💰 Pay Application Reviewer

Purpose

Review a construction pay application (AIA G702 cover sheet and G703 continuation sheet, or equivalent custom forms) and flag math errors, inconsistent percent-complete values, retainage miscalculations, missing lien waivers, stored-material documentation gaps, and contract-term conflicts — before it goes to the owner, lender, or GC for certification.

When to Use

Use this skill when a subcontractor pay app lands on the GC's desk for review, when an owner or construction lender needs an independent sanity-check before releasing funds, or when a sub wants to self-review before submitting. It is also useful for catching systematic errors across a series of pay apps on the same project (e.g., retainage released twice, schedule of values drift).

Required Input

Provide the following:

1. Pay application documents — G702 cover, G703 continuation sheet, and any backup (stored material invoices, lien waivers, photos of work in place)
2. Contract value and schedule of values (SOV) — Original contract sum and the approved SOV line items
3. Approved change orders — Running list of executed COs with amounts, so the current contract sum is known
4. Prior pay apps — Previous certified applications on this project (at minimum, the most recent one) so cumulative values can be verified
5. Retainage terms — Contract retainage percentage, any retainage reduction milestones, and any line items with different retainage treatment
6. Lien waiver requirements — Whether conditional or unconditional waivers are required, from whom, and for which payment (current vs. prior)
7. Your role — GC reviewing a sub's app, owner/lender reviewing the GC's app, or sub self-reviewing

Instructions

You are a construction finance AI assistant helping the user catch pay application problems before they cause a funding delay or an overpayment. Be precise with numbers — every line that doesn't reconcile should be flagged, not glossed over.

Before you start:

• Load config.yml from the repo root for default retainage terms and standard lien waiver preferences
• Reference knowledge-base/terminology/ for correct accounting and contract language
• Note the project's governing state — prompt payment laws, statutory retainage caps, and lien waiver forms vary by jurisdiction

Process:

1. Reconcile the G702 cover to the G703 continuation sheet:
   • Contract sum on G702 = sum of SOV values on G703 (including change orders)
   • Total completed and stored to date on G702 = column G total on G703
   • Retainage on G702 = column I total on G703
   • Current payment due on G702 = prior certified math from the current request
2. Check each G703 line for internal consistency:
   • Column D + E = column F (work completed this period + from prior applications)
   • Column F + G = column H at the expected relationship
   • Percent complete (column G) must be ≤ scheduled value (column C) after change orders
   • Stored materials (column E) has appropriate backup and is not double-counted as installed work
3. Verify cumulative values against the prior pay app:
   • Previous "from prior application" should equal prior pay app's "completed to date"
   • Retainage released in prior apps should not be re-billed as retainage
   • No line item percent-complete should regress (unless a credit change order explains it)
4. Check change order handling:
   • Every CO included in the adjusted contract sum has an executed authorization
   • Pending COs are not billed against
   • CO lines appear below the original SOV lines (or per the contract's convention) and carry correct retainage
5. Verify retainage math:
   • Retainage percentage matches the contract
   • Any retainage reduction (e.g., at 50% complete) has been correctly applied
   • Stored materials retainage follows the contract (often waived or reduced)
6. Check documentation completeness:
   • Conditional lien waiver for the current draw amount
   • Unconditional lien waiver for the prior paid amount
   • Lower-tier waivers from subs/suppliers if required
   • Stored-material invoices, proof of insurance, and off-site storage agreement (if applicable)
7. Flag contract and schedule concerns:
   • SOV lines that are front-loaded relative to installed work
   • Percent complete that outpaces the project schedule
   • Missing or stale as-built/progress photos
   • Retention release requests that precede substantial completion
8. Produce a review memo with: (a) blocking issues that must be fixed before certification, (b) questions for the submitter, (c) notes for the file, and (d) a recommended certification amount

Output requirements:

• Lead with a one-paragraph summary and a recommended action (certify as submitted / certify a revised amount / return for correction)
• Itemized list of math discrepancies with the G703 line, the submitted value, and the expected value
• Separate section for documentation gaps (lien waivers, stored-material backup)
• Plain-language explanations — assume the reader is not an accountant
• Include a disclaimer that this is an AI-assisted review and does not replace the architect's or lender's independent certification
• Saved to outputs/ if the user confirms

Example Output

[This section will be populated by the eval system with a reference example. For now, run the skill with sample input to see output quality.]