Pay Applications Are a Critical Architect Responsibility - and a Liability
The payment certification process is one of the architect's most consequential construction administration responsibilities. When the architect certifies a pay application, they are not just approving a payment - they are making a professional certification that the work has been performed to the degree represented. The AIA G702 and G703 are the standard forms for this process, and understanding how they work - what the architect certifies and what they cannot verify - is essential knowledge for both PjM and CE.
AIA G702: Application and Certificate for Payment
The G702 is the summary sheet that the contractor completes and submits to the architect for each pay period (typically monthly). It shows the schedule of values summary, the total completed-to-date, the amount of stored materials, retainage held, previously certified amounts, and the current amount due. The bottom portion of the G702 is the Certificate for Payment, which the architect signs when approving the application.
When the architect signs the G702, they certify to the owner that: (1) the Work has progressed to the point indicated, (2) to the best of their knowledge based on site observations and the data comprising the application, the Work has been performed in accordance with the Contract Documents, and (3) the amount certified is properly due.
AIA G703: Continuation Sheet
The G703 is the line-item breakdown that supports the G702. It lists every item from the schedule of values with columns showing: scheduled value, work completed in previous periods, work completed in current period, stored materials, total completed to date, percent complete, balance to finish, and retainage. The G703 allows the architect to see exactly where each budget item stands and identify any anomalies - such as over-billing on early items (front-loading) while under-billing on later items.
What the Architect Certifies - and Does Not
This distinction is critical for the exam. The architect certifies payment based on observations and review of the contractor's application - not a comprehensive audit or inspection. The architect does not certify that they have inspected all work or that all work is in exact conformance with the documents. They certify based on their professional judgment from site observations and the data submitted. If the contractor has concealed defective work, the architect is not automatically liable for certifying payment unless their site observation was unreasonably inadequate.
Schedule of Values
Before the first pay application, the contractor submits a schedule of values - a breakdown of the contract sum allocated to the major components of the work. The architect reviews the schedule for appropriate weighting. Front-loading (over-allocating value to early work items) is a form of overbilling and should be rejected. The approved schedule of values becomes the basis for all future pay applications through the G703.
Retainage
Retainage is a percentage of each pay application (typically 10%) withheld by the owner to ensure the contractor completes the work. As the project nears substantial completion, retainage may be reduced (often to 5% for work that is substantially complete). Retained funds are released with or after final payment following all closeout requirements.
Key Exam Points
- G702 = summary application and certificate; architect's certification is at the bottom.
- G703 = continuation sheet with line-by-line schedule of values breakdown.
- Architect certifies based on observations and data - not a comprehensive inspection.
- Front-loading the schedule of values is inappropriate; architect should reject it.
- Retainage (typically 10%) held until substantial completion or as modified by contract.
- Architect must certify within 7 days of receiving application under A201.
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