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Pay Application & G702/G703 Software for Mechanical & HVAC Contractors

On commercial work, the mechanical contract is usually one of the largest on the job, and your monthly pay application has to reflect that — a schedule of values broken out by system and phase, big long-lead equipment ordered months before it's installed, and retainage held against every line. Getting the G702/G703 right matters, because a single math error or a Column D that doesn't tie to last month's application gets the whole package kicked back by the GC. DrawFort builds AIA-style G702/G703 pay apps the way Mechanical & HVAC subs actually bill.

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How mechanical / hvac subs bill — and where it goes wrong

Long-lead equipment billed while it sits in a warehouse

Rooftop units, air handlers, chillers, boilers, and VAV boxes get ordered months ahead, and you want to bill for them as stored materials before they're set. That means tracking Column F separately, carrying supplier invoices and proof of insured/bonded storage that GCs demand, and — when the equipment finally gets rigged in — moving it from stored into installed work without accidentally billing the same value twice.

A big, multi-system SOV the GC and architect will scrutinize

A lump 'mechanical' line gets rejected. Mechanical SOVs are broken out by system and phase — equipment, ductwork, piping, insulation, controls, test and balance — and often by floor or area on larger buildings. Building that schedule, getting it approved up front, and then billing each line at its real percent complete is a lot to manage by hand across dozens of line items.

Retainage on large equipment values ties up serious cash

Five or ten percent withheld on a six- or seven-figure mechanical contract is real money held back every month, and whether retainage also applies to stored equipment is a contract question that has to be tracked separately (Line 5b). Keeping retainage straight across many line items — and reducing it correctly at substantial completion — is easy to get wrong in a spreadsheet.

Carry-forward and change orders across a job that runs many months

Mechanical scope spans most of the schedule, so you're billing the same SOV period after period. 'Work completed from previous applications' (Column D) and 'less previous certificates' have to match last month exactly, and added scope — extra VAVs, owner-directed equipment upgrades, coordination-driven rerouting — has to land in the SOV as change orders. GCs reject pay apps that don't tie out or that bill a CO before it's approved.

A typical mechanical / hvac schedule of values

These are the kinds of line items mechanical & hvac contractors put on a G703 continuation sheet. DrawFort tracks each one across every billing period — percent complete, stored materials, retainage, and balance to finish.

  • Bonds, Insurance & Mobilization
  • Submittals, BIM Coordination & Shop Drawings
  • Major HVAC Equipment (Chillers, Boilers, RTUs, AHUs)
  • Major Equipment Set & Rigging
  • Sheet Metal Ductwork — Fabrication
  • Sheet Metal Ductwork — Installation (by floor)
  • Hydronic Piping — Chilled Water / Hot Water / Condenser Water
  • Refrigerant Piping
  • Duct & Pipe Insulation
  • VAV Boxes, Grilles, Registers & Diffusers (Air Distribution)
  • Controls / Building Automation System (BAS / DDC)
  • Start-up, Test & Balance (TAB) & Commissioning Support

How DrawFort helps mechanical & hvac contractors

  • Build the full multi-system mechanical SOV and bill percent-complete per line — equipment, ductwork by floor, piping, insulation, controls, and TAB each tracked at its own progress instead of one lump number.
  • Bill long-lead equipment as stored materials in Column F, with retainage on stored materials tracked separately, then bill it as work in place once it's set — with the schedule of values keeping the totals straight so the line isn't billed twice.
  • Carry-forward fills Column D ('work completed from previous applications') automatically and computes 'less previous certificates,' so a job that bills month after month always ties to the prior application — fewer rejections over mismatched numbers.
  • Add change orders for extra VAVs, equipment upgrades, or rerouted scope and have them flow into the schedule of values and the G702 totals, with retainage and balance-to-finish computed for you.
  • Export a clean G702/G703 PDF you can email to any GC, owner, or architect regardless of what software they run — standalone, no QuickBooks required, free to start and $34/month flat for the whole team.

Stop building pay apps in a spreadsheet

DrawFort fills in the carry-forward, computes retainage and current payment due, handles change orders, and exports a clean G702/G703 PDF your GC can approve at a glance.

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Frequently asked questions

How should a Mechanical or HVAC sub break out the schedule of values on a commercial G703?
By system and phase rather than one lump line: equipment, ductwork (often split fabrication vs. installation and by floor or area), hydronic and refrigerant piping, insulation, air distribution (VAVs, grilles/registers/diffusers), controls/BAS, and start-up/test-and-balance. Larger buildings get broken down further by level or area. GCs and architects routinely reject a single 'mechanical' line, so the breakout is expected up front.
Can I bill for rooftop units, chillers, and other long-lead equipment before they're installed?
Yes — as stored materials in Column F of the G703, provided you supply the documentation GCs require (supplier invoices or bill of sale, proof the equipment is paid for and insured, and often proof of bonded/segregated storage). Whether retainage is withheld on stored equipment depends on the contract. DrawFort handles stored materials in Column F (and retainage on them where your contract requires it), so the value isn't double-counted once the equipment is set.
How does retainage work on a mechanical pay application?
Typically 5–10% is withheld on completed work, shown on G702 Line 5a, and — if your contract calls for it — retainage on stored materials is tracked separately on Line 5b. On a large mechanical contract that's significant cash held back each period. DrawFort computes retainage on completed work and, where your contract calls for it, on stored materials, along with the balance to finish on every line item.
Why do GCs reject Mechanical & HVAC pay applications?
The most common reasons are arithmetic that doesn't tie out, a Column D that doesn't match the previous application, billing a change order that isn't approved yet, claiming a percent complete higher than what's actually installed, and stored materials submitted without backup. DrawFort's automatic carry-forward keeps Column D and 'less previous certificates' consistent month to month, which removes the math errors that get packages bounced.

Other trades

New to AIA billing? Read the G702 guide or compare DrawFort to other tools.

DrawFort produces AIA-style (G702/G703-compatible) documents. It is not the official AIA software and is not affiliated with, endorsed by, or sponsored by The American Institute of Architects.