What is an Accounting Equation?

A milestone in the construction industry refers to a significant event or achievement in the life of a project. It marks a turning point that indicates the completion of a major phase, or a key deliverable. For instance, it could be the conclusion of the design phase, acquiring a building permit, or completion of site excavation. These markers serve as checkpoints to monitor progress, assess risks and ensure that the project is on schedule. They function as tools for communication among stakeholders about the status of the project, providing a clear picture of the project's trajectory. Furthermore, milestones can also provide a basis for payment, wherein a contractor may be paid upon reaching specific milestones. In essence, milestones are pivotal in construction project management, underpinning successful planning, coordination, and execution of projects.

AIA® billing is a standardized payment application process for construction projects. Developed by the American Institute of Architects (AIA®), it uses specific forms—primarily the G-702® Application and Certificate for Payment and G-703® Continuation Sheet—to document and request progress payments throughout a project. These forms create a uniform system for contractors that shows exactly what work has been completed, what materials have been stored, and what payment is due during each billing period. They also require detailed information about contract values, change orders, and retainage amounts. AIA® has become the industry standard, especially for larger commercial projects and government contracts.

For subcontractors, understanding AIA® billing is essential since most large general contractors (GCs) require these forms or customized versions of them. While AIA® billing can initially seem complex, it provides important benefits like reducing payment disputes, creating clear documentation of work progress, and often resulting in faster payments. Mastering AIA® billing opens doors to working with larger GCs and bidding on more substantial projects. That’s why we created this comprehensive guide, filled with detailed information on completing AIA® billing forms and managing the payment application process.

Siteline simplifies the AIA® billing process by automating form creation and submission. Our system currently maintains 15,000 custom billing forms from more than 10,000 GCs, enabling subcontractors to generate perfect pay apps in minutes for fewer delays and faster, more predictable payments. Schedule a no-obligation demo to see how Siteline can help you streamline AIA® billing and reduce invoice aging by at least 30%.

A completed contract, in the context of the construction industry, is a concept relating to the financial recognition of a project. In specific accounting terms, it represents a method where all the costs and profit related to the contract are recognized only after the project has been finished and fully executed. This means neither revenues nor expenses are recorded in company books until all the work stipulated in the contract is fully accomplished. This approach contrasts with the percentage-of-completion method, which requires ongoing recognition of revenues and costs as the project advances. The completed contract method is often chosen for projects where outcome and costs are uncertain, essentially to prevent financial discrepancies.