Facts about the aia document g703 template
- 1 Facts about the aia document g703 template
- 2 Filling Out the AIA Document G703 Form
- 3 What Is the AIA Document G703 Form Used For?
- 4 Who Would Use the AIA Document G703 Form?
- 5 When Should You Use the AIA Document G703 Form?
- 6 What Are the Consequences of Not Using the AIA Document G703 Form?
- 7 Steps for Filling Out the AIA Document G703 Form
- 8 Quick Questions
Filling Out the AIA Document G703 Form
Have you just landed a construction project? Good for you! Now it’s time to get down to the business of preparing documentation for how much you will charge for your work. In some cases, this means submitting the AIA Document G703. Don’t know what that is? Not to worry, we’ve got you fully covered.
What Is the AIA Document G703 Form Used For?
The AIA Document G703 is one of many official documents created by the American Institute of Architects. AIA is an organization that provides resources to architects and helps maintain billing standards in the construction industry. In fact, the organization established what is known as the AIA billing system, which is an invoicing and payment method that uses forms it created, such as the G703. There are construction jobs that are referred to as AIA projects because contractors must use the AIA billing method throughout their project. When you take on these jobs, you need the G703. You also need an AIA Document G702, which is an Application and Certificate of Payment because both documents must be submitted together. The G702 is similar to an invoice in that you provide an overview of the job, describe who’s submitting the billing and identify who receives the bill. The main difference is that, in essence, you’re asking permission to invoice the project owner. Now, the G703, which is called a Continuation Sheet, breaks down every aspect of the job line by line. It includes line items for everything ranging from labor to materials. You use this form to document the cost of each item and track the progress of the project.
Who Would Use the AIA Document G703 Form?
The construction industry is a competitive field. Your ability to get work depends on the bids you submit for the projects. You may find yourself vying for and landing AIA projects that require you to use the AIA Document G703 form along with the G702 to get paid. The three parties typically involved in this billing method include: 1. Contractors 2. Architects 3. Project owners A contractor details a project’s expenses and progress. He or she submits it to an architect, who reviews the charges. If everything looks up to par, the architect certifies the payment by signing the document. At this point, it’s handed off to the project owner, who’s responsible for paying the contractor. Although AIA documents, like the G703, are originally intended to protect the best interest of architects, these forms help ensure that the billing practices comply with construction industry standards. Even if you’re not an architect, learning how to use AIA billing procedures can work in your favor. For example, it may open doors for you to grab those government-funded projects and other huge gigs. The G703 benefits project owners as well because it keeps them updated on the job status and allows them to pay contractors on a monthly basis.
When Should You Use the AIA Document G703 Form?
The AIA Document G703 may be used for any construction projects you tackle. In many cases, it’s used throughout the industry for jobs that require contractors to use the AIA billing system. The form comes in handy when you need to provide monthly status updates to the project owner. If keeping the lines of communication open between you and the owner is a top priority, then you definitely need the G703. One of the benefits of using this document is that it increases the likelihood of you collecting payment for all your hard work. It’s well-suited for progressive billing, which means you can get paid every month. This is good news when you need payments on a regular basis rather than waiting for a lump sum after the project is complete. Finally, it gives you a competitive edge when it comes to bidding on large, higher-paying construction jobs. Many contractors shy away from AIA projects because they’re not familiar with the billing system and documentation. The fact that you’re learning the ins and outs of this invoicing process and related paperwork places you in a better position to land those lucrative contracts. When you’re ready to level up your business, using the G703 is a solid go-to choice.
What Are the Consequences of Not Using the AIA Document G703 Form?
A signed AIA Document G703 is a written agreement between you and a project owner who’s certified by an architect. It spells out the scope of the job and specifies the amount of money you’re charging the owner, which the owner agrees to pay. This paperwork makes it clear to all parties what they can expect throughout the construction process. If you don’t use the form, you may encounter the following problems: 1. Over- or under-billing 2. Payment delays 3. Pricing disputes 4. Poor debt management Don’t look at the G703 as some extra paperwork that takes up your precious time; it’s just the opposite. If anything, it can save you time, money and stress. It functions as a system of checks and balances that keeps contractors, architects and owners all on the same financial page. The bottom line is this: when everyone is kept up to speed, things run a lot smoother.
Steps for Filling Out the AIA Document G703 Form
The AIA Document G703 comes with its own set of instructions, so read them first. Follow along as we walk you through what you need to do for every billing period:
- Fill out the heading with the basic information written on the AIA Document G70 2
- List every aspect of the project as a line item.
- Jot down the amount of work you’ve done under the “Completed This Period” column.
- List the materials stored at the job site in the “Stored Material” column.
- Add up the billable total of everything that’s completed and stored. Write the sum in the “Completed and Stored to Date” column.
- Place the percentage of what’s been finished under the “Percent Complete” column.
- Cite the money owed in the “Balance to Finish” column. 8. Place the amount of money that isn’t included in the billing under the “Retainage” column.