Pay Applications Administrative Reviews

A review process to enhance and streamline the billing format and methodology used to process the monthly Payment Applications from the contractor to the owner to maximize both efficiency and effectiveness.

The “standard” billing process used throughout the construction industry, is based upon The American Institute of Architect’s AIA G702 and G703 format. This platform normally utilizes the Construction Specifications Institute’s (CSI) standard formats for organizing categories of cost by division. The concept is fairly simple and straight-forward. Unfortunately, while the basic format is widely used, it has been modified and reformatted so many times (to suite the particular needs of the various users), the resulting patchwork of formats and related billing methodologies has created virtual conundrum for the industry. Owners and contractors alike are accustomed to “their” way of doing things. This has created a variety of problems for each. As a result, a very simple application in concept has gotten exponentially more difficult.
We also believe fewer people truly understand the billing format as more people accept the “default” formats proposed by one of the contracting parties. This, in turn, has made it more difficult for contractor’s to either prepare a billing or for Owners to comprehend and approve the billing. We believe this problem can be minimized or eliminated by being more strategic, up front, in the establishment of the billing format and related methodology. We also strongly endorse and recommend an application called “Textura” (texturallc.com), which is a relatively new tool to the industry. This application was developed specifically to address the multitude of deficiencies in the construction billing and payment processing area and has gained widespread acceptance since it’s inception a few short years ago.