Pay application and progress invoice template
A pay application — a progress invoice — bills part of a fixed-price contract as the work gets done: the schedule of values by percent complete, less retainage and less what you have already billed. Fill one in here and the arithmetic is done for you. Free, with no account.
What goes on a pay application
- Your business, the owner or client, and the project — with the contract date or number — in “Project”.
- An application number (this series starts at PA-101), counting up through the job.
- The schedule of values: one line per part of the contract with its scheduled value. The lines add up to the contract sum and stay the same from one application to the next.
- The percent of each line complete to date — to date, not this month. The paper works out the rest.
- The retainage rate your contract sets, and the amount billed on earlier applications.
- Work completed to date, retainage held, earned less retainage, less previous billing, and the current payment due.
- Your signature, and a line for the owner’s approval.
A worked example
The garage addition, on its second application. The first billed the foundation: $10,000 less 10% retainage, so $9,000. Since then the framing is half done and the mechanical work a quarter done.
| Schedule of values | Scheduled value | % complete | Completed to date |
|---|---|---|---|
| Site work and foundation | $10,000.00 | 100% | $10,000.00 |
| Framing | $5,000.00 | 50% | $2,500.00 |
| Mechanical, electrical and plumbing | $20,000.00 | 25% | $5,000.00 |
| Contract sum | $35,000.00 | 50% | $17,500.00 |
| Retainage 10% | −$1,750.00 | ||
| Earned less retainage | $15,750.00 | ||
| Less previous billing | −$9,000.00 | ||
| Current payment due | $6,750.00 | ||
| Balance to finish, including retainage | $19,250.00 |
Work completed to date is $17,500. Ten percent of it, $1,750, is held as retainage, leaving $15,750 earned. Take off the $9,000 already billed and $6,750 is due on this application. Next month, raise the percentages and put $15,750 in “Previously billed”.
Progress invoice or a regular invoice?
A progress invoice
Bills a share of a fixed contract against a schedule of values that does not change. Each one is cumulative — percent complete to date — and retainage is held back from every payment until the job is done.
A regular invoice
Bills finished work, or time and materials, in full. A deposit invoice and a final invoice are often all a small job needs.
Progress billing earns its keep on jobs long enough that waiting for the end would mean paying for the customer’s project out of your own pocket.
Schedule of values, retainage and lien waivers
The schedule of values splits the contract sum into parts that can be measured, agreed at the start and the same on every application, so the owner can check each line on site instead of taking a total on trust.
Retainage is a share of each payment the owner holds back until the job is finished, commonly 5% or 10%, as security that the punch list gets done. It is still your money, released at completion. How much may be held, and for how long, is set by the contract and in many states limited by statute, especially on public work.
Owners and lenders often ask for a lien waiver with each payment. A conditional waiver gives up lien rights for that payment only once the payment actually clears; an unconditional one gives them up when it is signed, paid or not, which is why it is usually signed only after the money is in the bank. Some states set the exact wording, and lien law differs a great deal between states, so check your state’s statute or a construction lawyer before signing one. This page is not legal advice.
How to send it
Send it on the date your contract sets for applications, by email or as a link the owner opens in any browser. When it is paid, “Mark paid” in My papers records it; if the due date passes, it turns overdue like any invoice.
Keep every application: this one’s earned less retainage is the next one’s previous billing.
What you get
A PDF you can download, print or attach, and a link the customer can open on any phone. There is no Word or Excel version — PDF only, for now. The six looks and your logo or initials work on this paper exactly as they do on an invoice; see the looks.
Questions about pay applications
What is a pay application?
A contractor’s request for payment on a contract that is paid in stages. It lists the schedule of values with the percent of each line complete to date, takes off retainage and earlier payments, and arrives at the amount due for this period. It is also called a progress invoice or a progress billing.
How is retainage calculated?
As a percentage of the work completed to date: $17,500 of work at 10% retainage is $1,750 held. Some contracts drop the rate once the job is half done; if yours does, set the rate here to match the application you are making.
Is this the same as an AIA G702 and G703?
No. It is laid out the way contractors are used to — an AIA-style schedule of values and a summary down to the payment due — but it is not an AIA document, does not reproduce those forms, and has no architect’s certificate. If your contract requires AIA forms, use the licensed ones.
What goes in “Previously billed”?
What the earlier applications on this job asked for, after their retainage — on the last application, its “earned less retainage” line. Do not add the retainage back in: it has not been paid, and it is still being held on this application.
More on how JobPaperwork works, including what it stores and what it does not do.