Careers Business Ownership Application for Payment Forms Used in Construction Share PINTEREST Email Print Business Ownership Industries Construction Retail Small Business Restauranting Real Estate Nonprofit Organizations Landlords Import/Export Business Freelancing & Consulting Franchises Food & Beverage Event Planning eBay E-commerce Operations & Success Becoming an Owner By Juan Rodriguez Juan Rodriguez LinkedIn University of Puerto Rico DeVry University Juan Rodriguez is a former writer with The Balance who covered large-scale construction. He is an engineer with experience managing and overseeing large civil works construction. Learn about our Editorial Process Updated on 11/20/19 An application for payment is a construction document that outlines how a contractor will be paid. The application for payment includes the services or materials used or the jobs that are being executed under a contract agreement. This document is usually presented as a list and includes the unit price and quantity of each item being furnished. An application for payment provides both the owner and the contractor with a method of controlling what items or materials have been provided by the contractor. It's a great tool to expedite payment and to minimize the possibility of error. It also helps to keep track of the project cost, balance to completion, material received to date, material installed to date, and work completed. The documentation required for an application for payment can vary from project to project, but most include a general form and one or more schedule documents. 01 of 05 Application for Payment: General Form Photo Caiaimage/Trevor Adeline Getty Images The applications for payment forms that are most often used include: AIA Forms: G702 Application and Certificate for Payment: Serves as the request for payment by the contractor and includes a certification by the architect to determine whether payment is approved. ConsensusDOCS 291 Application for Payment (GMP): Facilitates the calculation and documentation of progress payments where the basis of payment is a guaranteed maximum price. ConsensusDOCS 292 Application for Payment (Lump Sum): Facilitates the calculation and documentation of progress payments where the contract price is a lump sum. ConsensusDOCS 293 Schedule of Values: Provides a breakdown of the cost of elements of the work and should be used with the ConsensusDOCS application for payment forms ConsensusDOCS 291 and ConsensusDOCS 292. 02 of 05 Application for Payment: Schedule of Values The schedule of values is a sheet on which items are listed along with their unit prices and quantities as well as summaries of what has been paid and what is being certified for payment. It provides a general overview of the project status. Depending on how the contract is written, this can be in the form of a lump sum value or an itemized list that will provide a better understanding of the work being billed. It is a good idea to provide a sample value sheet during the negotiation process and the RFP and bid processes. This can be used later as the schedule of values, ensuring a smoother process. 03 of 05 Application for Payment: Schedule #2 Schedule #2 provides a comprehensive list of the subcontractors who took part during the respective period and performed work under the specified contract. This is required to justify the amounts being certified under the schedule of values. This schedule is very specific in some contracts and may require additional documentation, such as payrolls, certifications, and lien waivers to make sure that all subs have been paid. 04 of 05 Application for Payment: Schedule #3 Schedule #3 under the application for payment is a document that releases and presents waivers of claims and stop notices from all subcontractors who are furnishing labor, services, or materials covered by the certificate for payment. This document provides a guarantee to the client that there will not be any claim by the subcontractors due to payment, performance, or any other possible claim. 05 of 05 Application for Payment: Schedule #4 Some contracts require that you submit the latest and most up-to-date project schedule so they can make sure the project is moving along as expected. The customer might also ask for photos or videos documenting the project's progress.