What Is a Pay Application in Construction?

February 16, 2024

A pay application is a form that outlines the details of how a subcontractor will be paid for work completed over a specified time period. This is a crucial step in the construction payment process. It allows a subcontractor to request payment and confirm that they have earned the amount they are asking for.

The payment application is often a more thorough and detailed document than an invoice. It may include the following items:

A schedule of values that identifies how much a project is expected to cost in total. It should also list the amount of each type of work and what was done to date. This helps the GC or owner see exactly what they are paying for and provides clear evidence of a contract compliance issue.

An itemized list of work that was completed and materials stored during the pay application period. The GC or owner will then review this and approve the application for payment.

Contractors should make sure to have all required documents with the pay application to avoid delays. These requirements can vary from job to job and even within a specific contract, so be sure to read yours thoroughly and follow the steps for payments carefully.

The pay application is also a great opportunity to provide lien waivers if needed. Having them with the application will help speed up the process of getting paid and reduce financial risk for the contractor. If you are not sure of what is required for a particular project, it is helpful to reach out to your GC and ask for the most up to date forms that are available. Another way to streamline the process is to use a payment application platform like Truss that can help track spending and simplify expenditure documentation.


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