The "9 lines" on the AIA G702 form calculate your payment request step by step. Understanding each line helps you verify your pay applications and communicate effectively with GCs about billing.
The 9-Line Structure
Each line builds on previous lines to arrive at your current payment due. Here's exactly what each line represents and how it's calculated.
Line 1: Original Contract Sum
This is the total value of your signed contract before any change orders. This number never changes throughout the project - it's locked at the original contracted amount.
| Field | Value |
|---|---|
| Example | $500,000.00 |
| Source | Your signed contract |
| Changes? | Never - this is fixed |
Original vs. Current
Line 2: Net Change by Change Orders
The sum of all approved change orders, whether additions or deductions. This can be positive (additions exceed deductions) or negative (deductions exceed additions).
| Field | Value |
|---|---|
| Formula | Sum of all approved change orders |
| Example | +$25,000.00 (two COs: +$40,000 and -$15,000) |
Approved Only
Line 3: Contract Sum to Date
Your current total contract value, combining the original contract with all approved change orders.
| Field | Value |
|---|---|
| Formula | Line 1 + Line 2 |
| Example | $500,000 + $25,000 = $525,000.00 |
Line 4: Total Completed and Stored to Date
The cumulative value of all work completed and materials stored from project start through this billing period. This comes directly from your G703 grand total (Column G total).
| Field | Value |
|---|---|
| Source | G703 Column G Grand Total |
| Includes | Previous work + This period + Materials stored |
| Example | $200,000.00 |
Line 5: Retainage
The total retainage being held on your completed work and stored materials. Typically calculated as a percentage of Line 4.
| Field | Value |
|---|---|
| Formula (typical) | Line 4 x Retainage Percentage |
| Example (10%) | $200,000 x 10% = $20,000.00 |
Complex Retainage
Line 6: Total Earned Less Retainage
The amount you've earned that's actually payable (not being held as retainage).
| Field | Value |
|---|---|
| Formula | Line 4 - Line 5 |
| Example | $200,000 - $20,000 = $180,000.00 |
Line 7: Less Previous Certificates for Payment
The cumulative amount previously certified for payment (what's been approved on all prior pay applications). This is Line 6 from your previous pay app.
| Field | Value |
|---|---|
| Source | Previous Pay App Line 6 |
| Example | $120,000.00 |
First Pay App
Line 8: Current Payment Due
This is the amount you're requesting for this billing period - the bottom line of your pay application.
| Field | Value |
|---|---|
| Formula | Line 6 - Line 7 |
| Example | $180,000 - $120,000 = $60,000.00 |
| Meaning | Amount you are requesting this period |
Line 9: Balance to Finish, Including Retainage
How much of your contract remains to be billed, including the retainage being held. This tells you how much revenue is still to come.
| Field | Value |
|---|---|
| Formula | Line 3 - Line 4 |
| Example | $525,000 - $200,000 = $325,000.00 |
| Includes | Remaining work + Held retainage |
Complete Example
Here's a full example showing all 9 lines for Application #3 on a project:
| Line | Description | Amount |
|---|---|---|
| 1 | Original Contract Sum | $500,000.00 |
| 2 | Net Change by Change Orders | $25,000.00 |
| 3 | Contract Sum to Date | $525,000.00 |
| 4 | Total Completed and Stored to Date | $200,000.00 |
| 5 | Retainage (10%) | $20,000.00 |
| 6 | Total Earned Less Retainage | $180,000.00 |
| 7 | Less Previous Certificates | $120,000.00 |
| 8 | Current Payment Due | $60,000.00 |
| 9 | Balance to Finish, Incl. Retainage | $325,000.00 |
Verification
Common Calculation Errors
Line 7 Mismatch
The most common error is Line 7 not matching the previous application's Line 6. This happens when updating previous applications without recalculating subsequent ones. RIVET prevents this by maintaining the chain automatically.
Retainage Calculation
Manually calculating retainage often leads to rounding errors. When different rates apply to work vs. materials, mistakes are even more common. RIVET calculates these precisely.
Change Order Timing
Including pending (not yet approved) change orders in Line 2 is incorrect and will cause rejection. Only approved COs belong in your payment calculations.
Automatic Verification
Quick Reference: Formula Summary
| Line | Formula |
|---|---|
| Line 1 | Original contract (fixed) |
| Line 2 | Sum of approved change orders |
| Line 3 | Line 1 + Line 2 |
| Line 4 | G703 Column G total |
| Line 5 | Line 4 x Retainage % |
| Line 6 | Line 4 - Line 5 |
| Line 7 | Previous pay app Line 6 |
| Line 8 | Line 6 - Line 7 |
| Line 9 | Line 3 - Line 4 |
Next Steps
Now that you understand the calculations, learn how to create a pay application in RIVET.
Need Help?