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Top 5 Reasons Construction Pay Applications Get Rejected by Architects & GCs

A single mathematical discrepancy or unapproved change order on your AIA G702 / G703 can reset your 30-day payment clock. Here is how to prevent rejections.

1. G703 Column G Does Not Equal Previous + This Period + Stored

The most common human error in Excel. When accountants manually copy formulas or paste static values, Column G drifts from Column D + E + F. Project managers will reject the draw request on the spot.

How to fix it: Always use locked formulas: =SUM(D[row]:F[row]) or run your PDF through an automated pay app auditor before submitting.

2. Discrepancy Between G702 Line 4 and G703 Column G Total

Line 4 on the summary certificate (Total Completed & Stored to Date) must precisely match the bottom-line grand total of Column G on your continuation sheet. Even a 10¢ rounding variance triggers rejection.

How to fix it: Link Line 4 directly to the G703 total cell, or verify with an automated OCR cross-checker.

3. Line Items Billed Beyond 100% (Overbilling Without Change Order)

If Column G exceeds Column C (Scheduled Value), Column I (Balance to Finish) becomes negative. Owners and architects are legally prohibited from certifying payments for work not backed by an executed change order.

How to fix it: Execute a formal change order to increase the Scheduled Value before billing for additional work.

4. Inaccurate Retainage Calculation on Stored Materials

Contracts often dictate different retainage percentages for work completed (e.g. 10%) vs. materials stored off-site (e.g. 0% or 5%). Calculating standard retainage across the entire lump sum violates contract terms.

How to fix it: Verify the retainage rules in Exhibit C of your subcontract agreement and confirm Lines 5a and 5b.

5. Unapproved or Pending Change Orders Billed on Line 2

Contractors often bill for verbal change directives before the prime contract modification is counter-signed. General contractor accounting software (e.g. Procore, Textura) will reject the draw request.

How to fix it: Only include executed, owner-signed change orders on Line 2 (Net Change by Change Orders).

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