AIA G702 Application and Certificate for Payment: Form and Retainage

The AIA G702 Application and Certificate for Payment is the construction industry’s standard one-page form that combines a contractor’s request for a progress payment with the architect’s certification of the amount actually earned. The contractor fills out the top half showing how much work is complete and how much money is due; the architect signs the bottom half confirming the numbers match what’s on site; the owner then pays.¹ The standard edition dates to 1992 and has stayed largely intact since, with variant editions published for design-build, construction-manager, and subcontractor arrangements.

What the Form Actually Contains

The G702 is deliberately two documents on one page. The upper portion, the Application for Payment, is where the contractor lays out the project’s financial status: the original contract sum, approved change orders, work completed to date, retainage held, previous payments received, and the amount due this cycle. The lower portion, the Certificate for Payment, is where the architect signs off that the requested amount reflects the actual progress of the work.¹ Putting both functions on the same sheet forces contractor and architect to stake their signatures on the same numbers.

By signing the application, the contractor warrants that all work and materials described are legitimately incorporated into the project, that title will pass to the owner at the time of payment, and that previously paid work is free of liens, claims, and security interests to the best of the contractor’s knowledge. The architect’s signature is a professional judgment that the quality and quantity of work justify releasing the funds.¹

The Schedule of Values and the G703 Continuation Sheet

You cannot fill out a G702 without first preparing a schedule of values, a line-by-line breakdown of the total contract price into distinct work categories such as sitework, structural steel, or electrical rough-in. That breakdown lives on AIA Document G703, the Continuation Sheet, which attaches to the G702 and provides the detail behind the summary numbers on the payment application.² Every line item gets a dollar value, and those values need to be realistic. Architects regularly push back on front-loaded schedules where early trade work is inflated to pull cash forward.

The general conditions in AIA Document A201-2017 also require the application to be supported by whatever additional data the owner or architect needs to verify the contractor’s right to payment. That commonly includes copies of subcontractor requisitions and lien waivers.³ Chasing those documents down the day before submission is how billing cycles get missed.

Stored Materials

Materials delivered and stored at the job site can be included on the application as a normal matter. Off-site storage is different. The owner must approve it in advance in writing, and the contractor has to demonstrate clear title, carry adequate insurance against loss and theft, and account for the cost of eventually moving the materials to the site.³ Typical documentation is paid receipts proving ownership, photographs of the materials at the storage location, and a certificate of insurance naming the owner as an additional insured.

Filling Out the Nine Lines

The G702 walks you through a nine-line calculation that builds from the original contract amount down to the current payment due. The arithmetic is simple, but mistakes here stop the whole cycle.

Line 1, Original Contract Sum. The contract price before any changes.
Line 2, Net Change by Change Orders. The total of all approved change orders, added or subtracted. Pending change directives the architect has authorized for payment can also go here.
Line 3, Contract Sum to Date. Line 1 plus Line 2.
Line 4, Total Completed and Stored to Date. Work physically completed plus materials properly stored, pulled directly from the G703.
Line 5, Retainage. Split into 5a for retainage on completed work and 5b for retainage on stored materials, because the percentages can differ.
Line 6, Total Earned Less Retainage. Line 4 minus Line 5.
Line 7, Less Previous Certificates for Payment. Everything the owner has already paid on prior applications.
Line 8, Current Payment Due. Line 6 minus Line 7. This is the amount you’re asking for.
Line 9, Balance to Finish, Including Retainage. Line 3 minus Line 6.

The most common error is a mismatch between Line 4 on the G702 and the column totals on the G703. When those numbers don’t reconcile, the architect sends it back before setting foot on the site.⁴

How Retainage Sits on the Form

Retainage is the percentage of each payment the owner holds back as security until the project is substantially complete. Most contracts set it between five and ten percent, and many states cap the allowable percentage by statute. The G702 accommodates variable retainage rates, so the percentage withheld on completed work (Line 5a) can differ from the percentage withheld on stored materials (Line 5b).¹ The G703 also includes a dedicated column for tracking retainage per line item when variable rates apply.

Retainage is normally released at substantial completion or once punch-list items are resolved, depending on what the contract specifies. When it’s reduced or released, that change is reflected in the next G702, and the freed-up funds flow through Line 8 as part of the current payment due. Owners often require AIA Document G707, Consent of Surety to Reduction in or Release of Retainage, before letting the money go.

Notarization

The G702 includes a notarization block, and A201-2017 requires the application to be notarized “if required.”³ In practice, most contracts do require it. Notarization turns the contractor’s financial representations into a sworn statement, which pushes the consequence of inaccuracy from contract dispute into potential fraud territory. The notary verifies the signer’s identity and applies their seal.

Remote online notarization is now authorized in most states, though a handful still have not enacted or implemented it. Rules vary by state and some jurisdictions require specific approved platforms. If your contract permits electronic submissions, remote notarization can cut scheduling delays, but confirm both state law and contract terms accept it first.

Submitting the Application and What the Architect Does

Under A201-2017, the contractor must submit the application at least ten days before the date set for each progress payment. The contractor delivers the completed G702, the attached G703, and any required supporting documents to the architect. The architect then has seven days to respond in one of three ways:³

Certify the full amount requested and send a copy to the contractor.
Certify a lesser amount and notify the contractor and owner in writing with reasons.
Withhold certification entirely with written reasons.

When the architect certifies a different amount, they must initial every changed figure on both the G702 and G703 and attach a written explanation.⁴ If the two sides can’t agree on a revised number, the architect issues a certificate for whatever portion they can stand behind, and either party can pursue the dispute through the claims process under Article 15 of A201.

On projects using a construction manager as adviser, the contractor instead submits to both the construction manager and the architect using AIA Document G732-2019, and both jointly certify before the document goes to the owner.⁵

Why Certification Gets Reduced or Withheld

A201-2017 limits the grounds on which an architect can hold back certification to situations where they cannot make the required representations about the work. The specific reasons include:³

Defective work that hasn’t been corrected.
Third-party claims filed, or reasonable evidence claims are coming, unless the contractor provides acceptable security.
Failure to properly pay subcontractors or suppliers.
Reasonable evidence the remaining unpaid balance won’t cover the cost of finishing the work.
Damage to the owner or a separate contractor that hasn’t been resolved.
Reasonable evidence the work won’t finish on time and the balance won’t cover delay damages.
Repeated failure to carry out the work according to the contract documents.

The architect can also nullify a previously issued certificate if new evidence shows any of these conditions existed when it was signed. A certified payment isn’t necessarily a permanently settled issue.

When the Owner Has to Pay

Once the architect signs the certificate, the clock starts. A201-2017 requires the owner to pay in the manner and within the time the contract documents specify.³ Private construction contracts commonly set that window somewhere between fourteen and thirty days, though the exact deadline is whatever the parties negotiated. Most states also have prompt payment statutes governing private construction, with varying deadlines and interest penalties, so check the rules in your jurisdiction.

The contractor’s remedy for nonpayment is aggressive. If the architect doesn’t issue the certificate within seven days through no fault of the contractor, or the owner doesn’t pay within seven days after the contractually established date, the contractor can deliver a seven-day written warning and then stop work entirely. Contract time extends to cover the resulting delay, and the owner becomes liable for the contractor’s reasonable shutdown and restart costs plus interest.

Lien Waivers That Travel with the Application

Progress payments and lien rights are directly linked. Each time a contractor collects, the owner needs assurance the money moved downstream and won’t come back as a mechanic’s lien from an unpaid subcontractor or supplier. That’s where lien waivers enter the G702 process.

A conditional progress lien waiver is the most common type submitted with an application. It waives lien rights for the covered work once payment is actually received, and it takes effect automatically when the check clears. An unconditional progress waiver surrenders lien rights immediately upon signing, whether or not payment has been made. Contractors and subcontractors should not sign unconditional waivers before the money is in hand.⁶

What False Certification Can Cost

Because the G702 is typically notarized, inflating work percentages or claiming payment for undelivered materials is more than a breach of contract. A notarized false statement can support fraud claims with consequences well beyond repaying the overbilled amount. Owners can pursue breach-of-contract damages, and depending on the project and jurisdiction, additional liability may apply. On federal projects, the False Claims Act makes anyone who knowingly submits a false claim liable for three times the government’s damages plus per-claim penalties adjusted annually for inflation, and it lets private citizens file suit on the government’s behalf and collect a share of the recovery.⁷ On private projects, state fraud statutes and mechanics lien abuse laws create similar exposure, with penalties that vary by state.

Picking the Right G702 Variant

The standard G702-1992 is built for a traditional architect-owner-contractor arrangement. AIA publishes several variants for other delivery methods, and using the wrong one for your project structure can create problems:⁸

G702S-2017, a contractor-to-subcontractor version for tracking subcontractor progress payments.
G732-2019, for projects with a construction manager as adviser, requiring dual review by the CM and architect.
G742-2024, for design-build projects where a single entity handles both design and construction.
G702CW-2021 and G702GMP-2021, for cost-of-work projects, with and without a guaranteed maximum price.

All follow the same logic: the contractor applies, an authorized party certifies, and the owner pays. The differences are in who reviews and which contract terms govern. AIA forms are copyrighted and must be purchased through the AIA Contract Documents website or authorized distributors; photocopied or altered versions can invalidate the submission and create separate legal exposure.⁹

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AIA Contract Documents. Summary: G702-1992, Application and Certificate for Payment
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AIA Contract Documents. G703-1992 Continuation Sheet
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AIA Contract Documents. AIA Document A201-2017 General Conditions of the Contract for Construction
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AIA Contract Documents. Instructions: G702-1992, Application and Certificate for Payment
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AIA Contract Documents. Instructions: G732-2019, Application and Certificate for Payment, Construction Manager as Adviser Edition
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AIA Contract Documents. Types of Lien Waivers: Conditional, Unconditional, Progress and Final
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U.S. Department of Justice. The False Claims Act
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AIA Contract Documents. List of Current AIA Contract Documents (All Series)
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AIA Contract Documents. AIA Contract Documents