Application and Certificate for Payment and the AIA Document G703-1992, Continuation Sheet
AIA Document G702-1992, Application and Certificate for Payment and the AIA Document G703-1992, Continuation Sheet, are forms used in the construction industry to facilitate and certify payment between contractors and owners, with the involvement of an architect. AIA Document G702–1992 and G703–1992 work together to create a standardized process whereby contractors apply for payments, and architects certify the work that has been completed and is eligible for payment.
Purpose of AIA Documents G702 and G703
The primary purpose of AIA Documents G702 and G703 is to streamline and standardize the payment process in construction projects. These forms require contractors to detail the current status of their work, showing how much of the contracted work has been completed and billed to date. This includes:
- The total dollar amount of work completed and stored.
- The amount of retainage (if applicable).
- A summary of any change orders.
- The total of previous payments.
- The amount currently being requested for payment.
The G703 Continuation Sheet acts as an extension of G702, breaking down the contract sum into individual work components according to a schedule of values. This schedule is initially prepared by the contractor and lays the groundwork for detailed financial tracking of contracted work.
Benefits of Using G702 and G703
By using AIA G702 and G703, the payment process becomes more transparent and efficient. Contractors submit these documents to the architect, who reviews and certifies them, confirming that the requested payment aligns with the work done. The architect then verifies and certifies the payment amount due, which then signals the owner to disburse funds appropriately.
The architect’s review and certification help to validate that the work done matches the amount invoiced, protecting the owner’s investment and ensuring that contractors are paid fairly and timely for the work performed. This certification also allows architects to adjust and justify if the certified amount differs from what the contractor initially requested, providing transparency and clarity in potential disputes.
These documents provide a trusted method for managing payments, ensuring all parties remain aligned on the financial progress of a project.
Legal Considerations
While the AIA Documents G702 and G703 have been widely adopted, it is important to note that many states have laws that govern the requirements of the payment applications. In many states, including Illinois, the AIA Documents G702 and G703, taken by themselves, do not satisfy the requirements of the Illinois Mechanics Lien Act. Thus, the AIA Documents G702 and G703 must be supplemented with other payment documentation during the payment review process.
Protect Your Project and Ensure Proper Payment
In summary, AIA Documents G702 and G703 help manage the payment applications in construction projects. They support a well-structured, accurate, and efficient financial process. Contact Baker Law Group today for legal guidance on AIA payment applications and construction payment compliance.
