Stored Materials on the G703: A Step-by-Step Billing Checklist

Why Stored Materials Billing Needs Its Own Process

Billing for stored materials is one of the most rejection-prone parts of a pay application. Owners and architects push back because the documentation requirements are strict, the accounting treatment is easy to get wrong, and most contractors don't have a repeatable process for it. The result is a late payment or a corrected pay app that sits in review for another month.

This checklist walks you through every step, from the day materials arrive on site (or at a remote storage facility) to the billing period where those materials get incorporated into the work and shift columns on the AIA G703-style continuation sheet. Follow it in order and you will not leave money on the table or hand the architect a reason to reject your draw.

Step 1: Confirm Your Contract Allows Stored Materials Billing

Before you do anything else, read the contract. Not every owner-contractor agreement allows payment for stored materials, and some that do add conditions: the materials must be on-site only, or they require an additional insurance endorsement, or they cap the stored materials amount at a percentage of the contract value.

Pull out Article 9 of the AIA A201 General Conditions (or your project-specific equivalent) and note the exact language. If you are on a custom owner contract, find the payment application section. Write down the specific conditions. This becomes the standard your documentation must meet.

Step 2: Get Advance Approval Before You Bill

Most architects require written approval before stored materials appear on a pay application. Submit a written request to the architect and owner as soon as you know you need to bill for stored materials. Include the material description, quantity, value, and proposed storage location.

Do not assume approval. "We always bill for stored materials on this type of project" is not a substitute for a written sign-off. An unapproved stored materials line on the G703 is the fastest way to get Column F flagged and your entire pay app delayed.

Step 3: Assemble the Required Documentation Package

This is where most applications fail. The documentation must be specific and complete before you prepare the G703 entry. Gather the following:

• Vendor invoice or bill of lading: Shows the material, quantity, and price. The invoice must match the dollar amount you bill. Do not estimate.
• Proof of payment or a clear payment obligation: Some owners require evidence you have paid the vendor before they will pay you for stored materials. Know what your contract says.
• Storage location confirmation: A written statement, site photo, or delivery confirmation showing where the materials are stored. For off-site storage, you typically need a bonded warehouse agreement or a certificate of title showing the owner's name on the materials.
• Insurance documentation: Most contracts require the stored materials to be covered under your builder's risk or an inland marine policy. If the owner requests off-site materials billing, they may require a separate endorsement naming them as an additional insured on the storage location's policy.
• Schedule of Values line item reference: Every stored materials entry on the G703 must tie back to a specific Schedule of Values line. You cannot create a new line mid-project just for stored materials without a change order.

Step 4: Enter the Amount Correctly on the G703

The AIA G703-style continuation sheet has a dedicated column for stored materials: Column F, "Materials Presently Stored." This is separate from Column D (Work Completed This Period) and Column E (Work Completed from Previous Applications).

Here is the rule: Column F captures only the value of materials that are stored but not yet installed. The moment those materials get incorporated into the work, you remove them from Column F and add that value to Column D or E, depending on when the installation occurred.

A common error is leaving materials in Column F after they have been installed. That overstates stored materials, understates completed work, and distorts your percentage complete in Column G. Auditors and architects catch this. Fix it before submission, not after.

Also confirm that the sum of Columns D, E, and F for each line does not exceed the scheduled value in Column C. If a stored materials entry would push a line over budget, you need a change order first.

Step 5: Track the Material Through the Full Billing Cycle

Create an internal stored materials log. A simple spreadsheet works fine. Track the following for each stored material entry:

• G703 line item and description
• Vendor invoice number and date
• Dollar amount billed in Column F
• Pay application number where it first appeared
• Date materials were installed or incorporated
• Pay application number where the amount moved from Column F to Column D/E

This log serves two purposes. First, it keeps your G703 accurate across billing periods. Second, it gives you instant backup if an owner disputes a prior stored materials billing or your auditor needs to trace the draw history.

Step 6: Reconcile at the Start of Every Billing Period

At the start of each new billing period, before you prepare the next pay application, go through your stored materials log. For every item currently sitting in Column F on the prior G703:

• Confirm whether the material has been fully installed, partially installed, or is still in storage.
• Move installed quantities from Column F to Column D for the current period.
• Update Column E (cumulative work completed) accordingly.
• Verify that the retainage in Column I is calculated on the combined total of Columns D, E, and F, per your contract retainage rate.

Retainage applies to stored materials in most contracts. Do not skip Column I on stored materials lines. Doing so inflates your net payment request and gives the owner grounds to short-pay you.

Step 7: Final Check Before Submission

Run through this fast review before you sign and notarize the G702 cover sheet:

• Column F total on the G703 matches the sum of documented vendor invoices in your package.
• Every Column F entry has an approval letter or email on file.
• Materials that were installed this period have been moved out of Column F.
• Retainage is applied to Column F amounts.
• No G703 line exceeds its Column C scheduled value.
• Your documentation package (invoices, photos, insurance certificates, storage agreements) is assembled and attached before the pay app goes out.

A clean stored materials submission moves through architect review without a markup. That means faster approval, faster payment, and no back-and-forth over documentation you should have included the first time.

Keep It Moving

Managing G702/G703 pay applications manually gets tedious fast. EZBilling handles progress billing, retainage, and change orders in one place, so your stored materials entries stay accurate across every billing period without rebuilding the math from scratch each month.