Subcontractor Pay Application Checklist

Most subcontracts set a monthly cutoff (typically the 25th) for pay app submission. Late submissions get held to the next cycle. Verify the AIA G702 / G703 (or owner-required form) arrived through the contracted channel — Procore Invoicing, GCPay, Textura, or email.

Pull the executed subcontract, latest change orders, and bonding documentation. Pay app values cannot exceed the contract sum plus approved COs — a common rejection reason is billing against an unsigned PCO.

Federal Davis-Bacon and state "little Davis-Bacon" jobs require certified payroll (WH-347) tied to each pay period. If this project carries a wage determination, the certified-payroll review path activates downstream.

Confirm each G703 line matches the approved schedule of values — no new line items, no reallocation between codes without a written SOV revision. Front-loading is the most common dispute on early pay apps.

Walk the work-in-place with the area super or foreman. Compare to last month's reported percent complete and the three-week look-ahead. If billed percent exceeds observed install, kick back for revision before routing.

Issue a written rejection in Procore / GCPay with the disputed line items and observed percent. The sub resubmits; the pay-period clock restarts per the subcontract's terms.

Stored materials require bill of sale, photos, off-site storage agreement (if applicable), insurance rider naming the owner, and segregation/tagging on site. Owners commonly reject stored materials lacking any one of these.

Verify retainage rate (commonly 5% or 10%, with reduction at 50% complete on some contracts) and that it is calculated on this period's billing plus stored materials per the subcontract language.

Use the state's statutory form where required (CA Civil Code 8132 conditional progress, FL 713.20, TX statutory). Conditional partial waiver is required with this pay app; unconditional partial covers the prior period now being paid.

The unconditional partial covers funds the sub has now received. Do not release the current pay app's check without the prior period's unconditional in hand — this is the gotcha that creates double-payment exposure.

Cross-reference the sub's preliminary notice list (20-day notices in CA, NOC parties in FL, etc.) against waivers received. Any noticing party without a waiver this cycle is an open lien-rights exposure — flag for joint check or bond claim review.

Check GL, WC, Auto, and any project-specific endorsements (additional insured, waiver of subrogation, primary and non-contributory). A lapsed COI mid-project is a stop-payment trigger and a contract default event.

On Davis-Bacon and state prevailing-wage jobs, verify each worker's classification matches the wage determination, fringe rates are correct, and the Statement of Compliance is signed. Missing or wrong-classification certified payroll is the most common DOL audit finding.

Federal projects and many states (NY, CT, MA, MO) require OSHA 10 for workers and OSHA 30 for supervisors within the last 5 years. Confirm rosters in HammerTech / ISNetworld match the workers on the certified payroll.

Review open back-charges in the project log: cleanup, damaged work, missed schedule milestones, hoisting, dumpster usage. Notice of back-charge must have been issued in writing per the subcontract before deduction; tally the period's offset against this pay app.

PM reviews the reconciled G703, COR adjustments, retainage calculation, and any back-charges. Approval routes to project executive on amounts above the PM's authority threshold (commonly $100K or contract-defined).

Roll the approved sub pay app into the consolidated owner G702 / G703. Most owner contracts have a 25th-of-month submission and 30-day net pay; confirm the funding draw aligns with the prime contract's prompt-pay schedule.

Release ACH or check after owner funds clear. Most state prompt-pay statutes require pay-when-paid releases within 7-10 days of GC receipt. Issue joint checks where lower-tier waivers are still outstanding and a noticing party is at risk.