AIA Billing Explained Simply: What Contractors Need To Know To Get Paid Smoothly

If you work in construction, you already know that AIA billing isn’t like regular invoicing. It’s structured, detailed, and very specific. And while it looks complicated from the outside, the truth is that AIA billing follows a clear pattern once you understand the flow.

Many contractors tell me they feel anxious or confused every time an AIA form comes up. They worry about filling it out wrong, underbilling, overbilling, or getting delayed payments because something wasn’t documented correctly.

Let’s take the stress out of it. Here’s what you need to know, explained simply and calmly.

What AIA Billing Actually Is

AIA billing is a standardized way for contractors and subcontractors to request payment on large construction projects. It uses two forms:

1. G702 — Application and Certificate for Payment

This is the summary page. It shows:

• Contract amount

• Total completed to date

• Retainage

• Previous payments

• Current payment due

2. G703 — Continuation Sheet

This is the breakdown of the project. It lists:

• Each cost code or line item

• Scheduled values

• Work completed

• Stored materials

• Retainage per line item

Together, these forms tell the project owner or GC exactly:

• what work has been done

• what’s left

• what you should be paid this month

Why AIA Billing Matters So Much

AIA billing protects you and the GC. It creates:

• Consistency, so everyone follows the same format

• Transparency, showing where the money is going

• Accuracy, because retainage and previous payments are clearly tracked

• Faster approvals, since reviewers know exactly what to look for

When your AIA forms are clean, simple, and accurate, you get paid faster with fewer questions.

The Most Common AIA Billing Mistakes I See

1. Mixing up scheduled values and actual costs

The scheduled value should match what was approved in the contract. Actual costs are a separate issue.

2. Overbilling without documentation

Overbilling can be strategic, but it must be done carefully and ethically.

3. Incorrect retainage calculations

Even small errors can delay payment.

4. Not updating stored materials correctly

This is a big one. Stored materials must be:

• documented

• photographed

• supported by invoices

5. Not tying each line item to real progress

The continuation sheet needs to reflect actual work completed, not estimates mixed with guesswork.

A Simple Way to Approach AIA Billing Without Overthinking It

Here’s the calm, steady workflow I recommend to contractors:

1. Start with your approved schedule of values

This should come from the contract. Do not change it unless the GC approves a revision.

2. Update each line item based on real progress

Walk the job or get documentation from your crews. Be accurate, not rushed.

3. Calculate retainage carefully

Most projects withhold 5–10 percent. Apply it consistently to each line item.

4. Double-check previous payments

Make sure the math flows correctly each month.

5. Attach your backup documentation

This includes:

• invoices

• delivery tickets

• material receipts

• stored materials photos

Clean documentation = faster payment.

AIA Billing Doesn’t Need To Be Stressful

Contractors often tell me they feel nervous or overwhelmed each month when it’s time to prepare AIA forms. You don’t have to feel that way. Once the system is set up correctly, monthly updates become quick and predictable.

I help contractors with:

• setting up clean continuation sheets

• monthly AIA billing preparation

• documentation workflows

• retainage tracking

• progress billing

• lining up AIA with job costing

• QuickBooks integration (if needed)

A steady process will save you time, avoid payment delays, and keep your cash flow steady.

If you want support with AIA billing, I’m here.

Whether you need help setting it up, reviewing it, or taking it off your plate completely, contact me anytime. You don’t have to figure it out alone.

-Lena, LNH CPA PLLC