Stored Materials on the G703: How to Bill Them Without Getting Rejected

Why Stored Materials Billing Goes Wrong

Billing for stored materials is one of the fastest ways to get a pay application kicked back. Architects and owners scrutinize these line items closely, and rightfully so. You're asking to be paid for work that hasn't been installed yet. If your documentation is thin, expect delays.

The good news is that the G703 continuation sheet has a dedicated column for this, and the process is straightforward once you understand what the owner and architect actually need to see.

The G703 Column Structure for Stored Materials

Column F on the G703 is labeled "Materials Presently Stored (Not in D or E)." That last part matters. Materials that have already been incorporated into the work belong in Column D (Work Completed This Period) or Column E (Work Completed Previous Periods), not Column F. Column F is only for materials on hand but not yet installed.

Here's how the math flows across the columns for a single line item:

A common mistake is double-counting. If you bill $40,000 worth of roofing membrane in Column F this period, then install it next month, you move that amount out of Column F and into Column D. You do not add it to D on top of what's already in F. The total in Column G should stay flat or increase, never jump because of an accounting error.

What Documentation You Need Before Billing Stored Materials

Most AIA contract documents and owner-specific billing requirements follow the same basic standard. Before you include anything in Column F, have these items ready:

Off-site storage gets the most scrutiny. If your steel is sitting in a fabricator's yard instead of at the jobsite, the owner wants to know they have some legal claim to it before writing you a check. AIA Document G706A (Contractor's Affidavit of Release of Liens) and a stored materials schedule are sometimes requested together.

Off-Site vs. On-Site: Different Rules

On-site stored materials are generally easier to approve. The owner can visit the jobsite and verify the materials exist. Keep them clearly identified, protected from weather and theft, and staged in a way that makes inspection straightforward.

Off-site materials require more paperwork and, in many cases, the owner's written approval before you can bill them at all. Check Section 9.3.2 of AIA A201 General Conditions. It states that the owner is not required to include off-site stored materials in a pay application unless the contractor provides documentation satisfactory to the owner and the materials are insured and identified as the owner's property.

Get that approval in writing before the pay application goes out. Submitting a G703 with off-site stored materials and no prior approval is a reliable way to receive a rejection letter instead of a check.

Moving Materials from Column F to Column D

Once materials are installed, the carry-forward math requires you to reduce Column F and increase the installed work totals accordingly. The balance in Column G for that line item stays the same. If your Column G jumps up without a corresponding increase in actual work or new material deliveries, the architect will notice and ask questions.

Run a quick reconciliation each billing period. For each line item with Column F activity, confirm the current F balance equals actual uninstalled material on hand. Treat it the same way you would a material inventory count.

One Last Thing Before You Submit

Attach a stored materials schedule as a backup exhibit to your G703. List each material, the vendor invoice number, the storage location, the invoice amount, and the amount you're billing. This one page prevents most stored materials rejections before they happen.

Managing G702/G703 manually gets tedious fast. EZBilling handles progress billing, retainage, and change orders in one place, including stored materials tracking across pay applications.