What is progress billing (and AIA billing)?
Progress billing invoices a project in stages as the work is completed, rather than in one lump sum at the end. Each billing, called a pay application, claims a percentage of the contract based on work in place. On many commercial jobs this follows the AIA G702 and G703 format, which itemizes the schedule of values and the retainage withheld.
How a pay application works
You bill for the value of work completed in the period, usually as a percentage of each line in the schedule of values. The application shows work completed to date, the current amount due, and retainage withheld, so both sides agree on what is owed for this period.
Where AIA billing fits
AIA forms G702 (the application and certificate for payment) and G703 (the continuation sheet) are the standard format many general contractors require. Producing them accurately, with retainage handled correctly, is often the difference between a clean approval and a back-and-forth that delays your cash.