AIA Billing in Construction - What It Is, Challenges & Acumatica ERP

What AIA Billing Means

AIA billing is the construction industry’s standard method for progress payments on commercial projects. It was designed for large, architect-led commercial jobs, but it can also be used on high-end residential or mixed-use projects when owners and architects want a formal, standardized process.

Progress billing allows contractors to be paid as work is completed instead of waiting until an entire job is finished, helping keep projects funded and crews paid.

To support this process, the American Institute of Architects (AIA) created a set of contract documents that provide the official framework for progress billing.

These documents—especially the two primary forms below—set clear rules for payment terms, billing schedules, and project requirements so everyone follows the same standards:

• G702 – Application for Payment
  The formal request for payment. It summarizes the total contract value, work completed to date, retainage held, previous payments, and the amount currently due—all while reflecting approved change orders. This form requires contractor certification and review by the architect or project owner before payment is released.

• G703 – Continuation Sheet (Schedule of Values)
  A detailed ledger of every project task, line item, and associated cost—showing work completed, stored materials, and approved change orders. The Schedule of Values serves as the billing roadmap and ensures each payment request matches actual progress.

Beyond these two core forms, every application for payment must include supporting documentation to back up the numbers, such as:

• Invoices for stored materials

• Approved change orders

• Lien waivers

• Delivery slips

• Insurance certificates

Attaching these documents speeds reviews, reduces disputes, and creates a reliable audit trail.

By working from this standardized structure and maintaining complete documentation, contractors, project owners, and architects can quickly verify progress and approve payments—reducing confusion, avoiding disputes, and keeping projects on schedule.

Key Components of AIA Billing

AIA billing relies on a few core elements that work together to create clear, accurate payment applications:

• Schedule of Values (SOV)
  A detailed ledger of every project task, line item, and associated cost—showing work completed, stored materials, and approved change orders.

  The SOV acts as the project’s billing roadmap, justifying each amount requested so invoices always match actual progress.

• Supporting Documentation
  Invoices for stored materials, approved change orders, lien waivers, delivery slips, and insurance certificates verify billed work and speed reviews.

  Keeping these documents attached to each application creates a reliable audit trail and reduces the chance of disputes.

• G702 & G703 Forms in Action
  The G702 (Application for Payment) summarizes the project’s status—contract value, prior payments, current amounts due, and retainage.

  The G703 (Continuation Sheet) breaks out each SOV item, percent complete, stored materials, and any deductions—providing the granular detail owners and architects need to validate billing claims.

Together, these components produce a standardized, complete record of contractor progress that can be quickly reviewed and approved—keeping projects funded and work moving on schedule.

Common Challenges in AIA Progress Billing

Even with standardized AIA forms, billing can become difficult when the process depends on spreadsheets, email chains, or paper files.
Construction companies often describe billing week as a scramble of documents and last-minute approvals.

Several issues tend to surface:

• Errors and Missing Information
  Incomplete or incorrect entries—whether in schedules of values, quantities, or supporting documents—can slow approvals and lead to payment disputes.

• Delayed Approvals
  When required documents such as invoices, lien waivers, or insurance certificates are missing, payment applications stall until everything is located and verified.

• Contractual Requirements Not Met
  If work is not completed or change orders haven’t been fully approved, payments can be delayed while discrepancies are resolved.

Other common obstacles include:

• Scattered Information – Invoices, delivery slips, lien waivers, and insurance certificates may sit in emails, network drives, or job trailers. Tracking them down wastes time and makes it hard to maintain a reliable record of project transactions.

• Spreadsheet Limits – Multiple file versions and manual data entry often lead to broken totals and inconsistent numbers. A single typo can throw off billed amounts and create disputes.

• Change Orders That Lag – Construction rarely follows the original plan exactly. When change orders arrive mid-cycle, updating every schedule of values manually is slow and risky.

• Verifying Stored Materials – Materials delivered but not yet installed require precise documentation to justify costs. Without a central system, proving status can turn into lengthy back-and-forth communication.

• Limited Real-Time Visibility – When job costs and contract data aren’t updated instantly, project managers and finance teams may be working with outdated numbers. Financial forecasting becomes unreliable and deadlines are easier to miss.

These issues do more than slow approvals—they can squeeze working capital, delay subcontractor payments, and push project schedules off track.

These AIA billing challenges can be fixed with a single, connected system that keeps project data, change orders, and payment documents in one place—so billing stays accurate and approvals move faster.

How Acumatica Handles AIA Billing

Acumatica Construction Edition provides that connected system. Instead of relying on spreadsheets or separate add-ons, Acumatica provides one connected system where every part of the G702/G703 process lives together. The result is a structured, standardized workflow that keeps billing consistent and efficient across all construction projects.

Core AIA Billing and Payment Applications Features

• Build and update the Schedule of Values (G703)
  Create the schedule once inside Acumatica. Each billing cycle, the system automatically pulls updated quantities, completed percentages, prior billings, and labor hours so the continuation sheet is always current—no manual re-entry required.

• Generate pay applications (G702 Application for Payment)
  When it’s time to bill, Acumatica compiles contract totals, approved change orders, retainage, and current amounts due directly from live job-cost and contract data to produce the official AIA pay app with a click.

• Attach and organize supporting documents
  Invoices, lien waivers, delivery slips, and insurance certificates can be uploaded and linked directly to each pay application. Reviewers see everything in one place, making approvals faster and more accurate.

• Track retainage, progress payments, and change orders automatically
  Retainage percentages are calculated and released based on project rules, while approved change orders flow seamlessly into the SOV and G702 forms. Progress payments and payment milestones are tracked automatically so requests are always accurate and up to date.

2025 R1 Enhancements

• Blended Time-and-Material (T&M) and Progress Billing
  Contractors can now pull T&M billing lines from proforma invoices directly into AIA reports, combining T&M and progress billing on a single pay application for more flexible contract handling.

• Improved Cost Projections and Dashboards
  New dashboards highlight overbilling, underbilling, and margin risks instantly—helping contractors protect cash flow and reduce financial surprises.

• Refined Retainage Automation
  Retainage can be automatically calculated, tracked, and released across multiple invoices. Users can adjust retainage percentages and consolidate releases, and clearer AR documentation simplifies compliance and owner reporting.

These upgrades make Acumatica even more powerful and accessible for contractors of all sizes.

Built for Mobile and Every Team Size

• Mobile and Field Collaboration
  Field staff can record progress, upload photos, and attach supporting documents directly from phones or tablets. This shortens billing cycles and prevents errors caused by delayed or incomplete field reports.

• Scalable for Any Size Contractor
  Whether you’re a small specialty contractor or a large general contractor, Acumatica’s flexible licensing and unlimited-user model give everyone access to the same AIA billing tools without extra cost or complexity.

Complete Visibility and Audit Trail

Every step of the billing process—data changes, document uploads, and approvals—is logged and accessible.
Auditors and project owners can quickly trace every figure back to its source, making compliance and project oversight straightforward.

Because all job and financial data stay connected and visible in real time, contractors gain a billing process that’s faster, clearer, and easier to manage—from the first Schedule of Values to the final payment.

Key Benefits for Construction Companies Using Acumatica AIA Billing

Using Acumatica for AIA billing strengthens the financial side of construction projects in practical, measurable ways:

Keep Payments on Track

Acumatica’s automation helps create well-documented, accurate billing applications, reducing delays and supporting smoother payroll and supplier payments.

Cut Down on Paperwork

Centralized data and automated forms eliminate duplicate data entry and manual document searches, so project teams can focus on building instead of paperwork.

Improve Project Communication

Every change order, progress update, and supporting document is tracked in the system, making it easier to answer questions from owners and architects and reducing payment disputes.

Scale Projects with Ease

Acumatica’s connected, role-based design and flexible licensing work for both small contractors and large firms, handling additional or larger projects without extra administrative burden.

Simplify Audits and Compliance

Digital records keep payment histories and all supporting documentation organized, streamlining bonding, lender reviews, and year-end audits.

Manage Billing in One Place

By keeping contract data, change orders, and AIA forms together in one ERP, Acumatica streamlines the process of submitting, validating, and approving payments—helping projects stay funded and on schedule.

These measurable improvements—more predictable payments, reduced manual work, stronger audit readiness, and easier scaling—are key reasons construction firms choose Acumatica for AIA billing and overall financial management.

Streamline Your AIA Billing Process with Acumatica ERP

If billing still depends on spreadsheets or disconnected systems, it may be time to see how Acumatica can automate every AIA document—from contract to cash—including G702 and G703 forms.

By streamlining the entire process, Acumatica delivers the speed, clarity, and confidence construction teams need to keep projects funded and on schedule.

For a deeper look at how connected financial tools strengthen every part of construction billing and job costing, check out our free guide: Build Smarter: Construction Finance ERP Guide.