Pay Applications

Pay applications (G702/G703 format) track progress billing for subcontractors. Each pay application draws against a schedule of values established at subcontract award, showing completed work to date and the amount due for the current period.

Setting Up a Subcontract

Before issuing a pay application, create a subcontract under Labor → Subcontracts → New Subcontract:

Subcontractor — select from compliance contacts
Scope — description of contracted work
Contract amount — original subcontract value
Contract date — execution date
Schedule of values (SOV) — line items with cost codes and values that must sum to the contract amount

The SOV is the framework against which progress billing is measured.

Creating a Pay Application

Select billing period

Choose the billing period (typically monthly) for this pay application.

Enter percent complete

For each SOV line item, enter the percent complete as of the billing period end date. TrueGrade calculates:

Previously billed — total billed through previous pay applications
Current period — (current percent complete − previous percent complete) × scheduled value
Total completed and stored to date — percent complete × scheduled value
Balance to finish — scheduled value − total completed

Review retention

Apply the retention percentage configured in the subcontract. Default retention is typically 10% through substantial completion, reducing to 5% for the final period.

Review and issue

Review the calculated amounts, attach any required lien waivers or certified payroll, and click Issue Pay Application. TrueGrade generates a G702/G703 formatted PDF.

Submit for approval

The pay application requires approval from an Admin (or Platform Admin) before it can be marked for payment. The approval step also checks whether the subcontractor is Compliant in the compliance module — non-compliant subcontractors are flagged with a warning (configurable to a hard block). An Admin may override the compliance block when justified; the override is recorded in the audit log.

Issued pay applications are locked and cannot be edited. If a correction is needed, void the pay application and issue a corrected version. The voided version is retained in history.

Lien Waivers

TrueGrade generates lien waiver templates (conditional and unconditional, partial and final) that can be attached to pay applications. Waivers are generated as fillable PDFs that the subcontractor signs and returns.

Pay Application Register

The Labor → Pay Applications → Register view shows all pay applications across all subcontracts on a project:

Subcontractor name
Contract amount
Total billed to date
Current period billing
Retention withheld
Payment status (Issued, Approved, Paid)

This view is exportable and is commonly used for project-owner AIA billing packages.