Construction Pay Application Process
The pay application process connects completed work to contract payment. It relies on the schedule of values, progress review, stored material backup, retainage, and required waivers.
Process steps
- Step 1
Update the schedule of values
Enter previous billing, current work, stored materials, retainage, and balance to finish.
- Step 2
Collect subcontractor backup
Gather invoices, lien waivers, stored material records, photos, and percentage-complete support.
- Step 3
Review progress
Compare billed percentages against observed work and contract requirements.
- Step 4
Certify payment
The required reviewer certifies, revises, or rejects the requested payment based on the contract process.
- Step 5
Record payment and retainage
Update accounting, job cost, retainage, and cash flow records after payment is processed.
Checklist
- Pay period
- SOV line items
- Previous billing
- Current billing
- Stored materials
- Retainage
- Lien waivers
- Certification