Understanding AIA Contracts & How to Use AIA-Style Invoicing in Contractor Foreman

Understanding AIA Contracts & How to Use AIA-Style Invoicing in Contractor Foreman

AIA contracts are one of the most widely used contract and billing standards in the construction industry—especially in commercial construction, government work, and large-scale private builds. Contractor Foreman makes it easy to produce AIA-style invoices (often referred to as G702/G703 format), track progress billing, and keep your documentation aligned with industry expectations.

This article explains the basics of AIA contracts, a brief history of where they come from, how AIA invoicing works, and how to create AIA-style invoices inside Contractor Foreman.

What Are AIA Contracts?

AIA contracts come from the American Institute of Architects, which has been producing standardized agreements since the late 1800s. These documents are designed to:

• Create a consistent framework for construction contracts
• Reduce disputes
• Clarify responsibilities between owner, architect, GC, and subcontractors
• Standardize invoicing and progress reporting

AIA billing is most commonly used on:

• Commercial construction
• Public projects
• Architect-led builds
• Jobs requiring formal progress billing

The most commonly referenced forms for invoicing are:

• AIA G702 – Application for Payment
• AIA G703 – Continuation Sheet

Contractor Foreman does not reproduce copyrighted forms, but it does generate AIA-style invoices that mirror the structure, including schedule of values, percent complete, stored materials, and balance to finish.

How AIA Billing Works (Quick Overview)

AIA billing is a type of progress billing where payments are tied to percent completion of each line item in your Schedule of Values (SOV). Each invoice includes:

1. Contract Value

The full amount of the job.

2. Schedule of Values

A list of cost categories or activities with assigned dollar amounts.

3. Percent Complete

What portion of each line item has been completed to date.

4. Stored Materials

Materials delivered but not yet installed.

5. Previous Payments

Cumulative progress from earlier billing cycles.

6. Retainage

A percentage withheld by the owner or GC until project completion.

Contractor Foreman supports each of these components when generating AIA-style invoices.

How Contractor Foreman Supports AIA-Style Invoicing

Contractor Foreman provides built-in tools that walk you through progress billing and allow you to generate a professional AIA-style invoice PDF.

Key features include:

• Creating a Schedule of Values
• Tracking percent complete
• Adding stored materials
• Applying retainage
• Showing cumulative totals
• Generating exportable AIA-style invoice documents

How to Create an AIA-Style Invoice in Contractor Foreman

Step 1 — Open Your Project

Go to Projects → select the project you want to invoice.

Step 2 — Open the Invoice Module

Inside the project, go to Invoices.
Choose Create Invoice.

Step 3 — Select “AIA Style Invoice”

When choosing your invoice type, pick the AIA-style format.
Contractor Foreman automatically loads the fields required for progress billing.

Step 4 — Enter Your Schedule of Values (SOV)

You can:

• Create SOV items manually
• Pull them from your estimate
• Import them (if prepared separately)

Each line becomes part of the continuation sheet.

Step 5 — Enter Percent Complete & Stored Materials

For each SOV line item, enter:

• % of work completed
• Stored materials (if applicable)
• Notes (optional but recommended)

Contractor Foreman will automatically calculate:

• Amount due this period
• Previously billed totals
• Remaining contract balance

Step 6 — Apply Retainage (If Required)

Most AIA projects use 5–10% retainage.
Enter your rate and CF handles the math.

Step 7 — Save & Generate the Invoice

Click Save, then use Generate PDF to create the AIA-style invoice packet formatted for submission.

You can email the invoice directly from CF or download it.

When to Use AIA-Style Billing

Use it when:

• The client requests AIA billing
• The project is architect-led
• You’re working under a commercial GC
• The job uses a formal progress billing structure

Do not use AIA billing for:

• Flat-rate work
• Time & Materials jobs
• Small residential projects
  (unless the client explicitly asks)

Summary

AIA billing has been the industry standard for structured progress payments for over a century. Contractor Foreman makes it easy to produce AIA-style invoices without needing the original copyrighted AIA forms. You’ll be able to track progress, retainage, and cumulative billing exactly like traditional AIA G702/G703 documentation.

 

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