![]() ![]() Understanding Billing for Change OrdersĬontractors may not know how to bill for change orders when using an AIA form. Contractors and subcontractors communicate to decide on the invoice presentation and contract breakdown. Clarity is key because discrepancies in contract amounts can easily occur without attention to detail. Discrepancies in Contract AmountsĬontractors must ensure the contract amount’s accuracy and present the required information as per the owner’s preferences. If a GC or owner isn’t paying careful attention, they could end up overpaying. Over BillingĪdditionally, math and data entry errors can lead contractors to overbill, requesting more than their contract amount. All these issues can cause problems with invoice calculations, delaying project payments, and impacting contractors and vendors down the line. Numbers might transpose, formulas could malfunction, or data might not transfer accurately between columns. The main issue with AIA billing forms, especially when completed manually or in Excel, is the high likelihood of errors. ![]() ![]() Certain software offers AIA-like invoice formats, enabling contractors to leverage automated data movement and calculations. When using Excel, contractors must manually perform all data movement, leading to potential errors. To complete an AIA billing, contractors rearrange G703 values, enter billing amounts for each line item, and verify accuracy. It provides a summary of the amounts billed and completed to date. Following suit and working in tandem with the G702 we have the G703 form, which is a line-item breakdown of the contract. The G702 form offers a project contract summary and space for the architect’s approval of the payment to the contractor. Moreover, both forms are submitted together, along with any required billing documents depending on contract terms. Using these forms, contractors can bill for completed contract portions and provide a summary of contract status, facilitating quick invoice review and approval. Contractors use forms like G702 and G703 to bill contract portions as work progresses, becoming an industry standard. The American Institute of Architects (AIA) has developed standard contract forms and templates that are used by a majority of companies in the construction industry. However before we get into that, let’s look at the problem more closely. What if there was a way to get past all the problems with the AIA format? What if construction progress billing could be smarter, better, and easier? The good news is it can. Since the process isn’t automated, delays in invoice submission and review are common. This can be problematic, however, as the required data entry can lead to errors andover billing. Due to the high cost of purchasing the forms, many contractors use Excel spreadsheets to simulate them and still provide the same information. For many years, the standard for progress billings in the industry has been the AIA G702 and G703 format. Construction invoices come in many forms: lump sum invoices,progress billings, and time and materials. ![]()
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