Invoicing Solutions by Industry
Invoicing for construction
Construction is paid by progress, not lump sums. You invoice monthly for the percentage of work completed, backed by a schedule of values, retainage, lien waivers, and signed change orders. Clean pay applications move through the GC, architect, and owner without getting kicked back.
Make your schedule of values match your continuation sheet
On commercial and government jobs, progress payments run on AIA-style forms: the G702 application and certificate for payment summarizes contract value, work completed, retainage, and amount due, while the G703 continuation sheet breaks it out line by line from the schedule of values. The G703 grand total must equal line 4 of the G702. Build the schedule of values carefully up front and reuse the same line structure every month so percent-complete is easy to certify and approve.
Always send conditional lien waivers before payment clears
There are four waiver types: conditional and unconditional, each in progress and final versions. Send a conditional partial waiver with each pay application so your lien rights survive until payment actually arrives, and only sign an unconditional waiver after that specific payment has cleared. Signing unconditional too early forfeits your lien, which is your strongest leverage when an owner or GC stalls.
Get every change order in writing before the work starts
The most common payment dispute is extra work performed on a verbal go-ahead that the owner later refuses to pay. Follow the contract change-order procedure exactly: written scope, agreed price, and a signature before mobilizing on the change. Track retainage explicitly on every draw, typically 5% to 10% withheld until substantial completion and released after the punch list clears, and plan for Net 30 to 60 timing as each pay app is reviewed.
Key construction billing terms
| Term | What it is | Why it matters |
|---|---|---|
| G702 / G703 | AIA pay application + continuation sheet | Default for commercial progress billing |
| Schedule of values | Contract broken into line items | Basis for measuring percent complete |
| Retainage | 5% to 10% withheld per payment | Released after substantial completion |
| Lien waiver | Conditional vs unconditional | Only sign unconditional after payment clears |
| Change order | Written scope and price change | No signed order, no certain payment |
Construction invoicing FAQ
What are AIA G702 and G703 forms?+
They are AIA progress-billing forms used on most commercial and government projects. The G702 is the application and certificate for payment summary; the G703 is the continuation sheet detailing each schedule-of-values line item. The G703 total ties to line 4 of the G702.
How much retainage is typical?+
Usually 5% to 10% of each payment, withheld until substantial completion. Ten percent was the historical standard, but 5% is increasingly common on larger commercial jobs, and residential tends to the lower end. It is released after the punch list clears.
Conditional vs unconditional lien waiver?+
A conditional waiver releases lien rights only once payment actually clears, so it is safe to sign with a pay application. An unconditional waiver is effective the instant it is signed, so only sign it after the payment has cleared.