Fill out the G703 continuation sheet first, one schedule of values line at a time, then carry its totals to the G702 summary page, apply retainage, subtract what you were already certified, and sign.
Plan reviews connect field conditions, drawings, and the next decisions on a job. AI-generated illustration.
To fill out an AIA pay application, start with the G703 continuation sheet. List every line of your approved schedule of values, enter what was billed before, what you installed this period, and what material is stored, then total the columns. Those totals go onto the AIA G702 summary page, where you add change orders, take out retainage, subtract prior certificates, and arrive at the current payment due. The contractor signs (and notarizes if the contract asks for it), and the architect certifies the amount.
The order matters. AIA's own instructions say the summary information from the G703 is transferred to the G702 after the G703 is complete. People who start on the G702 and back into the detail are the ones who end up with a line 4 that does not match anything.
What the G702 and G703 are
The G702 is the Application and Certificate for Payment. It is one page: the contractor's request on the left, the architect's certificate on the right. The AIA G703 is the Continuation Sheet, the detail behind the request. AIA describes the pair as made for projects where the contractor has a direct agreement with the owner, with the procedures set out in the A201 general conditions. AIA does not publish a separate schedule of values form, so the G703 usually carries the SOV itself.
Step by step: filling out the G703
Columns A, B, and C. Enter the item number, description, and scheduled value for each line, straight from the schedule of values approved at the start of the job (or as adjusted). Keep the same breakdown every month. Column C should start out equal to the original contract sum.
Column D, from previous application. Copy what the last pay app showed in its columns D and E for each line. Do not carry over last month's stored materials here.
Column E, this period. Enter the value of work put in place since the last application. If material that was stored last month got installed this month, its value moves into E now.
Column F, materials presently stored. Enter the value of material stored and not yet installed, both new deliveries and older stored material still sitting on site or in an approved warehouse. Recalculate this total every period.
Column G, total completed and stored. Add D, E, and F. Divide G by C for percent complete.
Column H, balance to finish. Subtract G from C.
Column I, retainage. Use it only if your contract allows retainage to vary by line. If one flat rate applies to the whole contract, leave it blank and calculate retainage on the G702.
Subtotal and total. Subtotal column C at the bottom of each page except the last, and total it on the last page. Add up D through I the same way.
Step by step: filling out the G702
With the G703 totaled, the G702 is mostly arithmetic. The line labels below are the ones printed on the form.
The nine lines of the G702 contractor's application
Line
Label
Where the number comes from
1
Original contract sum
The signed contract. It never changes.
2
Net change by change orders
The change order summary box (approved changes only)
3
Contract sum to date
Line 1 plus line 2
4
Total completed and stored to date
Column G total from the G703
5
Retainage
Retainage on completed work plus retainage on stored material
6
Total earned less retainage
Line 4 minus line 5
7
Less previous certificates for payment
Line 6 from last month's certified application
8
Current payment due
Line 6 minus line 7
9
Balance to finish, including retainage
Line 3 minus line 6
The change order summary
The box at the lower left splits approved change orders into those approved in previous months and those approved this month, additions and deductions in separate columns. The net of that box is line 2. Pending change order requests do not go here. Bill them only after they are signed.
Signature, notary, and the architect's certificate
AIA's instructions say the contractor signs the G702, has it notarized, and submits it with the G703 to the architect. Sign in your actual capacity (president, partner, and so on). The architect reviews both pages and, if acceptable, completes the certificate. The architect can certify a different amount than you asked for, and when that happens AIA says the architect initials every changed figure on both forms and attaches an explanation. The owner then pays the certified amount.
Worked example: month three on a tenant improvement
Here is an illustration. Say a general contractor has a $480,000 tenant improvement with 10 percent retainage, plus one approved change order last month for $12,000 of added data cabling. Prior certified payments total $153,000 (line 6 of the month two pay app).
Example G703 totals and the resulting G702, month three
Item
Amount
Line 1, original contract sum
$480,000
Line 2, net change by change orders
$12,000
Line 3, contract sum to date
$492,000
G703 column D (previous applications)
$170,000
G703 column E (this period)
$95,000
G703 column F (stored: light fixtures in the space)
$18,000
Line 4, total completed and stored (column G)
$283,000
Line 5, retainage at 10 percent
$28,300
Line 6, total earned less retainage
$254,700
Line 7, less previous certificates
$153,000
Line 8, current payment due
$101,700
Line 9, balance to finish including retainage
$237,300
Check the math the way the reviewer will. Line 4 must equal the G703 column G total. Line 9 must equal line 3 minus line 6. Line 7 must match last month's line 6 as certified, not as you submitted it. If the architect cut month two by $4,000, your line 7 is the lower number.
Mistakes that get pay apps sent back
Line 4 does not tie to column G. Usually caused by a hand-typed G702 or a hidden spreadsheet row.
Billing unapproved changes. Pending pricing slips into line 2 or into a base line. Reviewers catch it and hold the whole application.
Stored material without backup. Many contracts require invoices, photos, insurance, or a bill of sale before stored material is paid. See how to bill stored materials.
Front-loading. Percent complete on early lines that runs well ahead of the field. Superintendents and lenders walk the job, and an obvious mismatch costs trust on every later pay app.
Using last month's submitted numbers instead of certified numbers for column D and line 7.
Missing attachments.Lien waivers, certified payroll on public jobs, and updated schedules are often required with each application. A perfect G702 still sits if the package is incomplete.
Smart Business Automator builds the continuation sheet from your schedule of values and approved change orders, carries certified amounts forward each month, and calculates retainage, so the G702 lines tie out before anyone signs. See construction accounts receivable automation.
Frequently asked questions
Does the AIA G702 have to be notarized?+
AIA's instructions say the contractor should sign the G702 and have it notarized. Some owners waive the notary in the contract, and some require it. Follow the contract and the owner's billing instructions for your job.
What goes in column I on the G703?+
Column I is for retainage when the contract allows different rates on different lines. If one flat percentage applies to the whole contract, AIA says the column does not need to be filled in, and retainage is calculated on line 5 of the G702.
Can a subcontractor use the G702 and G703?+
Many general contractors ask subs to bill on G702 and G703 or a look-alike form so they can roll the numbers into their own pay app. AIA designed the pair for contractors with a direct agreement with the owner, so read your subcontract for the required format.
What if the architect changes my numbers?+
The architect may certify a different amount and must initial the changed figures and attach an explanation. Use the certified figures as your starting point next month, and resolve the difference through the contract's dispute or change process.
Where do pending change orders go?+
Nowhere on the pay app until they are approved. The change order summary and line 2 include approved changes only. Track pending requests separately and push for signatures before the billing cutoff.
Alphabet's moonshot factory X just spun out Anori with $26 million in funding. The AI platform unifies developers, architects, engineers, and city officials to surface compliance conflicts in weeks instead of months. Permitting delays cost the US $100-140 billion annually. Anori targets 3-6 story multifamily first, then hospitals and data centers.
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Published transcript from Scaling Legends. It may contain transcription errors. View the source transcript.
You know that feeling when you are standing on a freshly graded lot, the sun is just coming up and you have like your entire crew lined up and ready to go. Oh yeah. Best feeling in the world until, well, you realize nothing is happening. Exactly. The heavy machinery is parked, the materials are staged, but the site is completely silent. Right. And the most agonizing part is that it is not a supply chain issue. It is not, um... a labor shortage it's the paperwork it's because a single piece of paper a permit is just stuck in some towering stack on someone's desk at City Hall. It really is a binary reality in this industry. Yeah, you either have the green light or you are bleeding cash every single day that lot sits empty. It truly is the ultimate bottleneck. I mean, we like to think of construction as this
dynamic, moving beast. But the reality is that so much of the life cycle is just, well, waiting. Yeah. It is a very visible, very frustrating pause button pressed on the entire physical world. Which is exactly why we were... tackling this head -on today. Welcome to this deep dive. Glad to be here. If you are a construction business owner, if you are part of the Scaling Legends community listening to this right now, this conversation is built specifically for you. Absolutely. Today, we are synthesizing a stack of tech specs out of Google's Moonshot Factory X, alongside some recent McKinsey data, and an exclusive market intelligence report to unpack a massive, honestly, almost unbelievable move in the industry. Yeah, the Google X development is huge. So get this. Google X has spent the last two years years quietly
building an AI platform called Inori. Right. And it just spun out. Exactly. It just spun out as its own independent company with $26 million in funding. And the claim they are making is incredibly bold. Extremely bold. They say this platform can slash construction approval times from years down to weeks. Which is a claim that demands serious scrutiny from our end. I mean, for anyone listening who actively manages a pre -construction pipeline, we really need to ask the core question here. Right. Is this real? Exactly. Is this just more Silicon Valley hype from people who have never actually worn a hard hat? Or is this a tangible, functional tool that will actually end permitting hell and completely change how you run your business? So here is the journey we are taking today to figure that out. Let's do it. First, we are going to diagnose
the multi -billion dollar root of this permitting problem. Then we are going to get into the actual mechanics of how Inori works. The how and the why. Right. Not just the what. And I am definitely going to push back on the messy reality of local politics versus clean tech. Fair enough. And finally, we will map out exactly how this impacts your business, your pipeline, and your competitive edge as we look toward 2026. Sounds like a plan. Because to really understand the value of a tool like Inori, we first have to quantify the sheer financial destruction caused by the current permitting process. It's massive. It is. Because it is not just an annoyance for a single contractor, right? It is a macroeconomic drain that affects everyone. Okay, let's unpack this. Just how bad are the numbers when we look at the industry as a whole?
Well, the direct spending on permitting in the U .S. alone sits between $5 and $14 billion annually. Wow. And that's just the direct costs. Yeah. That is just the administrative cost. Yeah. You know, the fees, the expediters, the paperwork itself. Right. But the real tragedy, like the silent killer of projects and pipelines, is the unrealized returns. Because the capital is just locked up. Exactly. Because projects are delayed in this bureaucratic purgatory, we are looking at between $100 and $140 billion in unrealized returns every single year. $140 billion. Every year. That is capital just tied up doing absolutely nothing. That is just insane. I mean, that is capital that could be building new businesses, funding affordable housing, upgrading infrastructure.
And instead, it is just sitting in a waiting room. Basically, yeah. How does that translate to the actual timeline of a project? Let's contextualize the timelines based on the source data here. Right now, a typical permitting process for a commercial or multifamily build takes... Four to five years. Four to five years? Four to five years, just to get the legal permission to build. That is wild. For context, complex manufacturing projects typically take two to three years to get through permitting. So building an apartment is slower than building a factory. Way slower. Even mining, which is an industry with massive environmental, geological, and safety hurdles, takes eight to nine years. Wow. Wow. The fact that a standard five -story building takes five years is just a structural failure. Completely.
Furthermore, McKinsey data indicates that construction costs increase by 24 to 30 percent over these extended project timelines, strictly due to these delays. Okay, so a $10 million project becomes a $13 million project before a single shovel even hits the dirt. Exactly. Let's anchor that for a second for everyone listening. In this industry, your pro forma is essentially your financial blueprint, right? It's the projected math that proves a project is actually viable to a lender. But when costs inflate by 30 % strictly due to holding delays, inflation, and material price shifts, that blueprint is completely wrecked. It totally blows up the budget. But why does it take so long? I mean, we have had building codes for a century. It's a fair question. To
me, the current process is like trying to write a single cohesive novel. But the developers, the architects, the structural engineers, the civil engineers, and the city planners are all locked in entirely separate rooms. Oh, that's a great way to put it. Right. And they are speaking completely different languages. They're using different software that just refuses to talk to each other. Yeah. So the architect writes a romance chapter, the structural engineer writes a sci -fi chapter, and months of duplicated work go by before anyone sits at a single table and realizes the chapters do not match up. Right. The plumbing is running straight through an elevator. Exactly. And that creates massive compliance conflicts. Your novel analogy hits the nail on the head. It is a systemic failure of communication. Yeah. And validating that exact point, Smart
Business Automator's Market Intelligence Report explicitly tracks this, noting that permitting currently stands as the number one source of pre -construction delays across the entire industry. Number one. Yep. It is those fragmented silos that cause the friction. Okay. I get the silo problem, but I have used construction management software before, and it usually just becomes, well, another silo. True. How is a tech spin -out going to force a 60 -year -old city planner, an architect, and a structural engineer to actually use the same tool? What does Inori actually do to break that cycle? What's fascinating here is the underlying mechanism of the technology. Inori uses parametric modeling and generative design. Okay, so not just digital blueprints. No, it is not just a digital drawing board. Think of it like a master chess player who can see
14 moves ahead. for every single discipline simultaneously. Oh, wow. Instead of an architect manually drawing a line and hoping it works, the AI ingests the city's specific messy PDF database of local building codes. Those are usually a nightmare to root. Oh, absolutely. But it turns them into mathematical constraints and then runs thousands of spatial simulations per second. So it's testing the building against the code in real time? Yes. It is optimizing across functionality, financials, compliance, zoning, efficiency, cost, materials, and design. all at the exact same time. So instead of the architect doing a drawing, passing the baton to the engineer to check the load, who then passes the baton to the estimator to check the cost,
who passes the baton to the city planner who says, no, this violates a setback rule, forcing everyone to start completely over for another six months, the AI is doing all of that complex math instantly. Exactly. It shifts the entire industry away from a sequential workflow. That makes so much more sense. It creates a collaborative, AI -assisted share workspace. The developers, the architects, and the city officials can all log into the same environment and view the trade -offs in real time. So they're literally on the same page. Exactly. If a city planner asks you to move a wall to satisfy a zoning setback, the AI instantly calculates how that impacts the material cost the structural load, and the project timeline. That is a total workflow revolution, and I guess it makes more sense when you look at the pedigree of the team behind this. It really
does. The CEO, Adrian Walker, isn't just some software guy who decided to, you know, disrupt construction. He brings deep operational experience. Very deep. He spent over nine years at Ford understanding complex, integrated manufacturing assembly lines, and then spent five years inside Google's X factory, specifically... building Inori. That manufacturing DNA is crucial here. Ford doesn't build cars in silos, right? They build them on an integrated assembly line. Right. Walker is essentially trying to build a digital assembly line for pre -construction. And Astro Teller, who is known as X's captain of moonshots, identified a very specific target for this technology. What was that? He called multifamily housing the most efficient way for people to live and an absolute necessity for the world to build in massive quantities. Which
explains Inori's strategic rollout. They aren't trying to boil the ocean and fix every single type of commercial construction at once. Right, they're starting focused. They are specifically targeting three to six story multifamily buildings first. Projects with like five to 100 units. From there, they plan to expand into hospitals and data centers. And if we connect this to the bigger macro picture, targeting multifamily housing first addresses a massive global urgency. The housing crisis. Exactly. We are looking at a reality where nearly 3 billion people may lack adequate housing by 2030. 3 billion. That's just staggering. It is. The traditional siloed method of building simply cannot scale to meet that demand. We physically cannot build fast enough
to house the global population if every single apartment complex takes five years just to permit. A shared workspace where an AI chess player instantly solves compliance is an incredible vision. But here is where it gets really interesting and, well, where I have to play the skeptic. Go for it. We are talking about the messy reality of the physical world. municipal planning departments are notoriously slow to adopt new technology. That is definitely true. You still have jurisdictions requiring physical stamped paper plans to be rolled up and dropped off at a desk. Furthermore, we all know that permitting delays are rarely just about math and setbacks. They're deeply political. You have intense zoning fights, aggressive community opposition, in -IMB -ism where neighbors
understandably want a say in their community's development, and fight tooth and nail against a new multifamily complex. Yeah, that's a huge factor. So can an AI really solve a deeply human, deeply political problem? This raises an important question, and it is crucial to separate Right. You can't shake hands. Exactly. It does not change the subjective desires of a community. What it does do, though, is accelerate the technical portion of that approval process. So it takes the math out of the debate, even if the debate still happens. Consider a scenario where a community raises a concern about a new building casting
shadows on a local park or, say, impacting traffic flow. Which happens all the time. All the time. Traditionally, the developer would have to go back to the drawing board for six months to redraw the plans, re -engineer the load, and reprice the materials. Just to answer one question. Right. But with this platform, the AI can instantly generate the revised models to address those shadow concerns in real time, proving compliance on the spot. Wow. Okay, that changes the dynamic of a town hall completely. It does. And to highlight just how localized and complex this issue is, Smart Business Automator's Market Intelligence Report actually tracks municipal permitting timelines by jurisdiction, revealing just how fragmented the adoption bottleneck truly is. Every single city has its own eccentricities. Uh -huh. So
synthesizing that reality, even if the political fights remain exactly as fierce as they are today, if Inori can compress just the technical administrative compliance phase from six months of back and forth emails down to six weeks of real time modeling, that alone is a totally transformative win. Exactly. You survive the town hall and instead of waiting another year for the revised plan approvals to clear the silos. You just start digging. It isolates the delay to just the political arena, removing all that bureaucratic friction that compounds it. So what does this all mean for the people actually pouring the concrete? Let's move from the software and the city directly to your bottom line. Good pivot. What does this acceleration mean for contractors bidding on and starting jobs as we look ahead to 2026? Well, if we connect
this to the bigger picture of industry capital, Inori is not an isolated event. It is part of a massive wave. A wave of funding. Yes. Property technology or prop tech funding hit $16 .7 billion in 2025. Silicon Valley is looking at the margins in construction and realizing that automating compliance is the next gold rush. Alphabet didn't just back Inori. They also backed a construction AI firm called Bedrock with $270 million. $270 million. Yeah. The market is aggressively moving toward this automation, which is evidenced by the search keyword construction technology, spiking 193 % on Google Trends. The wave is definitely coming. And the direct benefit for you as a contractor is clear. Faster permitting equals accelerated
project starts. Simple math. If developers aren't trapped in a five -year holding pattern, more work flows through your pipeline faster. But it also changes the nature of pre -construction bidding. How so? Contractors who deeply understand these digital compliance requirements, who can integrate with these shared AI workspaces, will gain a massive competitive advantage. If you can speak the AI's language, you become the obvious frictionless partner for the developer. That's a great point. And staying ahead these highly regional rules is actually getting easier for contractors who utilize the right tech stack. Right. For instance, Smart Business Automator's Market Intelligence Report highlights a compliance module designed specifically to flag permitting requirements by jurisdiction, keeping contractors
ahead of the curve before a conflict even arises. And this timeline compression isn't just about getting shovels in the ground faster. It radically alters your financial and tax strategy. Absolutely. If you are stuck in a five -year permitting loop, your capital's just tied up. But if platforms like Inori compress that to weeks, you are acquiring and deploying fixed assets much faster to keep up with the work. That's a good problem to have. It is. And that brings us to a crucial finding in the sources about your 2026 tax strategy. There are four key bonus depreciation tax tips for construction firms. Very timely. Just to anchor that, bonus depreciation allows you to deduct a large percentage of the purchase price of eligible heavy machinery and assets up front, rather than writing them off slowly over years.
But the most critical takeaway from the research is the intense pressure currently on IRS staff. Yes, this is huge. Because of the massive administrative backlog at the agency right now, the burden of proof is heavily on the business owner. Right. Submitting sloppy fixed asset documentation right now is like walking into a TSA line with your shoes still tied and metal in your pockets. You are guaranteeing yourself a massive delay and a brutal audit. Exactly. There is a critical, absolute need to meticulously document your fixed assets if you plan to utilize bonus depreciation. It all comes back to having your data organized and accessible, whether that is for a city planner looking at a digital permit model or an IRS agent
looking at a tax filing. Efficiency really is the new currency. It really is. So bringing this conversation full circle, whether Inori becomes the undisputed industry standard or whether it just paves the way for a dozen other platforms to tackle the issue, one thing is certain. The bottleneck is breaking. The $140 billion permitting problem is actively being solved right now. The imperative for you as a construction business owner is to position your business on the right side of that technological change. Do not be the one clinging to the fact machine when the rest of the industry is collaborating in real time. Well said. I'll leave you with a final forward -looking question to ponder. We spent a lot of time talking about how fragmented local jurisdictions are. Oh, yeah. But if AI platforms
like Inori successfully standardize the technical side of permitting across thousands of different municipalities, evaluating everything instantly, will we eventually see the emergence of a universal fast track building code? Oh, wow. Right. If an AI analyzes 10 ,000 local codes, it might eventually output the optimal super code. And if that happens, how will that fundamentally shift where developers choose to buy land and build their next massive projects? That is a fascinating thought. If the rules become universal and instant, the geographic map of where it is profitable to build completely changes. It really does. If you got value out of this deep dive, you know what to do. Subscribe to Scaling Legends on whatever platform you are using right now. Please leave a rating, drop a review and share
this with your colleagues, your project managers and your team. We want the whole community leveling up. Get the word out. And a massive thank you to our sponsor, Smart Business Automator. You can find them at smartbusinessautomator .com. Great platform. Look, we just talked about the absolute nightmare of admin, silos, and documentation. Smart Business Automator is an AI platform built explicitly for construction companies to scale without drowning in that paperwork. Which is what everyone wants. Exactly. It gives you smart document organization, auto -tagging your photos, plans, and RFIs so you never lose a file. It provides daily log and meeting summaries, document intelligence, natural language smart search, so you can just ask your database a question, and AI RFI assistance. It's super comprehensive. It is, and it goes deeper into your actual project
health too. Schedule risk detection, budget and variance insights, project health monitoring, change order impact analysis, automated report generation, and the compliance checking we talked about earlier. It really covers everything. They even offer custom AI workflows with API system integrations that connect directly into your accounting and ERP software. It is your entire back office brain automated. Visit smartbusinessautomator .com to check it out. Definitely worth a look. Next time you are standing on that silent Burt lot waiting for a piece of paper, just remember, the tech to clear that desk is already built. We'll catch you on the next one.
