AIA G702 Form: Settling Payment Formalities in Construction
AIA G702 Form: Application and Certificate for Payment.
The business relationships between the owner of the construction project and its contractors are governed by many official documents. Today’s review is devoted to one of the most often-used documents in construction projects – the AIA G702 Form. In a series of subsequent blog posts we will review other key documents that may be used in construction projects.
Who needs an AIA G702 Form?
AIA Form G702, Application and Certificate for Payment, is designed by the American Institute of Architects (AIA) to be used in dealings between the contractor and the customer for specific building projects. By means of the AIA Form G702, the contractor, based on analysis of the current status of the building project, certifies to the owner that the work on the project is progressing in accordance with the project contract and the contractor is entitled to payment of the amount specified in the form.
What is AIA G702 Form for?
The AIA Form G702 is used for payment in connection with a construction contract. The form consists of two main blocks which are the Contractor’s Application for Payment and the Architect’s Certificate for Payment. The owner uses the information provided to evaluate the progress of construction and the need to transfer money to the account of the contractor. If the owner has reasonable doubts about the quality and progress of construction, the payment can be delayed or even canceled.
Is AIA G702 Form accompanied by other forms?
In order to be a valid document, this form must be accompanied by the Continuation Sheet, AIA Form G703. Of course, the form must be preceded by the signing of the construction contract. If the parties (contractor and owner) have not previously entered into the contract, filling and submission of this form does not make sense on a legal basis.
How do I fill out AIA G702 Form?
The following blocks of the form must be filled out in order to complete the form:
- Owner’s personal information;
- Information on project;
- Original contract sum;
- Net change by Change Orders;
- Total Completed & Stored to Date;
- Current Payment Due;
- Balance to Finish, Including Retainage.
After completing the Contractor’s Application for Payment section, the Architect’s Certificate for Payment must be signed. The explanation should be attached if the amount certified differs from the amount applied for.
Where do I send AIA G702 Form?