What is AIA Billing?

AIA billing refers to the standardized payment application forms developed by the American Institute of Architects (AIA) that are widely used in commercial and residential construction for contractor payment requests. The two primary forms are AIA G702 (Application and Certificate for Payment, the cover sheet summarizing the payment request) and AIA G703 (Continuation Sheet, which itemizes costs by work category against the schedule of values). Together, these forms provide a structured, universally recognized format for billing in the construction industry. They are used by general contractors, subcontractors, architects, engineers, and construction managers to document work completed, request payment, and track cumulative billing over the course of a project. AIA billing is important because it creates a standard language for construction payments -- owners, lenders, and inspectors across the industry are familiar with the format, making review and approval processes more efficient. Many commercial construction contracts and virtually all public works projects require AIA format billing as a condition of payment.

The AIA G702/G703 billing process begins before construction starts, when the contractor and owner agree on a Schedule of Values -- a breakdown of the total contract amount by line item or work category (foundations, framing, electrical, plumbing, etc.). Each pay application period, the contractor completes the G703 continuation sheet, entering for each line item: the scheduled value, work completed in previous periods, work completed in the current period, materials stored on site, and the percentage of the line item completed. These figures are totaled on the G702 cover sheet, which shows the gross amount earned to date, the retainage withheld, the total previously paid, and the net amount due in the current application. The architect or owner's representative reviews and certifies the application -- signing the G702 to confirm that the stated work has been completed. This certification is typically required before the owner will issue payment.

While AIA billing is most associated with large commercial construction, it is relevant to any contractor or subcontractor working on projects that require formal pay applications. Electrical subcontractors, plumbing contractors, millwork fabricators, and specialty trade contractors on commercial projects routinely complete AIA billing forms for every payment cycle. For these small business owners, understanding and completing AIA forms correctly is a practical business necessity -- errors or missing information on pay applications delay payment, sometimes by weeks. General contractors who subcontract work may also need to process AIA billing from their own subcontractors and incorporate it into pay applications they submit to the owner. Architects and engineers who provide services under construction contracts often use AIA G702 for their own fee applications. Even if you are not in construction, the discipline of providing clear, itemized, percentage-complete billing documentation that AIA forms represent is a model worth adapting for any project-based service business.

A standard invoice is a simple document stating what was done, what it costs, and when payment is due. AIA billing is a structured, multi-line document that tracks cumulative progress against a defined schedule of values across multiple billing periods. The key difference is the progress-tracking function -- AIA forms allow all parties to see exactly how much of each work category has been completed, billed, and paid over the life of the project. A standard invoice shows only the current billing cycle. AIA billing also includes retainage tracking, materials-stored-on-site documentation, and architect certification -- components that have no equivalent in a standard invoice. For construction work, AIA billing provides accountability, transparency, and documentation that protects both parties. For non-construction service work, the closest equivalent is milestone-based progress billing with clear percentage-complete documentation.

Begin with the G703 Continuation Sheet: list all line items from your Schedule of Values in the first column. For each line item, fill in the scheduled value agreed at contract signing. In subsequent columns, enter work completed from previous pay applications and work completed in the current period. Calculate percentage complete for each line item. If materials are stored on site but not yet installed, document them in the 'Materials Presently Stored' column. Total all columns. Transfer the totals to the G702 cover sheet: enter the original contract amount, any approved change orders, the gross amount earned to date, the retainage percentage and dollar amount, the total certified on previous certificates, and the net amount due. Both contractor and owner or architect sign the completed G702. Many contractors use AIA-licensed software or PDF versions of the official forms available through the AIA Store.

While Eonebill is designed for service business invoicing rather than construction-specific AIA forms, it helps construction-adjacent freelancers -- architects, interior designers, project managers, and consultants -- with their own fee billing on construction projects. For professional fee applications that follow a similar percentage-complete structure, Eonebill allows you to create milestone-based invoices with detailed line items. The [free invoice generator](/free-tools/invoice-generator) is a starting point for structured progress billing documentation. For businesses that need ongoing project billing with cumulative tracking, [Eonebill pricing](/pricing) includes project-level billing history and line-item invoicing that parallels AIA billing discipline for non-construction services.

1. Completing a pay application before having an agreed Schedule of Values -- without a baseline schedule, there is nothing to measure progress against; establish the schedule at contract signing before any billing occurs. 2. Over-reporting completion percentages to accelerate payment -- inflating percentage complete to bill ahead of actual work damages trust, triggers disputes, and in some cases constitutes fraud. 3. Forgetting to include materials stored on site -- materials purchased and on site but not yet installed are billable on most AIA contracts; failing to include them reduces your cash flow unnecessarily. 4. Submitting pay applications without required attachments -- lien waivers, certified payrolls, or inspection approvals required by the contract must accompany the application or it will be rejected. 5. Not tracking cumulative billing against the contract amount -- losing track of total amounts billed versus the contract value can result in over-billing or leaving money uncollected at project close.

[Draw Request](/glossary/draw-request) -- the general term for contractor payment applications, of which AIA billing is the standardized form. [Schedule of Values](/glossary/schedule-of-values) -- the cost breakdown by work category that underpins AIA G703 billing. [Retainage](/glossary/retainage) -- the percentage withheld from each pay application documented on the AIA G702. [Progress Invoice](/glossary/progress-invoice) -- a more general term for milestone or percentage-based billing used outside of construction.