Continuation sheets, such as the AIA G703 form, provide key pieces of information on each item of work that general contractors and project owners use to monitor the progress of that job. At a glance, they provide a convenient overview of what percentage of the job has been completed, how much of the project remains, how much has been spent, and how much money is required to finish the job.
In the overall payment application process, continuations sheets function as supporting documents for the G702 application form.
Continuation sheets play a vital role in facilitating payments, ensuring accuracy, and monitoring work. When filling out at G703 form it is crucial to provide as much information as possible. Even if not using AIA billing, these continuation sheets are important because it gives general contractors a clear view of the status of projects. In addition, it functions as a way to cross-reference previous payment applications to double-check the payment figures.
For this reason, the G703 continuation sheet is a pivotal tool for ensuring accurate billing and tracking of construction projects. This article will provide a section-by-section walkthrough for filling out the G703 form correctly and efficiently.
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AIA G703 part I: Project information
Start by filling out the header with basic project information; this should reflect the same information that was provided at the top of the G702 form. This will include information such as the application number, date, and billing period.
AIA G703 part II: Table of work and values
The table of work and values is for contractors to list each work line item with the associated cost or value and accounting of work and materials. Below we will go through each column and explain what information is needed.
Regardless of which column is being filled out, make sure to double-check that the information provide is accurate. If numbers are off, even slightly, it can significantly throw off the entire payment application and hurt your chances of getting paid on time.
Before we get into each column, it should be noted that for each column except A and B, contractors will need to add up the amount and put the total under “Grand total” for each column.
Column A
For column A, subcontracts will need to input item no. for each line item. This number can be customized, but many contractors choose to use the CSI provided by MasterFormat numbers. These numbers work similarly to cost codes by providing a standardized code to classify work. For example, structural metal stud framing is assigned a code of 05 41 00.
Column B
Following the line item number, column B will prompt contractors to provide a brief description of the completed work. Provide a description of work denoting what type of labor is being performed and with what materials.
Column C
Column C, or scheduled value, will list the cost to complete each line item. The amounts here should match up to the contract’s schedule of values and should equal the original contract sum, unless adjusted by change orders. For columns B and C, multiple pages may be needed to list everything, especially on larger projects. If this is the case, column C should be subtotaled at the bottom and then totaled with the final amount on the last page.
Column D
Column D, or “work completed from previous applications,” is the value of all the work that has been finished prior to the current payment application. You can retrieve this number from the previous continuation sheet that you filled out by looking at Columns D & E and adding those amounts up. However, do not include any unused stored materials on the site that have been purchased and stored (column F from the previous pay application).
Column E
Column E will ask for “work completed this period.” This is simply asking – how much work did you do, and what was the value of that work?
Column F
Column denotes “Materials Presently Stored.” This column is for listing the value of all materials that have been purchased and stored on the job site. Take careful consideration only listing the value of materials purchased through the current pay period. Only as materials are used is the value then deducted from this column and put into column E. Do not overbill on this section by including materials that will be purchased in the future. Overbilling in this section can put the entire payment application in jeopardy once it’s reviewed.
Column G
Column G will list the “Total completed and stored to date.” All that is needed for this column is a few basic calculations: Add up columns D, E, and F (D + E + F = G).
The resulting number is meant to represent all labor and materials that you, the contractor, have contributed to each line item for this billing period. From here, you will need to calculate the percentage completed by dividing column G by column C. This percentage is used to quickly show how much of each line item is complete and how much is left to complete.
Column H
Column H will reflect the “Balance to finish” or how much money is needed to complete the work from each line item. To calculate this, determine the difference between column C from Column G.
- Column H = Column C – Column G
Column I
Column I will indicate “variable retainage.” This column is reserved for contracts where variable retainage is in place. If retainage is fixed at a specific percentage for the entirety of the project, you can leave this column blank.
Continuation sheets build off one another – so if one is inaccurate, all subsequent sheets will therefore be inaccurate as well. Pay attention to detail, double-check information, and ensure you are providing as much detail as possible.
Benefits of using G703 continuation sheet
A g703 continuation sheet or forms that follow a similar format will oftentimes be required in order for subcontractors to be adequately paid on time. For this reason, they play a vital role in cash flow management. As we have seen, general contractors and owners will need to see a detailed breakdown of labor, materials, equipment, and other associated costs. These sheets allow contractors to easily document all of this information and present it for review.
Additionally, it helps ensure that all costs are being accurately tracked and recorded, which not only helps the project owner asses the job but gives the subcontractor another means to gauge their own finances, allowing them to make an informed decision to ensure fair compensation.
If a subcontractor feels they are not being fairly compensated, a comprehensive continuation sheet can serve as compelling evidence for any payment disputes. Ultimately they serve as a multi-functional tool for assessing job progress and streamlining the progress payment process.
How much does AIA G703 form cost?
Contractors can purchase a 50-pack of AIA G703 forms directly from the American Institute of Architects through their website for $149.99. Alternatively, you can purchase a one-year subscription for $1,599.99, which includes unlimited use on all AIA contract documents. Discounts are also provided to AIA members looking to purchase G702 and G703 documents.
Invoicing with Knowify
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