Progress billing calculator for AIA G702 applications
Shows what you can bill on this application: work completed to date, stored materials, retainage withheld, and the payment due once previous certificates come off.
Progress billing calculator for AIA G702 applications: run the calculator
Work completed, retainage and payment due
Payment due on this application
Payment due now: $75,600.00
- Contract sum to date, change orders included
- $600,000.00
- Site work and foundation, 100% of $180,000.00
- $180,000.00
- Framing and roof, 60% of $240,000.00
- $144,000.00
- Mechanical and electrical, 15% of $120,000.00
- $18,000.00
- Approved change orders, 25% of $60,000.00
- $15,000.00
- Material stored
- $12,000.00
- Completed and stored to date, 61.5% of the contract sum
- $369,000.00
- Less billed in earlier applications
- -$285,000.00
- This application before tax
- $84,000.00
- Sales tax 0%
- $0.00
- This application including tax
- $84,000.00
- Less retainage 10% of the amount before tax
- -$8,400.00
- Payment due now
- $75,600.00
- Retainage held to date
- $36,900.00
- Contract value left to bill
- $231,000.00
The line order: scheduled value times percent complete on every line, plus material stored, less the cumulative amount billed before, plus tax where the contract carries any, less retainage at the agreed rate. G702 line 9 is the last two figures here added together.
One contract, one application. A live job carries far more lines than these, the percentages move every month, and the cumulative total has to agree with every application already issued.
Progress billing calculator for AIA G702 applications: what it answers
A progress payment is not a new bill. It is the running total of work in place, minus everything already invoiced. AIA G702 puts that in nine lines: contract sum to date, work completed and stored, retainage, total earned less retainage, previous certificates, and the payment now due. The calculator reproduces those lines from a short schedule of values, so the figure you send matches what the architect certifies.
Each line carries its own scheduled value and its own percent complete, because a foundation at full completion and mechanical rough-in at fifteen percent do not move together. Approved change orders sit on a line of their own, exactly as they do on a continuation sheet. Materials delivered but not yet installed are entered separately, since most contracts pay for them only once title or insurance is in order.
Progress billing calculator for AIA G702 applications: how the result is worked out
Every line is multiplied by its percent complete and the results are added, then stored materials are added on top. That is the total completed and stored to date. Subtract everything billed in earlier applications and you have the net amount for this period. Tax, where the contract carries any, is applied to that amount. Retainage comes off at the agreed rate, and what remains is the payment due now.
Two mistakes account for most rejected applications. The first is billing a period amount while the cumulative percentages tell a different story; the certifier reads column G, not your last invoice. The second is deducting the wrong prior figure. G702 line 7 asks for the previous certificate after retainage, so subtracting a gross prior invoice understates the payment. Enter the cumulative value billed before retainage and the arithmetic below handles the rest.
Progress billing calculator for AIA G702 applications: what the result assumes
One rate of retainage is applied to completed work and to stored material. G702 allows a separate rate on line 5b for stored material; where a contract splits the two, run the parts one after the other.
Retainage that steps down at substantial completion, or is released line by line, is not modeled. The figures assume a single constant rate across the whole application.
Sales tax stays out of the AIA setting because G702 has no tax line. Where a state taxes the work, the amount normally sits inside the scheduled values already.
Stored material is treated as billable in full. Many owners require a bill of sale, proof of insurance or storage on site before certifying column F, and some refuse off-site material outright.
Progress billing calculator for AIA G702 applications: questions and answers
What is the difference between G702 and G703?
G702 is the one-page application and certificate for payment, signed by the contractor and certified by the architect. G703 is the continuation sheet behind it, listing every line of the schedule of values with its scheduled value, work completed, stored materials and retainage. The G703 totals feed lines 4 and 5 of G702.
How much retainage can be withheld?
Retainage is a contract term, most often five or ten percent of the work in place. Many states cap it on public work, and several require it to stop or drop once the job passes a defined stage, so the rate written into the contract has to be checked against the statute where the project sits.
Can materials stored off site be billed?
Only if the contract says so. Column F on G703 is written for materials suitably stored, and many owners restrict that to material on site, or ask for a bill of sale, proof of insurance and photographs before certifying it. Enter stored material here only when your own contract allows the claim.
Progress billing calculator for AIA G702 applications: use it on your own projects
Inside Home Builder Software the same calculation reads the project file, so the figure carries the budget, the awards and the invoices behind it instead of asking you to retype them.