Pay Application vs Invoice
A pay application is a structured progress payment request tied to contract values; an invoice is a billing document that may support or accompany payment.
Pay Application
- Progress billing
- Architect or owner certification
- Schedule of values review
Subcontractor Invoice
- Vendor billing
- Subcontractor payment requests
- Accounting records
Key differences
| Point | Pay Application | Subcontractor Invoice |
|---|---|---|
| Structure | Usually follows a schedule of values. | May be simpler or vendor-specific. |
| Review | Often reviewed for percentage complete, retainage, and stored materials. | Often reviewed for amount due and backup. |
| Contract role | Formal contract payment process. | Billing evidence or accounting document. |
Example in context
A general contractor submits a monthly pay application to the owner while collecting subcontractor invoices as backup for completed work.