What is AIA Billing?
AIA billing is a standardized invoicing format created by the American Institute of Architects, widely used in construction. Learn how AIA billing forms work, why they're used, and how to prepare AIA invoices for construction projects.
What Is AIA Billing?
AIA billing refers to the standardized invoicing and payment application format developed by the American Institute of Architects (AIA) — a professional organization for architects and the construction industry. The AIA publishes a family of standardized contract forms (the A201, G701, G702, G703 series, and many others) that define how construction projects are documented, billed, and paid. AIA billing specifically refers to the payment application process using these forms. The most commonly used AIA billing forms: - G702 — Application and Certificate for Payment (the main invoice) - G703 — Continuation Sheet (line-item breakdown for G702) Together, G702 + G703 form the standard progress billing package for construction projects.
Why AIA Billing Exists
Before AIA standardized billing, every contractor submitted invoices differently — making it nearly impossible for project owners and GCs to compare applications, track progress, or verify amounts. AIA billing brought: - Uniformity — Everyone uses the same format - Transparency — Line items clearly show what's being billed and why - Certification — The G702 includes an architect's certificate of progress - Documentation — Attached schedules show percentage completion
The AIA G702 Form Explained
The G702 has several key sections: | Section | What It Contains | |---|---| | Project Information | Project name, number, owner, contractor, architect | | Application Period | The billing period (e.g., March 1-31, 2026) | | Original Contract Sum | The total contract value | | Net Change by Change Orders | Any additions or deductions from the original contract | | Contract Sum to Date | Original + changes = current contract value | | Work Completed and Stored Materials | The amount billed this period | | Retainage | Percentage held back (typically 5-10%) | | Amount Due This Application | Net amount requested | | Balance to Finish | Remaining contract value after this application | | Architect's Certificate | Architect signs certifying progress |
The AIA G703 Continuation Sheet
The G703 breaks down the G702 into individual line items — typically matching the schedule of values (SOV) submitted at project start: | Line | Description | Scheduled Value | Work Completed | | | Balance | |---|---|---|---|---|---|---| | | | | Previous | This Period | To Date | | | 1 | General Conditions | $50,000 | $50,000 | $0 | $50,000 | $0 | | 2 | Sitework | $80,000 | $40,000 | $30,000 | $70,000 | $10,000 | | 3 | Concrete | $200,000 | $200,000 | $0 | $200,000 | $0 | | 4 | Masonry | $150,000 | $75,000 | $50,000 | $125,000 | $25,000 | | 5 | Plumbing | $100,000 | $25,000 | $25,000 | $50,000 | $50,000 |
How AIA Billing Works in Practice
Step-by-Step Process 1. Schedule of Values (SOV) submitted at project start — You break the contract into line items with values; owner/GC approves 2. Each billing period — You complete G702/G703 showing work done 3. Architect reviews — The project architect reviews and certifies progress 4. Owner approves — Owner reviews and approves payment 5. GC pays — General contractor pays the subcontractor (or owner pays GC directly) 6. Retainage held — 5-10% typically withheld until project completion Typical Construction Payment Flow `` Subcontractor → G702/G703 submitted to GC ↓ GC reviews, compiles all subcontractor applications ↓ GC submits single G702/G703 to Owner (or Construction Manager) ↓ Architect reviews and certifies ↓ Owner pays GC (less retainage) ↓ GC pays Subcontractors (less retainage) ``
AIA Billing vs. Standard Invoicing
| | AIA Billing | Standard Invoicing | |---|---|---| | Industry | Construction, architecture, engineering | Any industry | | Forms | G702/G703 (standardized) | Any format | | Progress tracking | Percentage completion by line item | Lump sum or hours worked | | Third-party certification | Architect must certify | No certification required | | Retainage | Explicit, standard practice | Often not included | | Complexity | High | Low |
Example: AIA Billing Application
A plumbing subcontractor on a $100,000 plumbing contract submits their monthly AIA billing: G702 Summary: - Original Contract Sum: $100,000 - Net Change by Change Orders: +$5,000 - Contract Sum to Date: $105,000 - Work Completed and Stored Materials (to date): $63,000 - Retainage (10%): $6,300 - Amount Due This Application: $56,700 G703 Line Item Excerpt: | Line | Description | Value | % Complete | Amount Due | |---|---|---|---|---| | 1 | Rough-in labor | $40,000 | 100% | $40,000 | | 2 | Rough-in materials | $25,000 | 100% | $25,000 | | 3 | Fixtures labor | $20,000 | 40% | $8,000 | | 4 | Fixtures materials | $15,000 | 30% | $4,500 | | 5 | Testing/inspection | $5,000 | 0% | $0 | | | Totals | $105,000 | 60% | $63,000 |
The Bottom Line
AIA billing is the standard payment language of the construction industry. If you're a subcontractor or consultant working on commercial projects, you'll need to understand G702/G703 forms. The structure — line items, retainage, percentage completion — is different from regular invoicing but follows a logical flow. Learn it well. (Bill construction projects correctly →) (Understand progress billing →) (Manage retainage →) Key Takeaways: 1. AIA billing uses standardized forms G702 and G703 for construction payment applications 2. G702 is the summary invoice; G703 is the line-item breakdown 3. An architect typically certifies progress before payment is approved 4. AIA billing includes explicit retainage calculations (typically 5-10%) 5. If you're a subcontractor in commercial construction, AIA billing is the standard Bill construction projects professionally — Try Eonebill Free Eonebill helps you create professional invoices and track project billing — including AIA-style progress billing with retainage calculations. View Pricing → | Glossary Home → | Home →