𝐈𝐟 𝐈 𝐡𝐚𝐯𝐞 𝐭𝐨 𝐫𝐞𝐯𝐢𝐞𝐰 𝐲𝐨𝐮𝐫 𝐩𝐚𝐲 𝐚𝐩𝐩𝐥𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬 𝐚𝐧𝐝 𝐟𝐢𝐱 𝐞𝐫𝐫𝐨𝐫𝐬 𝐭𝐡𝐚𝐧 𝐲𝐨𝐮 𝐡𝐚𝐯𝐞 𝐭𝐡𝐞 𝐰𝐫𝐨𝐧𝐠 𝐩𝐞𝐫𝐬𝐨𝐧 𝐩𝐫𝐞𝐩𝐚𝐫𝐢𝐧𝐠 𝐭𝐡𝐞𝐦.

 𝐈𝐟 𝐈 𝐡𝐚𝐯𝐞 𝐭𝐨 𝐫𝐞𝐯𝐢𝐞𝐰 𝐲𝐨𝐮𝐫 𝐩𝐚𝐲 𝐚𝐩𝐩𝐥𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬 𝐚𝐧𝐝 𝐟𝐢𝐱 𝐞𝐫𝐫𝐨𝐫𝐬 𝐭𝐡𝐚𝐧 𝐲𝐨𝐮 𝐡𝐚𝐯𝐞 𝐭𝐡𝐞 𝐰𝐫𝐨𝐧𝐠 𝐩𝐞𝐫𝐬𝐨𝐧 𝐩𝐫𝐞𝐩𝐚𝐫𝐢𝐧𝐠 𝐭𝐡𝐞𝐦.

While smaller projects can simply be billed with an invoice, larger projects usually require a progress billing application on an AIA G702 & G703.

These pay apps give a summary of contract value, previous billed, current billed, retainage withheld and current amount due. It also tells how much remains to bill, how much has been paid and details scope of work with change orders.

A large portion of my day includes reviewing subcontractor pay apps for accuracy and often fixing and returning the pay app for revisions.

5 Common payment application problems are:
1.      Pay apps sent in after the monthly due date
2.      Overbilling for future expenses
3.      Excluding supporting documents
4.      Incorrect math and calculated totals
5.      Including change orders that were not approved

If the GC is rejecting your pay applications than this will negatively impact your cash flow, increase scrutiny surrounding work performed and lessen chances to be awarded a future project.

𝐇𝐨𝐰 𝐝𝐨 𝐲𝐨𝐮 𝐞𝐱𝐩𝐞𝐜𝐭 𝐭𝐨 𝐠𝐫𝐨𝐰 𝐢𝐟 𝐲𝐨𝐮 𝐚𝐫𝐞 𝐬𝐡𝐨𝐰𝐢𝐧𝐠 𝐢𝐧𝐜𝐨𝐦𝐩𝐞𝐭𝐞𝐧𝐜𝐞?

Let 2022 be the year to partner with a true cost accountant and leave the document gathering to your bookkeeper.