each row represents one cost item or trade, and the contractor records how much progress has been made compared to the original amount the owner and contractor allocated for that item. The calculations in the G703 feed directly into the G702 Pay Application.
Here’s more about each of the columns (A - H) in the G703:
To complete the G702, fill out each of the nine lines in order. Start with the original contract sum, add any adjustments, and calculate the total value. Transfer the total completed amount from the G703, then enter retainage, previous payments, and the current balance to finish.
The G702 form contains two major sections – the application for payment and the certificate for payment.
Here’s a line-by-line guide that walks you through both sections of a G702 form:
Below are two examples of completed AIA-style billing forms (not the licensed forms). The mid-project example shows how partial progress, retainage, and previous payments appear midway through a project. The final bill example shows how the contractor records 100% completion, releases retainage, and requests final payment to close out the job.
The AIA-style invoice examples appear in our AIA-style template downloads above.
Here's how an AIA-style G703 Pay Continuation looks in the middle of a project.
In our mid-project example, the G703-style form tracks partial progress for each line item, showing how much labor the contractor has completed and what materials remain stored on site. The contractor carries those totals to Line 4 of the G702 to calculate the payment due for the month.
Here’s a mid-project example of an AIA-style (G702) Application & Certificate for Payment from our template.
Download our G702-style template, linked above, and open the mid-project tab to see how contractors record partial progress, apply retainage, and calculate the payment due for that billing period.
Here’s a final-project example of an AIA-style Pay Continuation Invoice from our G703-style template.
In our final bill example, the G703-style invoice shows 100% completion for all line items and releases any remaining retainage. Those totals roll into Line 4 of the G702, which calculates the final payment owed to close out the project.
Here’s a final-project example of an AIA-style (G702) Application & Certificate for Payment from our template.
The final AIA-style pay application invoice example shows how the numbers flow into it to calculate the last payment.
Common AIA billing mistakes fall into three main types. Contract and value errors happen when change orders or totals are missing. Calculation errors occur when numbers on the G702 and G703 don't match, often from retainage or stored materials. Submission errors include missing signatures or blank fields.
FSH3: AIA Contract & Value ErrorsRetainage and calculation mistakes include using the wrong retainage rate, listing stored materials incorrectly, or carrying math errors from one pay app to the next. Because these figures affect the cumulative total, even a small mistake will throw off the numbers and delay payment.
Here’s a list of typical errors that contractors make when they’re calculating retainage and other fields across forms, and how to correct them:
Incomplete descriptions of line items in the G703:
Contractors sometimes list broad categories like “General Work” or “Labor and Materials” across multiple lines. This makes it unclear which costs belong to which trade, and can even lead to double-billing if, for example, a contractor might accidentally bill electrical work under both “General Labor” and “Electrical.”
To avoid this issue, make sure every line item matches the descriptions and divisions listed in the approved Schedule of Values. Each trade or phase should appear in the same order and with the same wording so the reviewer can trace each billed amount directly back to the contract.
Some AIA billing mistakes happen because the contractor doesn’t finish the paperwork, not because the math is wrong. Common problems include missing receipts, proof of stored materials, or approved change orders. Another is forgetting to get the architect’s or owner’s signature on the form.
Download the free AIA Pre-Submission Checklist to double-check your pay app before sending it in. Catch small errors early, avoid payment delays, and keep your billing running smoothly.
Today, contractors can complete and send AIA billing forms electronically. They can use the AIA’s online tools, editable PDF forms, or other software that works with AIA forms. A good digital tool lets users sign forms electronically and performs automatic calculations. These tools help contractors save time, reduce mistakes, and get paid faster.
Digitally submitting AIA forms is more than just convenient – many platforms offer project management services that help large and small firms alike manage their overall AE billing and invoicing workload.
Here’s a breakdown of the most common ways to complete and submit AIA Forms:
Architecture firms juggle multiple billing methods — fixed-fee, hourly, milestone, and progress-based billing, to name a few — and BQE CORE streamlines all of it. The platform centralizes contracts, budgets, time and expenses, and project financials so firms can produce accurate invoices without chasing spreadsheets or reentering data.
CORE’s customizable invoice formats make it easy to build professional invoices that reflect your contract structure, support percent-complete billing, and incorporate schedules of values, retainage, and approved change orders. And even if a project requires licensed AIA forms issued outside of CORE, the system still handles the underlying calculations and progress tracking that make those documents accurate.
Built-in e-payment options help shorten collection cycles, while real-time dashboards show how billing performance affects profitability and utilization across every active project. With CORE, firms get a faster, more organized way to manage architect invoicing — no matter how each contract is structured.
In this video, we walk you through architecture invoicing in BQE CORE.
Yes, most projects that use AIA billing require a Schedule of Values (SOV). It serves as the foundation for progress billing by breaking down the total contract sum into parts. Without it, you can’t accurately complete or update the G703 continuation sheet.
A Schedule of Values (SOV) breaks down the total contract sum into specific values for each phase or trade. The contractor and project owner create the SOV before work begins. The Continuation Sheet (G703) draws from the SOV to show how much of each phase is complete and what remains.
Yes, you can submit AIA forms digitally. Many contractors complete and send G702 and G703 forms through licensed AIA software or compatible platforms that follow official templates. However, always confirm the specific payment process with the project owner.
No, AIA forms aren’t required on every project. They’re only needed when the contract states that billing must follow the AIA format. Many construction projects that use progress billing include this requirement, especially if an architect is involved.
For more, see our ultimate guide to AE billing and invoicing.