Continuation sheets are a great way to supplement a pay app. Progress payments can be tricky to quantify, and continuation sheets provide necessary details.

Progress payments are tricky. Listing the work and materials on a payment app only provides part of the story. In order to properly review the payment application, the real meat and potatoes are found on the second page: the continuation sheet.

What is a continuation sheet?

A continuation sheet is a full breakdown of all work and materials that have been provided to a project. It separates the entire contract sum into portions of work based on the schedule of values. This is a useful supplement to provide the necessary details to get a payment application approved.

The American Institute of Architects (AIA) publishes an array of standardized contraction contracts. The AIA is so influential, in fact, that many non-AIA contracts have been modeled around their forms and language. The AIA progress billing system involves two documents, the G702: Application and Certification of Payment, and the G703: Continuation Sheet.


For more information on Pay Apps:


What’s in a continuation sheet? A breakdown…

Whether working under an AIA contract, or any other project for that matter, a continuation sheet is a useful document to support your pay app. The more details offered, the more likely the app will be paid out in a timely fashion. Each line item task is listed in the first column along with all the corresponding information.

Here’s a breakdown of each section typically included in a continuation sheet.

Scheduled of values

Every contractor and sub should be using a schedule of values to keep track of project costs. A schedule of values (SOV) breaks down the scope of work into component parts with their corresponding values. Therefore, when listing line item tasks on a continuation sheet, the pricing should match the initial SOV prepared and submitted to the project owner or GC. This guarantees that the price is the same billable amount agreed upon in the contract.


For a deep dive on SOVs:


Work completed

Work completed is where the applicant shows how much labor and materials have been provided. This section is broken down into categories: (1) work claimed in previous payment applications, and (2) the work being claimed in the current pay period. Work completed is the total sum of previous payment applications, not including stored materials. Also, work claimed for this period can either be entered as a direct cost amount or calculated by the percentage of completion.

Materials presently stored

The value of materials claimed here is those that have been ordered and delivered, but have not yet been incorporated into the project. They are included in the pay app due to the costs associated with storing them on the job site.

Total completed & stored to date

The total completed and stored to date is the amount that represents the entire billable costs thus far. This includes the past payment applications, the current work being billed, and the materials that are presently stored onsite.

Percentage completed

The percentage completed is a handy figure to keep track of progress. The percentage can be calculated by accounting software, but the math is simple. It’s the total completed and stored to date figure divided by the scheduled value.

Balance to finish

The balance to finish is a useful number, not only to confirm pay apps but also to keep track of individual work progress. Balance to finish provides the percentage of completion of each particular task. Ultimately, it represents the remaining value of the work or materials based on the scope of work.

Retainage

Lastly, retainage. This is the percentage of the amount due for labor or materials that’s been withheld until the final completion of the project. This percentage should be assigned to all tasks and materials stored. You can read more retainage discussion here: Retainage | Levelset Construction Payment Blueprint.

Bottom line

Even for those who aren’t using AIA contracts, utilizing a continuation sheet can be helpful. Continuation sheets provide accuracy and detail, two things that hold great importance to those in charge of approving payments. Facilitating the approval process any way you can help speed up payments, so providing a detailed continuation sheet with a pay app is a win-win.


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Continuation Sheets | How Details Can Speed up the Pay App Process
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Continuation Sheets | How Details Can Speed up the Pay App Process
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Progress payments are particularly tricky to quantify. Listing the work and materials on a payment app only provides part of the story. Therefore, in order to properly review the payment application, the real meat and potatoes are found on the second page: the continuation sheet.
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