GLOSSARY

Construction billing glossary

Short definitions of the terms that show up on every subcontractor pay application.

What is retainage?

A percentage of each progress payment withheld until completion or another milestone defined in the contract. Also called retention or holdback. Read the guide

What is schedule of values (sov)?

A list of the portions of contract work, each with an allocated value, that together equal the contract sum. Progress is billed against these lines. Read the guide

What is G702?

The AIA Application and Certificate for Payment: the summary page of a pay application showing contract sum, work to date, retainage, previous payments and current payment due. Read the guide

What is G703?

The AIA Continuation Sheet: line-item detail supporting the G702, with scheduled value, previous and current work, stored materials, percent complete and balance to finish. Read the guide

What is aia billing?

Progress billing using AIA-format G702/G703 pay applications built from a schedule of values. Read the guide

What is pay application?

A periodic request for payment based on the progress of work, usually monthly, submitted with required backup documents. Read the guide

What is lien waiver?

A document in which a party gives up some or all lien rights, commonly conditional on receiving a payment. Forms and requirements vary by state and project.

What is stored materials?

Materials delivered or stored for the project but not yet installed. They may be billable if the contract allows, usually with documentation.

What is change order?

A written change to the contract scope, sum or time. Approved change orders are added to the schedule of values and billed like other lines.

What is balance to finish?

The scheduled value minus work completed and stored to date: what remains to be billed on a line or contract.

What is continuation sheet?

Another name for the G703 line-item detail page of a pay application. Read the guide