When must the owner pay?

State prompt-payment laws apply. California: 7 days after architect certifies pay app for prime contractor; 7 days from prime contractor's receipt of payment for subcontractors. Oregon ORS 701.620: 14 days after submission. Texas Property Code §28: 35 days from invoice. Late payment triggers statutory interest (often 1.5%/month) plus attorney's fees on wrongful withholding.

Can the owner pay less than requested?

Yes, with documentation. The architect or owner's rep certifies the amount; the certified amount may be less than the contractor's request based on actual work observed. Disputed amounts can be paid into escrow or held subject to mediation. Pay-when-paid clauses (where GC pays subs only after receiving payment from owner) are common but limited by state law in many places.

What about stored materials?

Materials delivered to the site or to a designated storage location but not yet incorporated. Owners typically pay for stored materials with conditions: (1) materials are at the project site (or specifically segregated at a bonded storage facility); (2) materials are insured; (3) ownership transfers to owner at payment; (4) lien releases for the materials provided. Stored materials present additional risk for the owner; verify all conditions before paying.

Should I require AIA forms specifically?

Not necessary for residential. AIA G702/G703 are copyrighted forms (require AIA Document Online subscription); G702-style replicas are common and adequate. Public projects, lender-financed projects, and large commercial often require official AIA forms. Custom pay-app forms are common for smaller projects.

Can I dispute a pay application?

Yes - the owner or architect certifies the amount actually owed; the certified amount may be less than requested. Reasons to certify less: scope changes not properly documented, percentage-complete overstated, retainage incorrectly calculated, change orders not approved. Disputed amounts can be addressed through mediation, partial payment with continued dispute on remaining, or court action. State prompt-payment laws limit ability to withhold without good cause.

Contractor Payment Application (AIA G702-style)

Standard pay-application form for periodic progress billing - AIA G702-G703 inspired format.

Customise

Contractor — name

Contractor address

Project name

Project address

Owner — name

Contract number

Pay application number

Period covered — from

Period covered — to

Original contract value (USD)

Approved change orders total (USD; +/-)

Current contract value (USD)

Work completed to date (USD)

Stored materials not yet incorporated (USD)

Total completed + stored (USD)

Retainage percent (typically 5-10%)

Previous payments (USD)

Amount due this request (USD)

Line-item breakdown (one per line)

Live preview

APPLICATION FOR PAYMENT

═══════════════════════════════════════════════════════════════════════

PROJECT

  Project name:         Taylor Kitchen Remodel
  Project address:      482 Elm Street, Apt 3B, Portland, OR 97214
  Owner:                Jordan Alex Taylor
  Contract number:      PHR-2026-04481
  Pay app number:       PA-003
  Period covered:       April 1, 2026 to April 30, 2026

CONTRACTOR

  Name:                 Pacific Home Renovations LLC
  Address:              880 SE Hawthorne Blvd, Portland, OR 97214

═══════════════════════════════════════════════════════════════════════

CONTRACT SUMMARY

  Original contract value:                     $38,500.00
  + Approved change orders:                    $1,280.00
                                              ──────────────
  Current contract value:                      $39,780.00

═══════════════════════════════════════════════════════════════════════

WORK SUMMARY

  Work completed to date:                      $33,800.00
  + Stored materials (not yet incorporated):   $0.00
                                              ──────────────
  Total completed and stored:                  $33,800.00

  Less retainage at 5.0%:                 ($1,690.00)
                                              ──────────────
  Less retainage subtotal:                     $32,110.00

  Less previous payments:                      ($19,250.00)
                                              ──────────────
  AMOUNT DUE THIS REQUEST:                     $12,860.00

═══════════════════════════════════════════════════════════════════════

LINE-ITEM BREAKDOWN

Line item                              Schedule    Completed    Stored      This pay
Demolition                            $1,800     $1,800       $0          $0
Rough-in (electrical, plumbing)       $4,500     $4,500       $0          $0
Framing and drywall                   $3,200     $3,200       $0          $0
Cabinet installation                  $9,800     $9,800       $0          $9,800
Countertop installation               $5,200     $4,500       $0          $4,500
Flooring                              $4,000     $3,500       $0          $3,500
Lighting and electrical                $3,200     $2,500       $0          $2,500
Painting                              $2,800     $1,800       $0          $1,800
Punch list and final clean            $4,000     $2,200       $0          $0
TOTAL (subject to retainage)         $38,500    $33,800      $0          $22,100

═══════════════════════════════════════════════════════════════════════

CONTRACTOR CERTIFICATION

The contractor certifies that:
  - All amounts requested are for work actually performed or materials actually delivered.
  - All previous progress payments have been used to pay for labor, materials, equipment, and services applied to the project.
  - The work is in compliance with the contract documents.
  - All taxes, premiums, and obligations to subcontractors and material suppliers for work covered by previous progress payments have been paid.

═══════════════════════════════════════════════════════════════════════

SIGNATURES

Contractor:


_______________________________            Date: May 5, 2026
Pacific Home Renovations LLC (by authorised representative)


Architect / Owner Approval:


_______________________________            Date: ____________________
Reviewer (Architect / Owner / Project Manager)

About this template

A construction pay application is the standard document by which a contractor requests progress payment from the owner. The American Institute of Architects (AIA) G702 (Application and Certificate for Payment) and G703 (Continuation Sheet) are the dominant industry-standard forms; private contractors often use G702-style applications without the AIA copyrighted forms. The pay application includes: (1) Contract Summary - original contract value plus approved change orders equals current contract value; (2) Work Summary - work completed to date plus stored materials minus retainage minus previous payments equals amount due; (3) Line-item breakdown showing percentage complete of each scheduled value; (4) Contractor certification of accuracy. Retainage is the percentage withheld from each progress payment to ensure final completion - typically 5-10% on residential, 10% on commercial, with state laws often imposing maximum retainage rates (California: 5% on private projects, 5% public; Oregon: typically 5-10%; varies). Retainage is released at substantial completion. The schedule of values (the line-item budget) is established at contract signing and forms the basis for percentage-complete billing. Owners review pay applications carefully: verify percentage complete is accurate (visit the site, check against scope); verify change orders cited are signed; verify retainage is being held; verify previous payments are correct. Disputed pay applications are common - the architect or owner's rep can certify a different amount than the contractor requests. State prompt-payment laws (California Civil Code §8800; Oregon ORS 701.620; Texas Property Code §28; etc.) typically require owner to pay within 30 days of certified pay application or face statutory interest and attorney's fees on amounts wrongly withheld.

When to use it

Periodic progress billing on construction project.
Standard pay application replacing informal invoices.
Project requiring detailed work-completion documentation.
Public-works projects (typically required).
Lender-financed projects (lender often requires AIA-style apps).

What to include

Contractor and project identification.
Pay application number and period.
Contract summary (original + change orders).
Work summary (completed + stored).
Retainage calculation.
Previous payments.
Amount due this request.
Line-item breakdown.
Contractor certification.

Frequently asked

A percentage withheld from each progress payment to ensure project completion - typically 5-10% on residential, 10% on commercial. Released at substantial completion (after punch list resolved). State laws often cap retainage rates and govern release timing. California Civil Code §7107 specifies retainage release on private works. Excessive retainage withholding beyond statutory cap can support contractor claim for amount wrongly withheld plus interest.

⚠ Legal disclaimer. AIA G702/G703 are copyrighted forms; G702-style is common substitute for residential. State prompt-payment laws (California Civil Code §8800; Oregon ORS 701.620; Texas Property Code §28; etc.) impose deadlines for owner payment with penalties for late payment. State retainage rules vary. For commercial or large residential projects, consult construction attorney for state-compliant pay-app procedures.