PayApp Review

Catch every construction pay-application error before the check goes out - the G702/G703 math, retainage, change orders, stored materials, signatures, and lien waivers.

Real Estate

Manual, checklist-driven pay-app review - G702/G703 math, retainage, change orders, waivers, and signatures checked line by line by hand - is done in minutes per application, so every check runs on every pay app instead of the few a reviewer has time for before the check goes out

per pay application

What it extracts

14 extraction fields

Pay Application Summary
A one-look roll-up of the project, parties, application number, contract sum, completed-and-stored, retainage, current payment due, and balance to finish so a reviewer can orient before reading the detail.
Project and Parties
The project identifiers and the owner, general contractor, architect, and subcontractors, so every downstream check is anchored to the right entities.
G702 Application and Certificate
The nine certification lines from the face of the AIA G702, re-footed against each other (Line 3 = 1+2, Line 6 = 4-5, Line 8 = 6-7, Line 9 = 3-6) with a math check that names any line that breaks.
Schedule of Values (G703 Continuation Sheet)
The general contractor's G703 schedule of values, one row per line item, with each row re-footed (Column G = D+E+F), percent-complete computed, and balance-to-finish and retainage carried.
G702-to-G703 Reconciliation
The single most important consistency check - confirms the G702 face totals (contract sum, completed-and-stored, retainage, current payment due) foot to the G703 continuation sheet, with the dollar difference on each.
Change Order Log
Every change order in the package with its amount, date, execution status, and resulting new contract sum, ordered by date.
Change Order Reconciliation
Verifies the contract-sum-to-date reflects only executed change orders dated through the period, catching pending change orders billed early or executed ones omitted.
Retainage Verification
Recomputes retainage at the contractual rate (typically 5% to 10%) against completed work and stored materials, backs out the effective rate, and quantifies any under- or over-withholding.
Stored Materials Review
Every non-zero stored-material line checked for the proof an owner requires before paying - photos or delivery evidence, an insurance certificate (ACORD), and a bill of sale or invoice.
Signatures and Certification
Confirms each pay application is signed by the contractor, certified by the architect where the form requires it, and properly notarized (stamp, signature, and printed name).
Lien Waiver Review
Reviews each lien waiver by statutory type (conditional/unconditional, progress/final), confirms the amount matches the payment, and flags an unconditional waiver exchanged before payment clears or a missing or wrong-type waiver.
Subcontractor Pay Application Reconciliation
Reconciles each subcontractor line on the general contractor's G703 against that subcontractor's own application for this-period, completed-and-stored, and retainage.
Progress and Completion Checks
Flags progress anomalies across the continuation sheets - lines over 100% complete, negative this-period, no progress, or de-billed versus the prior application.
Review Findings
The master review report - every deficiency drawn from all checks, one row each, ranked Hold-first then by dollar impact, with the category, the issue, the dollar impact, and a recommended action.

Where it fits

Construction draw / progress-payment administration

Upstream

A general contractor submits a monthly pay application package - the AIA G702 Application and Certificate for Payment, the G703 Continuation Sheet, change orders, lien waivers, sworn statements, stored-material documentation, and subcontractor pay applications - by email or portal

This step

Pay application review and certification for payment

Downstream

  • Owner or lender payment release
  • Return to contractor for a corrected application
  • Retainage tracking and draw-schedule reporting

What it needs

Documents

  • AIA G702 Application and Certificate for Payment
  • AIA G703 Continuation Sheet (schedule of values)
  • Change orders and change order log
  • Lien waivers (conditional/unconditional, progress/final)
  • Sworn statement / affidavit of payment
  • Stored-material documentation (photos, delivery tickets, insurance certificates, bills of sale)
  • Subcontractor pay applications behind the general contractor's
  • Prior pay application for the project

Systems

  • Email
  • Procore
  • SharePoint
  • Google Drive
  • Construction accounting system

Prerequisites

  • The owner-contractor agreement (for the contract sum and the contractual retainage rate)
  • The prior application for the project so previous certificates and progress can be compared
  • The full package - waivers, change orders, and stored-material backup - not just the G702 face

What it produces

A completed pay-application review showing the G702/G703 reconciliation, retainage, change order, stored-material, signature, and lien-waiver checks, and a ranked findings list flagging every deficiency Hold-first with its dollar impact and recommended action

Delivered to

  • Construction accounting / draw file
  • Project or deal folder
  • Return-to-contractor correction request

Review model

A project accountant, owner's representative, or construction-loan reviewer reviews the flagged deficiencies and each cited G702 line and G703 column before the progress payment is released or the application is returned.

Who uses it

Project AccountantConstruction Project ManagerOwner's RepresentativeConstruction Loan AdministratorDevelopment Finance Analyst

Volume fit

Works best for

owners, developers, and construction lenders reviewing dozens of pay applications a month across active projects

Too small for

a team reviewing only a handful of pay applications a month, where a manual checklist is faster than setup

Grounded in

  • AIA Document G702-1992, Application and Certificate for Payment (American Institute of Architects)verified as of 2026-07-22
  • AIA Document G703-1992, Continuation Sheet (American Institute of Architects)verified as of 2026-07-22
  • Retainage / retention - governed by the owner-contractor agreement (and state prompt-payment / retainage statutes where applicable)verified as of 2026-07-22
  • Statutory lien-waiver forms - conditional/unconditional on progress/final payment (state mechanics-lien law; e.g. California Civil Code sections 8132, 8134, 8136, 8138)verified as of 2026-07-22

Changelog

  • July 2026

based on a production deployment at an industrial real estate developer

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