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The Float

Glossary

Pay application

The periodic request for payment on a construction contract, showing work complete to date.

A pay application, or pay app, is the formal request for a progress payment on a construction contract. It shows the contract sum, approved changes, the value of work completed and materials stored to date by line of the schedule of values, retainage withheld, previous payments and the amount now due.

The owner's representative reviews the claimed percentages against work in place and certifies the application, which starts the payment period in the contract. Applications are commonly rejected for unapproved change work, mismatched prior billings, missing lien waivers or other required attachments, or late submission. Each rejection costs a full billing cycle, so agreeing percentages with the reviewer before submitting is standard practice.

General information, not legal or financial advice.