When to use AIA G702?
The AIA G702 Application and Certificate for Payment is a crucial tool for contractors to request payments systematically and for project owners and architects to review and approve those payments. Its standardized format promotes efficiency, accuracy, and fairness in the financial management of construction projects, contributing to smoother project execution and administration.
Information about AIA G702
Key features and uses of the AIA G702 include:
- Payment Application: The AIA G702 form serves as a contractor's request for payment, detailing the work completed and materials supplied as per the contract agreement for a certain period. It provides a summary of the contract status, including the original contract sum, approved changes, previous payments, and the current payment requested.
- Certification: By submitting the form, the contractor certifies that the work and amounts billed are accurate to the best of their knowledge. The form then requires certification by the architect or a designated authority, verifying that the work has progressed as claimed by the contractor and that the payment requested is justified.
- Breakdown of Costs: Although the G702 form itself provides a summary, it is often accompanied by the AIA Document G703, which breaks down the application for payment into specific portions of work using a schedule of values. This allows for detailed tracking of project progress and financials.
- Streamlined Communication: The use of a standardized form simplifies communication between contractors, architects, and owners. It ensures that all parties have a clear and consistent understanding of the payment application process, work progress, and financial status of the project.
- Legal and Financial Clarity: The AIA G702 provides a legal document that can be used in disputes or audits. It ensures transparency in the financial management of the project and serves as a record of payments applied for and made over the course of the construction project.
- Widespread Acceptance: As an AIA-standardized document, the G702 form is widely recognized and accepted in the construction industry, lending credibility and reliability to the payment application process.
How to fill out AIA G702
To fill out the AIA G702 form, follow the form as a guide and use headings and sub-headings.
- Start by entering the project and contract information in the header of the form, including the project name, number, and location, as well as the contractor's and architect's names and addresses.
- Next, specify the period covered by this payment application. The form is divided into several columns where you must list the scheduled values of the work completed and materials stored to date. Enter the original contract sum, any approved change orders, and the sum of previous payments to calculate the total completed and stored to date.
- Subtract previous payments from this total to determine the current payment due. It’s important to include a breakdown of the work completed according to the schedule of values agreed upon in the contract.
- Finally, ensure the contractor and architect sign the form, as their signatures are required to certify the accuracy of the information and the legitimacy of the payment request. Verification and approval by the architect or project manager, as designated, are essential to finalize the payment process.
Free Template AIA G702
AIA G702 forms part of a suite of documents standardized by the AIA to streamline and standardize the administration of construction contracts and project management tasks and is protected by copyright and not free. For more information or to obtain the AIA G702 form, interested parties can visit the official American Institute of Architects website or authorized distributors of AIA contract documents.
