The last claim asked for $78,000, the reviewer certified $72,000, and only $60,000 has reached the bank. Which figure should you carry into the next construction pay application? In the AIA G702-1992 workflow, use the cumulative amount previously certified. The earlier request and the receipt still matter, but they answer separate questions.
Build the current request from work completed and eligible materials stored through the cutoff. Deduct retainage (the amount held under the contract) and subtract prior certificates from the resulting cumulative net amount. AIA Contract Documents describes those inputs in its G702 preparation instructions. The amounts here are hypothetical, and the example uses an original worksheet to check the arithmetic before submission on the required form.
Freeze the contract value and the billing cutoff
Record the application number, contract, period end, and last certificate used. Confirm which schedule of values is in force. A schedule of values assigns portions of the contract sum to billing lines, giving the reviewer a basis to check progress on each scope. Reconcile its total to the contract value carried into this application, including approved changes recognized by the applicable billing process.
Use the last certified amounts as the starting point for the example. If a reviewer adjusted a previous claim, identify the affected line and carry the accepted starting values into your reconciliation. Obtain the reviewer’s breakdown if the certificate gives a different total without enough line detail to explain the difference. AIA Contract Documents describes how the certifier can certify a different amount from the request.
Keep period evidence with the billing line. For completed work, cite the progress record or measurement your reviewer uses. For stored materials, confirm eligibility and use the records the project requires (such as a supplier invoice, storage location, and verification of what is onsite). A document received after cutoff needs a dated decision about which period it supports.
Move installed material out of the stored balance
Suppose the prior application included $10,000 of electrical gear as stored materials. This period you install $6,000 of that gear and receive $4,000 of additional eligible materials for storage. Move the $6,000 from stored to installed. The ending stored balance is $10,000 minus $6,000 plus $4,000, or $8,000.
If the project also completed $29,000 of other work this period, the installed-work column increases by $35,000. Gross completed and stored value rises by $33,000 because the stored column falls by $2,000. The transfer itself creates no increase in gross claim value. Keep the material reference on both sides of the transfer so a reviewer can distinguish installation of previously claimed material from newly eligible value.
Calculate the amount requested this period
Assume a $250,000 revised contract sum, $70,000 in previously completed work, and the $10,000 previously stored. For this example the contract applies 10% retainage to both work and eligible stored materials with no release or other adjustments. The prior gross certified amount of $80,000 less $8,000 in retainage produced the $72,000 prior certificate. Current cumulative completed work is $105,000 after the $35,000 increase.
| Cover-sheet check | Basis | Example |
|---|---|---|
| Completed work to date | Prior completed plus current installed work | $105,000 |
| Eligible materials stored at cutoff | Opening balance less installed plus additions | $8,000 |
| Gross completed and stored to date | Completed work plus ending stored materials | $113,000 |
| Retainage held to date | 10% of $113,000 under the example rule | $11,300 |
| Net amount earned to date | $113,000 less $11,300 | $101,700 |
| Previous certificates | Cumulative certified amount before this claim | $72,000 |
| Current payment requested | $101,700 less $72,000 | $29,700 |
Carrying the original $78,000 request would produce a $23,700 claim. Using the $60,000 cash receipt would produce $41,700 and carry the $12,000 unpaid certified balance into this request a second time. Reconcile the unpaid amount in receivables and keep the earlier request in the submission history. Follow the project’s separate process for any earlier disputed amount you intend to claim again.
If the project uses different holdbacks by line or has an authorized reduction, calculate each under the approved rule and sum the retained amounts before subtracting prior certificates. Keep the effective date and approval with the working papers. The construction retainage workflow covers how to track a balance from withholding through release and collection.
Where Permute fits in billing reconciliation
Permute sells connected business data, custom applications, and governed analysis. We can bring permitted billing registers and QuickBooks records together by project, contract, and application ID. Keep the originating records attached and set aside unmatched certificates and receipts for review.
We apply the definitions your billing and finance teams approve for submitted, certified, and collected amounts. A billing coordinator can inspect which certificate supports the prior amount and which receipts finance has matched to it, subject to access permissions.
Compare the claim register with accounting receipts
Start with one project and the source records your billing and finance teams can access.
Keep certification with the named reviewer
We read from the systems we connect and leave submission, certification, and payment decisions in the project’s authorized workflow. Use the form, backup, and retainage treatment specified for your project. Have the designated contract or legal owner resolve eligibility, disputed amounts, and any applicable legal requirements.
Preserve the packet that starts the next period
Save the submitted continuation detail, cover sheet, dated backup, and final certificate together. If the certifier changes the amount, keep the submitted version and the accepted line-level reconciliation in the same packet. Identify who will follow up on uncertified amounts and who will match bank receipts. Before filing the packet, compare gross completed and stored amounts with scheduled value line by line. A contract-level tie-out can pass even when a material transfer was assigned to the wrong scope.
Build the period claim from the approved billing lines and evidence through the stated cutoff. Transfer previously stored items as they are installed and calculate retainage on the resulting balances under the project rule. In the example, the $72,000 certificate is the carry-forward amount and yields a $29,700 current request. Keep the $60,000 receipt with the collection record so the next billing cycle starts from the accepted claim.
Review your billing handoffs
Bring a redacted billing register and accounting summary to discuss how you reconcile requests, certificates, and receipts.
Questions about reconciling a pay application
What if completed work and stored materials exceed the scheduled value for a line?
Trace the excess to the material transfer, a scope assignment, or a missing approved adjustment before submitting. Checking only the total contract amount can hide the problem when another line has unused value.
What if the last claim has not been certified when I start this one?
Keep the carry-forward amount provisional in the working papers. Confirm the accepted basis with the reviewer before submitting, since a later adjustment can change both the prior amount and the line detail carried into the new period.
Can I use this worksheet if the owner requires another form?
Use it as a check on your inputs and map the results to the form the owner requires. Verify the project’s treatment of prior amounts, stored materials, and retainage before carrying over the example formulas.