AIA billing — using the American Institute of Architects G702 and G703 payment application forms — is required on many commercial roofing jobs. If you've never done it before and a GC just handed you a contract that says "progress billing per AIA G702/G703," this guide explains exactly what that means, when roofing contractors need it, and how to connect it to your QuickBooks bookkeeping workflow.
What Is AIA Billing?
AIA billing is a standardized method of requesting progress payments on construction projects using forms developed by the American Institute of Architects. It replaced the informal "send an invoice for whatever you've done" approach with a structured, line-by-line payment application that shows exactly what work has been completed, what has been billed previously, what retainage is being withheld, and the net amount due for the current period.
The format is standard across the construction industry, which makes it the default billing method required by most GCs, owners, and government entities on commercial projects.
G702 vs G703: What's the Difference?
| Form | Name | What It Contains |
|---|---|---|
| G702 | Application and Certificate for Payment | The summary cover page — total contract value, change orders, work completed to date, materials stored, retainage withheld, previous billings, and the net amount currently due. Signed by the contractor and certified by the architect. |
| G703 | Continuation Sheet | The line-by-line detail — the schedule of values broken into individual work items, showing budgeted value, percent complete, amount billed this period, total billed to date, and balance remaining for each line. |
The G702 summarizes the G703. You submit both together as your payment application. The architect reviews the G703 line by line to verify the percentages complete claimed, then certifies the G702 for payment. The owner pays based on the certified G702 amount.
What Is a Schedule of Values?
A schedule of values (SOV) is a breakdown of your total contract amount into individual line items, showing how the contract price is allocated across different portions of the work. For a roofing contractor, a typical schedule of values might look like this:
| Line Item | Scheduled Value | % Complete (App #2) | Work This Period | Total Billed to Date |
|---|---|---|---|---|
| Mobilization | $4,000 | 100% | $0 | $4,000 |
| Tear-off & disposal | $8,500 | 100% | $0 | $8,500 |
| Underlayment | $6,200 | 100% | $0 | $6,200 |
| Shingles — field | $28,000 | 60% | $16,800 | $16,800 |
| Shingles — ridge & hip | $3,800 | 0% | $0 | $0 |
| Flashing & metal work | $5,500 | 0% | $0 | $0 |
| Cleanup & closeout | $2,000 | 0% | $0 | $0 |
| Total | $58,000 | $16,800 | $35,500 |
The SOV must be submitted and approved by the architect or GC before the first payment application. Once approved, the line items and values are locked — you cannot change them mid-project. Changes in scope go through a formal change order process, which adds a new line to the G703.
When Do Roofing Contractors Need AIA Billing?
You need AIA billing when your contract requires it. This is almost always the case for:
- Commercial roofing projects over $50,000 with an architect or owner's representative
- Any project where you're a subcontractor to a GC — the GC is likely billing the owner with AIA and will require the same from their subs
- Public projects — schools, government buildings, municipal facilities
- Multi-family projects (apartment buildings, condos) with an owner's rep
- Healthcare facilities and institutional buildings
You almost never need AIA billing for residential work — insurance claims, standard retail re-roofs, or residential new construction paid by the homeowner directly.
How to Connect AIA Billing to QuickBooks
QuickBooks Online does not natively generate G702/G703 forms. The practical workflow most roofing contractors and their bookkeepers use is:
- Set up a Project in QuickBooks for the job — this is your job costing container. The schedule of values line items correspond to how you'll track costs per category.
- Prepare the G703 externally — in Excel, Google Sheets, or a construction billing app like DocuSketch, Buildertrend, or Sage. Track percentage complete and billing per line item.
- Calculate the net payment due from the G702 — total work completed minus previous billings minus retainage withheld equals the amount to invoice in QuickBooks.
- Enter the invoice in QuickBooks — create an invoice for the net amount due this period, assigned to the Project. Use line items that correspond to your SOV categories for cost-matching.
- Track retainage — the retainage withheld each period should be recorded to your Retainage Receivable account in QuickBooks, not ignored. See our retainage tracking guide.
- Record costs against the Project — all materials, labor, and subcontractor costs are entered in QuickBooks as bills/expenses assigned to the Project. This gives you real job costing alongside your AIA billing.
At JobCostBooks, we manage the QuickBooks side of this workflow — setting up Projects, recording invoices per payment application, tracking retainage, and reconciling the job at completion. The G702/G703 forms themselves are prepared by your project manager or estimator; we make sure the financial data in QuickBooks matches them exactly.
How Retainage Works in AIA Billing
Retainage is built into the AIA G702/G703 format. Each payment application shows the retainage percentage, the retainage amount withheld to date, and the balance of retainage that will be released at project completion.
A typical AIA project withholds 10% retainage through substantial completion, then reduces to 5% for the final period, and releases all retainage after final completion and architect sign-off. On a $200,000 roofing contract, this means $20,000 is withheld through most of the project — money you've earned but won't receive until completion documentation is accepted.
Common AIA Billing Mistakes Roofing Contractors Make
| Mistake | Consequence | Fix |
|---|---|---|
| Submitting payment applications late | GC billing cycles have cutoffs — miss it by a day and payment is delayed 30 days | Know the GC's billing cutoff date (usually 25th of each month). Submit by the 20th. |
| Over-claiming percentage complete | Architect rejects the application. Delay in payment. Credibility damage with GC. | Claim conservative, defensible percentages. It's better to be conservative and accepted than aggressive and rejected. |
| Not tracking retainage separately in QBO | Retainage receivable invisible. Not collected at project end. | Retainage Receivable account in QuickBooks — required. |
| Change orders not added to G703 | Change order work billed as a separate invoice rather than through the AIA process. GC may refuse payment. | All approved change orders must be added as new line items to the SOV before billing. |