Collaborate on Aia Billing Template for Administration with Ease Using airSlate SignNow

Aia billing template for Administration

If working on a project using the American Institute of Architects () payment applications, the GC will likely require you to provide a continuation sheet along with it. In this video, we’ll explain each section of the 703 Continuation Sheet. A continuation sheet is a document that describes each item of work on a project and assigns a value to it. It is similar to a schedule of values, but it also tracks progress as the job continues. A continuation sheet is generally submitted with a payment application.   It provides the percentage of work complete, the costs associated with it, the current amount of payments already paid, and payment due.  Reviewing construction pay applications can take a while for an owner or GC. So the more information you provide, the easier this process becomes, and the faster you can get paid. Even if you’re not using contract documents, by providing a continuation sheet or similar document with each payment application, you give the owner a clear view of the current status of your work. It allows the GC or property owner to cross-reference the current documents with previous applications to ensure that the amounts are true and accurate. The 703 Continuation Sheet is the more complex of the three forms submitted as part of a pay application. It’s important to fill these forms out as accurately as possible, since they build on one another throughout the project. Let’s dive into each section of this document.  Let’s start with the header. Here, you’ll put in some basic application and project information. You’ll need to reference your 702 pay app for the application number, date and billing period. All that’s left for this section is the project number, which the architect, owner, or GC will provide. Next, we get to the good stuff: Table of work and values.  This is where you will list each work line item, along with the associated cost or value, and accounting of work and materials. The more accurate your continuation sheet is, the easier it will be to fill out your pay applications. For each column except A and B, once each line item has been filled out, add up the amounts and put the total in the “Grand Total” row. If you have multiple pages, you don’t need to put a total on each page. Just add up the totals on the last page. In column A, you’ll put the item number. This can simply be a numbered section such as 1, 2, 3. However, some contractors in the industry opt to use the MasterFormat numbers set by the Construction Specifications Institute (CSI). This is a standardized index to make it easier to identify and classify line item work. For example, “Tunneling, Boring and Jacking” is #02400 in the MasterFormat system. If you want to use this numbering system, you’ll need a MasterFormat reference guide. Column B is for a description of the work. For each line item, you should provide a brief description of the type of work being provided. Just enough information to describe the labor performed and the materials that are being used. On a big project, you may require multiple pages to include all of the relevant information. In column C, you’ll put the scheduled value. The scheduled value is the cost to complete each line item. The amounts in this column should match up with the schedule of values from the beginning of the project. Unless they are adjusted through change orders, these numbers will remain consistent throughout the project. Add the values to get the subtotal at the bottom of the column. If using multiple pages, just put the subtotal amount on the last page; you don’t need to put a subtotal on each page. Column D is Work Completed From Previous Application This column is for the value of all of the work you finished prior to the current pay application. You can get this figure from the previous continuation sheet you filled out, by adding the columns D and E. If this is the first payment application on the project, leave this column blank.  Don’t include any materials you’ve purchased and stored on the job site but haven’t used yet. We’ll get to that in a minute.  Column E is Work Completed This Period Here’s an easy one. This section simply requires the value of the work you finished during the current pay period. How much work did you do? What was the value? Put that number here.  Column F is Materials Presently Stored In column F, you’ll put the value of all the materials you’ve purchased and stored on the job site, but haven’t actually used on the job yet. Only enter the value of materials purchased up until the end of the current application billing period. You may be tempted to bill for materials that you’re planning to purchase soon, but it’s generally not recommended. Overbilling can delay your pay application and hurt your relationship with the hiring party.  Column G is Total Completed And Stored To Date In this column, all you’ll need to do is add up columns D, E, and F. This gives you the total value of the work completed through the pay period, along with the value of the materials you are storing. This is basically the value of all of the labor and materials that you’ve contributed toward each line item so far. That value will be in the left-hand part of column G for each line item. Column G: Percent Once you have the cost for each line item, the right-hand part of column G is for the percentage complete. To get this number, take the value in column G (total completed and stored to date) and divide it by column C (scheduled value). This will give you the percentage of completion for each line item. This tells you how much of each item you’ve completed, and how much you have left to complete.  Column H: Balance To Finish This column will tell you how much money you’ll need to finish the work in each line item. This is another easy section. Just take the amount from column C (scheduled value) and subtract column G (total completed and stored to date). Column I is for Variable Retainage This column is for retainage – but only if you are using a variable retainage rate. Variable retainage can mean one of two things: (1) That the amount of retainage is reduced after a certain percentage of work is complete, or (2) that the retainage percentage is different for labor and materials. If the retainage is fixed at a certain percent throughout the entire project, you don’t need to use this column. Fixed retainage is calculated on the pay application itself.  Remember: Because continuation sheets build on each other throughout the project, it’s important to pay close attention to the details here. The more accurate and complete you can be on the Continuation Sheet, the faster the owner or GC can review your application, and the faster you can get paid.   We hope this video has been helpful. If you have any other construction payment questions, head over to levelset.com to get payment help from lawyers or live chat with one of our payment experts. If you want to see more construction payment videos, be sure to subscribe to our channel and check out other videos. And remember, payment help is here.