A pay application is progress billing with the arithmetic shown. The G703 continuation sheet lists every schedule-of-values line with its scheduled value, work completed previously, work completed this period, stored materials, total to date and percentage; the G702 cover sums it, deducts retainage and previous payments, and states the current amount due, signed and often notarized. Commercial GCs and their subs live on it; residential contractors meet it on lender-financed builds and larger remodels.
A worked number
Framing line, scheduled value $12,000. Previously billed $3,000, this period $6,000, total $9,000, 75% complete. Across all lines the total to date is $54,000; 10% retainage holds $5,400; previous payments were $27,000. Current payment due: $54,000 minus $5,400 minus $27,000, or $21,600.
The mistake it hides
Percentages that are guesses. An owner's rep or lender's inspector will check the claimed percentage against the site, and a pay app that's ahead of the work gets cut and slows every later one. The percentages are honest when they come from what the job has actually cost against each line.
In Obra
Obra doesn't fill in the AIA forms, but a project whose budget lines mirror the schedule of values gives you the cost-based percent complete per line the G703 asks for, and records each payment against the contract as it arrives. The retainage and progress billing calculator works the retainage and due amounts.