Pay app errors to catch before you pay

Published 6 October 2026. Updated 6 October 2026.

Before anyone asks whether the claimed progress is real, ask whether the paper adds up. Many pay applications carry errors that have nothing to do with the field: a total that does not match its lines, a retainage rate that changed, a line billed past its value. This checklist covers those. It pairs with the method for checking claims against field reports, which handles the question of whether the work was done.

The layout assumed here is the common one: a summary page and a continuation sheet with a row per schedule line. On the forms published by the American Institute of Architects (AIA), these are G702, Application and Certificate for Payment, and G703, Continuation Sheet. GroundClaim is not affiliated with the AIA. Custom spreadsheets follow the same logic under different labels, and the column letters below are the G703 ones.

Checklist: the continuation sheet

Go through these in order, with last month's application open next to this one.

1. Do the scheduled values add up to the contract sum? Add the scheduled value column (C). It should equal the original contract sum plus the change orders you have agreed to. A difference means a row was added, dropped or edited, or a change order is missing from the lines.
2. Is any scheduled value different from last month? Scheduled values should not move without an agreed change order or an agreed reallocation between lines. If a line changed with nothing behind it, ask why.
3. Does previous plus this period plus stored equal total completed and stored to date? For every row, add the previous column (D), this period (E) and materials presently stored (F). The sum should equal the total to date (G).
4. Does the previous column match last month's application? This month's previous column (D) should equal last month's previous plus this period (D plus E), row by row. Stored materials are not in it: when they are installed, they are billed in this period. A mismatch means last month's billing was rewritten, and that is worth a direct question.
5. Is any line over 100 percent? A line should not be billed past its scheduled value; extra work belongs in a change order. A total to date (G) above the scheduled value (C) is an error, not a rounding issue.
6. Did any percent go down? Work completed to date does not normally go down from one month to the next. A negative amount this period can be a legitimate correction, but it should come with an explanation.
7. Does the percent match the dollars? Divide the total to date (G) by the scheduled value (C) and compare it with the percent printed. Typed percents and calculated dollars drift apart in hand-built sheets. For example, $117,000 billed on a $180,000 line is 65 percent, not the 72 percent a typed cell might show.
8. Does the balance to finish (H) equal scheduled value minus total to date (C minus G)? Check a few rows, and check the column total.

Checklist: the summary page

1. Does the total completed and stored match the continuation sheet total? The summary figure should equal the total of column G. If it was typed in rather than pulled from the sheet, compare.
2. Is the retainage rate the one in the contract? Multiply the work completed by the contract rate and compare it with the retainage line. A rate lower than the contract states holds back less than you agreed. For example, 5 percent applied where the contract says 10 percent, on $400,000 of work, holds back $20,000 instead of $40,000. Some contracts reduce the rate partway through the job, so check which rate applies this month.
3. Is retainage applied to stored materials too? The G702 has separate retainage lines for completed work and for stored material, and contracts treat the two differently. Check yours rather than assume.
4. Does the arithmetic down the page hold? Total completed and stored, less retainage, gives the total earned less retainage. Take away the previous certificates for payment and you have the current payment due. Redo both subtractions.
5. Do previous certificates match what you actually paid? Compare with your payment records, not with the claimant's own history.
6. Does the contract sum to date reflect only change orders you have agreed to? A pending change order counted as if agreed inflates the contract sum, and any billing against it is billing for work you have not agreed to pay for.

Checklist: patterns across lines

These need a second pass, because no single row shows them.

Checklist: supporting documents

• Is the application the current version? Ask for the file date or a version label.
• Are lien waivers or other conditions in your contract attached for this payment? Contracts differ, so check yours.
• Are the sub pay apps that roll up into a general contractor's application all there? A missing one means part of the bill has no backup this month.

What to do with an error

1. Write down the row, the figure shown and the figure you calculated.
2. Send it back to the claimant as a question, not an accusation. Most first errors are honest.
3. Wait for a corrected application, or adjust the payment as your contract allows. Check your contract for notice dates and for how a disputed amount is treated. Ask your accountant or counsel if the dollars are large.
4. Keep a log by job. A claimant who makes the same error twice has told you where to look next month.

Where checklists stop

All of the above tests whether the numbers agree with each other. A pay application can pass every item and still claim work that has not been done, because the claimant can make the arithmetic perfect. That question belongs to the field check. Run both.

How GroundClaim does this step

GroundClaim runs the arithmetic checks in code, not with a language model: a percent complete that falls, lines past 100 percent, the column sums on each line, the tie-out between the G702 summary and the G703 lines, retainage and the schedule of values total against the contract sum. Figures in a spreadsheet or a Word or PDF table are read in code. A figure read from a scan or photo is checked against the row it came from, and the line is marked as read from a scan. Every amount worked out from those figures is computed in code.

The result comes with the field check described in the other guide, so you see arithmetic problems and over-claims in one exceptions memo, ranked by dollar exposure. The line-by-line reconciliation also lists the clean lines, so you can see that every line was looked at. A second, stronger AI model reviews every result, fixes what it can, and lists what is left for you to decide. Results are model output checked by code and by a second model; they are not verified by a person. GroundClaim does not accept or reject anything: you decide.

A pay application costs 25 credits, with no subscription. Sign up and run one of last month's applications through it.

Questions

Are arithmetic errors usually honest mistakes?

Many are. Hand-built spreadsheets break when rows are inserted or pasted over. Treat the first error as a question, and look harder if the same kind of error keeps landing in one direction.

Do I need the contract to run this checklist?

For most items you need only the application and last month's copy. You need the contract for the retainage rate and for the terms of change orders, so keep it at hand.

How long does this check take by hand?

It depends on the number of lines and how clean the spreadsheet is. A short continuation sheet can be checked in a sitting, while a long one with many change orders takes noticeably longer.