AIA Billing is a method of invoicing used in the construction industry to track and manage payments for work completed on a project. AIA stands for the American Institute of Architects, which developed this standardized billing system to facilitate communication between architects, contractors, and project owners.
Also known as the AIA G702/G703 billing process, AIA Billing provides a structured format for submitting and reviewing progress payments on construction projects. It ensures transparency and accountability by outlining the various components of a payment application, including the work completed, materials used, and any change orders or additional expenses incurred.
Within the AIA Billing system, there are two main documents: the AIA G702 Application for Payment and the AIA G703 Continuation Sheet. The G702 form is typically filled out by the contractor and includes details such as the project name, contract sum, and previous payments received. It also breaks down the work completed according to various categories or line items, along with their corresponding values.
The G703 Continuation Sheet is an attachment to the G702 form, providing a comprehensive view of the project’s progress. It outlines the current period’s work, total completed and stored materials, and any retainage or holdback amounts. The G703 Continuation Sheet acts as a supporting document to substantiate the amounts claimed on the G702 form.
AIA Billing utilizes a standardized and consistent format, making it easier for project stakeholders to review and compare payment applications. This format allows architects and project owners to evaluate the progress of the construction project and determine the amount due to the contractor accurately.
The AIA Billing system also incorporates a certification process. The contractor’s application is typically accompanied by a signed certification stating that the work has been performed as outlined and is in compliance with the contract documents. This certification provides assurance to the architect or project owner that the work has been completed satisfactorily and in accordance with the agreed-upon terms.
Once the AIA Billing documents are submitted, they undergo a review process by the architect or project owner. This review involves assessing the accuracy of the application, verifying the completeness of the work claimed, and ensuring that all necessary supporting documentation is attached. The review process may also involve coordinating with other parties, such as engineers or subcontractors, to verify the accuracy and completeness of the application.
Upon approval of the AIA Billing application, the project owner issues payment to the contractor for the approved amount. Typically, payments are made within a specified timeframe outlined in the contract agreement. However, in some cases, disputes or discrepancies may arise, requiring additional review or negotiation before payment is released.
In summary, AIA Billing is a standardized invoicing system widely used in the construction industry to streamline the payment process. By adhering to the AIA G702/G703 format, contractors can clearly communicate the work completed, materials used, and associated costs, while architects and project owners can easily review and approve these payment applications. This structured approach enhances transparency, accountability, and efficiency in the billing and payment process for construction projects.
